Costco Stands Apart, Takes Customer Safety To The Next Level

By Hannah Ash, contributing writer

Utilizing Membership Card Data, Costco Warns Customers Who Purchased Recalled Food

Costco, the largest membership club in the United States, is a no-frills retailer that specializes in discounts and deals through the power of bulk purchasing. The wholesale retailer focuses on winning its large customer base over with price, skipping the ‘luxuries’ of providing shopping backs or individually stocked shelves (Costco stores are stocked on pallets). Despite this no-frills approach, Costco focuses on delivering a customer-centric experience. When it comes to instilling loyalty in its customers, Costco is a winner; yesterday’s Listeria recall demonstrates the retailer’s commitment to its members.

In response to yesterday’s announcement that certain cheese products from Parker Farms’ may have been contaminated with potentially deadly Listeria, Costco used shopping card data to email all members who purchased the cheese products about the recall. Though Walmart, Whole Foods, Aldi, Price Chopper, and Target all sold Parker Farms products as well, Costco stands apart as the retailer that leveraged its online channel to quickly warn its customers, demonstrating a true commitment to food and customer safety. Yesterday’s mobilization of shopping card data to warn affected consumers was not Costco’s first time at bat: earlier this month, Costco utilized membership data to contact everyone who purchased recalled select Kirkland snacks that may have been contaminated with Salmonella.

In defining itself as unique from other retailers, and through providing enhanced value for members, Costco clearly has a gift. Though the wholesale club may not devote much attention to store appearance or providing shoppers with extras, the retailer has placed an emphasis on its omni-channel retail strategy and creating the 360-degree experience for customers. In 2013, the club partnered with Instacart to offer its members in select cities same-day delivery; Instacart allows for multi-platform shopping on a range of devices from tablets to smartphones. Costco has a well-developed online channel and uses exclusive online-only offers to drive this channel’s sales. Last week’s release of the 2014 Temkin Experience Ratings illustrates that Costco’s approach is effective: the retailer scored a customer satisfaction rate of 79%, placing it well above much of the competition.