Best Buy Uncovers Angels in the Market Case Study

1353 Words Jan 22nd, 2011 6 Pages
Best Buy Uncovers Angels in the Market

Case Summary:

Best Buy specializes in a variety of products that focus on making life easier and more fun for consumers, by educating customers on the features and benefits of technology and entertainment products. While Best Buy has 1,200 retail stores across the United States it operates in a highly competitive market. To cope with this competitive market Best Buy specializes in collecting data from its stores to discover what its customers want and need. The company developed a database that incorporates information into a system that allows them to use marketing data to develop a complete picture of its customers. Best buy uses segmentation analysis to track consumer purchase histories to
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“Becoming customer-centric means looking at an enterprise from the outside-in rather than the inside-out—that is, through the lens of the customer rather than the producer”(Gutali, 2010). By putting the company in the shoes of the customer it helps the company provide personalized experiences that help build customer relationships. Best Buy’s demographic segmentation allowed the company to create multi-dimensional customer profiles that allowed for more precision marketing messages to angel customers, and also help the company deliver context-sensitive customer experiences.

Case Questions

1. From what internal and secondary sources did Best Buy acquire the data that helped it develop its customer centricity initiative?

Best Buy collected data on every transaction and from mailing lists, it also gathered demographic information form local census numbers, surveys of customers, and targeted focus groups. All of the information gathered from both primary and secondary sources helped the company classify its customers into to categories “angel” and “devils”. These classifications helped the company understand the kind of customers they need to target and the kinds of customers they need to discourage from coming in to the stores. With the use of consultants they further categorized their angel customers into five segments that allowed them to determine what kind of customer centric model to apply

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