Selling More Than The TV
Most of the products and services that make up those solutions fall within the realm of most retailers who choose to pursue them. In many cases, retailers already own the customer. Last year, consumers bought about 57% of their digital devices from brick-and-mortar retailers, with another 16% purchased on the Internet, according to Parks.
But there are mounting challenges. Retailers will see more competition for digital home product and service sales from the big boxes and service providers, which are scrambling for a piece of the action. Retailers, from the small to the large, can protect those sales by continuing to add top-notch customer services, such as demo stations, well executed presentations, deeper product training and broader installations.
Those types of services (Chart 3) pay off dearly and succeed in cutting back on costly returns, and improving customer satisfaction and loyalty. Parks reports, for example, that more than 30% of wireless routers and modems bought from Best Buy over the years were returned because consumers thought installation was too complicated. Intel reported a 30-to-40% return rate on wireless network gear, even though 90% of the products had no known defect. Another major vendor said that 85% of all router purchases resulted in some type of service call, with more than 40% of those related to initial set-up and configuration.