Tuesday, March 18, 2008

Profiling Customers

A year or so ago I heard from a Best Buy employee how Best Buy was categorizing it's shoppers into different demographic types. He said that they were setting up the stores to appeal to these segments.

Now Consumerist has posted "Best Buy's Internal Customer Profiling Document" which lists all these types, who they are, and what drives them. It's an interesting read, though you have to wonder what the average sales associate makes of this information. Can they really tell - just by looking at someone - which group they fall into? Is that middle-aged woman with a 10 year-old really married and living on a budget?


This blog entry Best Buy vs Circuit City:Customer Centric spilled the beans back in April 2007 about the different Best Buy segments and notes:
It empowered employees to focus on their angels ( high potential customers) so that they spend more and increase their share of wallet (SOW).

Best Buy CEO Brad Anderson is quoted as saying:
"In our world the way you win the game isn't the price of the TV - which is about the same for all retailers - but the experience you give customers once they are in our stores"

Maybe I'm not in any of the target demo's but neither Circuit City or Best Buy offer me a more compelling experience. Best Buy stores I'd rate slightly higher based on variety and quality of merchandise, though that might just be a perception based on the colors in the store. Frankly, I compare on price first, then convenience (oh, and I have a Best Buy card, which factors in when they have those interest free offers.)

Certainly, past experience dealing with sales associates wouldn't have me pick one over the other.

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