Tuesday, November 9

BEST BUY TO NUKE WORST CUSTOMERS
The Wall Street Journal is reporting that Best Buy (where I bought the very computer upon which I am now typing) would like to get rid of 20% of its customers. Apparently that's about how many of their customers have figured out how to manipulate their promotional and merchandising system to their undue advantage -- or at least that's how the store perceives the situation.

This year, Best Buy has rolled out its new angel-devil strategy in about 100 of its 670 stores. It is examining sales records and demographic data and sleuthing through computer databases to identify good and bad customers. To lure the high-spenders, it is stocking more merchandise and providing more appealing service. To deter the undesirables, it is cutting back on promotions and sales tactics that tend to draw them, and culling them from marketing lists.


Perhaps the chain's cut-throat approach to marketing (relying on loss leaders, etc.) is what makes the store so vulnerable. They need a make-over that is more radical than just culling their mailing lists.

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