Sandbox+Nurym

Walmart doesn't have a loyalty program. They officially respond:

”We want to offer everyday low prices to all of our customers” “We believe that all of our customers deserve the lowest price possible, not just certain customers” “Shoppers don’t have to be in a certain special group to save at Walmart”. “We will not let up on our passion to reduce operating expenses so that we can invest in lower prices. This is the promise our customers expect from Walmart and what drives greater loyalty.”\

In the long term, loyalty cards encourage customers to spend even more money. Loyalty cards bring one huge advantage, they bring data about customers: their shopping habits, goods they look for, demographics, etc. Walmart absolutely needs that kind of data to be more adaptive for customers’ needs, that’s why instead of loyalty programs, they use different methods of gathering data:


 * “Scan & Go” smartphone app, which allows to scan the items as they shop, check prices and availability, leave customer reviews and ratings. This way Walmart can easily know what customers love to buy and look for frequently.
 * Walmart offers reloadable Visa and MasterCard credit cards, “Bluebird” prepaid debit cards, customers are able to make deposits, pay bills, shop at Walmart. Those cards reveals their personal data, including sex, age, home address, etc.



Walmart: Loyalty Cards? We Don't Need No Stinkin' Loyalty Cards! (n.d.). Retrieved December 9, 2014, from [] Walmart Mobile - Walmart.com. (n.d.). Retrieved December 9, 2014, from []

Question 4
How does the system work?

For example: include diagrams and bulleted text on how the loyalty card system works in the company you are studying

Walmart doesn't have an explicit loyalty system, but they use discounts and coupons to increase their sale volumes and to attract customer.

Coupons can save up to 80% of the price, can include services like free shipping. Coupons can be advantageous to Walmart if some of the products have low demand. The process of using coupons: 1) The customer takes the coupons from the local newspapers, coupon specialized sites like Groupon, from friends and other sources for specific products or services. 2) The customer comes to the store that accepts those coupons and picks the items that the coupons are applicable for. 3) The customer hands the goods to the cashier and shows the coupons. 4) The cashier checks the coupons for legibility by comparing what's shown in the coupon with what's in the database. Then, the cashier marks the coupon as used to prevent copying the same coupons. 5) The customer pays the discounted price, gets his/her goods and goes home and lives happily ever after.
 * Coupons (**vouchers which then allow customers to buy products at lower prices) are used extensively in Walmart and are classified to two types:
 * Manufacturer coupons** - coupons made by the creators' of the product. For example, if you have manufacturer coupons for Snickers, they would be made by Mars Inc. - manufacturers of the Snickers bar. These coupons can be used in any stores that sell that product.
 * Store coupons -** coupons produced by the stores themselves and can be used only at that store or in one of the branches.

Question 5
What are the drawbacks/issues with the system? You should include the current problems that the company face with this system e.g. losing market share with another company?

1) Critics point out that excessive distribution of coupons are correlated with the falling redemption rates. 2) Excessive distribution of coupons create the possibility for fraud (using fake coupons to redeem products). 3) Not an effective marketing tool as no more than 2% of them are redeemed. 4) No targeting to potential customers. 5) Low trackability. 6) Reduce revenues for stores if a coupon campaign is not carefully thought out.
 * Coupons: **

Question 9
What analysis does the company conduct on the data it collects and for what purposes?

Talking about coupons, Walmart is able to gather data by looking at the usage of coupons for certain coupons. If coupons for certain products are given out by filling out a form, then Walmart is able to gather information about the demographics, region and age of the customers and their needs. This data can be extremely beneficial, as they can more easily target their customers and present coupon offers to those who might actually use it. When building new stores in new locations, Walmart is able to know what products have demand in that region, so they stock the aisles with appropriate products.