Social Media: Wal-Mart finally gets it!
Wal-Mart has been in the news a few times with PR firm Edelman for its social media disasters. First it was Wal-marting across America, next it attempted to create its own MySpace-ish social network, which was embarrassingly shut down only 10 weeks later. Next, it smarted up and tried using Facebook to reach its younger audiences, though that failed too.
Now, I for one would like to see Wal-Mart do well. Yes, they’ve got a bad rap in the past for mistreating associates and participating in child/slave labor, but honestly I think they’ve learned their lesson for the most part, now as the world’s largest retailer they are doing good stuff for charities, promoting local and ethical products, etc. I also worked at Wal-Mart at 18, and as a job to have while in high school/college, it was great. I was promoted to customer service manager in a few months, and I was making more than most of my friends working min. wage jobs. A far cry from perfect, for the biggest retailer in the world, they are at least doing some things right.
That’s why I was happy to hear they’ve finally got the right idea with social media. Which in this case, it is starting small and building long-term strategy into its approach. User-generated reviews are a fantastic and natural fit for retailers, and Wal-Mart was even smart enough to cross promote online reviews on in-store receipts. It goes a step further and even encourages shoppers to go online and read reviews on shelf fact tags before making a purchase decision.
Essentially what Wal-Mart is doing–which is key to social media and which many retailers miss– is that it is giving up control to consumers and providing avenues to make informed purchasing decision. Yes, telling people to go online and read reviews BEFORE buying while in-store seems like a backwards strategy–that is, the customer will leave the store without buying–it’s actually genius, because that person will probably be more loyal, and buy even more, long term.
I hope Wal-Mart tracks its success well, and that the results are publicly available. For smaller retail outlets this move might seem like a risk, but Wal-Mart continues to be the leading retailer, despite its epic social media failures, so they can afford to try virtually anything. I’ll be staying tuned…
PS-Thanks to @giggey on Twitter for tipping me off to this story…
April 9th, 2008 at 5:05 am
Yes, that looks pretty interesting. A lot of companies are using social media already to recieve feedback. The only reason why some of them don’t do it is because customers write more often with a critisizing purpose, than to say something good about the products. It’s not a very good promotion tool, but it improves CRM.