Before I start answering these questions and talking about the article I just read, I need to inform you of something. I hate Walmart with an absolute passion. I hate what it does to small businesses, I hate how dirty and gross most of them seem to be, and I hate that my local Walmart just recently was painted brown. Can you think of an uglier color to paint a store? So I am obviously a tad biased against Walmart. That being said, I will try to approach this as if it were a store that I didn’t dislike.
As I was reading this article, I had very mixed feelings. I think that in some cases Walmart uses its “mountain” of customer data in an extremely successful way. By being able to tell that people tend to buy accelerated amounts of pop tarts and beer (and really, who can blame them?) during natural disasters, Walmart was adequately able to fulfill the needs of people during a crisis. That’s very important to me, and it is also the reason I do not shop at HEB anymore. Every time I went there, they would be out of something I needed. You would think that they would figure out that 90% of UT students shop there and they should keep their shelves properly stocked at all times. But no, they haven’t caught on yet. This is where, in my mind, Walmart illustrates its competitive advantage over other stores. As long as they use their customer data to keep the shelves stocked and their customers happy, they are creating a viable competitive advantage over other stores.
Here is where my negative feelings come in to play. Walmart can figure out my social security number, drivers license number, mortgage payment (well, I don’t exactly have a mortgage payment, but that’s not really the point), and other really creepy personal things that I only want my mother knowing??? That is not okay with me. Lee Scott (CEO of Walmart) could sit down, look me straight in the eye, assure me that my personal information would never be used in a harmful way, and I STILL would not be okay with them knowing that much about me. In the article, Ms. Dillman reassures us that Walmart has never used credit card info to find out personal information about people. But how can we really believe her? It’s not only scary that they will use my personal information, but I think it’s creepy that they even have access to it. They say they don’t use it now, but who knows what will happen in the future? Sarah Stansberry, from AccuData America, comments that companies can find extremely personal information using email addresses. Though she says they have never done work for Walmart, how can we be so sure that they won’t in the future?
So far, to the customer’s naked eye, Walmart is using its technology for good. They are benefitting their customers by understanding what we buy, when we buy it, and what we buy it with. Like I said earlier, I hate understocked shelves and I’m sure others do as well. By utilizing their technology to understand their customer’s needs, Walmart can make their customers very happy while asserting their competitive advantage over places like HEB. During the holiday season, I tend to eat a lot of pumpkin based products. Pumpkin pie, pumpkin coffee cream, pumpkin gelato…basically, if it has pumpkin in the name, I’ll eat it. HEB was out of pumpkin pie mix the other day. If they could understand what their customers buy and when they buy it like Walmart can, maybe they could retain more business.
I believe that Walmart is doing a good job with their technology. However, I have a few suggestions. In this economy, more and more people are turning to Walmart for everyday products that they would normally buy at a more expensive place. People are doing anything they can to save some money. Because of this, I believe Walmart should use its technology to create an experience that appeals more to a higher income crowd. In Plano, Walmart opened a “luxury” store. This store has everything that other Walmart stores have, but it also has hardwood floors, a very nice meat counter, an extensive wine selection, and not so harsh lighting. If Walmart opened more of these stores, I guarantee I would stop loathing them as much (I would still hate them, just not as passionately), and I might even occasionally shop there. Here is where Walmart can use people’s personal information for good. If they recognize that people in a certain store are spending more on higher end products, such as expensive electronics, organic vegetables, or imported beer and wine, Walmart could consider opening a “luxury” store in that market. If Walmart could use their data to better understand customer’s wants, and not just their needs, I believe they would be able to create a major competitive advantage over other stores.
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