advertisement
advertisement

Bringing Storefront Perks to Web Sales Still Needs Work

Written by Evan Schuman
October 22nd, 2004

While many retailers are struggling to make multichannel operations work at all, Best Buy is taking a leadership position in making the retailer a single brand with multiple points of access.

But Best Buy is an almost perfect example of the difficulties in making all channels appear as one to the customer, as it excels in certain areas while sending mixed messages in others.

On the leadership side, consider one of the site’s most innovative features. While many retailers are starting to allow customers to place orders on the Web but pick up the items in a physical store, Best Buy does it with a twist by incorporating humans in the middle of the database-to-database connection.

The strategy behind any buy-online-pickup-in-store effort is simple: It sidesteps the three largest complaints about Web shopping (shipping cost, shipping delay and the inability to see and touch the product before making the purchase) and the two largest complaints about brick-and-mortar shopping (standing in lines and wasting time looking for the desired product).

This is how Best Buy does it, according to Sam Taylor, Best Buy’s senior vice president for online stores: A Best Buy Web visitor makes an online purchase and pays for it with a credit card. An offered ZIP code identifies the nearest stores and whether an inventory database check indicates that the exact desired product is in stock at that store.

After the transaction is completed, the customer is sent a standard confirmation e-mail, which provides the nearest store to the consumer’s ZIP Code that has the item in stock according to the inventory database. The customer is told to stand by and not to try to pick up the product until a second confirmation e-mail arrives.

At that moment, a message flashes on one of several computer screens at that store and is accompanied by?depending on the location?a bell, an alarm or buzzing pagers. A worker is then sent out to the aisle or to the backroom to physically verify that the item the database thinks is in stock actually is in stock.

If the item is in stock, the system is informed and a confirmation e-mail is sent to the customer. The worker then takes the item to a special in-store pickup desk so the customer can get the merchandise without waiting in line.

If the item is not in stock, the customer is instructed to call the toll-free customer-service number again.

The time permitted from the initial customer purchase until that second e-mail confirmation? Taylor said the response?during Best Buy store business hours?is within 30 minutes. But the Web site only promises a two-hour response, and multiple Best Buy customer-service representatives stressed that response times are about two hours.

A few random?and highly unscientific?tests by eWEEK.com in different geographies essentially substantiated that Taylor’s 30-minute target is being met. Best Buy officials said recent improvements to the system account both for the speed and for the fact that customer service seemed to be unaware of it.

Another of customers’ key issues with online purchases is the inability to see a product before making a final decision. After all, an item might look a lot bigger?or smaller?in person than it does in a Web image and description.

Best Buy is allowing customers to inspect the purchase when they arrive at the Web purchase pickup desk and to instantly turn it down?for a full cash credit. “If they change their mind, they change their mind,” Taylor said.

That’s another area of confusion. In fact, a customer calling Best Buy’s customer-service department would be told that a rejected purchase can be returned only by waiting on hold with customer service. On Friday morning, a customer-service rep told an eWEEK.com reporter that store personnel cannot cancel an online order “because we cannot access their system and they cannot access ours,” and that not even a visit to the Web site would do the trick. No, she said, it must be done on the phone.

Another rep agreed, but added that the best approach would be to complete the purchase at the store and then take the product to another line in the store and return it in the standard way.

Best Buy spokesman Jay Musolf said the customer-service representatives had out-of-date information. “Our systems have been upgraded and it’s been recent. Some representatives may not be fully aware yet,” Musolf said, adding that he believes customers can indeed cancel a purchase.

But after Musolf’s comments, eWEEK.com contacted two Best Buy stores and spoke with personnel who staff the Web purchase pickup desk, and they told a somewhat different story.

One staffer?who asked that her name not be used?said, “If someone at corporate thinks it can be canceled here, let them come over and show me the key to hit. My screen only has the option to process or to return after it’s been processed. It’s not giving me a cancel option.”

She said the systems cannot help and that she would simply phone customer service and do the cancellation that way. It saves the customer the bother, but it’s not indicative of an integrated online/offline system.

Another Best Buy store agreed with the first rep?that they cannot cancel a purchase made online?but he suggested a different workaround. If the customer simply leaves the products and walks out, the product purchase will cancel on its own after several days.

But wouldn’t that foul up the inventory system and have that rejected item display as “sold” for a week when it’s actually available for purchase? Yes, he said, but they could do a system workaround to trick the inventory system into understanding that the item is indeed available.

When Taylor spoke of multichannel, he was referring to four distinct channels: the stores, the Web, the phone and in-home services (such as Best Buy’s partnership with the Geek Squad.)

Arguing that the system integrations are essential, he said multichannel customers are the most profitable and loyal customers. Others have said one reason for the profitability is that customers often will make additional in-store purchases when they arrive to pick up their online-selected merchandise.

But not all Best Buy programs support that idea. Best Buy’s frequent-buyer program is called Reward Zone, and it excludes from consideration any online purchase, suggesting that the company is not quite channel-agnostic yet.

Best Buy’s Musolf conceded that the program excludes online purchases and said that would be changed soon, but wouldn’t specify a time frame. “That is coming,” he said.


advertisement

Comments are closed.

Newsletters

StorefrontBacktalk delivers the latest retail technology news & analysis. Join more than 60,000 retail IT leaders who subscribe to our free weekly email. Sign up today!
advertisement

Most Recent Comments

Why Did Gonzales Hackers Like European Cards So Much Better?

I am still unclear about the core point here-- why higher value of European cards. Supply and demand, yes, makes sense. But the fact that the cards were chip and pin (EMV) should make them less valuable because that demonstrably reduces the ability to use them fraudulently. Did the author mean that the chip and pin cards could be used in a country where EMV is not implemented--the US--and this mis-match make it easier to us them since the issuing banks may not have as robust anti-fraud controls as non-EMV banks because they assumed EMV would do the fraud prevention for them Read more...
Two possible reasons that I can think of and have seen in the past - 1) Cards issued by European banks when used online cross border don't usually support AVS checks. So, when a European card is used with a billing address that's in the US, an ecom merchant wouldn't necessarily know that the shipping zip code doesn't match the billing code. 2) Also, in offline chip countries the card determines whether or not a transaction is approved, not the issuer. In my experience, European issuers haven't developed the same checks on authorization requests as US issuers. So, these cards might be more valuable because they are more likely to get approved. Read more...
A smart card slot in terminals doesn't mean there is a reader or that the reader is activated. Then, activated reader or not, the U.S. processors don't have apps certified or ready to load into those terminals to accept and process smart card transactions just yet. Don't get your card(t) before the terminal (horse). Read more...
The marketplace does speak. More fraud capacity translates to higher value for the stolen data. Because nearly 100% of all US transactions are authorized online in real time, we have less fraud regardless of whether the card is Magstripe only or chip and PIn. Hence, $10 prices for US cards vs $25 for the European counterparts. Read more...
@David True. The European cards have both an EMV chip AND a mag stripe. Europeans may generally use the chip for their transactions, but the insecure stripe remains vulnerable to skimming, whether it be from a false front on an ATM or a dishonest waiter with a handheld skimmer. If their stripe is skimmed, the track data can still be cloned and used fraudulently in the United States. If European banks only detect fraud from 9-5 GMT, that might explain why American criminals prefer them over American bank issued cards, who have fraud detection in place 24x7. Read more...

StorefrontBacktalk
Our apologies. Due to legal and security copyright issues, we can't facilitate the printing of Premium Content. If you absolutely need a hard copy, please contact customer service.