Commentary

Kagan: Walmart radio heard in stores from coast to coast

Jeff Kagan puts the spotlight on Walmart radio and how it may be an example of a new, and potentially big retail wave and one that improves improve the customer relationship with the store.

Photo by iStock.com

November 26, 2018 by Jeff KAGAN — Wireless Analyst, Telecom Industry Analyst

Walking through a few Walmart stores recently I noticed something. Walmart radio was being played. Walmart radio! There was a DJ introducing songs and talking about in store specials. This is very likely the same show being broadcast inside every Walmart store. Who knows how long this has been going on. This started me thinking: What a great idea.

This Walmart radio could be an example of a new, and potentially big retail wave. Every retail chain with countless stores can and could follow Walmart. They can not only have their own DJs broadcasting the same music in every store, but they can also use it in many other creative ways to improve the customer relationship with the store.

New retail marketing idea could catch on nationally

Think of this like a radio station, with listeners all over the country, in pockets inside these retail stores. It's different from a regular radio station which has a local market. Local radio has a market as far as their signal reaches.

Compare this to TuneIn Radio, iHeart Radio or Pandora. These are online radio delivered over the Internet. These are not local markets. These are national markets. Advertisers are national, not local.

So, radio is changing. Going online. Becoming national, not local. The market is expanding. So is the advertiser and the listener. The metrics are all changing.

In this world, Walmart radio plays music and lets shoppers know about special deals in the store, right then. It's sort of like a flashing light some retailers, like Costco, Sam's Club or BJ's, have used for decades. You often hear something over the loudspeaker inviting shoppers to come to the flashing light and watch a demonstration and get something for free for doing so.

Update your retail marketing techniques

Retailers have been testing various ideas over many years. Some work. Some don't. But they keep trying

That's where Walmart Radio seems to be right now. I don't know whether it will still be with us next year. It all depends whether it helps Walmart increase sales and market share. So, we will have to wait and see.

Either way, this is a creative idea. The next step in the flashing light or demonstration table.

Can you use this idea in your stores? I'll bet you can think of ways to do just that. Some will be successful. Others will not. But either way, this is a great time of experimentation and new ideas.

Think of the way Uber and Lyft have transformed the taxi and limousine space. They did not invent the space. They just took it to the next level.

Think of the way Apple iPhone and Google Android transformed the smartphone space and replaced then leaders Blackberry, Nokia, Palm and even Motorola.

You don't have to invent a new category. All you have to do is come up with a fresh new twist on an existing idea. The way Walmart radio is doing. What ideas can you come up with to do this same thing?

There are countless retail chains in every industry. Every one could have their own DJs and their own music being piped in stores from coast to coast. As I write this in my neighborhood Starbucks I am listening to the music they play and realize it's another obvious place for this kind of move.

Retail companies can create in-store radio profit center instead of cost

Companies already pay for the music they play. Why not create their own in-store radio which could become a new profit center instead of a cost?

Of course, not everyone likes this. When you need to think or meet with someone, this can get in the way. In stores, when you have a half dozen items in your mind to pick up, you may forget while listening to in-store radio.

So, in-store radio may be a great profit center for the company, may be enjoyed by many customers, but may also be reviled by other customers. So, while this is not perfect for every retail environment, it is a great idea for many.

That means companies must be careful stepping into this new area. However, if done right, this is a potential home run. If they do it right. Let's keep our eyes on this new marketing method.