Best Buy

Group 3

4MA6

Bautista, Maria Donna

Capa, Christine Joy

Pureza, Christopher James

Sagad, Santiago Francisco

Villanueva, Aaron Dale

CASE SUMMARY

Best Buy is the US’s largest –volume specialty retailer of consumer electronics, personal computers, entertainment software and appliances. It operates over 1,400 large and small-formal locations, has more than 160,000 employees, $50B in annual revenue and is the 11th largest retail website in the United States.

Best Buy is so strongly associated with technology and believes that technology should serve people, and not the other way around. It focuses on educating consumers on the features and benefits of technology and entertainment products, while maximizing overall profitability. Best Buy has four -strategic initiatives, which are (1) consumer-centricity, (2) efficient enterprise, (3) win with service and (4) win in entertainment, which they believe will further enhance their business model.

Best Buy, being consumer-centric, believed that no one knew the data about their customers better than themselves and had to modify their core capabilities to make sure that they determine what their customers want and need. Best Buy developed a database that allowed them to understand the deeper insight needed from its consumers. They further enhanced their database with the help of Experian’s INSOURCE consumer marketing data. Their objective was to create a complete Customer Relationship Management (CRM) solution by creating a more comprehensive customer database for e-mail marketing and traditional direct marketing that would enable operational efficiencies and improve relationships with customers.

Through their data analysis, Best Buy identified five angel customer segments as well as their devil customers. The angels were customers who bought consumer electronics without waiting for markdowns or rebates. The devils bought products applied for rebates then returned the products and bought them back again at...