I recently watched a keynote session from this year’s Adobe Summit. Shantanu Narayen, the CEO of Adobe, sat down to chat with Hubert Joly, the CEO of Best Buy. Joly shared some innovative ideas that may encourage any retailer who feels their business has been disrupted by the digital world.
Seven years ago, Best Buy knew they needed to do something so they didn’t “die” to Amazon. They had to find a way to reach customers other than by selling them a product. They discovered customers were coming into their store to shop for products and then leaving the store to buy those products from Amazon. To discourage that, Best Buy started price matching Amazon. This was part of their Renew Blue, a marketing campaign about rebuilding the company and fixing what was broken. They also invested resources into their website and online shopping capabilities. They now ship as fast as Amazon does, for FREE. And they’ve invested in their employees to improve the customer’s in-store experience.
Then came the marketing campaign, Building The New Blue, which is about reinventing the company. They have started providing services beyond what a customer can find in the store. Joly gave some examples of new services they are providing inside customers’ homes.
With so many choices in technology products and making devices work together, it can be overwhelming. That is why Best Buy decided to offer to the customer a chance to have an expert come to their home to give advice on what products will best suit their living space. Integrating store services with online services, they create a virtual reality experience that will show what various TVs and other devices will look like in the home before making a purchase.
Let’s say you sit down to watch something on Netflix and you’re having trouble with the streaming. Is the problem with Netflix, your Internet connection, your TV, your streaming device? What is it? It can be both frustrating and time-consuming trying to locate the problem. Best Buy’s total tech support experts will find the problem for you and fix it.
With the acquisition of a company called GreatCall, they are able to offer services focused on health. With their intention to help aging seniors stay longer in their homes, they have the ability to use artificial intelligence and place devices in their home so they can be monitored.
When you order online and choose to pick up your purchase in the store, there is a feature called On My Way that lets the store know to get your product ready for pickup. After you are home from the store, check your email inbox. You should have an message from Best Buy with instructions for unpacking and setting up your product.
Best Buy has gathered customer data over the years and they are using that data to send targeted emails. Joly said for one promotional email, they send up to 40 million versions of that email. They see the importance of getting relevant information to the customer without inundating them with emails. They optimize how many emails are sent, who they are sent to and at what time of the day.
Best Buy has made many advances over the last seven years. They don’t see themselves as a brick and mortar retailer. They see themselves as a company that wants to make their customers happy – online, in the store and in their homes. They continue to Build The New Blue, focusing on a relationship with their customers and being empathetic toward their needs so they know how they can best serve them.