Borders Still Trying to Get Loyalty Program Right
Loyalty programs are popular with many companies because they think that bribing customers can result in more sales and, hopefully, more profit. As a reader, I'm all for it and love the B&N program with the straight 10% off on books and magazines. Heck, I even pay for the program because I've found that it saves me money past the $25 annual fee. In fact, that fee pretty much guarantees that the people who buy in are going to be serious print buyers and, therefore, frequent customers. Why not offer a discount to keep that frequency at your establishment?
But Borders continues to thrash about with its Rewards program. I remember a few years ago asking why they didn't offer a discount and was told that they were "experimenting" with one in some stores. Eventually they came out with what seemed to me an entirely half-baked approach - too complicated and, even though free, offering too little to be bothered. I think it was a "discount day" tied to a certain amount of spending, meaning that I'd have to work my benefit around their schedules.
I just received an email addressed to Dear Valued Member. (And I thought they didn't remember me.) "We've made it simpler than ever to get your membership rewards," it announced. "Now, for every $150 you spend on qualifying purchases at Borders, Borders Express, or Waldenbooks in a calendar year, you’ll earn $5 in Borders Bucks, issued the first week of the following month and valid until the end of that month. The more you spend, the more you get. There’s no limit to how many Borders Bucks you can earn! "
Oh, jolly. I get coupons to buy even more, rather than reducing my cost on what I'm already spending, and I only have to use that measly $5 coupon (meaning that I have to spend even more money) in a specific month. While we moved over a year ago into an area without Borders stores, this certainly isn't going to send me driving to find the nearest one.
Although I got the news yesterday in a mailing from Borders, The Wall Street Journal ran an article today that compared the old and new plans (I hadn't used the old one, though was signed up) and said that the new one is potentially less generous. Too badk, as Barnes & Noble last fall upped its discounts on books for its members.
But Borders continues to thrash about with its Rewards program. I remember a few years ago asking why they didn't offer a discount and was told that they were "experimenting" with one in some stores. Eventually they came out with what seemed to me an entirely half-baked approach - too complicated and, even though free, offering too little to be bothered. I think it was a "discount day" tied to a certain amount of spending, meaning that I'd have to work my benefit around their schedules.
I just received an email addressed to Dear Valued Member. (And I thought they didn't remember me.) "We've made it simpler than ever to get your membership rewards," it announced. "Now, for every $150 you spend on qualifying purchases at Borders, Borders Express, or Waldenbooks in a calendar year, you’ll earn $5 in Borders Bucks, issued the first week of the following month and valid until the end of that month. The more you spend, the more you get. There’s no limit to how many Borders Bucks you can earn! "
Oh, jolly. I get coupons to buy even more, rather than reducing my cost on what I'm already spending, and I only have to use that measly $5 coupon (meaning that I have to spend even more money) in a specific month. While we moved over a year ago into an area without Borders stores, this certainly isn't going to send me driving to find the nearest one.
Update
Although I got the news yesterday in a mailing from Borders, The Wall Street Journal ran an article today that compared the old and new plans (I hadn't used the old one, though was signed up) and said that the new one is potentially less generous. Too badk, as Barnes & Noble last fall upped its discounts on books for its members.
posted by Erik Sherman @ 5:02 AM
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