Forbes magazine recently ran a blog piece by Larry Downes entitled “Why Best Buy is Going out of Business…Gradually” which created an online stir. The gist of the article was that Best Buy was going the way of the dinosaur, due to horrible customer service and an inability to adapt to new pressures in the market.
After the initial brouhaha, he published a followup with some great stats on page views, the effect of Social Media in spreading the word and some more great insights. Click HERE.
Mr Downes opined that Best buy is focused on the customer, but in an aggressive, overpowering manner, and not focused on the customer in order to serve them.
Another big problem noted is the lack of integrated IT systems. This is a common problem of many large brick and mortar retailers. No one cares that it is hard, they just want the online experience to be integrated, hassle free, seamless and just another retail outlet. That means continuity for the customer, not the company. For example, some people will browse the showroom, then use their smartphone to order online. Some will order online and then pick up in the store. Some will buy online and expect to return their items in store.
Another key point he brings up in his article is if a modern big box retailer no longer want to be a commodity seller, they should move to a premium service for a premium price. He mentions that the successful modern retailer is creating an experience and not just selling goods. Examples include Apple, Rain Forest Cafe, Starbucks, and Nordstrom.
Add Value or Adios!
None of this is retail rocket science, but sometimes you just need another set of eyes to see the forest for the trees. (Like some independent research, perhaps? -ed)
The easy answer, but not always simple to do – offer a seamless, no hassle, integrated online/offline retail experience and focus relentlessly on the customer, not yourself. Basically, be Amazon but with brick and mortar stores as well.
Finally, here is the response by the CEO of Best Buy to the brouhaha around the Forbes article and online storm of posts.
(Make sure to click through the links above to get the full story)
