1. 2 the information is the store best buy co., inc. april, 2012

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THE INFORMATION IS THE STORE

Best Buy Co., Inc.

April, 2012

Chapters1. The Information is the Store

– Data Quality

2. Mobile Commerce

3. Mobile Codes– Bar Codes– Apps

4. Good Mobile Code Programs

5. Mobile Code Trends

6. Best Buy Case Study

“The data is MORE important than the product.”

What Happens When…

• The goods arrive and– Product ID number is missing / wrong– Pack Slip is missing / wrong– Ship Notice is missing / wrong– Item information is missing / wrong

• Your product is not an asset – it’s a liability• And, BTW your customer is successfully receiving your

competitor’s goods

Data Accuracy

• Assign GTIN’s correctly• Measure it

– According to GS1 Package Measurement Rules– Measure & weigh after you are in production– Round up!

• A refrigerator measurement ½” off increased returns by 40%!

• A 2009 item given the same GTIN as the 2011 version.– The 2011 version gets sent back with the 2009 End of

Life SKU’s instead of selling off the shelf!Inaccurate data creates a defective product!

Master Data

• One Version of the Truth does not mean all the data is in one place; it means one system owns that data point and it can only be changed in that system.– Central versus distributed

• My phone numbers are in my phone; my email addresses are in Outlook; my addresses are in an application that prints address labels. They are not in one big data base, but they are correct in their relevant data bases.

– Data must be normalized• Spelled the same, same UOM

– Battery life in minutes or hours so you can compare side by side

The Information is the Store

• Channels are blending– The store is wherever the data is

• Bricks• Online• Mobile• Internet TV• Your Car• Digital Picture Frame….

“Within the next five years more users will connect to the Internet over mobile devices than PCs.”

Mary Meeker in 2009!

Mobile Commerce

• Mobile Commerce is using your smart phone to access the Information Store wherever you are!

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Mobile Is Personal

• Get out your mobile device…

• Who knew??– We text– We watch video– We’ll be too busy answering the

television to watch the phone

The average 13- to 17-year-old sends and receives 3,339 text messages a month.

100 Text Messages a Day 10

OUR BFO*

• It is not Business to Consumer

• It’s Consumer to Business

• Big Difference

• We’d better get it right.

* Blinding Flash of the Obvious

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What Do Mobile Codes Do?

• Best Buy implemented Mobile Codes– You get the best of all worlds– Touch and try in the store– Wealth of data on line– Sales associates there to help

• Mobile Codes– Light up every SKU and end cap– Make the Sunday insert bigger & interactive– Point your smart phone at an item, service or

promotion and say “Talk to me”

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“MOBENIFITS” • Customer

– Makes the store interactive and PERSONAL!

– Self paced – not just for techno-dweebs– Satisfy consumer’s appetite for info

• Blue shirt – Delivers a more educated consumer – Buys the Blue Shirt time to get there– Training tool for Blue Shirts

• Business– New life for the insert, vendor relations, stores – Better understand demand and in-store activity– Can be deployed internationally– BBY is a technology and innovation playground

What You Need For Mobile Codes

1. Smart phone

2. Mobile code

3. Mobile app

4. Mobile dot.com experience

5. Imagination!

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What’s a Smart Phone?

It’s a mobile device with a camera

and internet access

Not so smart

But a nice personality and a lot of great memories!

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What’s a Mobile Code?• It’s a bar code.

• Now that smart phones have cameras they are bar code scanners.

• BUT remember smart phones are not Great scanners!

• To get a high first pass read rate the bar codes themselves have to be Great.

• ISO is working on guidelines for bar codes intended for use with mobile phone scanners.

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Linear Mobile Codes

7 12345 12345 9 012345 1234555

• Pros– Public Domain and standardized– We all recognize them– On all consumer packages– Will be popular with FMCG and Grocery

• Cons– A little harder to read with today’s phones– Can only carry part number – They are application dependent

UPC-A UPC-E EAN EAN-8

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Two Dimensional Bar Codes (2D)

Aztec Code Microsoft Tag

• Pros– QR Code, DataMatrix and Aztec are in the Public Domain– They work with today’s phones– Can be written so they are not app dependent– Can encode more that GTIN

• Cons– They all sort of look alike– No standards on how they are used yet– Some are third party proprietary bar codes that you pay to use– Not all mobile code apps read all symbologies

Data MatrixQR

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Why Did We Pick QR Code?• QR is in the public domain• It’s an internal BBY application so standards did

not come into play• We are not asking vendors to put bar codes on their packaging• Can create our own bar codes and control where they go• QR codes are used in other countries for mobile commerce

and starting to be recognized by the public here• QR can encode more than the GTIN• But the data carrier is not the most important thing;

it could change

– A different two dimensional bar code symbology

– Near Field Communications (NFC)

There’s An App for That• BBY currently has two apps

– iPhone & Android

– Get Weekly Deals, Reward Zone, Gamers Club, Special Offers, Compare Feature

• Windows Mobile and RIM (Blackberry) can use generic QR readers

• Both the BBY App and a generic reader bring back product specifications, ratings, reviews, video and ability to purchase

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Generic Mobile Code Readers

• Some apps do nothing but read the mobile code.

• Some phones have a built in bar code reader.

• Not all bar code readers read all types of bar code symbology.

• It’s always interesting to know what the app creator is doing with the data you are reading.

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Linear Vs 2D• Linear: The app determines what will happen

– Select the app on your mobile device first• Wine / Food Paring App• Price comparison based on ??whose?? data • Gluten-free?

• 2D: Link in the mobile code determines what will happen• Use any generic mobile code reader or the bar code reader native

to your phone• Hybrid: The BBY app contains a QR reader which does more

than a generic reader• A generic reader will take you to the product description page• The BBY app will let you do side-by-side comparisons

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Medium For Mobile Codes

• Paper– Shelf tags– Inserts– Posters

• Screens– TVs – Monitors– Computer screens– Other smart phones

• Knitting

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Mobile Dot Com Pages• Must create mobile pages – it’s not about just

making a regular web page smaller – Must be more precise and targeted– Fewer links– What do I want when I’m on the go?

• While you are creating your m.dot site, think about your t.dot site

• Tablet sites are somewhere between dot com and mobile dot com

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Two Ways to Encode a URL1. ‘Hardcode” the URL

• The end URL is encoded in the bar code2. Redirect the URL

• The URL in the bar code takes theuser to a mobile code management platform and redirects based on criteria

• Always remember:• QR codes have the half life of uranium. • They live forever!• What will you do when the

promotion ends?

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Hardcode the URL

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• The reader takes the mobile browser directly to the URL• It can only, always, point to one web page.• You can re-write the web page to deliver a different

experience in the future• NEVER allow the user to get a “Page Not Found” error

message. Always put something on the page.• Make sure the URL is as short as possible to render a more

readable 2D bar code

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Re-Direct the User• This process requires an application

that reads the URL and determines what experience to execute.

• The experience could be different for you and for me, for example, based on language preference.

• The experience could be different today than yesterday. • Unless you build it into the reporting capabilities to track at

the end URL level it can be harder to track metrics. You have to create reports based on date / time windows if you have changed the experience.

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“QR Codes? I Tried Them. They’re Boring!”

• The consumer has finally decided to try reading one….– We need to make the experience

compelling– It’s a call to action– Appropriate for a mobile device– What makes a bad mobile code campaign?– What makes a good one?

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What Makes a Bad Experience

• Link to the same web site they could go to on a computer

• Provide information but no way to act on it

• Drill down more than two levels• Landing on an expired page or offer

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Poor Bar Codes or Placement

• Bad Code Placement:– In a elevator where the signal is poor– In a subway where the lighting is insufficient– On a billboard on a highway– Behind glaring glass

• Bad Bar Codes– Less than 1” x 1”– Contain very long URL’s– “Designer” QR codes– Insufficient X dimension– Poor contrast

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Poor Consumer Experience

• Code on a ketchup bottle which tells the consumer they missed the promotion

• It expired six months ago.– How old is the ketchup?

• Scan a menu in a restaurant that takes you to the regular dot com page to fill in your zip code to find the nearest restaurant…– Ummm I think I’ve found the closest restaurant.

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It’s Polite to Explain How It Works

• Provide simple instructions– Explain how to download a bar code

reader from the app store– You may want to suggest one

• There are lots!• Do your homework.• Which ones will track your data?

– If it’s video you may want some fine print: “Message and data rates apply”

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What Makes a Good Experience?

• This is “Information To Go”!

• Give them a way to act it.– I want to buy it– I want to save it– I want to sign up for it– I want to tell others about it

• Give your customers a way to provide feedback. • Offer exclusive content they can’t get on a computer.• Realtors get it – I’m sitting in my car outside a house that’s for

sale and I want to see the inside. Scan the code on the For Sale sign and take a tour.

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So What?

• It sounds kinda mean – but it works.• When you create

– A web page– Marketing collateral – A proposal– Your resume

• Read a line and with your inside voice yell “SO WHAT?!”

• Because that’s what your readers are asking.

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More People Recognize Mobile Codes

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Who is Reading Mobile Codes?

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Smart Phone Use

• There are 5.2 billion mobile subscribers (77% of the world)

• 2012 - Smartphone sales will overtake computers

• 2013 - More people will access the web on their mobile device than on a computer

• 2015 - Mobile broadband could be 3-4 times faster than fixed line broadband in many countries

• 79 percent of U.S. consumers use a Smartphone to help with their shopping

• On average, people look at their phones 150 times per day

Source: http://blog.nielsen.com/nielsenwire/online_mobile/using-mobile-to-drive-business-in-germany/

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Mobile Codes Are Trending Up in Google Trends

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How We Rolled Out…1. Had a core team of enthusiasts2. Determined strategy and basic tenets3. Reached out to the enterprise

– Cards, video, newsletters, one hundred meetings

4. ‘Soft launch’ in April ‘10 in four stores5. QR codes on all fact tags (~6 million) in August6. Because we had an m.dot site and were already

redesigning the signs startup costs were low ~100K7. Automated the request process8. Found a business owner

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Our Basic Tenets

• Mobile codes should work with as many smart phones as possible, not just new ones

• Easy for everyone to use• Our mobile app should read all 2D mobile codes• Our mobile codes could be read by all 2D reader

apps• Don’t fully bake it – listen to the consumer about

what they want our app to do• We are not replacing the Blue Shirt, just helping

them educate the consumer

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What We Learned --Emerging Technology

• Emerging technologies competewith the next emerging technology

• We have to educate the consumers• It touches almost every department in the enterprise• At some pivotal point you are no longer asking for

permission – you are asking for help to deploy • Mobile codes are hard to explain in writing – it took a lot

of face to face meetings

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• Not all phones are created equal– Handsets

• Cameras and keyboards are configured differently

– Cameras

• Old, scratched, not tied to OS– Operating systems

• Register and download apps differently• iPhone, Android, RIM, Windows Mobile,

Palm• May require an upgrade to the OS

• Local WiFi might affect the experience– Black or white listed sites (prohibited / permitted)

• Fewer characters in the QR means a higher first pass read rate

What We Learned –Technical Technology

What Have We Done So Far?

1.Mobile codes automatically print on fact tags in all stores

2.Lowered the cost of entry with a tool that creates free QR codes and free mobile landing pages

3.Create a dashboard that provides immediate and up to the minute metrics on mobile code use

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How We Use Mobile Codes

• Six million mobile codes on shelf tags in the stores

• Mobile codes in our inserts– Promotions– Services– Movie Trailers– Game videos

• Mobile codes at Target Field, The Best Buy Theatre in NYC, on our NASCAR and on movie posters.

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Brian Has One on the Back of His Business Card!

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1. Start the BBY app2. Use the scan function3. Scan the code on the first TV4. Hit “Scan more to compare”5. Scan the second one6. Hit “View items”7. Scroll down to compare!

“Store uses the side by side compare feature to help customers decide which computer to buy” –Omar, San Carlos CA Store

We Use Mobile Codes to Compare SKUs

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2011 Black Friday Insert

Used a mobile code to announce our On Line Door Buster Prices

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BBY Mobile Code Use Is IncreasingCurrently at 5,809,280 Scans.

28% of the scans since we started have occurred over the last 90 days

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BY THE NUMBERS

5,809,290 +5,809,290 +

33,000+33,000+

6,000 6,000

Total Scans since we started in 2010

463,000+463,000+ Scans between Black Friday and Cyber Monday 2011

Opportunities per STORE to connect with a customer

New BBY app downloads Labor Day 2010 due to QR codes

$1.67M $1.67M Sales the first nine months

Winner of the Best Buy 2011 Chairman’s Innovation Award

• “(Awarded for) the creation of Mobile Codes as a new way for Best Buy to directly interact with customers via QR Codes exemplifies the key elements of the Chairman’s Innovation Award: using a disciplined process to create a new approach that ultimately meets the needs of customers and generates value for the company. We appreciate your passion in the arena of new technology, (and) your desire to serve the customer in the moment….”

• Brian Dunn, CEO, Best Buy

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Best Buy App for iPhone or Droid:1. Download the BBY shopping app

TEXT APP to 332211 **

2. Load the app

3. Launch the app by tapping the QR code

4. Hover the camera over a mobile code; give the camera a sec to auto-focus

5. “Beep” means it worked!

Have You Tried It?

**Text and Data Rates Apply

Generic QR Reader for Windows Mobile and RIM:

Download i-nigma or any QR reader from your app store.

Scan This One and Watch a Video On Mobile Codes

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Questions and Comments

Paula GiovannettiMobile 262-949-4057

BarCodeDweeb@gmail.com

Types of Scans

Fact Tag Scan

Stand Alone Scan

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TRY THIS ONE

It works on the screen….

Founded in 1966; based in Minneapolis, Minnesota

An innovative $50 billion, Fortune 50 growth company

North America’s #1 CE retailer

4000 stores* in Americas, Europe and China

180,000 Employees

About Best Buy

* 2439 Carphone Warehouse stores

About Best Buy

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