Best Buy enhances customer experience after digital transformation

Best Buy has revealed its key achievements in customer experience areas in the first quarter of 2024 – especially after making significant investment in digital transformation and innovation.
Best Buy teech tech centerBest Buy’s first-quarter digital sales mix was 31 percent of domestic sales, similar to last year. Best Buy’s domestic online revenue of $2.52 billion decreased 6.1 percent.

Best Buy has lowered its SG&A expenses to $1.60 billion, or 19.5 percent of revenue, versus $1.71 billion, or 19.4 percent of revenue.


Best Buy recently announced Best Buy Envision, an app exclusively available on the Apple Vision Pro that helps users plan their ultimate home technology setup. The app uses augmented reality (AR) to help you preview 3D models of some of your favorite Best Buy products.

While wearing Apple Vision Pro, customers can see 3D images of how a variety of different products will look and feel in your space before you buy them. It includes big screen TVs, large and small appliances, fitness equipment, and furniture.

“Best Buy Envision is another way we’re utilizing innovative technology,” said Brian Tilzer, chief digital, analytics and technology officer for Best Buy. “The app allows our customers to see, how technology will look and feel right in their own homes, delivering an immersive and personalized shopping experience.”

Best Buy has recently partnered with Google Cloud and Accenture for using generative AI to provide more personalized tech support experience to customers.  This new option, expected to be available in late summer 2024, will allow Best Buy’s U.S. customers to get help from a gen AI-powered virtual assistant.

Google Cloud’s AI platform, Vertex AI and Gemini models, will help care agents assess customer conversations in real-time, providing them with in-the-moment, relevant and human-focused recommendations. Google’s AI tools will summarize conversations, detect sentiment and utilize data from the call.


Best Buy has improved its omnichannel fulfillment experience and as a result it delivered 60 percent of packages or ensuring availability for pickup within one day. On top of this, Best Buy customers are able to pick up 40 percent of digital sales from stores. More than 90 percent of these orders are available to Best Buy customers within 30 minutes.

Best Buy has laid out fiscal 2025 priorities, focusing on the following areas.

# 1 invigorate and progress targeted customer experiences
# 2 drive operational effectiveness and efficiency
# 3 continue disciplined approach to capital allocation
# 4 explore pilot and drive incremental revenue stream

Best Buy provides personalized, highly relevant and motivational content as the retail chain generates roughly 90 percent of its quarterly revenue of $8.847 billion from known customers. Customers who use Best Buy app spend more than non-app users.

Best Buy launched a personalized home screen — powered by AI — to 50 percent of app users. Each of these users’ home screens look different based on their personal preferences and a number of other factors like current location, shopping history, and membership status.

“Customers who receive our personalized homepage are engaging at higher rates. We’ve also been focused on driving speed improvements on the product pages and in check out in the mobile experience to drive customer experience and sales performance,” Best Buy CEO Corie Barry said. Best Buy has achieved a 50 percent reduction in mobile product detail page load time.

Best Buy has focused on the customer experience in stores. Best Buy plans to improve merchandising and ease of shopping for customers. This includes improving and enhancing the merchandising presentation given the shift to digital shopping and corresponding lower need to hold huge inventory on the sales floor.

“We will be removing physical media and updating our mobile digital imaging, computing, tablets, and smart home departments,” Corie Barry said.

In fiscal 2024, Best Buy’s digital sales comprised 33 percent of domestic revenue against 19 percent in fiscal 2020. During these periods, the percentage of online sales picked up in stores by customers was consistent at over 40 percent.

Best Buy’s advertising expenses reached $794 million in fiscal 2024, $864 million in fiscal 2023 and $915 million in fiscal 2022.

Baburajan Kizhakedath

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