Connected World Geek Squad Services Geek Squad Black Tie Protection Content, Services, & Protection

Drew Bowers Strategy Manager – Territory 6

Connected World + Geek Squad Services + Black Tie Protection = Entertainment What we’re talking about today:  Make customers aware of the possibilities –Music – “I want to enjoy my music no matter where I am or what I am doing” –Movies – “I love movies and want to bring that theater feeling to my home” –Games – “We play games with family and friends and want to make sure that we have everything we need to get started right away.  Geek Squad – Black Tie Protection & Services  Differentiating Best Buy from our competitors

The Current View of “Services” = “Services” today + +

The Future of “Services” What if “Services” were viewed as: And “Emerging Services” related to: Home Automation Health and Wellness Transportation

Enjoyment: The Customer Need  Enjoyment for adults: –Becoming less stressed, more relaxed –More confident and secure  Enjoyment for youth: –Connection with friends Happiness is clearly a synonym for enjoyment for both adults and youth

Enjoyment: The Customer Need  Products play various roles in the transitions to Enjoyment –Matching the right need states with the right products in their right roles will be essential to communicating the superiority of Best Buy stores as the source of these transformational tools  The roles and purposes of the various products in creating “enjoyment” remains similar between adults and youths

Today’s purchase process leaves consumer’s dreams unfulfilled The Device / Subscription Purchase Process Device Purchase Plan Purchase Activation & Maintenance Dream The Experience Gap “Consumers buy digital products but then fail to get the additional products, content, or services that bring them to life.” “Sell Digital Experiences” Forrester

With Geek Squad, BBY can truly offer end to end support The Device / Subscription Purchase Process Activation & Maintenance (via Agents) Dream Hand Off + Device Purchase (via department) Plan Purchase (via connection center) +

“Services” Redefined Rethinking Services from a “Connected World” perspective

Best Buy Strategic Priorities Grow through local share gains Enable a “connected world” for consumers Grow internationallyIncrease efficiency & effectiveness

Connected World Internet Product Content “But I’m most excited about the massive growth opportunity that our strategy and priorities can help us achieve – namely, bringing “The Connected World” to customers across the globe.” Brian J. Dunn “We know that human beings everywhere want to connect to the unique content, networks and people they care about, whenever and wherever they want.”

A Potential View of “Services” for BBY’s Connected World The Connected World Basic Services Delivery Setup Haul away Repair Advanced Services Customer Install Technical Support Optimization Express Repair Digital Services Music Movies Magazines Cloud Computing Connection Services Voice Video Data Utility Monitoring Health Mgmt Financial Services Enablement of all services inclusive of a product lifecycle Areas of Promise Other growth ideas to take services to the next level

“I want to enjoy my music no matter where I am or what I am doing.”

Enjoyment = Experience + Protect + Integrate + Content Solving for Common Customer Needs: EPIC Solutions  Experience:  A product that helps bring the customers wish to life  Protect:  Offer ways to keep the whole solution working great for your customer  Integrate  Helping the customer find ways to connect the experience they came in looking for into their home, their office, their car, their life  Content  All the fun stuff that goes into or on the device.  This is what makes the experience come alive

Experience, Protect, Integrate, & Content Enjoyment = Customer Experience + Protection + Integration + Content Customer Purchasing an iPod touch  Integrate  Content  Protect  Experience  HDMI Cable  Harmony Remote  Black Tie Protection  Protective Case  Speaker Dock  Installation in Car  Napster (yes it works with iTunes  iTunes

EPIC Solutions – Skill Practice Exercise  Partner with the person next to you & spend 5 minutes filling out the blanks Customer is purchasing a Sony e-Reader  Experience:  _______________________  Protect:  _______________________  Integrate:  _______________________  Content:  _______________________ Identify the Competition; why should the customer come to Best Buy?

“I love movies and want to bring that theater feeling to my home.”

What is possible when you add the internet to your Home Theater? Instant Video Streamed music Information Personal Content

What is possible when you add the internet? Blu-ray Players Blu-ray Titles Cables GSBTP

What is possible when you add the internet? Blu-ray Players w/ Embedded Services Blu-ray Titles Cables GSBTP Service POSA Cards Home Theater Networking & Geek Squad New Opportunities Customers sign up at:

How can customers get connected? Ethernet Cable USB Wireless Adapter Wireless Peer to PeerPowerline Adapter

Experience, Protect, Integrate, & Content Enjoyment = Customer Experience + Protect + Integrate + Content Customer Purchasing an Blu-ray Player  Integrate  Content  Protect  Experience  HDMI Cable  Harmony Remote  Black Tie Protection  Geek Squad Service Network Install  Powerline Adapter  CinemaNow  Netflix  Blu-ray Movies

EPIC Solutions – Skill Practice Exercise  Partner with the person next to you & spend 5 minutes filling out the blanks Customer is purchasing Sony Playstation 3  Experience:  _______________________  Protect:  _______________________  Integrate:  _______________________  Content:  _______________________ Identify the Competition; why should the customer come to Best Buy?

“We play games with family and friends and want to make sure that we have everything we need to get started right away.”

What is possible when you add the internet to your Gaming System? Instant Video Streamed music Information Personal Content

What is possible when you add the internet? Xbox 360 Games Extra Controller Cables Wireless adapter GSBTP

What is possible when you add the internet? Xbox 360 Games Extra Controller Cables Wireless adapter GSBTP Networking Solutions Service POSA Cards Geek Squad Services New Opportunities

Experience, Protect, Integrate, & Content Enjoyment = Customer Experience + Protect + Integrate + Content Customer Purchasing an Xbox 360 Elite  Integrate  Content  Protect  Experience  HDMI Cable  Wireless Controller(s)  Black Tie Protection  Geek Squad Service Network Install  Wireless Adapter  Xbox Live  Netflix

EPIC Solutions – Skill Practice Exercise  Partner with the person next to you & spend 5 minutes filling out the blanks Customer is purchasing a Nintendo DSi  Experience:  _______________________  Protect:  _______________________  Integrate:  _______________________  Content:  _______________________ Identify the Competition; why should the customer come to Best Buy?

Our Commitment  Don’t send customers home to figure it out on their own: –Discuss with your customer the Experience they’d like to have, how they would like to Protect their investment, how it all Integrates and connects, what Content they currently use and desire to use. This will help you: Build Trust Create Loyal Customers Avoid Returns Increase NOP Differentiate your store from the competition

Wrap Up  We cannot merchandise our way to success –Good merchandising helps customers find what they already know they want faster –A customer that comes in without clarity/understanding or knowing what they want – merchandising does nothing for them –How you sell with the merchandising that you have is what will differentiate you Relationship building Product knowledge

Take Aways  Identify the Connected Products in your store that customers want to know more about, the Services that would benefit them to make the experience come alive in their stores, and what will help them protect their investment the best: –Identify provided displays & end caps that will help you –Innovate to meet your local needs –Use the tools that are available to you: Go to the Wiki site and learn what is possible, contact your RFT, and view the Store Demonstration Network video Brush up on Networking (partner with your PC team, look on Learning Lounge, etc.) Go to GS Black Tie Protection One Stop Shop  Skill Practice Exercises –Go back and identify connected products in your store –Practice, inspect, coach