Best Buy Revamps Rewards Program To Lure More Shoppers
Best Buy Company, Inc., is updating and renaming its former “Rewards Zone” program to provide customers with new services and perks.
The Richfield-based electronics retailer’s loyalty program—which re-launched on Monday as “My Best Buy”—offers new benefits for its members, including one point per $1 spent, 5 percent back on purchases made with a store-issued credit card, free shipping, and extended return periods, among others. Members can also use the Best Buy mobile app to receive bonus rewards points for “checking in” at store locations.
Best Buy spokesman Jeremy Baier told Twin Cities Business that My Best Buy currently has approximately 40 million active members, who were transferred over from the former “Rewards Zone” program. According to Baier, the retailer decided to revamp its rewards program in an effort to offer new incentives and provide a better experience for its existing customer base.
“My Best Buy offers the company’s most loyal customers the same points with more rewards, exclusives, and mobile experiences,” he said. “The new program is designed to help members get the most out of their Best Buy experience by putting them first when it comes to special offers, access to sales, and more.”
The new program consists of three tiers—Core, Elite, and Elite Plus—which determine the amount of rewards that members receive. According to Baier, unlike the Rewards Zone program’s two tiers (Core and Premier Silver), the three tiers of the My Best Buy program further incentivize customers by offering new rewards at each level. For example, an Elite Plus member receives free expedited shipping offers, priority sales access, and a longer return period for items (45 days compared with a 15- and 30-day return period for Core and Elite members, respectively).
“We wanted to make it easier for members to step up to a whole new level of rewards, and adding in the Elite tier provides members with more opportunities to achieve higher status and get more rewards,” Baier said.
Former Reward Zone Premier Silver members are automatically granted the My Best Buy Elite Plus status.
Baier said that the new My Best Buy program, which is based on direct customer feedback, is the “first step” in bolstering the retailer’s in-store and online shopping experience.
In June, the Star Tribune reported on Best Buy's plans to more closely integrate its rewards program into its main website, bestbuy.com, to boost online traffic and sales.
After releasing its second-quarter earnings report in August, the electronics retailer said it would continue to invest in its website and that domestic sales from its websites (that have been operating for at least 14 months) climbed 10.5 percent in the second quarter to $477 million. The company cited increased traffic as one contributing factor.
Best Buy is Minnesota’s third largest public company based on revenue, which totaled $44 billion for the fiscal year that ended February 2. Earlier this month, Twin Cities Business profiled the retailer as part of the “Top Five Minnesota Companies” of the past two decades. Click here for the story.