Blogging: How to connect with your customers.

I’m focusing my blog on two specific organizations that I believe have created a strong blog. How do I define a strong blog? One that has a strong following, calls customers to action, and also strengthens the company’s image. In strengthening the company’s image, it needs to fit in with their values. For example, Burger King would be smart to avoid a blog in healthy eating and organic ingredients. In Groundswell, we see that creating a blog can allow for unmoderated conversation; however, if a company is to start one, they can offer a greater amount of control. Companies who do not blog can inadvertently allow others to change their image and it can be either positive or negative.

The first company I would like to focus on Southwest Airlines. As a company with a strong cult following, the blog is an enhancement of the brand. Southwest uses their blog primarily to gain experiences. They share historical pictures, stories about their routes and their fun workplace. A customer reading this blog would see the reoccurring theme that defines Southwest- fun. Responses to the blog posts tend to be favorable comments about memories with Southwest, or some insights into flight routes that customers would like. Currently, they offer an opportunity for their customer to connect to Southwest with their stories about historical events and key employees. I see an area of opportunity for Southwest to increase their blog posts that offer more two way interaction. For example, they could offer a contest to share your best love story involving Southwest. This also plays into their home base of “Love field!” In southwest’s case, I believe their best use of the blog is to gain customer insights. While they could do a “surprise and delight” and occasionally give away free tickets or swag to enhance the Southwest experience, I think they should focus on gaining insights. Southwest has always been very customer centric, and the blog could add another robust aspect.

The second blog I’d like to talk about it Eat, Live, Run. This is personal blog, with a focus on a healthy lifestyle. Here’s where I see an opportunity for companies to create experiences. Jenna, the author of the blog, often reviews food products. In the last few years, companies have sent her products to try. When reviewing (whether the item is a sample, or purchase), she shares her thoughts with her loyal readers. Comments often include discussing favorite flavors, or new uses for the product. This viral conversation can often create a buzz about a new product, and a company can benefit greatly. In Groundswell, the focus on not what technology a company uses, but more importantly, the relationships is creates. The relationship that Jenna has with her readers is one that any smart health company could viably tap in to. Creating experiences in an environment where there is already trust built between the reader and the blogger is a great way to share products. Understanding the demographics of the Eat, Live, Run reader could help companies better focus their marketing plan as well.

Blogging is a great way for companies to create relationships or gain insights. However, the company must first make sure they understand the customer’s engagement of their product in order to best focus their efforts. For examples, I can’t imagine City of Austin Gas trying to successfully create a fantastic experience for me that makes me sing their praises. However, I would be happy to offer them feedback on their billing system and website to make my interaction with them easier.

Walmart, information giant or big brother?

This article offers up a very detailed viewpoint on the amount of information Walmart is learning about its customers. While the potential for abusing the information is scary, thus far there hasn’t been any cause for concern.

I do believe that the exorbitant amount of information that Walmart collects has helped them gain a competitive advantage. For example, when I go into a Walmart store, they usually have the end caps with “wants, not needs” items, for example, soda or brownie mix. I presume they use the data of what they have sold in order to determine what purchases, outside of the necessities, that are strong sellers in each individual store. As I’ve learned in my integrated marketing course, the purchases that are peripheral route processing which means they tend to be quick decisions. With these products that are minimally processed, Walmart can push their own brands, or whatever brands they are promoting on the end caps, using the data they have on purchasing. They also use the data to focus their store product and design based on the customer’s demographics. This could allow them to better understand when shopping is more prevalent, or what products need in store advertising to boost sales. For example, knowing your shoppers buy more produce on Sundays at noon, you could change your delivery times to ensure fresh fruits and vegetables. This strength based on data, combined with the low prices, helps Walmart to be a market leader.

I find it impressive the ability to sort the data, particularly, and if the data is used effectively, it can enhance sales. For example, Safeway tracks the number of apples a customer purchases per visit. This could help them to sell a bulk bag based on the average number of apples people buy. What concerns me with Walmart is the social security number and driver’s license. While the purchase and demographic information makes sense, but the other information gained from social security and driver license information is concerning. What use or need does Walmart have with access to your mortgage payments? If they know that, will they try and buy areas where people are defaulting on their loans and build a new store? The detail of information they have does bother me, and I don’t trust them with that depth of customer information.

Using the data, Walmart is able to use not only their economies of scale, but their detailed information to get what they need, at the price they want, from their suppliers. This detailed data they are keeping allows them to push their supplies to give them greater discounts and more control over what they sell. A friend used to work at Nestle, and they renegotiated their contract based on detailed sales info about decreasing sales, and cut their margins. Nestle was forced to comply, as Walmart was their largest customer. While the information garnered may be able to help suppliers determine information about their products like; what size, color or style is a best seller, it can be used for Walmart to use their formidable strength to bully their suppliers. Without a reasonable amount of profitability, Walmart could potentially drive their suppliers out of business if they abuse the data they have.

Walmart continues to impress me with their innovation in gathering data, and using some of this information to better their stores. However, who is going to monitor Walmart activities as they continue to learn more and more about their customers?