18,000 VW-riding geeks drive Best Buy’s success

Great in-store customer service is important, but excellent customer service after you leave, well that stands apart from the crowd. Best Buy has differentiated itself with just that strategy.

Through its Remote Service Project, an enterprisewide business-IT system that remotely distributes computer repair, maintenance and other work among the company’s more than 10,000 Best Buy Geek Squad Agents (who provide tech support and more), the company was able to boost customer satisfaction long after point-of-sale.

It is a business model that has found very substantial traction in the Canadian market as well, according to industry analyst. Geek Squad’s Ontrack data recovery program has become very popular in Canada

The information technology project began in response to research that made a troubling discovery: Far too many PC buyers were unable to get their computers up and running once they got home, a problem that colored (for the worse) their assessment of Best Buy. The company’s response was its Remote Service Project, a strategy targeted at PCs, but which has been extended to home theater systems and more. The Remote Service Project has enabled the company’s Geek Squad agents to serve 25 percent more customers and has improved redo rates by 33 percent. On top of that, the company attributes an annual sales increase of $6.2 million to the project.

The Remote Service Project was also a standout winner in the CIO 100 competition.

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Outsourced tech support services such as Geek Squad are very popular among consumers and SMB operators in Canada as well, according to Carmi Levy, research analyst and vice-president of AR Communications Inc. in Toronto.

“Depending on the quality of service they provide, these outfits can be a godsend to computer users,” he said.

A majority of IT device buyers do not have the technical expertise needed to set up or manage the systems they purchase. Also most SMBs do not have the budget to maintain a dedicated IT support staff. “For these two groups, an on-call technician onboard a Volkswagen is the next best thing”.

“Offering on-call service is also an excellent opportunity for outlets to improve their margins on otherwise low-margin devices,” the analyst added.

In Canada, Nerds on Site , an international tech support provider got a jump ahead of most outlet-based support providers such as Geek Squad and recent entry ConnectPro of the Future Shop franchise.

Levy, however, is worried that the tech support for the masses model might prove to be too successful for its own good. “As operators place greater emphasis on reaching as many customers as possible, there’s always the risk of losing on quality of service.”

Brian Carlson, CIO.com’s Editorial Director, sat down with Bob Willett, CIO of Best Buy and CEO of Best Buy International. Willett talked about why he doesn’t use the terms “IT” or “information technology,” how business information shops can achieve ambitious projects, and how you can empower your team to innovate.

CIO: How did the Remote Service Project begin?

Willett: The Remote Service Project started with [research] around the customer experience: Once customers bought [a PC], what was their experience when they got home? We decided that one of the key things we had to do was to improve that experience [by minimizing PC] down time.

CIO: How did you approach the Remote Service Project?

Willett: In Best Buy we start our projects based upon feedback from customers and feedback from our employees, and this was no different. We’d launched Geek [Squad], and we wanted to maximize the availability of the 18,000 Geeks.

We wanted to improve their productivity, which would improve the service to the customer and improve the time that the consumer had access to their product, so that when their PC went down, instead of losing it for a week to 10 days, we were now [shortening] downtime to 24 hours: That’s a massive breakthrough. [The Remote Service Project] also meant that when you go into the store and you want your PC repaired, instead of [having a long wait time because of] that particular store having a backlog of work to do, we now have a remote capability that identifies that backlog and [can assign] the work [to another] store remotely.

And so it really means that we can level out the work across the enterprise, but above all, deliver a great experience for the customer and maximize the up time of the capability of the product that they’ve sourced from us.

CIO: In what ways did the results of the project differ from your expectations at the start of it?

Willett: Like all the major projects we’ve carried out in the last five years— and Best Buy has done a number of major projects, from supply chain to the back office to the front end of Geek— it always staggers me, the ingenuity inside of the enterprise. Yes, we bring in additional folks from outside. We work with, in this case, 30 different enterprises outside of Best Buy. But it always staggers me, the ingenuity of our people to find resolution to something that no one else has done before.

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CIO: Based on your experience with the Remote Service Project, what would you tell other organizations interested in improving customer service?

Willett: Well, I guess I’d start from the premise, first of all, that you’ve got to listen to your consumers. We can’t compete with Wal-Mart and we can’t compete with Costco at what they do. They’re excellent at what they do. So we have to, like others, find a unique point of difference.

We have decided that our unique point of difference is going to be around the customer experience, not just in the store but multi-channel and our experiences around our 180,000 employees having a genuine part to play in the movie, not just coming to work to work but to come and actually make a difference with that experience.

That’s what we’re trying to do, and I think that’s the real essence of what Best Buy stands for. And my advice to other companies that are looking at these sorts of things is: Don’t get started unless you intend to really change the way you manage and think. And really, really empower your employees, because that’s where all of our good ideas come from. They don’t come from people like me. I create the environment and the energy and so on, but the good ideas come from our people w

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Jim Love, Chief Content Officer, IT World Canada

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