The Client – Best Buy
As of December 20, 2024, Best Buy, an American multinational consumer electronics retailer with a net worth of $18.22 billion and annual revenue of $42.226 billion (as of October 31, 2024), maintains a strong market position amidst competition from giants like Amazon, Walmart, and Target. With over 1,145 stores and 125,000+ employees, it stands as the largest consumer electronics chain in the USA.
Best Buy also hosts one of the largest e-commerce platforms, attracting 31 million visitors, monthly. The company positions itself as a “Growth Company,” emphasizing its commitment to CX through competitive pricing and innovative solutions to address unmet customer needs.
The Requirement – Market Leadership On The Foundation Of Trust And Convenience
Facing intense competition from top names in the segment, and consequent erosion of revenues, Best Buy wanted to stabilize its growth trajectory by gaining greater visibility and trust among customers, thereby driving higher sales and turnover.
The idea was to enhance CX and customer engagement with simplified shopping journey, that required being available in relevant locations with relevant products that could meet customer expectations with minimum effort.
Furthermore, Best Buy aimed to expand its market reach into promising locations while minimizing human intervention and establishing a unique selling proposition (USP) that differentiated it from competitors.
The Solution – Best Buy Express
In 2008, Best Buy introduced its first vending machine, designed to dispense small to medium-sized consumer electronics. These kiosks were initially deployed in 12 major US airports, including Atlanta, Dallas, San Francisco, and Minneapolis.
Each vending machine was equipped to accommodate 50+ product categories, including phones, chargers, cables, headphones, personal care gadgets, and other frequently sought-after travel essentials. Beyond airports, Best Buy strategically placed vending machines in high-traffic areas such as hotels, casinos, transit hubs, and resorts.
The Best Buy kiosks featured a user-friendly touchscreen interface that provided comprehensive product information and facilitated:
- easy product selection,
- simplified payment and billing
- easy access to customer service and
- 24/7 availability
To further enhance trust and convenience, Best Buy enabled in-store returns or exchanges for products purchased from the kiosks.
The Outcome
Ten years after the initial launch, the number of Best Buy vending machines in the USA had grown to approximately 200, with 80% located in airports. This retail innovation also expanded to Canada, with 40 Best Buy kiosk locations established across the country.
The strategic placement of vending machines effectively captured the attention of potential customers, streamlining the purchase process and converting browsing interest into transactions. The kiosks enabled Best Buy to penetrate high-growth markets that were previously inaccessible due to logistical challenges and overhead costs, which was a significant advantage over its competitors.
We Can Do The Same For You
If you are a consumer electronics retailer aspiring for low risk market expansion with minimal overhead costs, our smart vending machines can be your best-fit solution. Our tech-enabled vending machines are
- available in different capacities,
- customizable in tune with your product types,
- easy to maintain and
- budget compatible.
For more details, connect with us at hello@ogmento.io or, speak with our experts at
+91 78383 38309 / +91 98990 18464
