Best Buy Combats Previous Sales Struggle with “Renew Blue” Efforts
2012 wasn’t a great year for Best Buy, as it brought decreasing sales and declining stock. They had to come up with a solution, and do it fast. In the past couple years, they have shifted their strategy to combat this failure. Instead of focusing on heavy product pushing, Best Buy executives are now prioritizing the customer experience. Let’s just say, the team at Find New Customers is more than impressed. Let’s get down to the nitty gritty, and see what exactly Best Buy has done to spark a positive change.
Best Buy chief executive Hubert Joly introduced a five point plan back in 2012 entitled Renew Blue. His one goal? Save Best Buy, and bring this company back, stronger than ever before.
Here is our quick summary of these five points.
1. Add a dose of life to the customer experience. Best Buy wanted to focus on membership benefits and exclusive rewards to customers who displayed exemplary involvement.
2. Attract and cultivate transformational leaders that contribute to the advancement of Best Buy’s technology.
3. Work with partners/vendors to encourage innovation and provide value.
4. Increase company’s return on investment by cutting back on non administrative and product costs.
5. Contribute to sustainable initiatives with recyclable products, reach and influence the next generation with advanced technology.
How does this relate to us at Find New Customers? Well, by plugging away at these five initiatives, Best Buy is strengthening the customer experience, which in turn will help them retain and find new customers long term. We are impressed with their efforts, and how they tackled their previous failure head on.
In his effort to renew blue, Joly has so far been quite successful. Just to look at some basic facts and figures, by “November 1, 2014, the company had generated cost reductions of $965 million through its multi-year productivity program. It reduced costs by $350 million in fiscal 2014 by closing underperforming stores, shrinking its workforce, and making supply chain efficiencies.” [Data taken from MarketRealist.com]
Best Buy hopes to increase cost reduction to 1 billion, by offering a better customer experience that encourages decreased returns and better product satisfaction.