The subscription economy is hot and not only for video and music streaming services. Now Best Buy plans to try out their own membership offering, following in the footsteps of other mega-merchants including Amazon Prime and Walmart+.
Best Buy is testing a pricier version costing up to $200 per year. But for electronics and computer products that involve delivery, installation, service, and extended warranties, this price point can be appealing.
Subscription membership programs can be a sticky marketing offer that leads to long-term customer relationships. Further, the annuity revenue model of memberships benefits merchants’ financial results.
The following excerpt from a Retail Dive article reports more on the topic:
- Best Buy on Tuesday announced that it is piloting a paid membership program called Best Buy Beta, according to a company announcement.
- Membership costs $199.99 annually, or $179.99 for Best Buy credit card holders, and is currently available at select stores in Iowa, Oklahoma and eastern Pennsylvania. This month it will expand to some stores in North Carolina, Minnesota and Tennessee.
- Membership comes with a number of perks, including concierge service, member pricing, free standard shipping and delivery, free installation on most products and up to two years of protection on most purchases. Additionally, unlimited Geek Squad technical support will be provided on all technology in a members’ home, regardless of whether it was purchased at the retailer.
Overview by Raymond Pucci, Director, Merchant Services at Mercator Advisory Group