Best Buy Customer Loyalty Analysis

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Since 1966, Best Buy has been America’s favorite consumer electronics retailer. For over fifty years, customers have come back time and again. Whether it’s because of their unbeatable deals come Black Friday, or their great customer loyalty program, Best Buy keeps their customers coming back.

Like most other retailers, the COVID-19 pandemic negatively affected Best Buy’s sales. While people were on lockdown, consumers purchased electronics online. As the COVID-19 vaccination rate increases and more people are comfortable shopping in-store again, Best Buy can expect more of its customer base to visit its stores. What does Best Buy’s customer loyalty look like in 2021? We analyzed foot traffic data to find out.

Return Visits to Best Buy

As of the week of June 6, 2021, 12% of visitors return to Best Buy within the span of 3 days, which is up significantly from 9% at the beginning of January. This could indicate that people are ready to shop for electronics in-person again due to increases in the COVID-19 vaccination rate. However, this doesn’t necessarily mean that they aren’t still shopping online. Return visits could also be due to customers picking up products that they recently ordered online.

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Best Buy Customer Loyalty by State

Return visits to Best Buy vary by state. Consumers living in Minnesota, California, and Washington D.C. are more likely to return to Best Buy again within three days. People who live in Wyoming, South Dakota, and Montana aren’t as likely to return to Best Buy so quickly. This could be a result of those consumers having to travel farther, on average, to visit a Best Buy store, or simply preferring to purchase electronics online.

best buy return visitors

When viewing the same return visit data on a map, it becomes clear that it’s people living on a coastline who are the most likely to return to Best Buy within three days. Consumers living in the Midwest and South are the least likely to return.

A very likely reason for the higher number of return customers on the West and East Coasts could be due to the fact that there tend to be larger cities where Best Buy is much easier to get to than in more rural states.

Best Buy’s Customer Loyalty Program

With its global footprint, Best Buy has been able to keep its status as a powerhouse electronics retailer by taking care of its customers. For example, they offer a program called My Best Buy where customers can accrue points for every dollar spent with them. Members also get access to exclusive deals and discounts.

Brands would do well to take a page out of Best Buy’s book and develop customer loyalty programs that suit their audience. Location intelligence can help brands get the insights they need to create an effective customer loyalty program.

To learn how to use foot traffic data in your business, book a meeting with us today.

Frequently Asked Questions

Discover how analyzing real-world movement patterns can reveal valuable trends in customer behavior, optimize business operations, and enhance strategic decision-making.

What is site selection and why is it important?

Site selection is the strategic process by which businesses identify, evaluate, and choose optimal locations for their operations. This process is paramount as the location of a business directly influences factors such as accessibility, visibility, profitability, and market longevity. For retailers, the right site can mean higher customer footfall and increased sales. In real estate, a well-selected site can promise lucrative returns on investment and tenant stability. Financial service firms leverage site selection to position their branches or ATMs in high-demand areas. Essentially, site selection plays a pivotal role in ensuring the success and growth of a business by aligning its physical presence with market opportunities and demands.

How does location intelligence enhance site selection?

Location intelligence refers to the harnessing of geospatial data to derive actionable insights, which can significantly enhance the site selection process. By analyzing data like consumer demographics, foot traffic patterns, competitor locations, trade area data, and more, businesses can make more informed decisions about where to establish or expand their operations. Location intelligence allows for a deeper understanding of market dynamics, revealing hidden opportunities or potential pitfalls. For instance, retailers can identify gaps in the market, real estate professionals can forecast property value trends, and financial service providers can assess areas with high customer demand. Advanced tools, like those offered by Unacast, further refine these insights by leveraging AI and machine learning, enabling more precise and timely decision-making.

What challenges do businesses face in the site selection process?

Unacast provides invaluable support to businesses during the site selection process through its advanced location data and analytics software, all powered and refined by Artificial Intelligence and Machine Learning technologies. The company offers a suite of products designed to deliver accurate, actionable, and comprehensive location intelligence. This data proves crucial for businesses looking to understand consumer behavior, analyze traffic patterns, evaluate competitor locations, and much more. With Unacast’s robust tools, businesses in retail, real estate, and financial services can derive insightful information necessary for making strategic, informed site selection decisions. The platform not only provides reliable data but also ensures it is readily actionable for businesses, whether they are looking to open a new store, invest in property, or expand their financial services to new locations.

What types of location data are crucial for informed site selection?

Demographic data offers insights into the age, income, and lifestyle of people in a particular area, helping businesses understand their potential customer base. Foot traffic data provides information on the number of people visiting a location, which is crucial for retailers to estimate the store's potential popularity and for real estate professionals to assess an area's vibrancy and demand. Geographic Information System (GIS) data helps in visualizing and analyzing geographical details, supporting companies in identifying accessible and strategically located sites. Understanding the proximity to competitors, accessibility, and the socio-economic profile of the surrounding areas is also vital. Unacast’s platform aggregates and analyzes these various data types, providing a holistic view that significantly empowers businesses in their site selection endeavors.

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