Karima-Catherine

Social media and Costco – Where are they?

As a business consultant, I look at Costco with a lot of interest.  It took me a good 2 years to be convinced that I needed their membership card. I used to piggyback once or twice a year with a privileged family member.

Now, I am a member and I enter Costco feeling special, like if I belong to a privileged club of bulk buyers! Well, at least, that’s the perception most people have!

For those unfamiliar with the retailer, it sells a variety of products from a variety of brands including its own private label Kirkland.  One can buy from the brick and mortar warehouse or online.  There, you are not a customer but a member; even if it partly semantic, the word makes a difference.

Don’t expect to be pampered at the door and to be able to ask staff member information about a product at every corner of the immense warehouse. However, you are greeted at the door when you present your membership card, and then you are pretty much on your own.  I think the mere fact of showing a membership cards unconsciously makes us feel special – we are part of this gated community, we get what other people don’t, …

The online experience is pretty much the same.  Costco practices are non-intrusive. All is laid-out for us to see everything they want us to buy. They strip the shopping experience artifacts to the minimum and it works very well.

With over 55 million members, their strength is their customer service.  No question asked, you can return any item you have purchased, even food. Items purchased online can be returned to any warehouse.  Even Electronics goods can be returned within 90 days and come with a free technical support for 2 years.  Rebates are applied and reapplied, if item is defective.

As a business consultant, helping companies integrate social media, I cannot help but looking at the Costco case in terms of their social media footprints, or rather, their lack of.  They have no official social media presence; they do not have a Facebook page, no Twitter account, no blog.

They has advocates all over the Internet; Several unofficial accounts on Twitter reach the several thousands of followers and active discussions taking place; On Facebook, the main unofficial Costco page has over 100,000 fans { people liking it } and on several blogs and forums, discussions happen around the wholesaler.

They keeps in simple and efficient, whether it is their physical environment, the products, the services. No frills. You know what you get and keep coming back.

From my point of view, their success resides in good products, reasonable prices, solid processes, engaging and reliable customer service,  efficient services, and nurturing a strong sense of community – albeit, not on social networks.

Why would a company such as Costco not establish an official social media presence?

Perhaps it is their strategy to not participate, may be they are monitoring and working a social media program behind the scenes;  I could keep on speculating but I just hope, whether they choose or not to integrate social media in their business strategy, I hope they are using social media for monitoring the brand and listening to what their advocates, customers, detractors are saying and I do advise, they come up with a crisis management plan for social media.

I would love your insights on why you know or think Costco is not officially using social media?  Do you know if they are monitoring?  Leave a comment !

Tags: social media