To launch a new loyalty program with enticing benefits at the perfect time is a home run for any brand.
And that’s what Best Buy did today with its launch of Totaltech, a premium loyalty program filled with valuable benefits and services.
Totaltech, which was tested since last April under the Beta name, carries an annual membership fee of $199.99, has received rave reviews so far and has been called a “potential game-changer” for Best Buy.
Here’s how the Best Buy Total tech loyalty program can help the company gain increased wallet share and spark elevated engagement levels, especially heading into the holiday shopping season.
The Timing Is Perfect
As the old saying goes: “Timing is everything.”
Best Buy’s launch of Totaltech is perfect, just ahead of the holiday shopping season. In fact, according to our recent Holiday Shopping Survey, 82% of consumers start their holiday shopping in November or earlier.
As the holiday shopping season seemingly gets earlier each year, this bodes well for Best Buy: According to the same survey, 38% of consumers said they’d be shopping for consumer electronics this holiday season.
Eighty-one percent of consumers shop with brands during the holiday season because they are members of their loyalty programs. With more consumers shopping during the holiday season, it’s also the perfect time to introduce them to a new loyalty program like Totaltech.
When you have a new loyalty program, like Totaltech, at this time of year, it’s the perfect time to market it, engage consumers, create new relationships, and build brand advocacy.
Eighty percent of consumers are more likely to sign up for a retailer’s loyalty program during the holiday season if it means they will earn additional discounts throughout the year.
Creating emotional connections with customers during the holidays can build brand loyalty that lasts throughout the year.
Great Benefits Make Sense for Best Buy’s Customers
One of the attractive benefits included in the Totaltech loyalty program is hard-to-find holiday items. Best Buy officials didn’t specify any of the hard-to-find holiday items.
Overall, Totaltech’s benefits fit Best Buy customers nicely.
The success of a premium loyalty program depends on the strength of its benefits and Best Buy Totaltech has them covered.
Program members receive:
- Unlimited tech support from the Geek Squad 24/7/365.
- Up to 24 months of product protection with an active membership.
- Free delivery and standard installation.
- VIP access to dedicated phone and chat teams.
- Access to exclusive Totaltech member prices.
- Free two-day shipping.
- Extended 60-day return and exchange window.
- Everyday savings on repairs, advanced services, and more.
When consumers join Best Buy Totaltech, they also are automatically enrolled in the company’s traditional loyalty program called My Best Buy, which allows them to earn reward points, shop exclusive deals, and more.
Best Buy started testing the program in select stores in April. According to a company release, Totaltech members will get access to Member Monday, a special event of exclusive deals that begins Oct. 18 and runs through the holidays.
Member Mondays will also include some deals for customers who are part of Best Buy’s traditional loyalty program, My Best Buy.
Totaltech Program Exemplifies an End-to-end Loyalty Solution
Totaltech appears to be the total loyalty program package. Displayed on the company’s page where it explains the program benefits is the sentence that says Totaltech members will also be automatically enrolled in My Best Buy.
And for those current members of My Best Buy, Totaltech will be an alluring target. Traditional loyalty members are increasingly willing to shift to premium loyalty programs for better benefits.
According to the 2021 Premium Loyalty Data Study, 81% of respondents who belong to traditional programs would join a retailer’s premium program if the benefits were valuable.
Best Buy is a perfect example of an end-to-end loyalty solution that appeals to Best Buy’s entire customer base – the My Best Buy traditional program for casual shoppers and now the Totaltech premium loyalty program for avid tech enthusiasts.
This type of loyalty offering broadens your consumer reach, retains members in your loyalty ecosystem, gives them options, and allows for them to move from one program to the other, depending on where they see the most value.
Adding a premium tier to your existing loyalty program is a win-win for everyone.
Best Buy Provides Loyalty Options
By launching Totaltech, Best Buy officials gave their customers another loyalty option. Consumers have an infinite number of choices today.
Consumers are fiercely loyal to retailers offering premium loyalty programs because of the value they provide, and they are exponentially more valuable to brands.
Consider that 51% of brands with premium loyalty programs say members are 4x as valuable as non-members.
Premium loyalty is the best your brand has to offer.
Having a traditional loyalty program and a premium tier is the most comprehensive offering for your customers. These two types of programs work together to keep customers engaged.
According to the 2021 Premium Loyalty Consumer Data Study, 68% say their loyalty is more difficult for retailers to maintain than ever before. So, it’s crucial that you have a strong loyalty program full of value during the holiday season.
Your loyalty program is a major motivator for consumers during the holiday season: More than 77% of loyalty program members will spend more with those retailers this holiday season, according to our recent Holiday Shopping Survey.
Best Buy, and its customers, will enjoy the upcoming holiday season, thanks in large part to this wonderful new loyalty program, Totaltech, and its emphasis on an end-to-end loyalty solution.