Best Buy Geek Squad Shifts From Tech Repair to Relationships

BestBuyGeekSquad

According to the Best Buy earnings call transcript, Mikan said:

Already, Best Buy is striving to ensure Geek Squad builds relationships with key market segments. And the segments can vary widely — ranging from senior citizens to channel partners.

Indeed, Best Buy has launched a program that lets millions of AARP (American Association of Retired People) members access Geek Squad services. The subscription model (translation: recurring revenues for Best Buy) allows AARP members to get IT support via phone, on-line and in-store service.

Meanwhile, Geek Squad has also signed its first four channel partners — Network Solutions Provider, Carrier Access Inc., Access Media 3, and MACH 4. The Geek Squad Partner Program launched earlier this year. It’s designed to give channel partners 24×7 support services for end customers.

Elsewhere, Best Buy did not mention mindSHIFT — a managed services provider and cloud services provider — during the May 22, 2012, earnings call. mindSHIFT, acquired last year, could be a key piece of Best Buy’s business overhaul strategy. The big box retailer has faced competitive pressures and executive changes in recent months.

For the three-months ended May 5, 2012, Best Buy said GAAP net earnings were $161 million, down from $255 million in the corresponding quarter last year. The company has hired executive search firm Spencer Stuart to identify internal and external CEO candidates. Mikan shifted into the interim CEO post after former Best Buy CEO Brian Dunn resigned in April amid “personal conduct” issues.