January 2002. I was living in Salt Lake City going to college under the Navy’s ROTC program. I was 26 years old, not your average ROTC student. I was a ‘prior enlisted’ -someone who had been to the fleet out of high school and made enough a name for themselves that they earned the right to go to college. And I have to admit, I was quite the badass in the military as an enlisted. I can recall that by the time I had served my first 3 years, I had accomplished more than most enlisted sailors do in a 20 year career span.
So, 2002, I was attending Westminster College in Salt Lake City on this scholarship, with the original intentions of going back to the military afterwards. There would have been some nice perks to that return. I would have returned and been saluted as an officer, but even more so -my uniform as an officer would bear the ‘Good Conduct’ medal -which only enlisted sailors were awarded -recognizable immediately by any enlisted sailor who salutes you. Also, I was qualified as an Enlisted Surface Warfare Specialist -on one of the newest and baddest ships in the world -and wore the Navy ESWS pin on my uniform because of that -meaning I was a pro in ALL my ship’s systems and ratings -not just my own, and at the time was the youngest sailor on my ship (and one of about 5 on the entire West Coast) to have earned this qualification at the young rank of 3rd class Petty Officer. Going back to active duty would have made me a true role model for the enlisted sailors waiting for me -and I’m sure I would have done great things.
However, the Navy made a few mistakes in their ROTC system for outstanding fleet returnees like myself. They allowed their top sailors and performers a chance at civilian life. Not only that, but they mixed in experienced leaders like myself with 19-21 year old kids who had never stepped foot on a military vessel before -and told these same kids that they had SouthPark Cartman cartoon-like ‘rank’ and ‘authority’ over their ROTC divisions. So, when a rusty and experienced pro like myself was a 26 year old freshman in college -I had to take orders from a senior ‘midshipman’ who was 5-8 years younger than me -and didn’t have a clue! I had literally flushed more seawater down the commode than these midshipman had ever seen.
The Navy tried to make up for this crappy situation with a scholarship. And I was able to use my GI Bill and College Fund I had invested in while on active duty -during these college years. But, the thing is, even with a tax-free GI Bill payment and the Navy’s college fund etc. -I was still making more money working part-time 3-4 days a week at the local Comp USA computer store. I was addicted to electronics having served 5 years on the highest-tech ship in the world. In fact, most of my ROTC friends had part-time sales jobs in electronics retail, I remember a handful of my friends were killing it at the local Circuit City with commissions.
BEST-BUY GONE AND DONE TOOK MY JOB!
Then the zombie-programmed non-commision Best-Buy blue shirts started taking over. I was still working at Comp USA in sales when the Best-Buy’s in Salt Lake City were announced. Shortly afterward, our commission structure at CompUSA disappeared. I stayed around for a couple weeks, but when I saw my next check -it was “see you later” CompUSA! And Best Buy shortly after swallowed them and Circuit City up -and spat out their carcasses to be leased out once a year for selling overpriced cheap China Halloween plastics.
And what can I say, when I first walked into a Best-Buy I thought it was pretty cool. Lots of eye candy for geeks. The internet was still young back then, so Best-Buy took advantage. Instead of a sales commission team -they hired a low hourly non-commission team to man the floor. With their Big-box Wal-Mart methods and low pricing, Best-Buy was able to win that first battle -wiping out most of their competition other than Wal-Mart’s electronics department -which use to be pretty small.
WALMART SAYS I WANT SOME OF THOSE HDTV SALES TOO
Have you seen the electronics department at the “super-size-me” Wal-Mart’s lately? They’ve all expanded since and are taking advantage of the long gone Circuit City’s and CompUSA’s. And now, you’re hearing that the almighty Best Buy is starting to suffer with the rising tide of competitors like Amazon.com and beyond. I can now go to my local Best-Buy to scan all the things I want with my phone –and instantly buy them for less and with free shipping having them sent to my house. Since I gave up my car almost 2 years ago to reduce my carbon footprint –this is an ideal way for someone like me to shop for a new television. And this is an example, I don’t even want one of those big t.v.’s…
WALMART IS CURRENTLY DOING A BETTER JOB ONLINE
I find it a shame that Wal-Mart -a big box company that offers a wide-variety of everything -is doing a better job online than a company who’s focus is supposed to be tech, gadgets, tv’s, computers, etc.
So here’s how Best Buy is doing it. On the Best Buy site, if you go to the ‘Shops & Deals’ Tab -you can select from about 9 items in the drop down -one of which is ‘Featured Offers’.
After about 5 or more clicks from the home page, I found a digital camera on sale on the Best Buy website. They offer a $30 discount on this item, free shipping, customer ratings to review, and they seem social in that I have the ability to tweet and share this on Facebook. That’s cool and all… if I had a reason to share this on Facebook and Twitter -I’m not just going to share this for the sake of sharing it just yet -that would be so dummmmb! 😉
And what about Walmart? How do they promote their featured items? Well, very similar to Best Buy’s setup -Walmart has a ‘Value of the Day’ tab.
However, instead of finding a special item 5 clicks later -on Walmart’s site I instantly see a great deal and price, with a strong call to action and urgency. It’s very clean and everything seems to fit smoothly, unlike Best Buy’s site.
And when I click on that special, Walmart also has FREE SHIPPING, and customer ratings, and the ability to share and tweet –which I still am not going to do -especially for Walmart!!! I’m not about to give Walmart of all companies -free advertising to all of my friends. HOWEVER, do you see the difference? Walmart included a Facebook “Like” button, which Best Buy did not. As you can see, 277 have Facebook Liked this offer -it’s a lot easier to “Like” something than it is to share it for some reason, which has given this page the additional chance to go viral when otherwise it couldn’t. I guarantee you the number of Facebook “shares” is tremendously lower than “Likes” for this page. Best Buy isn’t getting ANY of this. 😛
So, based on their respective target audiences and websites. It would seem that Walmart has the upper hand. It would seem that slowly but surely the bigger box giant will swallow up the big-box electronics-focused giant. How can Best Buy #win?
SO HOW CAN BEST BUY #WIN, KICK WAL-MART TO THE CURB, AND IMPROVE ONLINE SALES TO COMPETE WITH AMAZON?
Have you read any of my previous blog posts? Well, then you already know what I’m going to say the answer to that is… GAMIFICATION.
Yes folks, Gamification can SAVE Best-Buy from their current situation, would be an advantage to them over Wal-Mart, and could even put Amazon’s bitch-azz in in check (just kidding Amazon I ❤ U even tho it’s been a super-pain to convert my first marketing guide in PDF to your eBook format).
This is just a basic basic example of applied game mechanics to get your minds going, but through the use of a FREE Big Door Mini-Bar -Best Buy could reward users of their website with badges and points for things like leaving reviews, checking into the site, sharing on their social networks etc. -even more so, Best Buy could be tying affiliate links into those user shares -so that if I post a Best Buy item on my Facebook wall for example, and somebody buys it from that same link wherever it lands in cyberspace -I can be properly rewarded for that sale.
By gamifying -Best Buy would be giving their mavens and loyal shoppers a reason to promote socially that they previously didn’t have. The points earned for sharing create a virtual economy and even STRONGER loyalty to the Best Buy brand. That Sony HDTV is on Sale at BOTH Walmart and Best Buy -for about the same price. Hmm… they BOTH have free shipping. But wait a minute! All the feedback and reviews I uploaded on BestBuy.com over the past year have totalled more than 5,000 points to date -earning me the ‘TECH REVIEW GURU” badge on their newly gamified system. And it is well known that ALL holders of this coveted Best Buy badge receive an additional 10% OFF on EVERY purchase -in addition to existing sales. Where am I going to buy this TV now??? BEST BUY of course!!!
Do you see where I’m going with this? All of a sudden, with a gamified platform Best Buy could create tremendous loyalty amongst it’s customers. And what about Walmart? Can they gamify? Yes they can, but who’s going to be the first one to start posting Walmart badges on their Facebook walls etc? Not me, I made a vow not to support them over a year ago, promoting Walmart to earn points is not something I would be proud of, -at least not until Walmart stops selling all the crap I’m personally against -which is why I think Best Buy can focus on this niche and win -for them, gamifying should be right up their alley and in keeping with their niche (HDTV’s, phones, gadgets, computers, etc.).
AND DON’T FORGET ABOUT AMAZON
So what about Amazon? Their shopping platform is even better than Walmart’s, has better reviews and user engagement. They also offer free shipping. They even have their own Amazon Price Check App, which allows you to scan or say anything to search for a better price on Amazon. They could also gamify their site and be successful with it and create virtual economies and stronger loyalties.
It would seem as if Amazon is starting to get the upper hand in this scenario. Low overhead, less maintenance, extremely competitive -and can offer the same products as the big box electronics stores now can. So what can Best Buy do to compete with Amazon before it’s too late? They need to start taking advantage of those extra expenses they are paying to have physical stores all around the country. For Best Buy…
LOCATIONS LOCATIONS LOCATIONS = MORE CHECK-INS AND CUSTOMER LOYALTY
Best Buy needs to pay attention to what they DO have that Amazon.com will never be able to compete with. Stores… hundreds of them all over the country -in comparison to one competitor.
More stores equals more physical locations that their loyal customers could be checking in and earning points for doing so. Points that would add to their existing Best Buy Loyalty points. When customers start performing these check-ins at store locations and sharing on millions of personal Facebook walls -Best Buy would get a dramatic increase in traffic, both online and in-store -dwarfing the Facebook and Twitter impressions created by Amazon users.
Hey Barnes and Noble, you seem to be suffering from the same-type symptoms as Best Buy –pay attention to my blog posts!!! 😉
I guess in the same way a Lakers fan will root for Dallas when they get their asses kicked on the way to the finals -I’m rooting for Best Buy -who took out my old college part-time job back in the day.
And Rest in Peace Circuit City!!!
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