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Best Buy Customer Demographics



Best Buy is focused on serving the millennial and Generation Z market. They have made the decision to focus on catering more towards women. Men make up a large percentage of customers, but they are a less important market. Most of their revenue comes from the United States, where they sell a lot of electronics.




best buy customer demographics


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Best Buy noticed that the number of women who come into the store has increased since the recession took place. To better target female customers, they have begun to redesign the store to cater specifically to females.


Best Buy brings its retail, service, and e-commerce platforms together by leveraging its expertise and customer relationships to provide solutions for our customers. These are the three categories in which we operate: retail, service, and e-commerce.


In addition, the company boasts a head start in customer service and product knowledge, a differentiated service offering. With service membership cards, customers can enjoy priority service. They can conveniently make returns without a receipt and also receive discounts on future purchases.


Best Buy has also successfully incorporated its e-commerce strategy into its 1159 stores distributed globally. The company has worked on the expansion of its online presence and checkout options to the physical stores. This strategy has helped improve customer experience and increase the convenience of customers when shopping for technology-related items.


Answer: Best Buy has a multi-pronged approach to tackling its competitors, including opening stores in several new markets across the US, reducing costs using technology, and offering an improved customer experience. It also incorporates a differentiation strategy, wherein it offers value for money products.


Answer: Best Buy aims to be the preferred shopping destination for all technology products across the US and Canada. The retailer is customizing its brand, focusing on specific demographics, such as the Hispanic market, millennials, and women.


Best Buy is one of the leading retailers in consumer electronics. It stands out from its competitors with an edge on customer service and a wide range of products to offer online and offline. With these competitive advantages, it has driven revenue growth through physical stores and strong online sales figures. Additionally, best buy has also cut costs by diversifying its revenue streams while increasing profit margins significantly over the last years.


GreatCall is a leading provider of connected health and personal emergency response services to the aging population, with more than 900,000 paying subscribers. It has an award-winning approach to customer care that helps older consumers stay independent longer, provides peace of mind to family caregivers and reduces health care costs. It offers an innovative combination of easy-to-use mobile products and connected devices tailored for aging consumers. In addition, GreatCall has a range of services, including a simple, one-touch connection to trained, U.S.-based agents who can connect the user to family caregivers, provide general concierge services, answer service-related questions and dispatch emergency personnel.


About Best BuyWe at Best Buy work hard every day to enrich the lives of consumers through technology, whether they come to us online, visit our stores or invite us into their homes. We do this by solving technology problems and addressing key human needs across a range of areas, including entertainment, productivity, communication, food preparation, security and health. Please visit us at bestbuy.com and follow @BestBuy.


Barry said the retailer has introduced the option of picking up online orders at 2,000 alternate locations besides its stores in nine markets, without naming them. She said Best Buy plans to expand that service to more metropolitan areas in the current year, but did not provide details. The retailer introduced non-store pickup locations in areas where in-store pickup is not feasible and many customers prefer delivery to a location other than their homes, Barry said.


Consumers began associating the shopping experience at the company, with a sense of satisfaction. The company focused on centricity and relied on demographics as well as segmentation to come up with a focus for each outlet. This allowed the company to satisfy the needs of the most lucrative customers and ensure high sales volumes (Griffin 265-266).


Thus, the corporation should look at lowering the cost of current products. It has already established a reputation of customer centeredness. Lowering costs would go further in making the point of customer focus.


The new defender strategy would aim at improving the performance of current products. Already, the firm has customer relation services such as the geek squad, and it should focus more on that to ensure that its customers continue to visit its outlets (Griffin 250).


Best Buy would then be able to lower its overall costs of operation and increase its economies of scale. The new economies of scale savings can then support it in increasing employee compensation, and improving customer experience to frustrate new competitors into the industry (Griffin 252).


A focus on customers by employees is encouraging creativity and innovation on different outlets. Customers find each shopping experience a little better and more personal than their previous one. The company analyzes the demographics and segments its customers, to have the most lucrative ones get the greatest attention.


Thus, customers expect, and indeed find, products related to their tastes and preferences given a prominence in the outlets. In addition, they get personal shopping assistants who are knowledgeable enough to offer them quality advice on the products they are purchasing.


The differentiation advantage allows the company to realign the inventory in an outlet in quick response to changing peculiarities of customer segments (Griffin 266). The power of front line employees to override inventory management plans ensure that Best Buy remains a unique company to customers, focusing on them in a different way than the competition. This differentiation advantage comes from the reengineered supply chain.


A customer-focused interaction with buyers, acts as a market research resource for the company allowing it to be responsive without having to hire external market researchers. Thus, it saves on costs associated with research and development. The additional savings pass to employee compensation or profit margins, which allow the company to continue offering low prices.


The customer services offered by the company allow it to reduce additional marketing expenses for its flagship products. For example, its geek squad departments offer complete technical solutions to new and experienced customers of electronics.


In return, the customers praise the superiority of the outlets customer service and recommend it to other consumers. The company saves on advertising campaigns whose success would not be as viral as the quality, customer service recommendation (Griffin 266).


Customer segmentation, which allows the company to focus on the most lucrative customers, reduces additional operation costs associated with a general focus on sales. Segmentation ensures that only necessary products and initiatives get to specific outlets, and the employees of the outlets receive specialized training on dealing with the particular customer segment.


In the mature industry, sellers compete on product differentiation and quality of customer care, rather than price. This happens because the number of sellers offering the same product at matching prices spoils consumers for choice.


Best Buy as an international company continues to explore new markets, for its retail outlets. The company needs to embrace global efficiencies buy locating stores where they enjoy the lowest distribution costs or offer the best quality to customers.


To reduce further costs associated with distribution and inventory management, the company should have regional distribution centers for its worldwide business (Griffin 258). Although the company already undertakes customer segmentation in its specialized stores, it might need to move additional inventory for its international stores to cater for the diversity of consumers.


Rarely has a major shift in a company's strategy relied so heavily on the supply chain. Best Buy is reimagining its big-box retail concept to focus intensively on customer needs, and the company's supply chain is an integral part of the new vision. No longer will the supply chain simply push high volumes of product out of the factories and into the stores—a task at which it excels, by the way. Now it will emphasize agility, responsiveness, and accuracy, pinpointing smaller, sales floor-ready deliveries to meet the changing desires of specific customer segments. In effect, the supply chain is becoming a customer-facing unit.


Best Buy's move is a measure of just how far the supply chain has evolved in its relationship to corporate strategy. But this story offers lessons that go beyond how supply chains can drive vast shifts in strategy. The Best Buy transformation shows how supply chain executives from a range of industries can look beyond cost savings to make sure they're not missing opportunities to satisfy customers, can structure the supply chain to allow customer-facing units to "pull" product from consolidation centers, can help to relieve frontline workers of responsibilities that aren't essential to sales, and can make sure that supply chain decisions are fact driven—that they're based on evidence gleaned from customer experiences.


So how did Best Buy go about this transformation? And how did the company decide it needed to overhaul its supply chain in the first place? It all comes down to competition, demographics, and customer satisfaction.


Getting inside customers' heads The Richfield, Minnesota-based retailer, a $27 billion market leader in consumer electronics with more than 700 stores in 49 states, faced several related challenges in 2003. For one thing, Wal-Mart and Target were chipping away at its core businesses—consumer electronics, home office equipment, entertainment software, and appliances. For another, as the population ages, consumers are putting more emphasis on service and support and less on the gee-whiz technical aspects of products. Third, the company found that 33 percent of the people visiting its stores were leaving dissatisfied. The stores' broad focus just wasn't meeting their needs. 041b061a72


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