Bookstore chain Barnes & Noble introduces a tiered loyalty program and plans to open 30 new stores.
Barnes & Noble, the iconic bookstore chain, has taken a significant step forward in its business revival by introducing a new tiered membership program. The revamped rewards system offers two main tiers: a free Rewards Membership and a paid Premium Membership.
Free Rewards Membership
The free Rewards Membership allows customers to earn virtual stamps for every $10 spent in a single transaction at Barnes & Noble and Paper Source stores or online. Collecting ten stamps grants a $5 reward that can be used on qualifying purchases in-store or online. Stamps are awarded only on eligible purchases, such as books, café items, gift items, movies/music, NOOK devices, toys & games, and digital media bought online.
Premium Membership
The Premium Membership, priced at $39.99 a year, includes all the benefits of the Rewards Membership plus a 10% everyday discount on purchases, free standard shipping online, early access to sales and events, and a complimentary tote bag. Premium members can also upgrade early from lower-tier memberships and gain immediate access to all benefits.
A Step Ahead in Loyalty Programs
Compared to other retailers' loyalty programs, Barnes & Noble’s offering features a tiered structure combining free stamp-based rewards with a paid membership that provides enhanced savings and perks, aligning with best practices of creating escalating rewards based on engagement.
The $39.99 premium fee is moderate compared to some paid programs but higher than the previous $25 fee, offering diverse benefits including discounts and free shipping, which is competitive among book retailers and general retailers.
The program rewards spending by giving immediate "stamps" with clear redemption value, differing from value-based or charity-linked programs but maintaining simplicity and transparency. The focus on relevant product categories (books, eBooks, café, NOOK) demonstrates a tailored approach suited to their core customers.
A Bright Future Ahead
James Daunt, CEO of Barnes & Noble, has expressed excitement about the new direction of the company's membership program. Shannon DeVito, Barnes & Noble's senior director of books, is optimistic about the company's future and looks forward to making curated recommendations.
The growth of Barnes & Noble's business is not solely attributed to the revitalization of its membership program, but also to social media and word-of-mouth book recommendations. Customers have responded enthusiastically to the launch of the free rewards program.
Despite a reported decline in Americans' appetite for books, with an average of 12.6 books read in 2021, down from 15.3 books in 1990 and 14.5 in 2001 (Gallup poll), Barnes & Noble's business is experiencing a comeback for the first time in over a decade.
Barnes & Noble plans to open more than 30 new bookstores in the coming year, joining the likes of REI, Saks Off Fifth, Bath & Body Works, Walmart, Madison Reed, Victoria's Secret, and Amazon, who have also revamped or launched rewards programs to attract consumers.
Amazon, too, has discussed enhancing its Prime membership with additional benefits as Prime subscriptions could be plateauing. Barnes & Noble's revamped rewards program blends free and paid options with stamp-based rewards and added perks for premium members, reflecting common trends in loyalty programs while focusing on book-centric benefits and integrating both physical and digital purchases. This structure compares well with other retailer loyalty offerings by providing clear tangible rewards and tiered benefits to encourage loyalty and repeat business.
In addition, Barnes & Noble plans to create additional offers for its Premium Members, with a focus on personalized recommendations and sharing knowledge about books. The future looks bright for Barnes & Noble, as it continues to adapt and innovate to meet the changing needs of its customers.
- As Barnes & Noble introduces a new tiered membership program, customers now have the ability to earn virtual stamps for purchases in home-and-garden, lifestyle, deals-and-discounts, shopping, and more, in addition to books, café items, and other qualifying products.
- By upgrading to the Premium Membership, customers can enjoy a 10% everyday discount, free standard shipping, and early access to sales, not just on books and eBooks but potentially on AI-researched recommendations for home-and-garden and lifestyle products as well.
- Amidst increasing competition, with retailers like Amazon revamping their Prime membership and introducing additional benefits, Barnes & Noble's revitalized rewards program presents a compelling strategy that blends the charm of physical bookstores with the convenience of online shopping and AI-driven personalized recommendations.
- A new update on the horizon includes exclusive deals and discounts for Premium Members in various product categories such as AI, tech gadgets, and business resources, aiming to diversify the appeal of Barnes & Noble beyond just a bookstore.
