It’s a well known fact that in retailing, profiling leads to profits. The question is how does one start and take it all the way to the shopping experience?
Best Buy in the US gives us an interesting starting point and in fact I feel they have taken it to the next level by profiling stores too. This has implications on the kind of inventory each store has and the customer service one has to provide to customers.
They have built customer profiles like Buzz( young enthusiasts), Barry( wealthy professional man), Ray( family man), Jill( main shopper for the family – soccer mom) to treat them differently.
What’s interesting is that they define Santa Rosa Store # 120 as a Jill Store! I think this is just brilliant customer strategy. Look at how they manage the store experience – "…Pink, red and white balloons festoon the entrance. TVs play "The Incredibles." There is an expanded selection of home appliances as well as new displays stocked with Hello Kitty, Barbie and SpongeBob SquarePants electronic equipment. Nooks are set up to look like dorms or recreation rooms where mom and the children can play with the latest high-tech gadgets at their leisure…"
The results are showing. "Customer Centric" stores had an 8.4% increase in sales compared to last year. The interesting quote from Best Buy is this – "… 20% is the overhaul of the store merchandize, 80% is more about customer experience….".So, true that I can’t agree more with this quote. Many times I find stores doing too much of analysis on their inventory and little to do with customer profiles and behaviour.
The difference is in the execution -knowing who to do it to by customer profile and doing it profitably.
Read more of about this in the article.
Via Washington Post