March 4, 2008

Wal-Mart Blogs, Blogs, Blogs

By George Anderson

It comes with the territory. Vendors who deal with retail buyers on a regular basis get to hear their products critiqued, sometimes quite harshly. While it isn’t a pleasant experience, vendors could take some solace in knowing the buyer’s unfavorable opinion was not going to be widely circulated. That may no longer be the case, at least in dealing with Wal-Mart, as the chain has let its buyers loose to discuss all sorts of issues on the company’s Check Out blog (www.checkoutblog.com).

An example is a review posted on the Wal-Mart blog about Microsoft’s new Vista operating system.

Alex Cook, the merchandise manager for Wal-Mart’s entertainment division, wrote, “Is it really all that and a bag of chips? My life has not changed dramatically – well, for that matter, it hasn’t changed at all.”

For Mr. Cook and other buyers writing on Check Out, the key is to remain authentic and not get into the cheerleading that fills up space on typical uninspiring and ineffective corporate blogs.

“Readers can tell if people are being genuine,” Mr. Cook told The New York Times.

As for Microsoft’s response to his unflattering public review of Vista, Mr. Cook said, “It was not any different than what I said to Microsoft. If it was something that would be a surprise, it might be different.”

Discussion Questions: Is Wal-Mart management onto something with its hands-off approach to the Check Out blog? Is the consumer perception of Wal-Mart’s expertise in various product categories such as computers, entertainment, etc. enhanced or diminished by the Check Out blog? How do you expect this to affect its trade partnerships?

Discussion Questions

Poll

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Linda Bustos
Linda Bustos

I can’t see TheCheckoutBlog as being a helpful resource for consumers. It’s still a one-way conversation, there are very few comments on the blog and it doesn’t offer added value on product information to help purchase decisions if it’s just a Wal-Mart purchaser’s rant.

There are many sites that offer aggregate reviews with far better tools (average ratings, “X out of Y people found this review helpful”) available on larger communities like Amazon and ePinions, I don’t see why customer’s should care about this.

On the other hand, I think it’s beneficial to Wal-Mart’s image to have an outlet for open communication, authenticity, transparency etc. It will be a learning curve for them. I don’t think TCB hits the mark just yet. But it’s a step in the right direction.

David Biernbaum

Hmm, I think it’s an interesting blog that could really catch on quite big with consumers because it’s very “interesting” to know what Wal-Mart buyers think about products, one way or the other. At the same time it’s also a little bit concerning for manufacturers and suppliers for obvious reasons. But in any case, it’s a new reality that needs to be taken into consideration for good or bad by all suppliers.

Evan Schuman
Evan Schuman

Wal-Mart has figured out that a blog needs credibility or it simply won’t work as a blog. These folk are in a very interesting position. The candor makes them seem more human and relaxed.

Will suppliers object to the non-sanitized thoughts? There are two distinct answers to that. Those who hear non-positive things will certainly be unhappy, but there’s not a heck of a lot a supplier can (or, more relevantly, will) do to Wal-Mart. Indeed, some suppliers will be pleased (a little) that they are actually hearing an answer and the reasons why. If you’re going to have an issue with Wal-Mart, the specifics are helpful. Sometimes, Wal-Mart can just turn silent.

But the happier news for suppliers are those who hear positive things. Before, Wal-Mart saying nice things about a supplier wouldn’t mean much, although it was nice. But if this site gets a rep for being truthful, those favorable comments could suddenly become goldmines.

All in all, a very hopeful development.

Dick Seesel
Dick Seesel

For those who want to search it out, checkoutblog.com makes interesting reading. It humanizes the buying process at Wal-Mart, which many outsiders assume is monolithic. The merchants’ tone is generally upbeat but the frankness of the posted responses is one of the most interesting aspects of the site. On one post, the laptop buyer touted a new Acer laptop with 2GB of hard drive for under $500…and got a response that Best Buy beat him to the punch!

Charles P. Walsh
Charles P. Walsh

I am not convinced that public criticism of its suppliers is a route that Wal-Mart wishes it’s buyers to take.

At least the way I see things, it is more productive to take that criticism and energy and spend it on bringing the dialogue to the supplier in a more constructive versus destructive manner.

Perhaps the Wal-Mart buyer (or Merchandise Manager) has received a great deal of feedback from associates and customers which leads him or her to make this comment. It that is the case it would be much more relevant to a company like Microsoft to provide this feedback and any sales demographics that accompany it, to them along with concerns or suggestions.

I applaud Wal-Mart for the unrestricted voice that they allow their associates in this forum, but as in any public forum there should be some kind of decorum to follow.

Wal-Mart’s launch of this blog was purposeful and as such, those who use or post on the blog should be aware of this purpose. In reading the blogs one would assume that there is some purpose; perhaps Wal-Mart should evaluate whether that purpose is being fulfilled.

Dan Raftery
Dan Raftery

This is dangerous territory, for suppliers as well as Wal-Mart. All levels of experience are sitting in those buyers chairs at this and other retailers. But all postings carry the same weight, and that is heavy under this banner. I’d rather read Walter Mossberg’s technology reviews in the Wall Street Journal, than suffer the prejudices of someone whose primary job is to negotiate with the companies whose products he/she is “reviewing.”

C’mon, this is nothing more than testing a new bat in spring training. I imagine a whole slew of lawyers are watching this with keen interest. What’s next? Posting the new product tastings?

Nikki Baird
Nikki Baird

I’ve argued for awhile now that manufacturers need to pay closer attention to consumer reviews and blogs about their products–and actually take some of the suggestions to heart by changing their products. While I agree that it is difficult territory to navigate well, perhaps Wal-Mart’s weight will prod manufacturers to take this kind of thing more seriously.

Susan Rider
Susan Rider

An interesting trend to say the least. Certainly will be popular with the consumer. This is also supports the trend of the educated consumer. Also, suppliers will be much more careful about the quality of product, which is a good thing.

Max Goldberg
Max Goldberg

Wal-Mart takes another step to enter the 21st century. What’s the big deal? The question is whether or not consumers trust the opinions of Wal-Mart’s buyers. This is the same question faced by all bloggers.

Jim Elsesser
Jim Elsesser

I applaud Wal-Mart on giving their employees a voice. The key point made earlier is whether to trust the bloggers or not. In the end readers need to realize that the blogs are simply one person’s opinion. Having an ID badge that says “Wal-Mart” does not bestow any special insight, intelligence, or expertise.

Carol Spieckerman
Carol Spieckerman

I’ve suggested that checkout blog be required reading for my clients whether or not they do business with Wal-Mart, or in the blog’s (current) focus category, CE. Having the ability to hear the “voice” of decision-makers within the world’s largest retailer is an invaluable opportunity; one that can help vendors frame arguments and hone value propositions.

In terms of which content goes over the edge; I’m much more comfortable with a buyer sharing his or her honest opinion of a product or even a recent book, movie or music release than I am learning an individual’s religious or political beliefs. In the days of global procurement, with entire economies in the balance, loose lips could sink….

Janis Cram
Janis Cram

I think that as long as not all products are “great” or “must haves” and consumers can see the bad with the good, it will help Wal-Mart to be perceived as truly consumer-centric. Why not have consumers post too? Make it two-way communication.

Jeff Weitzman
Jeff Weitzman

I applaud Wal-Mart for this move, but it is hardly a new idea or controversial. Reading through the blog, I wouldn’t call it overloaded with product reviews, let alone bad ones (the worst thing said about the Logitech gaming wheel was that the cables were too short).

It occasionally provides interesting insight into the buying process and how retailers influence and perceive industry trends. Comments on packaging, game ship dates, and how a product like Apple TV is being used by the buyer are great. I didn’t see anything that wasn’t in Wal-Mart’s best interest. The Vista comment, which dates back to September, was tame. It didn’t knock Vista at all, just said it hadn’t changed the writer’s life. Considering that (at the time at least) you couldn’t buy a Windows computer without Vista, the writer wasn’t risking much.

All in all, pretty standard fare, but so what? People are fascinated by Wal-Mart and a glimpse inside the giant humanizes them a bit and gives them a chance to show how they often push manufacturers to do the right thing (e.g. the packaging comment), not just squeeze them for lower pricing.

Dan Gilmore
Dan Gilmore

The assessment that this blog is “unfiltered” or critiques vendor products is hugely exaggerated. We have been looking at this, and there is almost no real critique, and most of the blogs are largely promotional, e.g., “Knowing that times are tough, we were able to work with one of our supplier partners to offer what I think is a first, a 2GB Laptop for under $500!!!” (Which in part shows the risk of blogging, as the buyer undoubtedly meant a 2 Gigahertz, not Gigabyte, machine.)

It’s unrealistic to expect retail corporate buyers to aggressively critique vendor offerings, for at least three reasons: (1) they would be critiquing the merchandise they had decided to stock on store shelves; (2) vendors would go ballistic over unfavorable reviews; and (3) it could potentially impact Wal-Mart sales revenue–which simply isn’t going to happen.

But what is interesting is that–for now–the reader comments seem to be uncensored. Responding to the laptop post quoted above, one reader noted Best Buy has a sub-$500 machine for weeks; another said the discounted inventory was 1-2 year old stock and not worth buying.

Ben Ball
Ben Ball

What is the purpose of the blog? Certainly these are some of the most powerful buyers in the world, but is there some benefit in consumer credibility to be gained by Wal-Mart by revealing its buyers’ opinions? If it is to engage or otherwise enroll consumers in the Wal-Mart experience, why not sponsor a consumer ratings blog instead? Other than the novelty and sensationalism of being able to “read what Wal-Mart thinks,” I don’t see the appeal.

Mark Lilien
Mark Lilien

Wal-Mart isn’t just a big retailer. It also has a big credibility gap. It simply isn’t known for being open and straight forward in its communication. Wal-Mart is frequently suspected of distortion and self-congratulatory propaganda. So being frank and open is wonderful and refreshing. Among the best retailers in America: eBay and Amazon, with everyday honest public feedback and product reviews. Many Americans don’t trust or like “big business” so it’s to Wal-Mart’s advantage to set a standard for openness.

16 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Linda Bustos
Linda Bustos

I can’t see TheCheckoutBlog as being a helpful resource for consumers. It’s still a one-way conversation, there are very few comments on the blog and it doesn’t offer added value on product information to help purchase decisions if it’s just a Wal-Mart purchaser’s rant.

There are many sites that offer aggregate reviews with far better tools (average ratings, “X out of Y people found this review helpful”) available on larger communities like Amazon and ePinions, I don’t see why customer’s should care about this.

On the other hand, I think it’s beneficial to Wal-Mart’s image to have an outlet for open communication, authenticity, transparency etc. It will be a learning curve for them. I don’t think TCB hits the mark just yet. But it’s a step in the right direction.

David Biernbaum

Hmm, I think it’s an interesting blog that could really catch on quite big with consumers because it’s very “interesting” to know what Wal-Mart buyers think about products, one way or the other. At the same time it’s also a little bit concerning for manufacturers and suppliers for obvious reasons. But in any case, it’s a new reality that needs to be taken into consideration for good or bad by all suppliers.

Evan Schuman
Evan Schuman

Wal-Mart has figured out that a blog needs credibility or it simply won’t work as a blog. These folk are in a very interesting position. The candor makes them seem more human and relaxed.

Will suppliers object to the non-sanitized thoughts? There are two distinct answers to that. Those who hear non-positive things will certainly be unhappy, but there’s not a heck of a lot a supplier can (or, more relevantly, will) do to Wal-Mart. Indeed, some suppliers will be pleased (a little) that they are actually hearing an answer and the reasons why. If you’re going to have an issue with Wal-Mart, the specifics are helpful. Sometimes, Wal-Mart can just turn silent.

But the happier news for suppliers are those who hear positive things. Before, Wal-Mart saying nice things about a supplier wouldn’t mean much, although it was nice. But if this site gets a rep for being truthful, those favorable comments could suddenly become goldmines.

All in all, a very hopeful development.

Dick Seesel
Dick Seesel

For those who want to search it out, checkoutblog.com makes interesting reading. It humanizes the buying process at Wal-Mart, which many outsiders assume is monolithic. The merchants’ tone is generally upbeat but the frankness of the posted responses is one of the most interesting aspects of the site. On one post, the laptop buyer touted a new Acer laptop with 2GB of hard drive for under $500…and got a response that Best Buy beat him to the punch!

Charles P. Walsh
Charles P. Walsh

I am not convinced that public criticism of its suppliers is a route that Wal-Mart wishes it’s buyers to take.

At least the way I see things, it is more productive to take that criticism and energy and spend it on bringing the dialogue to the supplier in a more constructive versus destructive manner.

Perhaps the Wal-Mart buyer (or Merchandise Manager) has received a great deal of feedback from associates and customers which leads him or her to make this comment. It that is the case it would be much more relevant to a company like Microsoft to provide this feedback and any sales demographics that accompany it, to them along with concerns or suggestions.

I applaud Wal-Mart for the unrestricted voice that they allow their associates in this forum, but as in any public forum there should be some kind of decorum to follow.

Wal-Mart’s launch of this blog was purposeful and as such, those who use or post on the blog should be aware of this purpose. In reading the blogs one would assume that there is some purpose; perhaps Wal-Mart should evaluate whether that purpose is being fulfilled.

Dan Raftery
Dan Raftery

This is dangerous territory, for suppliers as well as Wal-Mart. All levels of experience are sitting in those buyers chairs at this and other retailers. But all postings carry the same weight, and that is heavy under this banner. I’d rather read Walter Mossberg’s technology reviews in the Wall Street Journal, than suffer the prejudices of someone whose primary job is to negotiate with the companies whose products he/she is “reviewing.”

C’mon, this is nothing more than testing a new bat in spring training. I imagine a whole slew of lawyers are watching this with keen interest. What’s next? Posting the new product tastings?

Nikki Baird
Nikki Baird

I’ve argued for awhile now that manufacturers need to pay closer attention to consumer reviews and blogs about their products–and actually take some of the suggestions to heart by changing their products. While I agree that it is difficult territory to navigate well, perhaps Wal-Mart’s weight will prod manufacturers to take this kind of thing more seriously.

Susan Rider
Susan Rider

An interesting trend to say the least. Certainly will be popular with the consumer. This is also supports the trend of the educated consumer. Also, suppliers will be much more careful about the quality of product, which is a good thing.

Max Goldberg
Max Goldberg

Wal-Mart takes another step to enter the 21st century. What’s the big deal? The question is whether or not consumers trust the opinions of Wal-Mart’s buyers. This is the same question faced by all bloggers.

Jim Elsesser
Jim Elsesser

I applaud Wal-Mart on giving their employees a voice. The key point made earlier is whether to trust the bloggers or not. In the end readers need to realize that the blogs are simply one person’s opinion. Having an ID badge that says “Wal-Mart” does not bestow any special insight, intelligence, or expertise.

Carol Spieckerman
Carol Spieckerman

I’ve suggested that checkout blog be required reading for my clients whether or not they do business with Wal-Mart, or in the blog’s (current) focus category, CE. Having the ability to hear the “voice” of decision-makers within the world’s largest retailer is an invaluable opportunity; one that can help vendors frame arguments and hone value propositions.

In terms of which content goes over the edge; I’m much more comfortable with a buyer sharing his or her honest opinion of a product or even a recent book, movie or music release than I am learning an individual’s religious or political beliefs. In the days of global procurement, with entire economies in the balance, loose lips could sink….

Janis Cram
Janis Cram

I think that as long as not all products are “great” or “must haves” and consumers can see the bad with the good, it will help Wal-Mart to be perceived as truly consumer-centric. Why not have consumers post too? Make it two-way communication.

Jeff Weitzman
Jeff Weitzman

I applaud Wal-Mart for this move, but it is hardly a new idea or controversial. Reading through the blog, I wouldn’t call it overloaded with product reviews, let alone bad ones (the worst thing said about the Logitech gaming wheel was that the cables were too short).

It occasionally provides interesting insight into the buying process and how retailers influence and perceive industry trends. Comments on packaging, game ship dates, and how a product like Apple TV is being used by the buyer are great. I didn’t see anything that wasn’t in Wal-Mart’s best interest. The Vista comment, which dates back to September, was tame. It didn’t knock Vista at all, just said it hadn’t changed the writer’s life. Considering that (at the time at least) you couldn’t buy a Windows computer without Vista, the writer wasn’t risking much.

All in all, pretty standard fare, but so what? People are fascinated by Wal-Mart and a glimpse inside the giant humanizes them a bit and gives them a chance to show how they often push manufacturers to do the right thing (e.g. the packaging comment), not just squeeze them for lower pricing.

Dan Gilmore
Dan Gilmore

The assessment that this blog is “unfiltered” or critiques vendor products is hugely exaggerated. We have been looking at this, and there is almost no real critique, and most of the blogs are largely promotional, e.g., “Knowing that times are tough, we were able to work with one of our supplier partners to offer what I think is a first, a 2GB Laptop for under $500!!!” (Which in part shows the risk of blogging, as the buyer undoubtedly meant a 2 Gigahertz, not Gigabyte, machine.)

It’s unrealistic to expect retail corporate buyers to aggressively critique vendor offerings, for at least three reasons: (1) they would be critiquing the merchandise they had decided to stock on store shelves; (2) vendors would go ballistic over unfavorable reviews; and (3) it could potentially impact Wal-Mart sales revenue–which simply isn’t going to happen.

But what is interesting is that–for now–the reader comments seem to be uncensored. Responding to the laptop post quoted above, one reader noted Best Buy has a sub-$500 machine for weeks; another said the discounted inventory was 1-2 year old stock and not worth buying.

Ben Ball
Ben Ball

What is the purpose of the blog? Certainly these are some of the most powerful buyers in the world, but is there some benefit in consumer credibility to be gained by Wal-Mart by revealing its buyers’ opinions? If it is to engage or otherwise enroll consumers in the Wal-Mart experience, why not sponsor a consumer ratings blog instead? Other than the novelty and sensationalism of being able to “read what Wal-Mart thinks,” I don’t see the appeal.

Mark Lilien
Mark Lilien

Wal-Mart isn’t just a big retailer. It also has a big credibility gap. It simply isn’t known for being open and straight forward in its communication. Wal-Mart is frequently suspected of distortion and self-congratulatory propaganda. So being frank and open is wonderful and refreshing. Among the best retailers in America: eBay and Amazon, with everyday honest public feedback and product reviews. Many Americans don’t trust or like “big business” so it’s to Wal-Mart’s advantage to set a standard for openness.

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