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THE INFORMATION IS THE STORE
Best Buy Co., Inc.
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April, 2012
Chapters
1. 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
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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
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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
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OUR BFO*
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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
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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
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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
• Pros
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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
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12345 12345
UPC-A
5 012345 123455
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UPC-E
EAN
EAN-8
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Two Dimensional Bar Codes (2D)
• 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
QR
Data Matrix
Aztec Code
Microsoft Tag
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Why Did We Pick QR Code?
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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
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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 URL
1. ‘Hardcode” the URL
• The end URL is encoded in the bar code
2. Redirect the URL
• The URL in the bar code takes the
user 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
• 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:
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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
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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.
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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
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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-todrive-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 enthusiasts
2. Determined strategy and basic tenets
3. Reached out to the enterprise
– Cards, video, newsletters,
one hundred meetings
4. ‘Soft launch’ in April ‘10 in four stores
5. QR codes on all fact tags (~6 million) in August
6. Because we had an m.dot site and were already
redesigning the signs startup costs were low ~100K
7. Automated the request process
8. Found a business owner
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Our Basic Tenets
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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 compete
with 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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What We Learned –
Technical Technology
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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
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Local WiFi might affect the experience
– Black or white listed sites (prohibited / permitted)
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Fewer characters in the QR means a higher first pass
read rate
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
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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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We Use Mobile Codes to Compare SKUs
1.
2.
3.
4.
5.
6.
7.
Start the BBY app
Use the scan function
Scan the code on the first TV
Hit “Scan more to compare”
Scan the second one
Hit “View items”
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
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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 Increasing
Currently 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 +
33,000+
463,000+
$1.67M
6,000
Total Scans since we started in 2010
New BBY app downloads Labor Day 2010 due to QR codes
Scans between Black Friday and Cyber Monday 2011
Sales the first nine months
Opportunities per STORE to connect with a customer
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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Have You Tried It?
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!
Generic QR Reader for
Windows Mobile and RIM:
Download i-nigma or any QR reader
from your app store.
**Text and Data Rates Apply
Scan This One and Watch a Video On
Mobile Codes
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Questions and Comments
Paula Giovannetti
Mobile 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….
AboutBuy
Best Buy
About Best
 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
* 2439 Carphone Warehouse stores
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