It’s no secret that Best Buy has had a rough couple of years. The company reported losses for all of 2012 and has just turned the corner into profitability in August 2013. The company has shared its strategy including a focus on being price competitive, online shopping and putting more effort into mobile stores. Even though things have been rough in the past, they have stayed committed to their loyalty program - Rewards Zone. This commitment has helped them grow their member base to approximately 40 million active members.
With all of this member information and feedback in mind yesterday Best Buy announced a revamping its rewards program. A while back cosmetics giant Sephora added new rewards and a new tier in an effort to evolve their existing Beauty Insiders rewards program. I wrote a recap of the changes on the blog and talked about how evolving your rewards program can reengage your members and give you an opportunity to reach those customers not already in the program.
Like any good revamp Best Buy focused on the important things:
- They listened to their customer feedback
In the statements and email about the new rewards program they make sure to highlight that this came from customer feedback.
- Looking to create a more integrated shopping experience – from stores to web and mobile
This is an area where Best Buy is showing that it understands their competition. Amazon has revolutionized online and mobile shopping. It is important that Best Buy have a seamless customer experience between these verticals.
- Added another tier and more rewards
This added benefit keeps members active and striving for more. They are also offering a percentage off for purchases with a store issued credit card as another way to save.
- Renamed the program “My Best Buy”
Best Buy renaming their rewards program shows their focus on personalization and
- Communicated the changes to members to excite them for the new rewards program
Best Buy sent out an email highlighting the changes and emphasizing that this rewards program revamp was done with the members in mind.
Whether the revamp helps or not Best Buy is showing its dedication to the loyalty of its customers by evolving the program. Not all businesses can afford a complete revamp like Sephora and Best Buy, but adding new rewards, special promotions or exclusive events can be enough for any business to reengage loyal customers.