April 24th, 2009
John Malcovitch (Home Theater/HE)
Dillon Taylor (Ops)
Tyler Thompson (Media)
Andy Thomspson (DigTech/CA)
Store 1036 (Big Flats, NY)
Dear Best Buy,
We present to you a list of Innovation ideas. At risk of appearing to poke fun at Best Buy's penchant for Acronyms, we have dubbed ourselves the PITTTTTT committee:
People
Innovating
Through
Taking
Time
To
Talk
Technology
Just kidding. We loath comic sans. It's an insult to printing, and probably to Gutenberg himself. And we shorten the name to “PIT Committee”. We're four friends from work who decided to hang out on our free time and write down some ideas to help the store.
We heard about an “innovation committee” at the store, though so far we're 0-2 as far as attendance goes. The invite for the first meeting was lost in e-mail (or rather, we can't check our email from home), and the second one was cancelled. Of course, we just saw on ETK yesterday that these suggestions are due today, so forgive me if I (John) am pushing midnight for finally submitting this. The PIT committee has met 3 times, though none of us has had the nerve to time-edit for 12 hours.
Also, I have no idea as to the relation of the “innovation committee” to this Chairman's Award, but some of us also have concerns about our voices being heard outside the store (hence, this letter). So far the only recognition of all the ideas shared with managers is one person who “was thinking about some ideas for picking up vendors”. I can expand on that idea later, as I was the one who had shared the idea with that employer two months prior.
I'll try to list names of the employee who really birthed an idea, but in most cases the entire group really helped give body to a concept. If anything can be used, I hope all of us can share the credit. If this letter causes problems (sometimes my frank style can get me in trouble), feel free to peg John for the blame.
General Ideas:
1. Tyler, Dillon – Used game program sounds pretty sweet, as long as we execute the program in a more tactful manner than GameStop. Don't insult the intelligence of customers or Publishers by giving someone $14 for a week-old copy of Killzone 2, only to turn around and sell it for $55. Perhaps even Trade 4 games, get one new game plus a copy of Chinese Democracy.
2. Dillon - Customer Comments access (Verbatim) and PAPER comment cards. Very motivating for employees, so hide customer info and make them public (to employees at least). Widget on ETK tracking recognition, comments?
3. Tyler – More incentive to fill out Customer Comments; Code that rewards the submitter for up to 10% off their next purchase (of under $100, or some terms like that). Similar to an Old Navy program.
4. John - Better specs sheets. More akin to upmarket stores, we should always have at least one or two detailed printouts on hand for those who are really interested in a product (our .Com specs sheets aren't terribly helpful).
5. John/Andy - “Knowledge Bar”/”Learning Lab”. Bank of computers dedicated to letting employees take learning courses and look up product info. We have lots of training to do, and we should encourage more, yet there's rarely an opportunity to do so at computers on the floor (and by extension, anywhere in the store).
6. John, all - “Invention Bins” - Broken parts or products that have already been Processed, or PRC'ed (not quite sure how that process works, does it really go by weight)? Andy saw a perfect Nikon D90 get PRCed because the kit lens was cracked. Recycled products can be scavenged for parts (a la the Akihabara scavenger stalls). Could start as an employee or trial program, and possibly even (with some development) be offered as a consumer service, directly moving into Radio Shack's consumer sphere, all while adding geek cred to BestBuy's image and celebrating innovation, learning, and scientific progress.
7. Andy – Mascot? Something for kids to identify with, other than a big store with a tag logo. If kids can enjoy their trips to Best Buy more, then the parents can enjoy their own trips more (and hopefully, spend more). And even Geeks love a mascot: see Firefox.
8. Dillon, Tyler, All – Occasional GM-employee (department) lunches. More time to gather perspectives from management (and sharing info on performance, corporate policies), and allows management to gather a better understanding of trends on the sales floor. Increase sales, store flexibility, and help MGMT/Hourly gain perspective from each other.
9. Tyler - Maps in front of store with layout/sections. We hear that some of the larger stores already have signs, but we don't. It can still be a confusing layout for non-regular customers.
10. Better Perks for Reward Zone members. Perhaps we should send them a coupon announcing that they've won a copy of Chinese Democracy.
11. John – More robust employee innovation committees, perhaps an annual summit. Democratic polling amongst departments to find delegates? HT, Portable Electronics, Appliances, LP/ASSpro, Ops, MGMT, GS, DigTech/Computers, Warehouse/Merchandising. Something to work towards, reward for enthusiasm, knowledge, initiative. Annual summit would be a terrific idea generator for Corporate.
12. Andy, Dillon – Better ordering system. Unified system (ORCA, .Com, CF, ExpressLane, Parts Search, etc.). Streamlined process for media orders.
13. Dillon, Andy – Focus more sales/marketing on older teens, and split the Buzz profile. Buzz is still good for our market segment, but doesn't really target older teens with some “disposable” income.
14. John – Let's never again use the term “Disposable income”. Any business model that labels someone's income as “disposable” is probably not terribly customer-centric. Let's shift that mindset.
15. Tyler – Music sampler Kiosks like FYE. Tons of customer requests.
16. Dillon, Tyler – Game Rooms, or more dedicated space for console/game demos.
17. Dillon – Peer learning groups/training. More on that later.
18. Andy – More live phone demos. May be a logistical chore, but if Verizon stores can do it, so can we.
19. Andy - More Kiosks for customers. Dedicated/More noticeable customer kiosks and dedicated employee terminals (that don't crash 10 times a day).
20. Andy – More Laptop Demos.
21. Andy – Make sure GPS demos are in working order. Ours are FUBAR.
Audio Ideas:
1. John, Andy - iPod docks throughout store to demo speakers and audio gear (HT, Car audio, Computer speakers demo). Policies and signs warning that inappropriate (explicit lyrics) music is not allowed (and thinking of a polite way to give that policy some teeth). But if someone comes into the store to check out speakers, they don't want to hear a poorly-mastered BestBuyRadio CD, they want to know what their own music sounds like. It took me about a month to get permission to Store-Use one of the Dynex HT iPod docks, and it has impressed the hell out of many consumers carrying their iPods. I'll also let customers find their favorite genres on my iPhone; I know I'm not supposed to have it on the floor, but I have closed tons of sales with that trick.
2. John - SACDs/DVD-A plus players. Why do I have to find all of my High-res discs on Amazon? I've only ever found one SACD in the store (Pink Floyd's DSOTM SACD), and I store-used that. My bosses were kind enough to let me hook up our (1) SACD player in the PSSS demo, bi-amp some VF-36s on a Yamaha 663, and that demo (track 6, Money) has sold tons of Klipsch gear for the store.
3. Listening room. Why doesn't every Best Buy have a listening room? Even if it's not a MHT within a store, customers deserve to have a quiet environment to compare audio gear. Best Buy started out as Sound of Music, and the Accidental CEO got his start by lugging some Bose speakers an economically impractical distance to a customer. Why have we lost focus on Audio? Crutchfield has started a marketing push for “HiFi 2.0”, which I personally find to be a brilliant strategy. There's a few generations who never really lived through the first HiFi era, and so may have never heard what audio can really sound like. We grew up on 128kbs MP3s, played through computer speakers or Apple Earbuds (an insult to ears everywhere). And those who lived through and/or loved the HiFi era are sometimes blown away by how much audio quality has advanced.
4. Even if someone doesn't seem to have (or professes a lack of) the ability to pay for a Klipsch Icon setup, I still love sitting them down to hear how Audio can sound. Sometimes I never see them again and feel better for sharing, sometimes they come back in with wealthy relatives or friends to pick up the entire system.
5. People are buying $3000 HDTVs, but sometimes leaving with the impression that the TV speakers or a $200 Samsung HtiB is pretty much as good as it gets for audio. Every time this happens, I feel that I haven't done my job of sharing the vision. But it can also be hard to tell the difference between said Samsung kit and a Klipsch setup on a noisy showfloor. See: Listening room. It's also a great time to push High-Def audio (SACDs/ DVD-A/Universal players).
6. While I'm on it, we should pick up Oppo as a vendor. Also, drop Harmon Kardon and pick up Onkyo. Sure, maybe HK made a great stereo in 1958, but I haven't been very impressed with their modern gear. Onkyo adds a much better value-proposition for cash-strapped/budding audiophiles, and after the demise of Circuit (and their exclusivity), they are likely looking to pick up a mass-market retail channel.
7. The store makes huge margin on Speakers, Receivers, Power Conditioners, and Cables/Wire, as I'm sure the reader is aware. Why isn't there a bigger push behind Audio? If Wal-Mart is creeping in on HDTV sales (and the 32” aisle has already pretty much reached a commodity/grab-and-go status), how can Best Buy really create a niche in the marketplace? It's not moving down-market, but moving up-market. Move in on the up-market AV stores (if that means a MHT in every store, so be it). At least create a goal, a vision for customers through awesome auditions. I like the Art of the Demo concept: keep pushing that.
8. Getting more people “into” audio wouldn't really hurt niche stores either, but probably only expand their market. Of course, we can build Brand Loyalty to capture a large share of that expanded market.
9. Push audio in the Chinese marketplace (Do we have BB stores in Asia, or only Five Star stores?). Many Chinese consumers share much in common with our Buzz segment, but there is even less historic association with HiFi sales. While my parent's generation were rocking out to some huge speakers, many Chinese were struggling through a much more difficult situation (thus, there isn't a very big audio-gear footprint in the culture, from my limited experience). Also, after the collapse of the Pu'er Tea industry (and the cachet that it was associated with), there is a good chunk of savings for luxury goods that is untapped, and upmarket audio is well poised to be a key-lifestyle differentiator amongst the Chinese middle and upper classes.
Compensation:
Compensation kind of sucks. Best Buy is pushing it's Blue Shirts as it's most precious asset, and yet many of us hourly workers feel a bit under-paid and under-appreciated. At the same time, many of the highest compensated employees, hourly or otherwise, seem to offer the least value to the store. I certainly understand how a Commisioned-Sales model creates perverse incentives (crushes teamwork, can lead to pushy, pressured sales, etc), but it would still be nice if the emphasis on compensating employees matched the emphasis on marketing Blue-Shirts (every TV and print ad?). Some ideas:
Tyler, Dillon - Branded payments bonus. More incentive to sign up cards. The store makes a big commission, so why not bi-weekly bonuses depending on number of cards signed up for the employee?
John - Employee trial/familiarization program. Product knowledge is key for sales, but it is impractical to assume that hourly employees can try or buy many of the products we sell, even with employee discounts. How about open-item returns are available through a Best Buy program that allows employees to “sign” against their next paycheck, take home an open box item to try it out for a few days or a week, and then return. Perhaps a little form would even help with the PRC process: instead of having to return every opened CD, movie, or game to a testing center, the employees would themselves be able to perform a functionality check, but then also enjoy and familiarize themselves with the product should it be in working order.
Unanimous- Store trackers are awful. Performance monitoring “stick” of commission without the “carrot” bonuses. Lets think of something else.
John - Perhaps a “shift bonus” for hitting sales targets? Instead of a big lump bonus for hitting sales for an entire quarter, what about a bi-weekly bonus based on the department's performance during the shifts an employee worked. Still pushes cooperation amongst department, but also creates huge incentive to actually sell (instead of finding empty corners of the store to hide and text message friends).
John, All - New Geek Training Program: Film Buffs. Audiophiles. Music Lovers. Computer Whiz. Photographers. Videophiles. Rigorous certification/learning and ongoing training programs in exchange for a pay-bonuses on top of hourly base rate. Sub-certifications will be critical for the new Monolithic “Portable Electronics” category. Do we really expect all of those employees nationwide to be as knowledgeable about cameras and game systems as with musical instruments, and DVDs, and Car Audio?
GTP will also include cool little certification Logos for an employees name-tag. Images of Film reels, or Speaker Cones, Music notes, Computer screens, Cameras and TV screens (quick icon ideas respective to list in previous bullet) Mark of pride, as well as helping customers feel they are gaining value through interaction with Best Buy. Builds employee knowledge, customer satisfaction and loyalty. Customers would enjoy the confidence that comes with talking to an “expert”.
Malcolm Gladwell writes in Outliers that it takes 10,000 hours for someone to become an expert in their niche. Best Buy has certainly started many employees along this path, but at $8.50 an hour does not always offer enough incentive to stay with the company, and some employees aren't really interested in management positions as a career advancement.
GTP will help promote Best Buy's strengths and differentiate it from competitors.
John, all - F.L.A.T.T.S. System:
Fluid Local Allocation of Talents and Tip Sharing
Sometimes I feel that management (the current model, not any specific persons) acts as a filter that prevents the optimal allocation of talent and energy at the store. This widget or system would add some transparency and grass-roots feel, build a sense of greater Best Buy community, motivate employees to share talents and tips that might otherwise go unnoticed, and unleash the power of Best Buy's most precious asset: the Blue Shirt.
The personal profiles on ETK are cool, but the system could be much better. I envision a Digg-style widget/community where Talents can be submitted by a registered submitter (named, to avoid abuse of the system or malicious gossip), but voted on anonymously by any other employee. Oh, Beau is awesome with photography, and could teach a DSLR class? An employee submits that, and then if I see it on my widget (or page) I can “vote” it up (yes, shameless Digg rip, but I'm also a shameless Digger). Chad makes great websites? JessOh, someone just wrote that “John smells”? I see it and vote it down, as I hope others would. But say I see “So and so has been rude to customers, and I'm concerned about them as a worker”, and I've personally witnessed said employee being very impolite or unprofessional, perhaps I vote that story up.
The site/widget can feature filters for Department\Store\District\National, etc. and would be a much easier resource to use than the systems currently in place (WaterCooler, EGO), and would really empower and encourage hourly workers. It would also be a valuable tool for management or district/corporate staff, as they would gain a very up-to-date view of the trends, concerns, tips, and employee talents. GE's leadership model (subsequently widely imitated) includes rewarding the top 10% of employees while looking to improve or separate the bottom 10%, and while I obviously don't want to impose any severe performance penalties based on the whims of crowds, I do believe the FLATTS system would much benefit the stores and company in identifying outstanding talents or ideas.
Also a core component of the system: A “we should carry this” suggestion category. Someone sees a CNET article about an Onkyo HTIB that's THX certified for Under $1000? We Should Carry This. Acoustic Treatments and all their benefits (and high margin)? We Should Carry This. And so forth.
And the employee profiles would be a great component of the FLATTS system.
Apologies if this is long (and currently, a bit late. I started typing this over a day ago), but the PIT just wanted to share some good ideas with the store and company. And if something I wrote leads to my termination, I fully expect a copy of Chinese Democracy in my severance package.
Respectfully Submitted,
-John Malcovitch (author)
-Andy Thompson
-Dillon Taylor
-Tyler Thompson
PITTTTTT Committee, Store 1036
