For Best Buy CEO Corie Barry, elevating the customer experience is paramount.
Despite recent challenges in the home theater, gaming and appliances categories, Barry is steering the company toward a more personalized and engaging shopping journey.
“We are focused on sharpening our customer experiences,” Barry said Thursday (Aug. 29) during the company’s second-quarter earnings call. “We see a consumer who is seeking value and sales events, and one who is also willing to spend on high price-point products when they need to or when there is new compelling technology. We are balancing our optimism in both the industry and our positioning with a pragmatic approach to likely uneven customer behavior going forward.”
Best Buy is amplifying its focus on personalized experiences. It is revamping its app to offer a customized homepage and tailored notifications for sales and exclusive offers, reflecting a strategic pivot to meet the needs of tech-savvy consumers.
In addition, the company has rolled out artificial intelligence (AI)-driven delivery tracking to provide real-time updates, improving transparency and customer satisfaction. Company officials are committed to refining these aspects as part of a broader strategy to navigate market pressures and drive growth through enhanced customer engagement.
“Customers remain deal-focused,” Barry explained. “Our strategic plan is built to sharpen our customer experiences.”
Barry noted that “customers receiving our personalized homepage engage 70% more than customers who don’t receive it.”
Consider how personalization drives the needs of today’s consumers. The PYMNTS Intelligence report “Personalized Offers Are Powerful — But Too Often Off-Base” found that 83% of consumers are interested in receiving personalized offers. This type of messaging is particularly effective with millennials and with those who make more than $100,000 a year, with that share rising to 89% for both groups.
While the company’s comparable sales declined 2.3% during the quarter and are projected to slip 1% in the third quarter, Best Buy saw revenue in its domestic tablet and computing categories rise 6%.
Barry cited the company’s employee certification program as a key element in enhancing the overall customer experience.
Best Buy’s employee training program is recognized for its comprehensive approach, which includes hands-on role-playing, continuous feedback, and specialized certification across various departments. The program focuses on enhancing customer service skills, with certified employees driving higher revenue per transaction. This commitment to employee development supports Best Buy’s goal of delivering customer experiences and maintaining a competitive edge in retail.
Barry noted 60% of Best Buy employees are certified in at least two categories. She is excited about the kickoff of the company’s new branding, which carries the tagline of Imagine That.
The company is enhancing its in-store environments to feature interactive tech demonstrations and expanding its online presence to offer tailored product recommendations. This strategy aims to deepen customer engagement and showcase Best Buy’s expertise in helping consumers integrate technology into their lives effectively.
“We’re creating a customer experience that inspires curiosity and enables discovery,” Barry said.
Best Buy’s membership program, which includes My Best Buy, My Best Buy Plus ($49.99 per year), and My Best Buy Total ($179.99 per year), is doing quite well, Barry said. While she didn’t share any metrics connected to the program, she explained company officials evaluate it through acquisition, engagement and retention.
“Across those things, we continue to grow our new paid customers,” she explained. “We like what we’re seeing. Paid members consistently show higher levels of engagement and spend. Our retention rates are outperforming expectations for both Plus and Total. On the whole, we’re very pleased with what we’re seeing with our membership program.”
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