Wal-Mart: Power, Influence & Values

Thursday, May 11, 2006

Going Behind the Blue: Wal-Mart Customer Service
Christina Klisch
Honors 1105
Ms. Nielson and Ms. Mengelkoch
April 26, 2006









From my own personal experience with Wal-Mart stores, I have found that whenever I needed to find something that I couldn’t seem to find on my own, I couldn’t help from feeling that the customer service man or woman wasn’t very enthused to help me. It seemed like I had to look forever just to find a customer service person to ask, and once found, I was then directed to someone else in that department. I might be directed to an isle or area in general, leaving me on another search of another person or place to find. I felt that I was going in circles or finding an answer to a trick question. Finally, after finding that person, or general area, either I then had to find that item myself, or I might luck out with an associate, Wal-Mart’s term for employee, (WGBH educational foundation, 2004) who actually knew where the item was. For the average consumer, going into a Wal-Mart is overwhelming. Almost every item and knick-knack imaginable is available. Some shoppers come in with a specific list and others like the idea of browsing, unconsciously taking items they may not need. Chaotic and confused about where these items might be, customers then might tun to the familiar people in blue vests. For some, they are greeted with a pleasant, “How are you doing; can I help you with anything today?”, but other customers are dissatisfied with the way they are treated by these supposedly cheery and customer service men and women.
Many people across the globe have felt dissatisfied with Wal-Mart’s customer service. In one study, customers rated Wal-Mart’s customer service at a 1.5 out of 10, and an overall customer satisfaction of a 3.44 (All Enthusiast Inc, 2005). Wal-Mart has 1.6 million employees with 3700 stores in the U.S. alone (WGBH educational foundation, 2004). In one week, 138 million customers visit Wal-Mart stores (Wal-Mart Stores Inc, 2001), and those 1.6 million customers have to serve those 138 million customers while performing their tasks. Wal-Mart’s associates do everything from helping customers to stocking shelves. Wal-Mart has general associates who one might see stocking shelves or putting away merchandise. There are department managers who one might be directed to. They are in charge of that department ordering and checking stock, and they are usually the one’s that ready to tell you about the product that they are about to buy. The general associates may or may not know where every product is in the store, but they know the general location of the products. The department managers know about their own department and occasionally they might step in for another department manager. Therefore, they might be familiar with more than one department (Bemidji, MN customer service manager, Wal-Mart Supercenter Store #3233, personal communication, April 8, 2006).
It generally seems that there are some associates who are eager to serve their customers, but there are also those who may just look as if they did not want to be there. This could be because some employees are forced to work off the clock, some are forced to work long shifts, and overtime when they do not want to, some are called in on their days off, and as of 2005, an average U.S. full-time Wal-Mart employee earns $9.68 an hour (Anderson, 2005). In addition, many of Wal-Mart’s employees start at minimum wage. Because of this, many of Wal-Mart’s employees cannot afford their health plan.
Wal-Mart’s employees also have a 50 percent turnover rate each year (Stone, K. personal communication, April 11, 2006). That would suggest that the average Wal-Mart employee does not like their job so they quit their job. (It could also mean that Wal-Mart fires many of its employees). It could also give reason behind why some employees do not know where all the products are in the store; they could have just started there that very week.
To make the average customer’s Wal-Mart experience a more pleasant one, Wal-Mart also has Wal-Mart greeters. As a greeter, “their main responsibility is to make customers feel welcome and enjoy their shopping experience. Greeters also provide directions, answer questions, and help customers who are returning merchandise. They are the first and last impression customers have of Wal-Mart…” (Wal-Mart Stores Inc, 2001). The Wal-Mart greeter was an idea established in 1980. On a trip to one of the Wal-Mart stores, Sam Walton, the founders of Wal-Mart Inc, saw an employee greeting shoppers and thought it was a good idea, hence the first Wal-Mart greeter (Wal-Mart Stores Inc. Greeters, 2001).
Several Wal-Mart customers are also dissatisfied or confused with Wal-Mart’s return policy. They either are dissatisfied with the long lines that they needed to wait in, or confused on the inconsistency of Wal-Mart’s policy compared to other Wal-Mart stores, or even its competitors. According to the return policy posted at many Wal-Mart service desks, a customer can bring back their purchase with a receipt within 90 days of the purchase, or receiving it when bought on-line. According to Wal-Mart’s online policy, clothing, shoes, and accessories can be returned before 90 days if the customer has the receipt, the items are not worn, and the tickets are attached still. Books, video games, and movies can be returned with a receipt within 90 days if the items are not used and unopened. Electronics are a little different in that computer software needs to be returned within 15 ways with a receipt, and the item cannot be opened, computer parts and accessories need to be returned within 45 days of purchase with a receipt, and digital cameras and video cameras need to be returned within 30 days with a receipt. In the home and garden department, items such as custom window blinds need to be returned to the store. This is figured on an individual basis. Mattresses can be shipped back by freight, but need to be returned within 90 days. Other gas-powered items such as lawn mowers and pressure washers cannot be sent back but need to be returned to a store within 90 days, and any flammable liquids need to be removed upon return. Jewelry can also be returned within 90 days as well as music CDs and DVDs, which must not be opened. All other items need to be returned within 90 days with a receipt (Wal-Mart Stores Inc. Returns Policy, 2001).
With this policy, some customers could return an item and get full cash refund at one Wal-Mart, and 20 miles away, they might get a gift card. This also depends on if the customer brings in their original receipt. Surprisingly, for many of Wal-Mart’s purchases, one does not have to bring in their receipt. Other competitors of Wal-Mart in the Bemidji, MN area did not quite have the same return policy. The Target store in Bemidji, MN, as of March 30, 2006 had a similar policy reading, “A receipt dated within 90 days is required for all returns & exchanges. All returns and exchanges must be new, unused, and contain all original packaging and accessories. Some items cannot be returned if opened, including music, movies, video games, software, & collectibles. Some items are subject to a 15% restocking fee, including camcorders, digital cameras, portable DVD, and portable electronics. Other restrictions may apply. For a gift receipt, bring the receipt back to any Target store within 90 days.” Without a receipt, a customer of Target can return a purchase with proof of identification, preferably a driver’s license. They can do this option up to three times a year (Bemidji, MN Target employee, personal communication, April 8, 2006). The K-Mart store in Bemidji, MN as of March 30, 2006 was a little different from both stores in that K-Mart had a 90 day with receipt general merchandise policy. The only time one can return anything at K-Mart without a receipt is if they bought the item with a check or credit card so they can look it up (Bemidji, MN K-Mart employee, personal communication, April 8, 2006).
According to a Bemidji, MN Wal-Mart manager, every Wal-Mart (in the U.S.) tries to have the same policies (Bemidji, MN customer service manager, Wal-Mart Supercenter Store #3233, personal communication, April 8, 2006). This can easily be proved wrong by simply calling several Wal-Mart stores. In a recent sampling of ten Wal-Mart stores in Minnesota, it was found that no two Wal-Mart stores had the same exact return policy. The following results for the eleven Minnesota stores are in Appendix A along with the questions asked. From this sampling, it was found that most of the Wal-Marts shared the same policy for items returned with the original receipt. Most of the varying occurred when the item was returned without a receipt.
Looking at the various different return policies, it may seem like it would be easy to sell or cheat items from Wal-Mart. For example, somebody could buy an item from a different store, and return it at Wal-Mart assuming that they bought it cheaper at a different store. One customer even tried to computer with stolen computer parts, and tried to hide it by filing it with sand (Trigos-Gilbert, 1999). Questions have arisen that Wal-Mart sends its returned merchandise back to the manufacturer, so they don’t worry about if the item isn’t from Wal-Mart because they don’t have to deal with it. This theory is wrong according to one Wal-Mart manager. According to this employee, Wal-Mart does not send their merchandise back to the manufacturer unless the item was defective. The only time that they send a multitude of items anywhere is when they sent them to a Wal-Mart warehouse. Those items might be overstock at a certain time of year. For example, during Wal-Mart’s “Back to School,” they might have an abundance of notebooks that were not sold, but somewhere else in the area might be running short. Those notebooks then would be shipped back to the warehouse and then shipped to another Wal-Mart store. The same Wal-Mart employee also said that they have had cases where somebody has tried to return items from another store without a receipt. She said that most department managers know what kind of brands that they sell so they might know right away if it is from another store. If not, they ring-up the item to see if it even rings up as a Wal-Mart item. If it does not, they might call another Wal-Mart store to see if they carry the item. Sometimes people return items to another Wal-Mart that they did not buy the product from. Not all Wal-Mart’s carry the exact same items either apparently. If they cannot figure out where the item came from and it does not ring up, they then would not return the item. This is only for items that do not have a receipt. Wal-Mart also has a punch number for all their clothing. This is a way they can keep track of their clothing in the store and for returns. When asked about why Wal-Mart has such a lenient return policy, a Wal-Mart customer service manager said that it was because they want to please the customers, and this is a way to do so (Little Falls, MN department manager. Wal-Mart Store #1634, personal communication, April 10, 2006).
Overall, there are many things that an employee needs to do to please its customer, and from this information, it does not seem like Wal-Mart has very good control of its policies. According to Dr. Kenneth Stone (personal communication, April 11, 2006), Wal-Mart’s ‘downfall’ could possibly be from its lack of control over its customers. Wal-Mart might slowly go downhill as Sears and K-Mart did. For being the biggest corporation ever, it will be interesting how such a downfall could happen.
References
All Enthusiast Inc. (2005). Customer Satisfaction. Retrieved March 28, 2006 from http://www.resellerratings.com/seller1636.html.
Anderson, S. (2005). Wal-Mart’s Pay Gap. Retrieved April 8, 2006 from http://www.wakeupwalmart.com/facts/Wal-mart-pay-gap.pdf.
Stone, K. personal communication, April 11, 2006.
Trigos-Gilbert M. L. (1999). Go Inside: Wal-Mart or Wal-Bad? Retrieved April 8, 2006 from http://www.goinside.com/99/7/walmart.html.
Wal-Mart Stores Inc. (2001). Greeters. Retrieved March 26, 2006 from http://www.walmartstores.com/GlobalWMStoresWeb/navigate.do?catg=49&contId=810.
Wal-Mart Stores Inc. (2001). Returns Policy. Retrieved March 28, 2006 from http://www.walmart.com/catalog/catalog.gsp?cat=120564.
Wal-Mart Stores Inc. (2001). Search for a Store. Retrieved March 30, 2006 from http://www.walmart.com/cservice/ca_storefinder.gsp.
Wal-Mart Stores Inc. (2001). Wal-Mart Fact Sheet. Retrieved March 28, 2006 from http://www.walmartfacts.com/newsdesk/wal-mart-fact-sheets.aspx.
WGBH educational foundation. (2004). The Rise of Wal-Mart. Retrieved March 24, 2006 from http://www.pbs.org/wgbh/pages/frontline/shows/walmart/transf orm/cron.html.




APPENDIX A
Store Number | Date | Without receipt Policy | With Receipt (different than original policy)

Bemidji, MN #3233 30-Mar-06 Product under $10-cash back, over $10- identification,
over $25- gift card Same as original 90-day policy

Bloomington, MN #2198 1-Apr-06 Product returned for gift receipt, approx. $300 or more-
approved by manager Same as original 90-day policy

Buffalo, MN #1577 1-Apr-06 Ring up items and gift receipt for same amount Computer- 45 days, cell phone-15 days,

Elk River, MN #3209 1-Apr-06 Needs identification, Product over $25- gift receipt Same as original 90-day policy

Hutchinson, MN #1738 1-Apr-06 Product over $10- cash back, over $10- identification
and will receive a gift card Same as original 90-day policy

Little Falls, MN #1634 1-Apr-06 Product under $10- cash back, over $10- identification,
over $20- gift receipt Same as original 90-day policy

Maple Grove, MN #2882 1-Apr-06 Couldn't say exactly over phone, but goes by warranty
for electronics & the WIC program because of food stamps Same as original 90-day policy

Monticello, MN #3624 1-Apr-06 Money back for defective product otherwise, need
identification and get in-store credit Cameras- 15 days,

St. Anthony, MN #3404 1-Apr-06 Product under $50- cash back, over $50-
approved by manager Same as original 90-day policy

St. Cloud, MN #1633 1-Apr-06 Product under $20- cash, over $20- in store credit Books and bikes- 7 days, prerecorded
opened-exchanged for same

Woodbury, MN #2648 1-Apr-06 Gift receipt for amount rings up Same as original 90-day policy

Questions asked:
1) I first asked to speak with someone at the service desk. (All questions were answered a customer service associate).
2) When I was put through to the service desk, I asked what their “General Return Policy” was.
3) Most of the time they just stated their policy when the product was returned with a receipt.
4) If the policy without a receipt wasn’t said, I would ask that.
5) Many times they asked what the product was, and then I just asked what the policy was in general.
Still, some demanded to know what the product was. At that point I would ask about categories such as electronics, clothing etc. I also might mention I needed the information for a report.