A case study in evolution: How best buy survived to thrive

Electronics shops are dead. Or so we thought. Best Buy has, despite all odds, fought back to become a thriving electronics retailer. Best Buy shares have soared from $22.34 up to $78.92 since 2012 when they made a leadership change. This is a huge 241.92% increase and an amazing recovery that has beaten Wall Street expectations each quarter since.

How did Best Buy survive in a world where other large-box electronics retailers, like Radio Shack and Circuit City, failed? Best Buy went beyond just lowering prices and cutting costs. They also took steps to improve its customer service and In-Store Shopping MomentsTM. Here's how they did this.

Customer service and consumer education are priorities.

Consumers should not take the decision to purchase expensive electronics lightly. Consumers spend a lot of time researching, comparing prices, and finding the best fit for them. Much of this research is done online. There is still a need and opportunity for education on the floor.

Best Buy realized this need and recognized their in-store advantages and invested in customer service staff. So that customers could be educated and provide informed service, they retrained their employees.

Geek Squad, a group of tech-savvy employees who drive to customers' homes in Volkswagen buggies and help install and troubleshoot their tech products, has been a trademark of the company. Customers loved the Squad's branding and their knowledgeable service.

Best Buy has now adopted the Squad model to replicate the success of Apple's in-store experience. You'll be greeted by a "Genius" when you walk into an Apple Store. They are ready and willing to assist you. Best Buy is now actively and aggressively training floor staff to become more knowledgeable about electronics. This will allow them to answer questions, explain products and shine as tech professionals. Floor staff are not salespeople but product experts and can educate customers. Best Buy has expanded its knowledge-based services to include a new advisor program, which provides in-home assistance to help customers choose between products.

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Micro stations to promote your brand better

Sometimes electronics stores can feel like Times Square, all flashing and lit up. There are many brands and products in the stores, with each having their own campaign and display materials. This can lead to confusion for consumers and overwhelm of options.

Electronic stores used to display products that were locked on shelves. The time available for hands-on testing was constrained. Instead of grouping products by brands, they were grouped according to type. This made sense intuitively and allowed for side-by-side comparisons, but it wasn't practical. Manufacturers were limited in how much they could highlight specific features of their products by the limited display space. Brands were interconnected and their products were too.

Best Buy is moving in the opposite direction. This store functions as a showroom and allows companies such as Microsoft, Samsung, Apple, and Microsoft to create unique areas in the store for their products.

These mini-shops reflect global branding. The Apple area brings the Apple Store's sleek wooden tables to Best Buy. Best Buy integrates the design with the larger store, creating continuity.

The sleek design allows for more space for shoppers to interact and gives them more opportunities to do so.

Signage amplifying as the silent salesperson

Best Buy is actively encouraging humanity by hiring better salespeople. However, even though they can be extremely knowledgeable and helpful, employees cannot be everywhere at the same time. Let's face the facts: a salesperson may need to take a break from busy Saturday afternoons to be able to assist shoppers. Signage is the silent salesperson.

Signage is attractive and grabs shoppers' attention. Signage is also educational. It is the first stop for the shopper and the first teacher. It must be more than the traditional comparison cards.

The expertise of technology shoppers and electronic experts varies. They could be tech experts looking for new products. They could be newbies in tech looking to advance their skills. They could also be newbies to tech who want to learn and are grateful for any help. Signage can be used to help shoppers at all levels. Signage is low-pressure and allows customers to ask the sales associates in-store what questions they should be asking.

58% of shoppers use their smartphones to search products in-store. Signage should be clear and concise so that customers don't rely on their phones to find the right salesperson.

Despite all the advancements made by Best Buy, comparative signage remains an area where stores can make improvements. They can also learn from other industries like sporting goods.

Best Buy's success is largely due to their ability to make retail more enjoyable with modern displays and improved training materials. To top it all, the electronics retailer also changed its logo for almost 30 years. This is the culmination of a company's transformation from being in the grave to leading its category and defying all those who predicted the "retail apocalypse".