What’s Up with the Geek Squad?

Posted on July 7, 2012 by bermanevansretail
In its quest to squeeze out more operating efficiencies, Best Buy is now planning to reduce the size of its Geek Squad labor force. Is this a smart decision?
For many years, Best Buy has offered its Geek Squad services — even setting up a separate business for these services and generating hundreds of millions of dollars in revenues. As its Web site notes (click the icon to visit the site): “Geek Squad is the first national 24-hour task force dedicated to solving the world’s technology challenges. Comprised of highly skilled and specially trained computing agents, home entertainment installers (GSIs), autotechs, and appliance repairers (GSRs), 20,000 active Geek Squad technicians patrol Geek Squad precincts in all U.S. Best Buy stores, at Geek Squad stand-alone U.S. store locations, and at service centers nationwide.”

The company has decided to cut the number of Geek Squaders by 650 (3.25 percent). As Joan Solsman reports in the Wall Street Journal: “Matthew Furman, senior vice-president of communications and public affairs [at Best Buy], said the staff’s reduction comes amid efforts to realign workers across all service channels. ‘We recently made some adjustments to position our talent where we’re seeing growth and give our agents the opportunity to serve customers best,’ he said. Michael Pachter, an analyst at Wedbush Securities, said because Best Buy doesn’t have an advantage on products or pricing, ‘the only real differentiator is that they have service, that service is installation and advice, and that’s what Geek Squad does.'” Click here for the full WSJ story.
Posted in Part 1: Overview/Planning, Part 5: Managing a Retail Business | Tagged , , , | Leave a comment

To Sell More, Focus on Existing Customers

Posted on July 6, 2012 by bermanevansretail
As Rick Reynolds says on the Harvard Business Review blog: “Strengthening your relationship with your existing customer base is one of the best ways to increase sales. Your company’s account management and operating teams play critical roles in making this happen. If they’re not performing at their peak, the door opens for competitors to step in.”
Click the photo for the full story.

Posted in Part 3: Targeting Customers and Gathering Information, Part 8: Putting It All Together | Tagged , , | Leave a comment

More Retailers Engage in Multiple Channels as a Response to Showrooming

Posted on July 5, 2012 by bermanevansretail
As described in earlier posts, “showrooming” occurs when consumers visit retail stores to learn about and try out (or try on) products and then surf the Web — and purchase there — for the best prices.
Now many retailers are fighting back with what we might call “reverse showrooming.” This occurs when multi-channel retailers encourage shoppers to buy online and then pick up their purchases at the store. This practice has several positive advantages for the store:
  1. Shoppers can do online comparison shopping and know that the multi-channel retailer is offering a fair price.
  2. Shoppers can place orders at any time of day or night.
  3. The multi-channel purchase experience enables shoppers to pick up their purchases the same day — without waiting or having to be home to sign for a delivery.
  4. The store can arrange for a special area to be designated for easy and fast pick-up.
  5. Because shoppers are visiting the store any way, they may buy some other items on the same trip.
To learn more about this emerging retail practice, click the photo to access an interesting article from the New York Times. Here, Marie Seremetis, an online shopper, is picking up her order at a New York City-based Container Store. 

Photo by Chester Higgins Jr./New York Times
Posted in Online Retailing, Part 6: Merchandise Management and Pricing, Part 8: Putting It All Together | Tagged , , , , | 3 Comments