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Best Buy: Customer focus adds sales
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Appliance store’s focus on the customer lands 7% more sales and 6% higher close rates.

As its name implies, appliance superstore Best Buy is out to make its customers believe it is the best place to buy a variety of items, from CD players and stereos to refrigerators.

 

As part of that goal, the store chain recently completed a year-long customer-centricity program that garnered some hefty results. The 32 lab stores that participated in the program – including both underperforming and high-performing stores -- booked an average 7% more sales, and were able to close 6% more deals.

 

Best Buy’s new customer program consisted of several initiatives. First, the retailer identified five different key customer types: affluent professionals seeking the best technology experience; younger males wanting cutting-edge technology and entertainment; fathers looking for technology to improve their lifestyle; mothers seeking technology to enrich their children&singlequot;s lives; and small business people using technology to improve their bottom lines.

 

It then adapted initiatives to meet their needs. “For example, we appealed to suburban moms with personal shopping assistants, and we attracted small business owners with the services of Geek Squad, our 24-hour, rapid response computer support task force,” explained Mike Keskey, president of U.S. Best Buy Stores.

 

More important, Keskey says, Best Buy implemented an adaptive operating model that gave employees closest to the customer more important decision-making responsibilities, including those having to do with variations in product offerings, customer service, promotions and even store designs. “We encouraged our store associates to create better relationships with customers,” Keskey said. “They brought passion, energy and creativity to this initiative, and they are the primary reason our test was successful.”

 

Best Buy also gave its store associates customer-centricity training in which they were taught the importance of metrics for measuring the results of all investments in terms of segment growth revenue and return on capital investment.

 

The initiative was such a success that Best Buy plans to roll out the new program to110 more North American stores and to allocate $50 million in capital expenditures to those stores. In addition, the retailer plans to invest in supply chain and CRM systems to further enhance the program. The additional expenditures should be offset by the revenue gains from the customer centricity program, the company said.

 

“Our goal is to transform Best Buy into a customer-driven, talent-powered enterprise that is focused on enhancing our customers’ enjoyment of technology,” said Brad Anderson, vice chairman and chief executive officer.

 




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