Over the past years, in partnership with Carphone Warehouse (CPW), Europe’s largest wireless phone retailer, our consumer experience in wireless has gotten much better. We use a variety of tracking services to measure customer satisfaction and in the past year our wireless phone satisfaction has jumped up dramatically scoring at the top of our departments from being among the lowest. This result is due to our staff being better trained, more labor hours as well as us having the best assortment (we are the only retailer besides Apple and AT&T with the IPhone) and Services brand (Geek Squad) in Retail. The proof in the pudding is that our market share has more than doubled. Go see for yourself if you haven’t already and tell me what you think.
Partially as a result of our big box success as well as wanting to better satisfy consumer demand for mobile technology, this week we opened a new concept in the Mall Of America, called Best Buy “Mobile.” This format is designed for people that prefer shopping in a mall environment, primarily women w/children and teens. The value proposition leverages what we have found to be working in the big box, (better choice of phones & networks; informed impartial advice; straightforward pricing, after sale support) but goes beyond the cell phone in selling other forms of mobile technology including notebook computers, sling box’s and hand held internet devices to name a few. Its all housed in a 3,000 square foot format which is much smaller than the typical Best Buy (30,000+ square feet).
I am really excited about this idea. For me this concept leverages the Best Buy equity (keeping advertising costs down) but enables us to reach different consumers (who don’t like big box formats) with a unique value proposition that has tremendous demand upside as mobile technology demand increases (which I think is going to grow exponentially). Even putting the mobile technology opportunity aside, the mall based cell phone market is very attractive based upon the very low customer satisfaction scores that this channel delivers today.
That’s what I think, what about you? There are currently over 70,000 places in the US to buy a new mobile phone. How do you think we will fare in this business with the small format concept? And for people who live in Minneapolis or are visiting the Mall Of America, I would love to hear your first hand takes and that of course includes Best Buy employees.
Barry,
In college, I worked in one of the first BBY Mobile departments back in 1997. The training from the carriers was top notch. These were the days when we had to program each phone after purchase, so the customer had to wait a good 20 minutes between deciding on a phone and plan, to ringing up the phone at the register.
BBY was smart in bring the iPhone into the fold. I’m more impressed that you decided to bring unlocked Nokia N Series, and HTC Diamond phones on board. This shows a certain savvy that most big box retailers never have.
Never underestimate the growing change in consumer needs. You’ll see more Grandparents txting, parents using mobile browsers, and kids showing both groups how to use mobile in a smarter way.
Make the sales experience as informative as possible. Have as many “working” demos as possible. Dummy phones give little indication of how a phone will work or feel.
Good luck with the store!
-TaulPaul
Best Buy has done a great job with BBY Mobile. As a former mobile consultant, I will say that the hours of training we did helped not only the customer, but us as well. We knew a lot more and became more passionate about phones and services. This led us to believe in our products and apply them to the customers’ lifestyles and needs.
These smaller stores would do just as well as big box formats. However, the demographics. like you mentioned, will be different and so will the marketing tactics. I’m actually imagining a “hipper” version of BBY Mobile to be in these malls. One that plays with the “mall feel.” An example would be a mattress store in the mall. Really? When I go to the mall, I’m looking for the latest trends and the coolest gadgets that is all the rave. If I want the top-of-the-line mattress, I would just go to Sit ‘n Sleep or another competitor with more selection (and even cheaper prices).
Whatever Best Buy chooses for these stores, I have confident they will do great. Just make sure the employees have the same extensive training as other bby mobile consultants do. Nothing frustrates a customer more than having a sales rep not knowing the answers to your questions.
Barry, thanks for sharing all your insights. I think Best Buy Mobile in malls should do extremely well and, as a self-professed gadget geek, I am especially glad to hear you will look at the concept broadly enough to include non-phone devices. The rapidly emerging netbook category, with sub $300 prices now, and integrated EVDO coming, would seem to be an excellent product line for such a store. Consumers want to compare both devices and prices (including service plans) and I think that is one of the reasons why Best Buy has experienced such growth and success in the category. Why go to a carrier dedicated store with one choice when you can compare multiple opportunities in one locale? I think this has also led to the proliferation of Mobile Kiosks in malls, but with the credibility and clout of the Best Buy brand, along with your solid rep for price and service, Best Buy Mobile should easily become the kiosk killer. I hope you will be coming to malls in South Florida soon. When you do, I know where I will be hanging out when I am waiting for my kids to get out of “Claire’s” and “PacSun.” LOL.
Best,
Jeff @sass
I agree with Jeff Sass, I think that the BBY brand will lend a certain credibility to the Mobile concept but I would be concerned that the Mobile concept might water down the BBY brand by equating it with the Mobile Kiosks (or Radio Shack) in malls.
However I do think that the concept has much merit. I have seen malls in Indianapolis where Apple, Sony, and Dell have smaller stores and they have done a great job of positioning them by making the store unique. Instead of the traditional store layout they create an atmosphere where the consumer is drawn in by great technology displays.
Good luck,
Adam
Barry,
I will preface my comments with the fact that I have not visited the new store at the MOA yet, I will be there in a few weeks, and I hope to provide more feedback at that time.
One of the key differences between the boutique stores positioned towards the mall shopper is the use of solution selling over product selling. The Apple store, Sony store and other technology outlets have made it a key feature to have “vignettes” showing how several of the products work together to create a solution. I think the expanded product mix you have chosen for these stores will appeal to the target market segment, however success in selling to Millennials is based around context rather than product, and I think that showing these products working together would drive sales. I know that in the larger Best Buy stores there have been issues in the past with keeping contextual product displays functioning, however in a smaller format store, associates should be able to maintain the displays to a greater degree than in the larger format stores.
One of the great features offered at the Apple store are the workshops presented on a regular basis; I personally have learned a lot with just a quick walk through of popular software programs. I think that this would be a great feature to have at these new mall based stores, to not only sell the digital lifestyle but to demonstrate how these products can make life better for the user. As an example, I use my Slingbox frequently and on a recent occasion I demonstrated the concept to my parents (of baby-boomer age) and they were instantly in love; as frequent overseas travelers, they could immediately see value in being able to tune in to English language programming from “back home”. An in-store demonstration of more complex technology like the Slingbox would, in my opinion, drive sales among the mall crowds as well.
I think you are right in your assumption that mobile technology is exponential in growth; by leveraging existing brand equity, Best Buy can position itself as a leader in this field. The advantage that Best Buy enjoys over other mall based electronics stores is that there are no other players left on a national scale with the exception of Radio Shack. Although Radio Shack is about to embark on a significant makeover under the direction of their newly appointed CMO, Lee Applbaum, they are starting with a much lower brand equity among Gen X, Gen Y, and Millennials. In addition, Radio Shack is in a weaker capital structure position, so their ability to scale up beyond their current 14 store test is questionable.
Thanks,
Mike Diliberto
Mike:
Appreciate the comments. I am not familiar with the 14 store test that Radio Shack is executing. Can you provide more details on it as well as what cities it is running in?
Barry,
Unfortunately the only information I have right now is the press release that was posted on the Radio Shack website: http://www.radioshackcorporation.com/ir/release_details_main.php?id=1073
All they mention is that the remodels will occur in targeted markets. I’ll post an update here if I come across more information.
Hi Mr. Judge,
I’m currently a Communications student at Northeastern University. I am working on a project on Best Buy where I am to assess the organization’s communication quality by looking at the different social medias they use. After some research I chose to analyze your blog. I realize that you are extremely busy but would like to know if it is in any way possible to ask you a few questions about your blog as a social media initiative.
Thank you
p.s
I’m sorry this post isn’t relevant to the blog however I visited Best Buy’s website and didn’t find another way to contact any primary participants in the social media initiative.
Barry,
This isn’t scientific but it is anecdotal based on addressing this issue for some time with my friends: There is still a great deal of confusion over perceptions and requirements. Most people I have discussed this with are confused by what these types of stores are for. Below are the most frequent questions I hear:
“Don’t I have to buy a phone from my provider to make sure it works?” “How will I know which phones can work on Verizon, AT&T, etc…”
“Will I screw up my contract if I do this?”
“Which phones can you buy yourself and which one’s are we required to buy from our plan provider.”
“What about all of those free phone credits I have, can I use them or only if getting the phone from my carrier?”
“If I buy a phone at a retail store, what are the limitations? Do I get service at the same time? From anyone?”
Combined these questions create paralysis and I can tell you that it has stopped people from even entering a Best Buy Mobile store.
Walking by, “Not sure who those stores are for, but it certainly isn’t me”, and I agree it looks and tastes a lot like Radio Shack.
I think a major reason for the low satisfaction scores is because people just don’t know how to answer the questions above. And it becomes even more complicated for those working in large corporations where there are communication standards such as the use of Blackberries only, in terms of which expenses are reimbursable.
To build on a few comments:
1) I also believe that taking these stores to a more “boutique” feel than a cut-and-paste of the mobile section of a “regular” Best Buy store would attract more customers. Differentiating the feel and experience would make these stores unique, but still entirely and totally Best Buy.
2) The callout on netbooks – *love* this idea. Personally, I have been really intrigued by the products themselves. They provide an ultra-portable solution for those who want some more computing power at all times (geeks and technology freaks unite!) at a great price. For example, I love my blackberry, but the web browsing is annoying. Pairing it with a netbook would give me the extra power at all times (or I could get an iPhone?). The store is called Best Buy Mobile – and netbooks are definitely about *mobile*.
3) Show the customers how these phones will enhance their lives – I think of a live-in-person Lucky magazine (if you aren’t familiar with Lucky, it is a fashion oriented magazines that shows a variety of ways to create looks at various price points). Have a computer or laptop paired with a Blackberry or iPhone with various productivity tools on display (calendar integration, playlists, e-mail, online tools like Flickr, etc.). Or have various accessorries actually connected with the latest LG phone to show how they work together. Also, maybe a display about the “future” of phones – such as using your phone to make purchases at various merchants and vending machines.
I visited the MOA store late last week and was impressed by a lot of what I saw. I expected to see some of the standard “mobile” products than you would find in a typical BBY location (notebooks, gps, etc.), but it was all of that and then some with much more than I expected, especially in the assortment of portable notebooks.
It was also cool to see the amount of unlocked phones that were available. I am talking about some handsets that I have never seen before and I consider myself fairly up to speed on mobile devices. I will be curious to see how those products and the aforementioned assortment will cater to the typically mall customer.
Finally, it was interesting to read Coach Adam’s post with the questions. It has been my experience that those questions are exactly the reason the market is ready for a store (in this case Best Buy Mobile) to effectively educate and serve consumers.
As a woman, I used to find yoru staff less than helpful.
This is impressive, facts-based posting of your news so i find it credible. My local Best Buy has gotten much better in staff who listen to what I want, don’t rush and act like the best hotel staff i experience – making sure I have found what i was seeking and am satisfied. Kudos to your diligent work. For more profits consider asking us boomer women for more advice about what to see and how to sell it. We are great at word of mouth.
Barry,
Thanks for taking the time to write about BB Mobile stores. I see real advantages to being able to go to a single store and find multiple brands.
I hope that Best Buy will model service after what is available from Pacific Sales. Having to search for sales help and beg someone to take customers money just doesn’t cut it.
Great service may not be an issue in rural markets where retail mobile outlets are not plentiful. In large cities where there seems to be several mobile retail stores on every other street corner, good service will be critical to capture market share.
The new store at Mall of America looks, from the photos, like it is about the size of the small Verizon stores in our area. That is likely where it appears the comparision ends.
The Verizon little box stores have lots of people in them most of them trying to find a phone with nobody or maybe one haggard looking salesperson on the floor to assist them or answer questions. The phones are displayed on little shelves on the walls with a small description and a price.
There is no conversation with anyone about the different levels of services, costs, repair, etc. After you blindly choose your phone you queue up in the back of the store to await your turn to pay at the cash register. The cashiers are so overwhelmed by the lines that even if they knew something they wouldn’t be able to discuss it. If so many people didn’t walk out in discuss they would really be slammed.
The interior of the Verizon store is very utilitarian and not cool or hip or electronic looking – I would say the look is “cheap retail”. It is the type of place you dread – like the place where you get your driver’s license renewed.
The Best Buy Mobil Store sounds wonderful….sales people knowledgeable about technical features of the phone and the various services available in an unbiased setting. Great concept.
As someone else here pointed out, teens aren’t the only ones who are texting and sending photos and lusting after IPhones. More and more people I know in the parent and even grandparent age group are texting. It is pretty much the only way I can communicate with my kids. They don’t really email anymore and they never check the phone messages or answer the phone unless you text them to “answer the phone”. If you really want to connect with them you have to go to Facebook or My Space.
So here’s what I think will happen to the Best Buy Mobil Stores. Huge hit with all ages. Can’t wait to shop at one in real life.
Visited the Best Buy Mobile store this evening … I was pleasantly surprised with it. I’ll reiterate a few shout-outs: definitely a boutique feel, but still Best Buy vibe; loved the laptops/netbooks, and the huge selection of phones including unlocked phones that I have never seen before (granted, I’m not a discerning mobile gadget follower). Heard great energy from the employees. Definitely captured a great look, feel, and experience – lots of hands on interaction.
While the phones were next to the laptops, I would have liked to see the products in action, truly interacting – maybe something like a demonstration area. There could be opportunity to further integrate Geek Squad expertise with in-store classes and/or demonstrations during high traffic times.
Overall, very pleased and surprised.
Barry,
Got your Tweet that you uploaded the images of the Best Buy Mobile store… Here is a picture of the RadioShack, StoreOne test stores. This one is in downtown Fort Worth, TX. RadioShack Concept Store, StoreOne
Here is my critique and a revision of your photo with notes. Please let me know your thoughts.
Life-Digitized Best Buy Mobile Critique
-itsTripple
Life-digitized.net
I disagree that best nuy mobile has stepped up. they may be selling more handsets but I work in a exclusive direct store for one of the carriers that best buy sell and we get 10-20 people a week who come to our store because best buy slammed a phone on them but couldnt transfer numbers, didnt know how to st up the email, couldn’t tell the customer how to use other features on he phone ect. the list goes on.
The BB employees are so incompetent that we add data onto the customers plan and get pid for it cause 5+ times a week a customer comes in who bought the phone at BB and the BB employee did not put the data on the plan??
Brian- I’m sure the mobile manager there in your area is going to be replaced or re-trained. Knowledge is power.
No wait-line sheet, non commission, no mail in rebates, a better choice of phones and networks, no deductibles per service claim, and free data transfers. (Yes, we do data transfers)
Just 6 of many worthy reasons why mobile customers will shop Best Buy Mobile.
Abby
Best Buy Mobile
Store #1476 Virginia
Coach Adam,
“Don’t I have to buy a phone from my provider to make sure it works?” “How will I know which phones can work on Verizon, AT&T, etc…”
-Out with the old, in with the new. If you walked in to my bbm store, I would tell you that you will walk out with your new phone completely set up and making phone calls. Why? Because I know everything there is to know about activating a cell phone. I have had proper training from At&t, Verizon ect. The plus is, I can give you a side by side comparison so that you can see what provider and what phone will be perfect for you.
“Will I screw up my contract if I do this?”
-Each provider and Best Buy has trained us for the individual activation centers (At&t, Verizon…) in order that we can analyze what changes you may need to make, if any. Also, so that you fully understand the terms and conditions of your new AND old contract. At the end of an activation, we make sure that you understand before signing anything, and that you receive copies of your new contract.
“Which phones can you buy yourself and which one’s are we required to buy from our plan provider.”
-Depending on the region that you live in, you will have an dynamic selection of new phones to choose from. There is an individual display of phones according to carrier, and carefully laid out prices so that you can understand cost, features, and phone specs. Also, we are more than willing to open up and power on any phone so that you have a working model to test out to see if you like it.
“What about all of those free phone credits I have, can I use them or only if getting the phone from my carrier?”
Example: If you are notified by your provider that you have received a $150 credit for a new phone, that translates to bbm terms as a “2 year upgrade.” What that means is, you get the straightforward 2 year agreement price written on the tag of the new phone. If the phone says free in the 2 year agreement section, it free…no mail in rebate. Nothing out of your pocket at the time of purchase. If it says $99.99 in the 2 year agreement section, its $99.99 at the time of purchase. No hidden costs, NO mail in rebates. Easy and convenient.
“If I buy a phone at a retail store, what are the limitations? Do I get service at the same
time? From anyone?”
Best Buy Mobile is committed to giving you the best options for a new phone, but most importantly, being there for the life of your phone. After I help a customer with their new phone, I make sure that they know that we are not on commission, therefore we will always be willing to spend as much time with them as they need to understand their device. I always encourage customers to write down questions as they come up in the days after their purchase and then bring those questions in so we can go over all of them. It does not matter what the question or trouble may be, we will work our hardest to resolve it. That was my training.
I hope I have resolved some of your concerns about the validity of Best Buy Mobile. We’d love you help you out with your phone needs in the future!
Thanks!
Abby
Store #1476
Virginia
How do you folks feel this will change all of the wireless retailers that are already in the malls?