Between the Google zeitgeist and blogs, I would say both are helpful marketing research tools, but one is more useful depending on the purpose and type of topic or brand someone is researching. Overall, I would say the zeitgeist is more helpful for researchers when they want to observe and analyze trends, especially with website traffic. This would mostly pertain to businesses that have a lot of online activity. For example, online shopping such as Amazon and eBay, rating and review sites such as Yelp and Citysearch, and even in-store shops like Express and Victoria’s Secret who have customers that also shop online or prefer to shop on their online website. Marketing researchers are able to analyze these trends based on month, year, region, city, and even across countries. Then, they can use this information to improve website traffic during slow periods and locations, as well as provide the best deals and opportunities for customers during peak seasons.
Google blogs have a more broad use for marketing researchers, as well as regular customers. Bloggers can pretty much write about anything they wish, so there is a wider range of information that blog readers can access. Personally, I would use Google blogs much more than the zeitgeist as a customer. The blogs are useful to become more aware, learn about the strengths and weaknesses, read about special events, and hear personal stories from customers of various products and services.
Using the Google zeitgeist and blogs, I searched for Victoria’s Secret because it is one of my favorite women’s apparel shops. With the zeitgeist, I found information on trends of their company search and website traffic. With Google trends (a broad look at search query data), I found that the average worldwide traffic was highest at the end of each year, in November and December, and highest overall in the United States and in English. Using Google trends for websites (website traffic data), I found similar data as Google trends, but also learned what other sites Victoria’s Secret customers searched (vspink.com, vsallaccess.com, and bebe.com) and also what search names they used when searching Victoria’s Secret (victoria secret, victoria’s secret, victorias secret, victoria’s secret coupons, etc.). Displaying what customers also searched for may be helpful to a market researcher when deciding what key words will trigger the main Victoria’s Secret website to pop up as the first result in a search engine.
As for Google blogs, I found a variety of blogs with different, interesting information in each, but was surprised that I did not easily locate what I was expecting to find. I was expecting to see a lot of blogs that customers wrote on their experiences with certain products from Victoria’s Secret, but was disappointed to not find much on that aspect. Compared to customer opinions and experiences, I found more blogs advertising certain products (“miraculous push-up bra”), model contests and top 10 finalists, Victoria’s Secret going to the UK, who will walk in their annual fashion shows, and coupons and deals. Although it was interesting to hear about their model contests and finalists, fashion shows, etc. I was more interested in hearing customer opinions about their new and old products. I wanted to hear stories about customers’ favorite or least favorite products and experiences, but did not really find any in the blogs I looked through. The most helpful blogs to me were the ones on their new push-up bra and coupons/deals. Then again, I wish the new push-up bra blogs shared more opinions and experiences, rather than just being another advertisement. Even as a marketing researcher, I believe these blogs left out important data pertaining to customers’ insights which could have been available through bloggers’ opinions and experiences of Victoria’s Secret products and brand. Therefore, Google blogs should include more blogs about customers’ opinions and experiences to give marketing researchers more insight into their data.
Although there are many great social media tools, it is important to consider the products and/or services of your company, to most effectively utilize social media. For example, when working as an intern at Chasse Consulting, a sales strategies consulting firm, one of my projects was to develop a social media strategy. We found that Facebook and Twitter were not good tools to use for our high-end services because they would not have much value to our clients. Facebook and Twitter would be better for a company like Tiff’s Treats to help them with their advertising efforts. These tools would have been useless for our services, which require more face-to-face interaction and past client opinions and experiences. Blogs and ratings & reviews would have been more effective for Chasse Consulting.
I believe blogs and ratings & reviews are really great, effective social media tools for almost any company. For every product and service you buy, most people want to hear feedback not only from their friends and family, but also from past users before purchase. Blogs allow readers to hear about what users typically like, dislike about a product or service, the strengths and weaknesses, what a product or service is missing, and even some personal stories and experiences. These can be really beneficial insights not only for customers, but also marketing researchers who are trying to discover how to improve their products and/or services and the experience they bring with them.
Ratings and reviews are a similar tool that allows readers to gain detailed information regarding a product or service. This tool is usually helpful when searching restaurants and movies. Before I try a new restaurant, I like to look at the menu online, as well as hear about past customers’ opinions and experiences to get an idea of what to expect. And if I hear enough bad reviews, it’s enough to persuade me not to go there and try something else. Therefore, marketing researchers should actively manage the information on the blogs and ratings & review sites to use it to their benefit and reduce the negative associations these reviews can bring.
Wednesday, November 11, 2009
Wednesday, November 4, 2009
What Wal-Mart Knows About Customers' Habits
Based on the “What Wal-Mart Knows About Customers' Habits" article by Constance L. Hays and my prior knowledge of and experiences with Wal-Mart, I would say there are more pros to their innovative technology than cons. As a result of their massive amount of data collection, they are able to successfully utilize this information to gather customer insights that serve as a competitive advantage. In addition, their pioneering technology and the data collected from it have a positive impact on suppliers for the most part, making their manufacturing/distribution processes and business operations more efficient and improved. And although there are some privacy issues with the information they have access to, I believe there are more benefits of these data than risks, and that there is not too much need for concern over their motives.
Using the vast amount of data Wal-Mart collects through various technology sources, they are able to capture insights to forecast future business and create great experiences for their customers. They use forecasting methods to plan for a new store (both the products it will need and the number of shoppers it expects to attract) and to determine how many cashiers will be needed at a store during a particular time. And by analyzing trends, they are able to predict popular items for specific situations, such as the increase in sales of strawberry Pop-Tarts and beer during Hurricane Frances.
Wal-Mart has also begun to use their Web site to learn more about their customers’ buying habits. Not only do they gain knowledge on what certain customers purchase (as a result of the personal information required to process an online order), but more importantly, they are able to analyze what collectively ends up in one shopping cart. This helps Wal-Mart know which items are needed and should be grouped together in-store, as well as guiding their pricing strategy. For example, when I shop online on Amazon, I notice a section of the page that refers me to other products I may want to buy based on my current item I chose or even products that typically go with the item I want. This is all made possible through their database which holds information on what products customers bought in the past, individually and collectively with other items.
Wal-Mart’s ability to forecast future business and utilize their Web site to gather data and develop valuable insights has definitely been a major component of their competitive advantage. Effective analysis of their data is what helps them constantly achieve low prices, which is Wal-Mart’s key selling point.
Although Wal-Mart has high standards (that may seem too demanding at times) for their suppliers, it is what makes them more efficient and improves business operations for both Wal-Mart and their suppliers. This is largely made possible as a result of Wal-Mart’s enhanced information technology. Wal-Mart’s innovative technology allows them to share information with suppliers over private extranets to show how their products are doing. They can also track products through bar codes and electronic data interchange that enter their system. And to help Wal-Mart in their efforts to gather data, they are requiring manufacturers to invest in radio frequency identification so that they can track the items they sell.
In addition, Wal-Mart uses their enormous amount of data to attain more efficiency with their business operations. For instance, information is used to decide which products are stocked in the store based on expected demand while details about a manufacturer’s punctuality, or lack of, is recorded in the back of the store for future reference. Their purpose is to “protect Wal-Mart from a retailer's twin nightmares: too much inventory, or not enough.” As one consultant stated, "They track the purchases and very quickly route that back to their suppliers so they can be replenished. They are very strict with their suppliers, but they give them the data that they need." Their technology has also served to help them keep in real time, or close to it, in order to manage their suppliers more effectively. If a truck fails to drop-off or pick-up something, they will be notified within hours to handle the situation.
As further proof of their impact with suppliers, Wal-Mart meets with each of their suppliers to discuss sales goals for the year, where suppliers are encouraged not to miss sales targets. If sales goals are not met, suppliers can expect difficult terms with Wal-Mart in the future. This may seem too demanding, but I believe it is Wal-Mart’s tough stance that allows them to be more efficient and successful. Even at my job at Sushi Sake, my manager is extremely strict with the details of the processes and methods required to perform my job effectively. This work environment pushes me to be more efficient and pay attention to details. Therefore, although my managers are demanding, I believe it is necessary and it is what helps me be more successful in the long run.
For the most part, I am not too concerned about the privacy issues associated with the amount of personally identifiable data they gather about customers, but there are limits to what I feel is necessary versus going too far. Because Wal-Mart is a huge multi-national global corporation who has a lot at stake and because I have shopped at Wal-Mart all my life, I do trust them with my personal data. In the article, it states that Wal-Mart is “capable of capturing a huge amount of outside information about them that has nothing to do with their grocery purchases,” but it never said that they actually do that. Similarly, Ms. Dillman said that “she did not think Wal-Mart had ever tried to squeeze data from credit cards to learn more about customers’ buying habits” because they could still do that by analyzing their market and competitors’ markets without the credit card information.
If all of this is true, I am not concerned with the ability of Wal-Mart to gather information unrelated to my buying habits and will also continue using my credit card to make purchases. And if I needed to cash a payroll check at Wal-Mart, I would even enter my Social Security and driver’s license number, because I feel that information is necessary for this situation to keep appropriate financial records. Then again, if Wal-Mart began to take advantage of their access to personal information, I would definitely become more concerned and not wish to use my credit card. Although it is essential to collect some personal information, especially with online purchases, I do feel it is somewhat unnecessary for Wal-Mart to even have the capability to access our court dates, driving record, creditworthiness, etc. because they do not need this information to develop customer insights. If Wal-Mart’s true focus is on the products it sells and not to whom it sells, personal information unrelated to buying habits to gain customer insights, in my opinion, is never necessary.
Overall, Wal-Mart is doing a good job of employing a wide variety of technology to gain information in an efficient manner, but there is always room for improvement. Their immense data collection serves them as a competitive advantage through the insights and experiences developed and their innovative technology aids to improve business operations with suppliers by increasing efficiency. As for the privacy issues associated with the personally identifiable information they have access to, I am not too concerned as long as they do not begin to use this information or take advantage of their access to it. If it became known that Wal-Mart accessed the personal information frequently or have alternative motives, they can expect to face tough repercussions with unhappy customers worldwide.
Using the vast amount of data Wal-Mart collects through various technology sources, they are able to capture insights to forecast future business and create great experiences for their customers. They use forecasting methods to plan for a new store (both the products it will need and the number of shoppers it expects to attract) and to determine how many cashiers will be needed at a store during a particular time. And by analyzing trends, they are able to predict popular items for specific situations, such as the increase in sales of strawberry Pop-Tarts and beer during Hurricane Frances.
Wal-Mart has also begun to use their Web site to learn more about their customers’ buying habits. Not only do they gain knowledge on what certain customers purchase (as a result of the personal information required to process an online order), but more importantly, they are able to analyze what collectively ends up in one shopping cart. This helps Wal-Mart know which items are needed and should be grouped together in-store, as well as guiding their pricing strategy. For example, when I shop online on Amazon, I notice a section of the page that refers me to other products I may want to buy based on my current item I chose or even products that typically go with the item I want. This is all made possible through their database which holds information on what products customers bought in the past, individually and collectively with other items.
Wal-Mart’s ability to forecast future business and utilize their Web site to gather data and develop valuable insights has definitely been a major component of their competitive advantage. Effective analysis of their data is what helps them constantly achieve low prices, which is Wal-Mart’s key selling point.
Although Wal-Mart has high standards (that may seem too demanding at times) for their suppliers, it is what makes them more efficient and improves business operations for both Wal-Mart and their suppliers. This is largely made possible as a result of Wal-Mart’s enhanced information technology. Wal-Mart’s innovative technology allows them to share information with suppliers over private extranets to show how their products are doing. They can also track products through bar codes and electronic data interchange that enter their system. And to help Wal-Mart in their efforts to gather data, they are requiring manufacturers to invest in radio frequency identification so that they can track the items they sell.
In addition, Wal-Mart uses their enormous amount of data to attain more efficiency with their business operations. For instance, information is used to decide which products are stocked in the store based on expected demand while details about a manufacturer’s punctuality, or lack of, is recorded in the back of the store for future reference. Their purpose is to “protect Wal-Mart from a retailer's twin nightmares: too much inventory, or not enough.” As one consultant stated, "They track the purchases and very quickly route that back to their suppliers so they can be replenished. They are very strict with their suppliers, but they give them the data that they need." Their technology has also served to help them keep in real time, or close to it, in order to manage their suppliers more effectively. If a truck fails to drop-off or pick-up something, they will be notified within hours to handle the situation.
As further proof of their impact with suppliers, Wal-Mart meets with each of their suppliers to discuss sales goals for the year, where suppliers are encouraged not to miss sales targets. If sales goals are not met, suppliers can expect difficult terms with Wal-Mart in the future. This may seem too demanding, but I believe it is Wal-Mart’s tough stance that allows them to be more efficient and successful. Even at my job at Sushi Sake, my manager is extremely strict with the details of the processes and methods required to perform my job effectively. This work environment pushes me to be more efficient and pay attention to details. Therefore, although my managers are demanding, I believe it is necessary and it is what helps me be more successful in the long run.
For the most part, I am not too concerned about the privacy issues associated with the amount of personally identifiable data they gather about customers, but there are limits to what I feel is necessary versus going too far. Because Wal-Mart is a huge multi-national global corporation who has a lot at stake and because I have shopped at Wal-Mart all my life, I do trust them with my personal data. In the article, it states that Wal-Mart is “capable of capturing a huge amount of outside information about them that has nothing to do with their grocery purchases,” but it never said that they actually do that. Similarly, Ms. Dillman said that “she did not think Wal-Mart had ever tried to squeeze data from credit cards to learn more about customers’ buying habits” because they could still do that by analyzing their market and competitors’ markets without the credit card information.
If all of this is true, I am not concerned with the ability of Wal-Mart to gather information unrelated to my buying habits and will also continue using my credit card to make purchases. And if I needed to cash a payroll check at Wal-Mart, I would even enter my Social Security and driver’s license number, because I feel that information is necessary for this situation to keep appropriate financial records. Then again, if Wal-Mart began to take advantage of their access to personal information, I would definitely become more concerned and not wish to use my credit card. Although it is essential to collect some personal information, especially with online purchases, I do feel it is somewhat unnecessary for Wal-Mart to even have the capability to access our court dates, driving record, creditworthiness, etc. because they do not need this information to develop customer insights. If Wal-Mart’s true focus is on the products it sells and not to whom it sells, personal information unrelated to buying habits to gain customer insights, in my opinion, is never necessary.
Overall, Wal-Mart is doing a good job of employing a wide variety of technology to gain information in an efficient manner, but there is always room for improvement. Their immense data collection serves them as a competitive advantage through the insights and experiences developed and their innovative technology aids to improve business operations with suppliers by increasing efficiency. As for the privacy issues associated with the personally identifiable information they have access to, I am not too concerned as long as they do not begin to use this information or take advantage of their access to it. If it became known that Wal-Mart accessed the personal information frequently or have alternative motives, they can expect to face tough repercussions with unhappy customers worldwide.
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