"Digital marketing has been a huge transformation," he said. The store also sends the customer an email with unpacking and installation instructions.īest Buy also uses virtual reality to aid customers in their shopping journey by showing what an item will look like in their home, Joly said. A feature called "On My Way" enables customers to alert a store that they are going to soon arrive to pick up an item, giving employees time to bring the item to the front of the store for pickup. The use of artificial intelligence in the online search function is one example. Digitization a key benefitĭigitization has been a key aspect of the company's transformation, Joly said.
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"This is truly far from just selling a TV and then moving on," Joly said.
It also launched teen tech centers in collaboration with Adobe to help give disadvantaged teenagers access to technology. "We believe that helping aging seniors stay longer in their home and live an independent life does wonders for them," he said.īest Buy also tried to be a good world citizen by reducing its carbon footprint and becoming the largest collector of funds for St. By placing devices in seniors' homes, the company monitors their daily seniors' living activities. Best Buy acquired GreatCall, a provider of connected health and personal emergency response services to the aging population, with more than 900,000 paying subscribers. "For $200 per year, we'll support everything in your home and help you make it work," he said.Īnother example is a focus on health and aging seniors. Historically, tech support was attached to a single product. "We'll come to you for free, and we'll have a conversation in your home, and we'll try to design something that makes a big difference in your life," he said.Īnother example is total tech support. Buying technology can be overwhelming for some customers, he said. He said the company is "innovating outside of the box." One example are its in-home advisers. Make a big difference in peoples' lives by addressing key human needs, whether it's entertainment, productivity, communication, food preparation, security or health." "Our purpose is to enrich lives with the help of technology. Once these measures were completed, the company turned its attention to building the "new Blue," he said. By investing in its workers, it reduced employee turnover "precipitously," he said. The company revamped its website, made changes in the stores and invested in is employees. "And we're able to leverage digital technology across all of these touch points."īest Buy also invested in the customer experience. "In soccer terms, we win three to one," Joly said. Half of Best Buy's online orders are either picked up in a store or shipped from the store. They can also know which products are available in which stores. A customer app allows the guest to compare features of different products while they're in the store. "The stores end up being a wonderful asset," Joly said. "Call it a draw online," Joly said in comparing Best Buy with Amazon.īut the physical stores gave Best Buy an edge since they allow customers to have an in-store experience, and at the same time give Best Buy the ability to send advisers to peoples' homes.
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"They're an amazing company." The first part of Best Buy's turnaround was to match Amazon's prices and provide free delivery as fast as Amazon.
"They're good online," he said of Amazon. In November 2012, the company introduced a comprehensive strategy involving customers, employees and vendor partners, Joly said. 2, 2019, on top of 9 percent comparable sales growth last year. Last month, the company reported a 3 percent increase in comparable sales for the 13-week fourth quarter ended Feb. But rather than falling victim, Best Buy harnessed its resources and created a turnaround strategy that has allowed it to prosper. Seven years ago many people thought Best Buy would be destroyed by Amazon, a fate that befelled other electronics retailers, Joly said. "We see ourselves as a company that's obsessed about the customer that's trying to serve the customers in a way that truly solves their unique problem." "We don't see ourselves as a brick and mortar retailer," Joly said. Shantanu Narayen, Adobe CEO, interviewed Joly during a keynote presentation. Inc., as Jeff Kagan observed in a Retail Customer Experience blog last year.Īttendees at the Adobe 2019 Summit in Las Vegas this week had a chance to learn more about the company's turnaround from CEO Hubert Joly. Traditional retailers that can integrate digital merchandising with physical stores to improve the customer journey are winning.
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