In July, we wrote about Best Buy’s Reward Zone loyalty program, showing how it fit into our strategies for double/triple dipping on points and bonuses when shopping. As of the end of this week, however, the Reward Zone program may no longer be that great of a deal.
On October 31, 2009, Reward Zone rules will change so that any points accumulated through the program will expire at the end of the calendar year and members have to make a purchase every 12 months to maintain their account. So, while it will still be the case that Reward Zone members receive one point for every dollar spent at Best Buy, and every 250 points can be exchanged for $5 in store credit (effectively a 2% discount), this program will no longer be attractive to those who visit Best Buy only sporadically and don’t make big-ticket purchases. Of course, Reward Zone is a loyalty program and should focus on its larger, most frequent customers. Nonetheless, even those customers will likely lose out, since, after the changes, any points over a multiple of 250 will be lost at the end of the year. That is, if a loyal customer spent $900 at Best Buy one year, for example, she will receive $15 in store credit and the remaining 150 points will be forfeited.
Only the most loyal customers are protected from that. You can qualify as a Premier Silver member by spending $2,500 within a calendar year at Best Buy, and your membership is carried over through the following year. Premier Silver members earn an extra quarter-point on every purchase, and their points roll over each calendar year they remain qualified.
Reward Zone is also still a good deal for gamers. If you enroll your Reward Zone card into the “Gamers Club,” you will get 500 bonus points for every $150 you spend on videogames, computer games, and videogame accessories at Best Buy, on top of the regular points you earn. If you spend $300 on eligible purchases, for instance, you will receive 300 regular points plus 1000 bonus points, or $5 (with 50 points remaining) plus $20 – essentially an 8% discount.
With these upcoming changes, it is likely that Reward Zone will loose its attractiveness to most people, making it similar to the Borders Rewards, where the principal membership perks are the coupons received rather than the points system. But unlike Borders, which sends new coupons by email on an almost weekly basis, Best Buy’s Reward Zone coupons only come every few months, and are usually a 10% discount on one item from a very restricted list.
My advice for Best Buy’s less-loyal shoppers: Create or keep your Reward Zone membership just in case you make $250 or more in purchases within a calendar year or you receive a useful coupon; but if you don’t, don’t be disappointed. Reward Zone is clearly being redesigned for Best Buy’s most loyal customers and gamers.
Filed under: shopping, store cards | Tagged: best buy, gamers club, loyalty cards, loyalty programs, reward zone, store cards, videogame purchases | Leave a comment »