Best Buy Change and Rationale Elyse Devries, Christopher ragan, Isaac Shubert, James Tompkins

Proposition

Implement a discount on Geek Squad services to Best Buy's current membership program

Current rEwards program

  • Three basic levels of membership rewards programs
  • Lowest level requires basic information and is free to sign up for (My Best Buy)
  • Middle level program requires a customer to spend $1,500 per calendar year at Best Buy or their services (Best Buy Elite)
  • Highest level requires a customer to spend more than $3,500 per calendar year at Best Buy or their services (Best Buy Eliteplus)

Our idea

Give a 10% Discount to the My Best Buy Members

Give a 20% Discount to the Best Buy Elite Members

Give a 30% Discount to the Best Buy Eliteplus Members

Why Geek Squad Rewards

  • Offer something similar to other rewards programs from other companies
  • Encourage customers to sign up to be a best buy member

Benefits

  • Obtain more email addresses for marketing purposes
  • Geek Squad will likely gain a higher volume of traffic
  • Appealing to customers because Geek Squad will offer a quicker fix to the problem

Research

  • Sheetz showed positive feedback in the past with 40%-80% participation in target market with rewards of just $.03 off per gallon.
  • Starbucks shows amazing participation in its Gold Card program to where Gold Card almost becomes a status.
  • Current repairs cost anywhere from $29.99 to $329.99 for flat fees plus $139 per hour for service calls.
  • Discounts up to 30% could prove to be substantial for customers and for program participation.

Economic Drivers

  • Online shopping popularized in 1990
  • Amazon became the first successful website competing with reatilers
  • Geek Squad paired with Best Buy 2008
  • Price checks became more popular
  • Technology and shipping deals emerged

conclusion

  • "Is this purchase my best option?"
  • Having discounts would encourage people to remain loyal customers.
  • Discount increases Best Buy-customer relationship
  • Increase in profit without much reconstruction

Credits:

Created with images by JeepersMedia - "Geek Squad" • JeepersMedia - "Best Buy" • JeepersMedia - "Best Buy"

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