The Consumerist somehow came into possession of a Best Buy, Inc. (NYSE: BBY) employee training manual that seems to spell out customer stereotypes -- from early adopter males to empty-nester couples. Why would the consumer electronics retailer need such a document to train its floor associates? So that the company could outwit "demon" customers and focus on "angel customers."Those terms was coined by consultant and customer guru Larry Selden based on his recommendations to the retailer in 2004. Demons were customers who constantly bargain hunted and returned products at a high rate and angels were profitable customers who paid higher prices and bought extended warranties with many purchases. In other words, some customers are great and some are horrible. Selden's advice: focus on the customer, forget the actual product.
Now, Best Buy's focus on the customer apparently includes training associated on "personas" that Best Buy employees use to sell the most profitable products to the the correct "type" of customer. In the training manual, young urban males are termed "Buzz" while upper middle class women are termed as "Jill."
Once a blue-shirted salesperson identifies what type of customer they are dealing with, they can customize their sales approach to get the most profitable product sold. Although this stereotype way of selling may bother some, this is the future of retail. Each customer needs a specific sales approach and a customized experience. In the process, the retailer needs to move inventory and hopefully the most profitable kind at the same time. Looks like Best Buy may be leading the way.











Reader Comments (Page 1 of 1)
3-19-2008 @ 4:23PM
s jones said...
there was a story about this in USA Today a while ago about this:
"So in 2002, the company embarked on an ambitious "customer-centric" plan that started out with four distinct personalities for its stores to focus on. It gave the personalities names like Barry (an affluent tech enthusiast); Jill (a busy suburban mom); Buzz (a young gadget fiend) and Ray (a price-conscious family guy)."
http://www.usatoday.com/money/industries/retail/2006-12-20-best-buy-usat_x.htm
3-20-2008 @ 2:36PM
Hari Seldon said...
And "Best Buy internal demographics training manual leaked" is noteworthy because? Perhaps Circuit City should have done something like this, they MIGHT still be in business.
The Pareto Principle, also known as the 80/20 rule can be applied here. Why not spend 80% of your time on the 20% of the customers (the angels) that generate the revenue which pays the salaries and rewards the shareholders?