Best Buy On Multi-Channel Retailing
Essay Preview: Best Buy On Multi-Channel Retailing
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When Best Buy speaks, I listen. The company seems to be ahead of the retailing curve in terms of producing an innovative customer experience. Back in September, I posted about Best Buys personal shopping assistants and kitchen design service. Theres been a lot of talk about the companys in-store customer centric initiative. Over the holiday shopping season, the company pushed its in store pick up service with great success.
Sam Taylor, Best Buy SVP Online Stores & Marketing, discussed some of his strategies for success with multi-channel retailing. This is not an interview (no direct quotes), just what I picked up from his talk.
Sam equated the normal multi-channel retailing situation to a sandbox. Kids play nicely at first, but ultimately, some kind of conflict comes along. The secret is sharing. Analogy to your organization: Are people pointing fingers? Is there an internal channel conflict? Do you hear people say things likeyou shouldnt be on our P&Lthere shouldnt be online only promotionsor from the other perspectivewere the younger, smarter brother, were growing faster, etc.
Its about sharing:
1. Share the money.
-All the stores get credit for the revenue and profits from BestBuy.com.
2. Share the data between the different channels.
-For example, we break out web analytics by different customer segments on the web and share that data with the stores (for instance, on the web, BB can see a certain segment looks for Star Wars, WWE, Webcams, etc.). One store manager put this data to use and wrote: “We couldnt be more pleased with the results. On the release of Star Wars, we put out titles from your list on a third table. We were 198% to revenue as well as one of the top stores in UPT. The segment table has about 70% sell through strength.”