An Open Letter to Brian Dunn: CEO, Best Buy

An Open Letter to Brian Dunn
CEO, Best Buy


I am writing to make you aware of an astonishingly horrendous experience I recently had with Best Buy. I believe every chain of service that comprises the, what I previously always hailed to friends and family as the ‘well-oiled-machine-known-as-Best-Buy,’ broke down; and I can only hope I can find the words necessary to effectively communicate the level of frustration, disgust, anguish and disappointment this terrible experience has caused.

I’d like to begin my email by stating that I am an extremely loyal Best Buy consumer. Beyond going to Best Buy for all personal electronic purchases, I also shop Best Buy for corporate purposes. My occupation, Marketing, finds me buying many of the newest gadgets, regardless of the employing organization. In addition, I rave about each and every transaction to family, friends and colleagues. I talk about the excellent service you can expect from your sales associates in-store, their product knowledge – and the extensive training I know they receive prior to hitting the floor. I talk about your new, growing Mobile capabilities and, given the excellent deals you offer on Mobile phones throughout the year and your relationship with all major carriers, (you’d) be crazy to go elsewhere. I also share via my many social networking sites many of your marketing messages, sales, promotions, etc., making me more than just a loyal consumer but a brand advocate as well. This, ALL IN SPITE OF, the fact that your parent organization donates to anti-gay political causes in the mid-west -- though I am not gay I am a firm, firm believer in equal rights for our LGBT neighbors.

This particular incident began on Tuesday, November 22, 2011 when I wanted to purchase a laptop for my Father. Having just spec’d out all of your laptops for myself, when I heard my Dad’s laptop crashed and he needed to replace it immediately for a business trip, I was confident I could make the choice quickly and easily since I had just gone through your entire online inventory. I found the product I wanted, the Toshiba-Satellite Laptop, SKU: 3624333. Whenever I have personally purchased PC’s and laptops from you it has been in-store. I have ALWAYS opted to purchase your optional Geek Squad set-up service to remove all the bulk-ware Windows loves to pile in there. I HAVE NEVER PURCHASED A PC OR LAPTOP ONLINE SO I DID NOT KNOW HOW TO PURCHASE THIS GEEK SQUAD SERVICE THROUGH BESTBUY.COM. I called 888 BEST BUY to get help with this question: “How can I purchase the Geek Squad service through the Internet and/or through you by completing the transaction over the phone? Plus, since the laptop was for my Father, who is in a different state and in urgent need of a machine, I would need the pick-up option at his local store, Would it be possible to get the computer “ushered” over to Geek Squad to have the service performed and then call the store and/or be notified via phone once the work is complete and the laptop ready for pick-up?”

Priscilla who helped me on this day (about 10:30 AM), told me that I could purchase the laptop through her ALONG with the Geek Squad set-up service (which she told me would cost $125.99). In addition I wanted to purchase the 2-year protection at $109.99 and the Norton anti-virus which you were offering for $19.99 with the Laptop Purchase. Though the transaction took a very, very long time because the computers were slow to process on your end, the transaction was complete; Order Number: BBY01-429074009409. Priscilla tells me that the Laptop should be ready for pick-up from the Saratoga Springs, NY store (as I requested) from the Geek Squad on the morning of 11/23/11.

I call my Dad feeling pride that I’ve “done good.” Did I mention he’s just been diagnosed with Cancer and that, though a very smart Man, just simply not of the generation who knows how much RAM he needs and what size processor he should buy and why he doesn’t need to pay for a machine that’s good for gamers. I give him the BBY # and instruct him to call Best Buy, Saratoga in the morning to confirm the machine is ready before he goes to pick it up.

He calls ME the next morning to inform me that not only is the Toshiba-Satellite Laptop, SKU: 3624333 NOT READY but it is on back-order and will be shipping to MY HOUSE in approximately 2 weeks. What??? I have so many questions at this point. How did this happen? I placed the order with a live human being? How is it shipping to MY HOUSE? How is it shipping to ANY house given the importance I placed on needing the Geek Squad Service.

I call 888 BEST BUY immediately. Now I am rushing as it is the Wednesday morning before Thanksgiving, 11/23/11, and I have to catch a flight to Albany to see my family. On this day I speak to Marci, I give her my BBY # and explain the situation. I am obviously very upset but am more concerned with quick resolution than finding out how this happened. The first thing Marci tells me is that IT IS NOT POSSIBLE TO PURCHASE THE GEEK SQUAD SET-UP SERVICE THROUGH BESTBUY.COM OR 888 BEST BUY. WHAT???

Well, being that was my VERY FIRST question the day prior to Priscilla this whole thing would have likely been avoided as I would have gone to my local Best Buy store and would have tried to figure out my options there.

So now, I’m a little more upset… but still… working toward a resolution. Marci confirms that the laptop I ordered is on backorder and should not have been sold to me. That it is indeed scheduled to ship to my house with the Norton anti-virus and that I was not charged for the Geek Squad set-up. So, now we have to cancel that order before we do anything. This creates great complication for me, because although the order is now cancelled, I need to use my Best Buy Store Card to take advantage of your 18-month interest free financing offer – and now – purchasing two machines will put me over the limit and cost me over-limit fees. Still… exhale… working toward resolution. I am in front of my computer asking about various SKU numbers. As I go I am learning so many of these machines are back-ordered. BestBuy.com has a way to filter search results by computer specs, so I ask Marci, isn’t there a way to filter HER search results by specs and get only inventory result that ARE available?

Well, Marci knows nothing about computers, she doesn’t know the difference between types of processors, and she doesn’t understand what to look at when I ask about the size of the hard drive. This is the complete OPPOSITE experience of what I usually get in-store (where have your priorities gone?). So I remain patient, I simply don’t have time to educate your order processing team on what the difference is between a dual core and an i3. FINALLY, FINALLY, we find a machine - HP - Pavilion Laptop / Intel® Core™ i3 Processor, SKU: 3441137. It is more expensive with a smaller screen but Marci is willing to meet me half-way on the difference in price. I have to EXPLAIN to her that the Norton should only cost $19.99 as that is a promotion you offer with the laptop purchase (as it says on your website product page) – to which she replies she doesn’t see what I’m seeing (does that really matter – hello, customer service, are you there?). We set the order up for pick-up at the local Saratoga Springs store and Marci explains to me that I should call the Saratoga Springs store to set up the Geek Squad service which, by the way, only costs $99.99, not the $124.99 as Priscilla had quoted the day before.

This takes a VERY long time to resolve, particularly given the amount of out-of-stock/back-ordered inventory. I miss my flight to Albany. But, given the importance that this is for my sick Father who doesn’t have the kind of experience I do purchasing these machines and is in need of a new laptop first thing Friday morning for a business trip, this is how I chose to prioritize my day. I now have a 6 hour drive ahead of me. But the order has been placed, BBY-4292 4100 2043.

I call Saratoga Springs Best Buy and ask to speak to a Manager. Why is it that whenever you start a phone call like that the first thing the person on the other end of the line attempts to do is help you personally? I get it, filter the calls, but I’ve been in customer service, just give the customer what they want. So, I explain to the person on the phone, Sarah, who calls herself a Customer Service Manager (and who I later learn is a Senior Customer Service Representative) all about the order. As I’m explaining it she sees it on her screen – I ask her to confirm the product – she does, the HP - Pavilion Laptop / Intel® Core™ i3 Processor. I explain I’d like to pay for the Geek Squad service and have the computer personally escorted over to Geek Squad for the work to begin so it can be ready TONIGHT. I also request it be ready TONIGHT because (a) you (Best Buy) will be closed tomorrow for Thanksgiving, (b) my Dad is leaving Friday and needs the computer that morning for business and (c) we do NOT want to find ourselves on the line behind Black Friday shoppers – especially since, technically the work should have been done already. All of this is no problem ensures Sarah. I request that she personally escort it over to the Geek Squad and ask if this is a problem, she says no. I double, triple, 4X confirm this will not be a problem. She says not a problem. She then transfers me to a nice young lady, Nikki, who takes my payment method for the GeeK Squad Service.

Is this it? Have my prayers been answered?
Could this nightmare be over?
Not by a long-shot.

I call throughout the day, on my 6-hour drive to upstate New York, to make sure the computer is being worked on. It is. I am feeling more confident that we are there. Still worried that there will be another hitch but chalking that up to paranoia. I was told I’d be contacted when the computer was ready. The store closes at 10PM.

At around 9PM I call the store, the laptop is ready for pick-up. I was never called. I am now is Saratoga with my family. I send my Dad… alone. BIG MISTAKE. He gets there. IT IS THE WRONG MACHINE! What kind of unbelievable breakdown took place now!?!?

They performed the work on a $300 machine. Sarah is no longer in the building – you know, the same Sarah who promised to personally escort the machine to Geek Squad. The same Sarah who either did not do this or who failed to match the order to the product. Who at Geek Squad is responsible for checking to see that the paperwork matches the machine they are working on? Who in the warehouse is responsible for the original mistake?

A young woman is trying to help me – a different “Nikki.” I really don’t want to hear anything, I just want a manager. She tells me there are no managers available - THAT THEY ARE ALL PREPPING FOR BLACK FRIDAY.  I'm sorry, but after all of this, you are more concerned about customers who have yet to spend money with you than you are about a consumer who has been working to resolve a, now, 3X botched order already paid for?  Completely unacceptable.

This is also difficult to manage as I am on the phone and my Father is in the store. I instruct my Dad to let me handle it – I do not want him stressed in any way because of his health – after all this was the entire reason I took this on. I suppose no good deed goes unpunished.

I finally end up on the phone with Chris Preston who is trying to help me sort this out. He is very concerned with deciphering what went wrong. I don’t care what went wrong. You close in less than 30 minutes, how are we going to make it right in this time? Finally the CORRECT machine is located – only I am told that the Norton is shipping to my house. WHAT??? I am constantly being placed on hold which is just infuriating me more and more. Chris tells me they will just install the Norton there so never mind about the shipment to the house. Geek Squad takes it and starts to install the Norton. I am still on the phone with Chris who offers me 20% off the Geek Squad service for the inconvenience… gee, so generous… I’ve spent at least 8 hours trying to work all of this out AND I’ve missed a flight… and you’re offering me $20. The Geek Squad is unable to perform their regular work vis-a-vie restore discs. Chris tells me not to worry, they will grab a different machine of the same type, create the restore discs and mail them to my Dad. OK, good idea – I am fine with this. Then I am on hold for an unimaginable amount of time. Chris comes back and tells me sorry, the Geek Squad started the first restore Disc… ON MY DAD’S MACHINE!!! My Dad is now sitting there for the entire length of the first disc run.

Chris was also unable to provide any supporting paperwork for the 2-year protection plan. I insisted to Chris that given all the breakdowns with this order I didn’t want my Dad walking out of there with no supporting paperwork – there’s a great quote from Godfather that I’d love to reference here but it’d be too inappropriate for use in a letter that I’m trying to maintain as high-road as possible. Unfortunately, the Best Buy computers do not allow users to print anything? They do not allow managers to provide any paperwork, no matter how “unofficial” just to help my Dad – should he need assistance with support – and I am not present? Insult to injury.


My call with Chris ends with his guarantee that he will handle the mailing of my Father’s restore discs first thing Saturday morning. I told him I will follow-up with my parent’s on Wednesday, November 30, 2011 – as that should be plenty of time for the discs to arrive down the road from his store – and if they have not yet arrived he’d be hearing from me again. I also requested the names of various managers, the GM, DM, Warehouse Manager and Customer Service Manager.


Finally, my Father returns home... after 11PM - the correct machine in hand. More money spent, a total of 8 hours wasted on the ordering and fulfillment process, 6 hours wasted on driving when I should have taken a flight, and about 2 hours wasted by both my Father and myself in-store/on phone after having Geek Squad services performed on the wrong machine. A total of 16 hours of frustration all on the day/night before a holiday.

If I make $80 net per hour my estimation is that beyond the cost of the computer this entire experience cost me $1,200 in time. Add the cost of a round-trip ticket from Newark to Albany… $436. This horror adds up to over $1,600, before pain and suffering… just to put things in perspective.

And then I am invited to private shopping events to get 4X reward points because I of my "VIP" status?  If I were that "important," why wasn't my order treated as such.  No calls or emails with apologies about the experience after the fact. No follow-up at all. After I took all of those names from Mr. Preston you would think one of those individuals could have called me with an apology or some kind - "are you satisfied with your purchase" kind of question.  Could have gone a long way.  Afterall, I fully get that the breakdown truly began with the very first question I asked of Priscilla: “Can I purchase Geek Squad service through you on the phone?” But I suppose it is naive of me to think that there would be any escalation of this issue to anyone who could have called to make a loyal consumer feel just a bit better considering how badly so many balls were dropped.

So you could have any number of reactions to this letter. You could choose to ignore this letter entirely. You could have any number of possible solutions. You could have none. But you should know that through posting on my blogs and social media outlets the same friends and fans that follow my posts advocating products and services will be reading this open letter – I trust they will likely be just as offended as I.

Jennifer Pricci
732.291.4536

jennifer@jenniferpricci.com

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How to Monetize Social Media

As someone who provides Social Media Marketing solutions, both on behalf of employing organizations and clients, I am often asked... "OK, I am onboard, but how do you make money from all of this?"

I am a disciple of Inbound Marketing. I believe in this day and age this is a philosophy that works. It's simple in theory; create great content, promote that content via social media, attract qualified leads and convert those leads into customers. Many Marketers out there work in conjunction with sales. I personally have been in positions where the Marketers job ends at garnering qualified leads and passing those leads off to sales to close. But Marketers are often tested by sales... what am I supposed to do with this information. Marketers are often frustrated by sales when they don't jump on such qualified lead data... this is an age old quandry between the two departments and why I contend there must be a happy marriage between the two departments... but that is a story for another day.

Today's story?...
How Marketers can help themselves by helping sales monetize their social media efforts.

Companies are not only getting the word out about their brands using social media such as Facebook and Twitter but are also making money.

Many businesses have not found sites such as Facebook, Twitter and YouTube useful in making money. Building genuine online relationships that are also good for the bottom line is not so easy. There is a lot of trial and error. But while monetizing social media is difficult it is not impossible. There are companies that are getting the word out about their brands using social media and are turning a profit.

Take The New York Jets. The NFL team launched their Ultimate Fan social game in September 2010, which was the first revenue generating Facebook app to be backed by a pro sports team. The application lets football fans do online what they would normally do at home and in stadiums—root for their favorite teams and players, predict game scores, and hold a virtual tailgate party with other fans from across the globe. Ultimate Fan has since lured four major sponsors integrating their brands: MetLife, Motorola, SNY and HotelPlanner.com.

The Jets also communicate regularly on Twitter. They even advertised a Twitter-based contest to win tickets to their 2011 AFC playoff championship game against the Pittsburgh Steelers. The Jets are able to engage with their fans and make them feel like they are part of the team. They are leveraging social medial to capitalize on their fans' passion for the team and their willingness to share that fervor.

Like many companies, your social media efforts have started small and grew organically. To capitalize on those efforts to generate sales and revenues you need to have a team of people dedicated to your social media presence. You also will need a deep understanding of your audience, a creative vision, and a way to measure results in order to execute a successful strategy.

Here are some ways your social media can be monetized…

How to Monetize Social Media: Build Brand Awareness
The first step is to use traditional media or word-of-mouth advertising to drive awareness and traffic to your Twitter, Facebook, and YouTube pages. Unless you already have a recognizable brand like Nike or Apple, your brand needs to develop social media magnetism before you can look to make any money. You also need to create circular momentum across many platforms when designing your social media campaign. By providing multiple channels for users to talk with you, you let customers choose the channel that they are most comfortable with, by doing this you increase the likelihood that they'll connect with your brand in any number of ways.

How to Monetize Social Media: Engage Your Audience
Social media is about having a dialogue. When you have a dialogue with a customer or prospect, the communication is much more fulfilling and much more profitable. The PETCO brand has developed a strong presence in social media. The pet store chain has a YouTube channel, its Facebook page generates a lot of discussions among pet owners, and there's lots of activity on its PETCO Scoop Blog, which has received hundreds of “Likes” and Comments. PETCO's customers are true pet lovers and treat their pets as part of the family. The company tries to keep conversation going by aiming Facebook and Twitter posts so that there's an explicit question to answer, or at least a specific piece of information to which people can react. You have to know your community and know how to take part within that community and through that create great content or conversation that will raise awareness and increase sales.

How to Monetize Social Media: Offer Special Promotions
Dell Computers exemplifies a company that is selling products using social media. Its Twitter page, @DellOutlet, offers discounts exclusively to followers. Dell might tweet 15 percent off any Dell Outlet laptop or desktop with a special coupon code entered at checkout so they'll know which tweet you are seeing. @DellOutlet also points you to a specific web page. There is some interaction in terms of chats with tweeters. @DellOutlet has garnered more than 1.6 million followers and generated more than $2 million in incremental revenues for Dell. Traditionally, Dell would have spent a lot of money running print ads. Today, they can write a 140-character promotion to reach customers.

PETCO is yet another example. The company provided a promo code to their customers for $40 in free shipping. The person who shared their code with the most people won a $500 PETCO gift card. About 40% of the sales that resulted from this promotional push came from new consumers. The desire to save a few bucks drove loyal PETCO customers to connect with the larger pet owner community and spread the word about the store via social media.

How to Monetize Social Media: Use Media Advertising
Many companies have used display advertising (banners) and contextual advertising such as Google AdWords. Many bloggers use Google Adsense to make money. There are plugins to help; you make money from clicks. There are also ad networks that you can join that pool several advertisers. You get a code and banner ads rotate from their network. This is an item that you will want to include in your advertising rate sheet. Major advertisers who buy display ads are finally beginning to figure out how to reach audiences through social networks, and have begun to shift significant dollars into Facebook.

Instead of a typical banner ad, consider offering a microsite, which would be equivalent to a paid supplement. For example, you could devote one page (a link on your website) specifically to an advertiser's products and services. Or you can become an affiliate. With affiliate marketing you get paid to refer people to another business.

Consider combining rich media advertising with display advertising. Video advertising and promotional material can be quickly and easily streamed to your social community. Another consideration is charging for sponsorship on a monthly, quarterly, or annual basis. Of course, attention needs to be paid between balancing the delivery of the rich media advertising against the comfort level of your customer base.

How to Monetize Social Media: Brand Within Applications
The best way to use apps is to create something that is functional such as a calculator, entertaining such as a game, or provides some sort of social connection such as an app just for your community. Your app can be fee based or you can give it away to build a relationship with customers. A number of well-known company brands use mobile apps to interact with their loyal customers, including Target, Coca-Cola, Nike and Gucci.

The fashion designer touts a luxury lifestyle application that is a quintessential example of branded mobile marketing. Through "Gucci Connect" users were able use their mobile devices, such as iPhone or iPad, for virtual access of a Milan fashion show, watch live runway and behind the scenes video coupled with live chat between virtual guests through Facebook and Twitter. Exclusive also to iPhone app subscribers are interactive games. The "Gucci Live" section features a music channel. Subscribers stay "in the know" with a calendar of upcoming brand events and feature articles. The Gucci "Little Black Book" provides recommendations to the hottest restaurants, nightclubs, and hotels in various cities throughout the world.

How to Monetize Social Media: Set Up Shop on Facebook
Facebook fan pages are another way to generate sales and enthusiasm especially if you have loyal fans that follow your updates. You can list your products on your Facebook page for fans to easily share with their own friends and essentially allow your product offerings to go viral.

Businesses are increasingly selling their goods on Facebook. There are various e-commerce solutions available. One is 8thBridge which is helping companies like 1-800-Flowers and HuateLook sell from Facebook. A special deal 8thBridge ran for the designer brands retailer HauteLook along with fashion designer Diane von Furstenberg generated more than $100,000 in sales in one day, 40 percent of which came from new customers. Users were given a $10 coupon for every new member that they brought in. Using 8thBridge, 1-800-Flowers is drawing people into buying flowers and other gifts for friends and family while they are already thinking about them on Facebook.

Payvment is another storefront option that provides online stores for companies to sell on Facebook. It has a network of more than 60,000 merchants using its self-serve technology. Payvment generally serves smaller clients while 8thBridge caters to small- and medium-sized businesses. According to a study released by Forrester Research, Facebook is more suitable for small retailers, niche products, or steeply discounted items. Most of the benefit that big retailers get from Facebook is branding their company but not actual purchases, Forrester further reports. Moreover, some products are inherently social such as books, DVDs, and event tickets, which have been successful because they are easy to buy and sell online.

How to Monetize Social Media: Use as a Retention Tool
Companies don't always need to use social media as a sales tool or to acquire news customers, they can use it as a customer retention tool. If someone likes or follows your business, it's because they're interested in hearing from you on some regular basis. It's important that you have a routine schedule for your blogs, tweets, and postings. Keeping your fans and followers up to date on what's new and happening with your business or industry will keep them engaged with you and keep your brand top-of-mind.

What have you done to monetize your social media marketing efforts?


By Jennifer Pricci
www.jenniferpricci.com
jennifer@jenniferpricci.com