Introduction
Relationship emarketing is one of the key elements in the business success. It is focused on creating stong ties with the existing customers based on the four types of bonds: financial bonds, social bonds, customization bonds and structural bonds (Robert Ackerman, 2007). Best Buy Co., Inc. is a great example that uses all four bonds in their emarketing strategies to maintain and build relationships with their customers.
Best Buy Co., Inc. is a multi-channel global retailer, focused on delivering the technology solutions to people. One of the main goals of this company is to provide customers with excellent experiences (Best Buy Reward Zone, 2012). Best Buy has a strong customer-centric focus that is employed by many different customer oriented emarketing strategies and models. All of these strategies are developed mainly around four types of bonds to capture and retain online and offline customers.
Financial Bonds
Best Buy provides different financial incentives for their customers thru the Reward Zone Program and Best Buy Credit Card. Best Buy’s Reward Zone Program provides customers with many benefits such as point rewards, exclusive access to special events and special member-only offers (Best Buy Reward Zone, 2012). Best Buy point rewards strategy is based on tying customers through the financial incentive by rewarding them with the points for every dollar spent on the product or service that can be later converted to the money reward certificates. The Reward Zone Program provides their members with exclusive access to the special events such as members-only private in-store sale where they can find big variety of products that are on discount during the private event. Members can also enjoy many different ex...
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...nd services that creates a big challenge for the customers to quit the relationship. In other words, this program creates exit barriers to their program members by providing them with the exclusive benefits and involvement in the Best Buy business strategies (Robert Ackerman, 2007).
Conclusion
Best Buy Co., Inc. is a one of the most successful electronic retailers that has developed strong relationship bonds with their customers and the company that is constantly moving these relationships forward based on the publicly generated ideas and customers’ experiences.
Works Cited
Best Buy Reward Zone. (2012). Retrieved April 07, 2012, from Best Buy: https://myrewardzone.bestbuy.com/silver/benefits
Robert Ackerman, J. S. (2007). A BUSINESS MARKETING STRATEGY APPLIED. Baywood Publishing Co., Inc.
Strauss, J., & Frost, R. (2012). E-Marketing. Prentice Hall.
Nordstrom can continue providing their exceptional online experience and client focused approach using their online system by offering an unmatched online experience that copies their in-store customer service. This would allow Nordstrom to raise its revenue considerably as well as further improving their brand image. I will also discuss specific ways of successful execution, and the steps required to provide Nordstrom a stunning picture of how to execute strategy.
The company had to be the second largest retailer shop in the US; it has many advantages that come along. The customers well acknowledge the company and its brand have been well established.
With the passion for the latest and greatest technological knowledge, and the charisma and devotion towards the youth, Best Buy is sure to continue on the high road to success. Best Buy will be changing and advancing to accommodate the ever-changing field of technology. They are truly a testament to upholding and exceeding their vision statement of “meeting the customer at the intersection of technology and life” (FAQ).
Best Buy’s History & Main Characters: Best Buy is Minneapolis-based and is North America's leading specialty retailer of consumer electronics, personal computers, entertainment software and appliances. Throughout Best Buy's 37-year history, the company has maintained the tradition of making life fun and easy for customers and employees, while providing a significant return to partners and investors. It has 80,000 employees and over 550 stores in the U.S., in addition to the brands Best Buy Canada, Future Shop and Magnolia Hi-Fi. Their leadership is led by Dick Schulze, Founder and Chairman, Brad Anderson, Vice Chairman and CEO, Al Lenzmeier, President and COO, and Darren Jackson, Executive Vice President of Finance and CFO. Chairman Dick Schulze founded Best Buy in 1966 with the Sound of Music, an audio component systems store in St. Paul, Minn. In 1973, Vice Chairman and CEO Brad Anderson joined Sound of Music as a salesperson. The company quickly expanded into video products and computers, was renamed Best Buy in 1983, and became a public company in 1985. Best Buy’s revenues for fiscal year 2003 were $20.9 billion and net earnings of $622 million. It was ranked number 91 on the Fortune 500 in 2003 (Bestbuy.com). Best Buy stores are redefining the way customers shop by offering an unparalleled assortment of affordable, easy-to-use entertainment and technology products and services available through its network of more than 550 retail stores in 48 states and online at BestBuy.com. Best Buy is scheduled to open 60 new stores in fiscal 2003 and is on track to have 650 stores by fiscal 2005. Magnolia Hi-Fi is a high-end electronics retailer specializing in audio and video solutions for homes, ...
The company has established good relationships with most of its customers which has assisted it to create high level of brand and customer loyalty
Business-to-business companies are relationship driven. They are offering another company a product or service that the company should use to their benefit, and in order to sell this product or service, they have to build a strong, working relationship between the two businesses. B2B companies have to maximize the values of the marketing strategy: relationships and trust. In order to be successful, these two businesses must be able to trust each other, work together, and form a working relationship that will benefit both businesses in the end.
One interesting aspect of B2C marketing, however, is that many companies have realized the importance of loyalty. Amazon, Best Buy, and Staples combine merchandising and education to keep customers coming back. Add great customer service, and you get a winning combination.
Grönroos, C. (2004). The relationship marketing process: communication, interaction, dialogue, value. Journal of Business & Industrial marketing, Vol 19, Issue: 2, 99-113.
Also, the rewards program is based off a point system and when one has earned a certain amount of points they send them a gift card to spend however they wish. Though, what the consumers don’t know is that by applying for their free rewards program, they are collecting data and constructing analysis to make them into loyal consumers.
In order to fulfill customer needs, companies offer a lot of shopping ways to customers like bonus point programs and membership programs. Customers can obtain the redemption products and enjoy discounts when purchasing by joining these programs, which can lead to save more.
Through innovation, they are striving to create a customer-centric experience that seamlessly integrates digital and physical shopping. The company’s strategy is to lead on price, invest to differentiate on access, be competitive on assortment and deliver a great experience. Leading on price is designed to earn the trust of their customers every day by providing a broad assortment of quality merchandise and services at the promised everyday low prices, while fostering a culture that rewards and embraces mutual respect, integrity and diversity. Every day low prices is the company’s pricing philosophy under which they price items at a low price every day so that their customers trust that their prices will not change under frequent promotional activities. The everyday low price is the company’s commitment to control expenses so those cost savings can be passed along to the customers. The company also strive to give customers and members a great digital and physical shopping experience through its three reportable segments; Walmart U.S., Walmart International and Sam’s Club, (Walmart 10-K annual report, pg.
Best Buy, one of the biggest consumer electronics retailers in the world, provides products from smartphone, computers to large electronic appliances. It aims at offering a large variety of products with outstanding customer service at a comparably economical price. Yet, it has been facing internal and external challenges in the recent years. Bottom line and the share price are slightly catching up after a fall in 2013 but still barely satisfying the shareholders and customers are changing their purchasing habits which may threaten its future.
Both from the customer and the company point of view, each customer interaction is part of an iterative learning process (Ballantyne, 2004). Further, Yau et al. (2000) advocated that the relationships between business firms and its customers have been constantly encouraged as successful business practices worldwide. The strategy of relationship marketing is of high relevance particularly in the service industries because of the intangible nature of service and their high level of customer interaction (Al-Hersh, Aburoub, & Saaty, 2014). Relationship marketing is defined as the process of engaging in proactively creating, developing and maintaining committed, interactive and profitable exchanges with targeted customers (Haker, 1999). Furthermore, Gronroos (1990) asserted that relationship marketing is to establish, maintain, enhance and commercialise customer relationship so that the objectives of the parties involved are met which can be done by a mutual exchange and fulfillment of promises. Moreover, the implementation of the relationship marketing concept at the operational level refers to relationship marketing orientation (Hau & Ngo, 2012). Relationship marketing orientation indicates the firms’ philosophy of doing business concerning relationship building by propagating developing trust, empathy, bonding, and reciprocity between a firm and its customers (Sin et al., 2005a, b; Tse et al., 2004). Trust is an important element for a successful relationship between the firm and its customers (Berry, 1995). First, trust is an essential component for a successful relationship between the firm and its customers (Berry, 1995). Trust It refers to a willingness to rely on an exchange partner in whom one has confidence (Morgan & Hunt, 1994). Empathy, as a dimension of business relationship, enables the two parties to see the situation from
Buyer-supplier relationship established since human beings started to trade goods and services. The relationship developed naturally over time after buyer and supplier developed trust and friendship which was supported by quality of product and services (Wilson. D.T, 1995). The relational development is accelerated as firms attempt to improve their relationship to achieve company goals. At the same time, the expectations in the performance have increased, and this has making the satisfactory relationship became more difficult.
In other words, their purchasing power is more focused on their need, health, and efficiency and cost effective. It is with this in mind, this writer would say that there lies a possibility for a company to cater to both its best interest and that of the consumer conjointly. Without customers, there would not be any company; therefore, a secure partnership between the company and customers would be more beneficial for both parties, in that the customers would be loyal to the company based on if they feel valued and if their needs are being met by the company. The company can foster this partnership by building a strong customer relationship management – where they have a customer-centric model in which they learn ways to enhance their product and service through feedback received from the customers. Here, both interests of the company and the customer will be