Bookseller launches fee-based rewards scheme
Option of free or paid for programmes ‘will differentiate company’
US book retailer Borders is starting a customer rewards programme called Borders Rewards Plus through which customers, for a US$20 annual fee, can get discounts on merchandise and free shipping on most online orders.
The new scheme is in addition to a free members programme.
To incentivise customers to participate in the new program Borders has been offering Borders Rewards Plus members the opportunity to earn “Borders Bucks” more quickly.
Typically, members earn US$5 in Borders Bucks for every $150 they spend annually, but during a limited period, Borders will double the spend to bring the member closer to the $150 threshold faster.
In addition to receiving discounts and free shipping, Borders Loyalty Plus members will also receive 40% off the list price of hardcovers (while members of the free loyalty program receive 30%).
“We saw a great opportunity to differentiate Borders in the marketplace by offering the choice of a paid program or a free program,” said Borders CEO Mike Edwards. He said the new Rewards program will provide members with more relevant content, benefits and discount offers.
For the last few months, Borders says it has been conducting research on what customers want most in a loyalty program. The company used the research to shape the reinvention of Rewards, which includes nearly 40 million sign ups, from a one-size-fits-all-model to one that engages with each member individually with specific discounts.
Members also receive personalized and relevant content such as title recommendations and notifications of local events including author signings and other entertainment activities.
Borders Rewards Plus and the free, enhanced Borders Rewards program both offer benefits such as exclusive in-store and online discounts, personal shopping days, free coffee, a free birthday gift, and Borders Bucks, of course.
• Members of the free, enhanced program will receive 30 percent off the list price of hardcover bestsellers and free shipping on online orders of $25 or more.
• Members of the Borders Rewards Plus program will receive 40 percent off the list price of hardcover bestsellers, 20 percent off the list price of select hardcovers, 10 percent off the purchase price of most everything else — and free shipping on virtually all online orders.