Best Buy’s Geek Squad Gets Extended-Service Program
By Alan Wolf -- TWICE, 9/17/2008
Minneapolis — Best Buy has enhanced its extended-service program and repackaged it under the Geek Squad brand.
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Actor Steven Seagal, center, with Geek Squad technicians at yesterday’s Black Tie Protection launch in Manhattan. |
Effective Sept. 14, all Best Buy extended-warranty plan names were changed to Geek Squad Black Tie Protection to reflect increased service and coverage options and other benefits not found in traditional retailer service plans, the company said.
The program offers coverage for hundreds of products across the home theater, PC, car, majap, digital imaging, mobile and portable CE categories, and is designed to provide options in scope and term of coverage to suit the varying needs of customers.
“Geek Squad Black Tie Protection delivers the support our customers tell us they want to safeguard their gear, a level of support that only Best Buy is able to provide,” said Best Buy president/COO Brian Dunn. “By listening to our customers, we’re evolving service and reliability to a whole new level.”
The service plans are available exclusively on products purchased at Best Buy, are backed and administered by AIG WarrantyGuard, and leverage the retailer’s fully owned Geek Squad services infrastructure for support.
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Black tie, black belt, we’re all masters out there, trying to protect and serve,” Steven Seagal said. |
They replace the retailer’s previous Best Buy performance and product-replacement service plans.
“We have a responsibility to be there for our customers, and a unique capability in Geek Squad to serve them,” said Jeff Severts, Best Buy’s services VP. “The combination of Best Buy product support with Geek Squad service has produced one of the best protection and service plans available anywhere.”
The plans are offered in standard, advanced and premium tiers for many product categories, although all plans include:
· complete coverage for product failure due to normal wear and tear usage or power surges;
· access to Best Buy personnel by phone 24 hours a day, seven days a week, to report problems and obtain guidance on service support options;
· a comprehensive service-plan portfolio for customers to file at home for future reference;
the ability for all service-plan holders to locate service drop-off
· locations and track details about their individual plans at a Web portal located at www.bestbuy.com and www.geeksquad.com; and
· additional points in Best Buy’s Reward Zone member loyalty program.
The new premium-level plan is offered on TVs, laptop computers and digital cameras, and provides such additional benefits as loaner TVs and preventive computer services including optimization, virus/spyware protection and online data backup.
The retailer formally launched the program yesterday at a Best Buy store in Manhattan with actors Richard Dean Anderson (“MacGyver”), Tanya Roberts (“Charlie’s Angels”) and action star Steven Seagal in attendance. “Black tie, black belt, we’re all masters out there, trying to protect and serve,” Seagal said.
Since its expansion nationally in 2004, Geek Squad has grown to nearly 20,000 technicians who support consumer install and repair for computing, home theater, 12-volt electronics, mobile devices and appliance products. Geek Squad technicians are available at all 973 Best Buy U.S. stores, online and through house calls. In addition, the tech support organization operates Geek Squad service centers throughout the United States, anchored by Geek Squad City, its largest repair facility, in Louisville, Ky.
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This is just another "gotcha capitalism" gimmick to get revenue without
concern for customer satisfaction. I put my BBY warranty to the test
when my big brand name digital camera failed. The first repair was
done improperly the first time but properly repaired the second time.
Soon thereafter, a third (different) malfunction occurred and the
camera''s back at BBY. Each repair takes at least two weeks, so I lost 6
weeks of summer vacation pictures.
They tell me that only after a fourth failed repair will they replace the
unit. Do they really expect their customers to be satisfied with such
treatment? Has anybody at BBY calculated the replace vs. repair costs
in terms of dollars and customer satisfaction? If a particular product
has design weaknesses making it prone to failure (as I suspect in my
case), then shouldn''t someone at BBY be addressing this with the
manufacturer?
Had BBY any serious competition, the "assassin" multiplier effect
described by J.D. Power in his book Satisfaction would be chasing away
customers like mad. As long as no CE competitor takes customer
satisfaction seriously (none I know do except Apple retail), BBY will
continue to frustrate customers by default.
Retailers who want extended warranty profits but want someone else,
like a 3rd party warranty company, to handle fulfillment, will find
typical poor fulfillment only backfires, because customers perceive the
responsibility for their satisfaction to be with the party that sold them
the program.
Dennis Smith - 2008-8-10 23:36:00 EDT -
Changing the extended warranty plan name to Geek Squad Black Tie Protection is a marvelous way to personalize an intangible product. Hats off to Best Buy for this innovative concept. Reggie Johnson, Author, "Secrets of Selling Extended Service Contracts"
Reggie Johnson - 2008-24-9 23:38:00 EDT
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