Best Buy adds points to its paid loyalty offerings

By Bryan Wassel  
Text below includes excerpts from an article originally published by CX Dive  For the full story, click here.  

The retailer’s loyalty program has traditionally focused on immediate benefits, and the addition of points could add another layer to its value proposition. 

Currently, both of Best Buy’s paid loyalty subscriptions offer members immediate access to features like free two-day shipping and exclusive promotional events. The higher-priced My Best Buy Total program adds 24/7 support and a discount on repairs, among other perks. 

More than 80% of Best Buy customers say they want to earn points when they shop, according to the retailer’s data. The new points system aims to help it craft the experience its shoppers want. 

Loyalty points help retailers  improve customer lifetime value , according to Dan Woods, global market leader for retail and e-commerce at Alorica. These long-term incentives work alongside short-term perks to build stronger overall engagement. 

Brands ought to “offer immediate rewards then evolve the program to focus on loyalty and stickiness,” Woods said in an email. “Companies winning with their loyalty programs are intentionally layering their rewards.” 

Brands can create a competitive advantage by linking every short-term interaction with a clear long-term path to value, according to Woods. A hospitality loyalty program, for instance, can offer extra points on a certain weekend, which is a short-term incentive. If those points also accelerate a customer’s progress toward the next loyalty tier, the promotion becomes a long-term loyalty driver as well.