In order to stay ahead in the competitive retail environment, Best Buy (NYSE:BBY) has decided to invest in improving customer service experience for its customers. The retailer has decided to provide better training to about 50,000 employees and, consequently, has increased the allocation of its training budget.  Like other retailers including Target (NYSE:TGT), Best Buy’s sales are adversely affected by the rise of ‘showrooming’ where customers go to a brick and mortar store to see a product and eventually buy from online retailers like Amazon (NASDAQ:AMZN) and eBay (NASDAQ:EBAY).
- Retailers are trying to distinguish themselves from each other through better customer service, product assortments and advanced technology. Likewise, Best Buy is presently rebuilding its internal IT team and has plans to hire approximately 200 IT professionals to provide a boost to its e-commerce sales.
- It hired Stephen Gillett, the former Starbucks’ (NASDAQ:SBUX) CIO, who played a key role in revamping Starbucks’ online operations. He is in-charge of Best Buy’s digital business, including its online stores. (See our previous post: Best Buy Hires Starbucks CIO to Boost Online Sales)
Good customer service – A high priority
- Customers today are more aware about new products, prices and deals. With the increasing penetration of Internet and smart phones, the dynamics of retailing has changed. Customers prefer to compare prices and other associated services online before making a final purchase decision.
- Therefore, it has become essential for present day retailers to look for ways to keep their customers satisfied by way of better servicing, product assortments and other associated services. We think Best Buy’s decision to invest in improving customer experience is a well thought of strategy, as it will help strengthen its relationship with its customer base.