Best Buy – Showrooming

Daniel Rodriguez George Giannoulis

Irina Rybina Natalia Garcia

Lucrezia Squillante Cynthia Wainaina

CONTENTBACKGROUND

KEY ISSUES

SHOWROOMING

CHANNEL JOURNEY

THE CUSTOMER

PRICING STRATEGY

1

4

3

2

5

6

BACKGROUND

2010 2011 20142012 2013

1• Amazon App • Online Black

Friday: $826 Mill • Online browsing:

30% Amazon 13% Google

• Retailer fight back • 17% Growth

Online sales • 37% people do

show rooming • Online Black

Friday: $1 Bill• Amazon Prime

membership• Tax legislation

changes

• Uk Entry • Sales down 5%

• China Entry • Exclusive products • Own barcodes • Price matching

• New CEO Hubert Yoly

• Celebrity Ads • Low price

guarantee

2 key issues

•Low probability to buy in store •Drop in sales •Stores struggle to cover fixed costs •Training •Price Matching

3 showrooming

4 CHANNEL JOURNEY

Understand customer behaviour in the modern age

4Multi-channel journey

CHANNEL JOURNEY

VALUEDRIVEN

PRICEDRIVEN

VS.

5 the customer

“I will take the one with the best

characteristics”“The cheapest the

better”

Disruptive customer journey5 the customer

Disruptive customer journeyPROBLEM

5 the customer

Disruptive customer journeyPROBLEM

5 the customer

5 best buy app

iBeaconGeofencing

Gamification

Make the decision within

the store

7m

15m

5m

BEST BUY

5 best buy appCustomer tracking• Lost• Browsers• In the zone

BEST BUY

15min

Sumit KumarCustomer since: 10 years

$110

best buy

Wifi Radio

Last purchase: 1 year agoPurchase: 10x batteriesValue: $1.99

Last visit: 2 days agoTime browsing: 45 minutes

$1,140total

Snapchat offer

bbaBest Buy Assistance

5.1 price driven tactics

BEST BUY

15min

Sumit KumarCustomer since: 10 years

$110

best buy

Wifi Radio

Last purchase: 1 year agoPurchase: 10x batteriesValue: $1.99

Last visit: 2 days agoTime browsing: 45 minutes

$1,140total

Snapchat offer

bbaBest Buy Assistance

5.1 price driven tactics

Stars rating Best product ever bought

History

BEST BUY

15min

Sumit KumarCustomer since: 10 years

$110

best buy

Wifi Radio

Last purchase: 1 year agoPurchase: 10x batteriesValue: $1.99

Last visit: 2 days agoTime browsing: 45 minutes

$1,140total

Snapchat offer

bbaBest Buy Assistance

5.1 price driven tactics

Stars rating Best product ever bought

History

classic showroomer

BEST BUY

15min

Sumit KumarCustomer since: 10 years

$110

best buy

Wifi Radio

Last purchase: 1 year agoPurchase: 10x batteriesValue: $1.99

Last visit: 2 days agoTime browsing: 45 minutes

$1,140total

Snapchat offer

bbaBest Buy Assistance

5.1 price driven tactics

Stars rating Best product ever bought

History

classic showroomer

5.1 price driven tactics

BEST BUYcoupon

50%off

In mobiles

Thanks for shopping at Best Buy

8

Snapchat 2min agoBest Buy Coupon!

Snapchat• Temporal coupon • Redeemable just at

the cashier • Uncertain discount

7m

15m

5m

BEST BUY

5 best buy app

BEST BUY

7m

Mike BerryCustomer since: 2 years

$1100

best buy

Tv 41’’

Last purchase: 2 weeks agoPurchase: apple chargerValue: $60

Last visit: 1 week agoTime browsing: 25 minutes

$12,140

$1100

total

Snapchat offer

bbaBest Buy Assistance

5.2 value driven tactics

BEST BUY

7m

Mike BerryCustomer since: 2 years

$1100

best buy

Tv 41’’

Last purchase: 2 weeks agoPurchase: apple chargerValue: $60

Last visit: 1 week agoTime browsing: 25 minutes

$12,140

$1100

total

Snapchat offer

bbaBest Buy Assistance

5.2 value driven tactics

the good guy

BEST BUY

7m

Mike BerryCustomer since: 2 years

$1100

best buy

Tv 41’’

Last purchase: 2 weeks agoPurchase: apple chargerValue: $60

Last visit: 1 week agoTime browsing: 25 minutes

$12,140

$1100

total

Snapchat offer

bbaBest Buy Assistance

5.2 value driven tactics

the good guy

5.2 value driven tactics

Expert assistance• Personal attention • Guide • Permanent coupon • Discount: 100% - 0% Best Buy 2min ago

Best Buy Bundle Coupon!

5.2 value driven tactics

BEST BUY

In bundle

90%off

Your offer is now running

The discount applies only for complementary products

Accept!

BEST BUY

In bundle

90%off

Your offer is now running

The discount applies only for complementary products

Accept!

Expert assistance• Personal attention • Guide • Permanent coupon • Discount: 100% - 0% Best Buy 2min ago

Best Buy Bundle Coupon!

5.2 value driven tactics

BEST BUY

In bundle

90%off

Your offer is now running

The discount applies only for complementary products

Accept!

BEST BUY

In bundle

90%off

Your offer is now running

The discount applies only for complementary products

Accept!

BEST BUY

In bundle

Your offer is now running

The discount applies only for complementary products

Accept!

50%off

Expert assistance• Personal attention • Guide • Permanent coupon • Discount: 100% - 0% Best Buy 2min ago

Best Buy Bundle Coupon!

5.2 value driven tactics

BEST BUY

In bundle

90%off

Your offer is now running

The discount applies only for complementary products

Accept!

BEST BUY

In bundle

90%off

Your offer is now running

The discount applies only for complementary products

Accept!

BEST BUY

In bundle

Your offer is now running

The discount applies only for complementary products

Accept!

50%off

BEST BUY

In bundle

Your offer is now running

The discount applies only for complementary products

Accept!

23%off

Expert assistance• Personal attention • Guide • Permanent coupon • Discount: 100% - 0% Best Buy 2min ago

Best Buy Bundle Coupon!

5.2 value driven tactics

bba

Product installation

Convenient Return & Refund

Extended warranty

CustomisationFree delivery

Complementary product