Techspot reports that US-based electronics retailer Best Buy has emailed members of its My Best Buy reward programme on changes to its earning and benefits structure beginning August 28. The gist: another loyalty programme devaluing its points – but more members will earn free shipping.
The Best Buy programme offers three programme tiers. On the positive side, Best Buy will now offer free shipping across all three tiers: Standard members will get free shipping on purchases of $35 or more; Elite members receive that benefit plus free scheduled deliveries across “thousands” of items; and Elite Plus members get all of the above with no minimum purchase requirement.
On the earning side, the news is less rewarding. Best Buy is halving the value of points earned by Standard members, from one point to one-half point earned per dollar spent; Elite members see their points earned drop from 1.1 points to one point per dollar; Elite Plus members will still earn 1.25 points per dollar.
The changes amount to a concentration of benefits among Elite Plus members, who spend at least $3,500 per calendar year at Best Buy. What we’d like to see the retailer do, of course, is shift some of that reward funding toward targeted bonuses designed to encourage those Standard members with high potential to shift spend away from Amazon and toward Best Buy. Points are a lever designed to motivate customer behavior – in this case, to encourage them to shift their electronics spend away from Amazon and to Best Buy.