Fresno, California 2021-04-08 05:36:18 –
Retailers said Wednesday that they are piloting a $ 199.99 annual membership program with concierge services for free device installation, technical support and other perks. The program, Best Buy Beta, will be available in approximately 60 Best Buy stores in six states by the end of this month. It also includes free shipping with no minimum order quantity, extended return period, and exclusive sale.
Best Buy adapts to competition from online players such as Amazon by enhancing customer service and establishing itself as an expert in televisions, computers and other electronic devices. Michael Baker, a retail analyst at Davidson & Co, said the offer of this membership is the latest example of the company’s approach to customer acquisition.
With the new membership, Best Buy is targeting customers who “have more devices and technologies at home, but are struggling to understand everything and need help,” he said.
Best Buy is also looking for ways to add new revenue streams beyond selling products. Membership is attractive because customers can incur regular charges.
Amazon is currently promoting the retail membership model with Prime, which costs $ 120 a year, and other retailers follow suit. Wal-Mart debuted Wal-Mart + last year. This is a $ 98 / year plan that includes free shipping on items over $ 35 and same-day grocery delivery.
Best Buy now has another more limited membership program, Total Tech Support, launched in 2018. The new membership program will replace Total TechSupport in the six states that will be launched. (Iowa, Oklahoma, Eastern Pennsylvania, Minnesota, North Carolina, Tennessee), and Baker hopes one day to completely replace the previous concept.
“We need to keep these subscription products more attractive to our customers,” Baker said.
Best Buy will begin its membership after a successful year of pandemic. Retailers have seen a surge in sales of merchandise, from laptops to kitchen appliances, as more Americans work and cook at home. During the most recent quarter ending January 30, sales at comparable stores, or stores that have been open for at least one year, increased 12.6% year-on-year.
However, Best Buy expects demand to slow this year. In 2021, comparable sales growth is estimated to be down 2% to up 1%.
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Best Buy launches new $200 membership program with free device installation to fight Amazon Source link Best Buy launches new $200 membership program with free device installation to fight Amazon