BestBuy.com

Glory days as the retailer Best Buy to sales numbers wahid electronics products has long passed. This giant Retailer has lost his grip on the market. On last March reported Best Buy suffered losses in the fourth quarter amounted to 1.7 billion dollars. Not only that, they were also forced to close 50 outletnya. This makes Best Buy are in uncertain conditions.

Exactly what is wrong with Best Buy? The State experienced Best Buy today is certainly not happen overnight. There is nothing wrong in their retail practices this many years. What is happening now is the accumulation of those mistakes. Let's see one by one about what causes this.

Failed to serve customers

The customer is everything for the retailer. Therefore giving good service should be a priority for any retailer. Unfortunately, Best Buy failing to do this. Their customers off the deep end because of bad service and spilling via blog. Shannan

In blog-blog that they told me about the experience is served by an employee of Best Buy that force or just doesn't help. Not to mention the complaints because the company failed to deliver thousands of orders pre-order Christmas gifts.

Forbes, Larry Downes Blogger recently wrote about an experience menjengkelkannya when shopping at Best Buy. He told me how he is served by the looks a mess in our sales section of television. Instead of asking what he needed, the sales were "interrogated" Downes. These types of TV Sales asked that he have to do have cable or satellite service. But so Downes ask about 3D blu rays are in fact not know sales nothing.

Bad customer service like this that encourage customers to shop online. It's not too bad for Best Buy if only their website more friendly to customers. Unfortunately, it was not filled by Best Buy. No wonder when customers choose eventually escapes and is looking for another retailer.

What makes a best buy so lagging

Less innovation

Best Buy becomes King when DVDs and CDs into a Prima Donna. But it stagnated and the market became quiet. It is presented by Eric Chen, Associate Professor of business administration at Saint Joseph College, West Hartford.

"Consumer electronics will grow when there are innovations that encourage consumers to come into the store. There is no innovation when buying the latest CD or DVD player at Best Buy. As a result, these products are quickly turning into mere commodities, "said Chen again.

When the development of technology and the latest electronic goods continued to surge, consumers naturally hunted. Unfortunately, Best Buy does not provide what they want.

"Innovation and execution are at either pole. Innovation requires the ability to ignore Convention, while execution requires ability to ignore distraction. As long as in Best Buy so focus to their business model. However, they forgot to think of creative and innovative, "Bruce Kasanoff, author of the book Smart Customers, Stupid Companies.

Failure model of big-box

The period of the 1990s, Best Buy aggressively bought smaller outlets oulet and turning them into big-box format. This strategy works well enough, until finally the tactics no longer catch fire. "The problem is, most outlets now burdening Best Buy with a huge cost," Chen said.

The same thing was also articulated by Kasanoff. He thinks Best Buy do not see far ahead when applying these strategies. "They don't realize how quickly those stores so large turned into a burden, rather than an asset," says Kasanoff.

Not that alone, Best Buy also failed to make their retail customer segmentation. "Big-box retail Models will only apply to customer segments, called" premium "for now". They are the ones who are willing to pay a premium price to get it right away. But other segments are now seeing Best Buy only as window dressing for Amazon and other merchant, "explains Kasanoff.

With what has happened at the Best Buy at the moment, the question needs to be answered is how to rise up. According to Kasanoff thing to do by Best Buy is doing their customer base segmentation and developing value added service. For example, by changing the outlet that losers become membership club for customers "premium-for-now".

He also suggested offering "immediate replacement" for all goods that are damaged or modify multiple locations into a learning center where customers can learn about things such as programming, video editing, or even play games between them.

"This effort requires a cultural shift for more massive, from mass market retailer into a responsive customer service provider. If you want to bounce back, Best Buy should start