Best Buy presented an update on its Total Tech Support Program which allows free installs for many car audio products providing customers purchase a $199 service plan that covers many of their consumer electronics products including computers.
Best Buy said it was pleased with the early results of the program, which launched nationally in May. It is also now allowing customers to buy the program as a gift for the upcoming holiday season.
CEO Hubert Joly said the current program is “Just the beginning in terms of the benefits we will offer members over time,” although he gave no further specifics in a call today with analysts.
The Total Tech Program allows users online chat or in-store tech support from Geek Squad for many CE products and appliances, including computers, phones and car audio products. Subscribers also get free install of a car radio, navigation deck, amp and speakers. And they get 20 percent off marine and powersports installs or 20 percent off advanced car component speaker installs. And if you bring in products, including car audio products, Geek Squad will try to fix them.
Best Buy is also strengthening its In-Home Advisor program. It is increasing the number of advisors from 300 last September when the program launched to more than 430 at present. During the free first in home visit, advisors consult with consumers on products to buy. The goal is to build sales of goods and services, but also to create a long term relationship with the customer, Joly said.
Best Buy said most of the in-home visits are about home theater, but consults are also about smart homes and networking and also measuring for appliances.
Overall, Joly said Best Buy is growing in part by gaining share. “We continue to gain market share across all categories we compete in.” When asked if the chain plans to go more mass market, given the maturity of consumer electronics, he said emphatically ‘no.’ Instead, the chain is looking to provide more help to customers through the programs mentioned above.
Best Buy reported for the quarter a 6.2 percent rise in same store sales, marking six straight quarters of gains. It reported a 10 percent increase in online sales for its second quarter and said online sales are now at $6 billion, representing 15 percent of domestic sales.
It raised its guidance for the full year and is now expecting same store sales increases for fiscal 2018 of 3.5 to 4.5 percent, up from the original forecast of flat to 2 percent growth.
For more see Best Buy’s financial report here.
