Posts Tagged ‘Best Buy’

Forget Membership Points…..Your Reward is a Surprise!!

February 23, 2012

Punch line: Best Buy is differentiating its membership rewards with a “surprise and delight” approach.

Sure beats cold cash discounts, right?

* * * * *
Excerpted form AdAge: “Surprise! Here’s a Ticket to a Movie Premiere, on Best Buy”

Best Buy invited a handful of top shoppers and their family members to an exclusive preview of “Twilight Eclipse.”

The reward, which went to select members of Best Buy’s Reward Zone loyalty program, was part of a “surprise and delight” approach that’s becoming a mainstay in loyalty strategies.

“Surprise and delight” plays off the principle that a dollar bill is always worth more when you find it crinkled up in an old pair of pants.

At Best Buy, surprises have taken the form of movie premieres and exclusive shopping invites on Black Friday.

Edited by ARK

When was the last time you bought something at Best Buy?

January 6, 2012

For that matter, when was the last time you shopped at a Best Buy?

A couple of years ago, the company was brash and made headlines by categorizing its customers as angels or demons … and talking about it publically.

For example, from a Fortune article:

Best Buy concluded that companies are often oblivious to the fact that not all customers are profitable ones. Some are very lucrative to deal with, while others cost more to sell to than the business is worth.

They called the first group angel customers and the second demons.

By catering to the angels, companies can reward customers, employees and shareholders alike.

In short, here’s how it works: Figure out which customers make you the most money, segment them carefully, then realign your stores and empower employees to target those favored shoppers with products and services that will encourage them to spend more and come back often.

Sounds good.

Unless you’re slotted as a demon, in which case you get shunned as profitless instead of being cultivated for your potential.

Even at the time, critics argued that intentionally dissing a bunch of your customers was a bad idea for retailers.  Someday, you may just need those demons to keep you afloat

Well, it seems that those days have come for Best Buy.

A recent Forbes article is titled: “Why Best Buy is going out of business gradually”.

In a nutshell, the author points out that a nimble  Amazon is cleaning Best Buy’s clock, that killer electronic products are few and far between, and that having money tied up in brick & mortar isn’t where you want to be these days.

He forgot to mention the demons … maybe they’re getting their revenge.

Thanks to AY for feeding the lead

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