Tuesday Jan 03, 2012

Best Buy in a Downward Spiral?

Larry Downes seems to have struck a nerve with his popular Forbes article Why Best Buy is going out of Business...Gradually.  As of this writing, he's already had over 550,000 views for the five-page, somewhat long-winded diatribe that was posted yesterday.  Larry basically lays out his reasoning for Best Buy's demise based on poor customer service while refuting the excuse that cheaper online retailers like Amazon have an unfair advantage.  He cites the recent cancellation of orders by Best Buy just before Christmas as the ultimate failure to serve customers.

As a former Circuit City employee, I can feel Best Buy's pain.  Electronics is a tough market. The products become obsolete quickly, installation and configuration can be customer service nightmares, and the Web has made competition more fierce than ever.

I haven't shopped at Best Buy in quite a while, so I don't have any good or bad recent experiences to relay.  But I did have three good customer experiences recently, so I thought I'd share:

1. We decided to do some remodeling in the kitchen so I ordered a faucet, cooktop, and range hood from Lowes.com.  They were available to be delivered from the local store in two weeks, but since we'd be on vacation I put a specific date in the comments.  Within an hour of submitting the order, my local Lowes called to verify exactly when I wanted the items delivered.  Everything arrived as planned.

2. I ordered a MicroSD card from Amazon, but the wrong type of card was delivered.  My order was accidentally switched with another Austin resident who got my product.  I called Amazon and they immediately shipped my original product via 2-day delivery with no questions asked.  I understand mistakes happen and just want them rectified quickly.

3. Lastly, I bought an expensive blender from Costco which went on sale the next week.  I called and they happily refunded the difference.  By the way, I chose to buy the blender from Costco not because they were cheapest but because they have an excellent return policy.

All three situations had a few things in common.  First, the employees I spoke with had good attitudes.  I felt they enjoyed their jobs, and it made the conversation that much better.  Second, all three retailers had the necessary systems to enable my purchase and handle post-purchase issues.  Third, the people I talked to were empowered to make me happy.  There was no runaround at all.

In this blog I focus lots on the technology that powers retailers, but in the end its the human touch that makes it work.  Perhaps Best Buy needs to get back to its customer service roots.

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David Dorf, Sr Director Technology Strategy for Oracle Retail, shares news and ideas about the retail industry with a focus on innovation and emerging technologies.


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