Bed Bath & Beyond+ Is Not A Loyalty Program, So Can It Generate Loyalty?

Bryan Pearson

July 27, 2018

bapBlogJuly27HERO

Beyond what?

This could be the question for Bed Bath & Beyond after announcing its Beyond+ app-based membership program. The initiative, in beta testing, gives subscribers 20% off of every purchase, as well as free standard shipping, for an annual fee of $29. Heck, that beats Amazon Prime’s $119 fee. But Beyond that, it’s yet to be determined what Beyond+ delivers for shoppers other than freedom from carrying coupons.

And what of those coupons? Will they continue? Bed Bath & Beyond declined to respond to questions about how its coupons will fit into the program and how it plans to use data collected through Beyond+. However, its quarterly report does include several references to improving customer data integration.

This makes sense. Ultimately, today’s consumer is often looking for something that says, “You really understand me and my interests.” The more data gathered on the customer, then the more personalized the engagement strategy can become. Bed Bath & Beyond will gather some shopper information through email and billing addresses as well as the Beyond+ app. Ideally, it can be integrated with its Mastercard data (meaning coupon shoppers pay with their Beyond credit card).

The Coupon Question

Bed Bath & Beyond announced Beyond+ shortly after posting a decline in same-store sales for the first quarter, attributed in part to a reduction in its coupon redemptions. Its earnings outperformed estimates, but the same coupon expenses reduced its gross margins.

Enter Beyond+, a discount that does not require the expense of mailing or printing. The key benefit of the program for members, compared with its coupons, is that the 20% discount applies to every item purchased, whereas the coupon discount applies to just one item.

Members access the discount in the “My Offers” section of the Beyond+ website or app. Nonmembers who register online to get Bed Bath & Beyond coupons receive them via email along with perks such as invitations to store events and first looks at new products. We assume those who enroll in Beyond+ get the same perks.

Beyond+ members also get the benefit of added ease, said Roman Martynenko, founder of the digital commerce agency Astound Commerce.

“A merchant’s goal should be to meet customers’ expectations of a seamless, efficient experience,” Martynenko wrote in an email. “The Beyond+ program can accomplish this by eliminating the need to carry coupons around and allowing the customer to use the savings how and when they want in whatever channel is most convenient for them.”

Beyond+ also eliminates costs for Bed Bath & Beyond, while adding a new revenue stream. However, shoppers only need to spend $150 a year to cover the $29 fee, which could translate to squeezed margins.

The Emotional Equation

Still, the perks and savings might not be enough to elevate the shopper experience to emotional loyalty — meaning shoppers would choose Bed Bath & Beyond because they love it; not just because they’ve been conditioned to expect a discount.

“These and other investments are expected to, among other things, provide a seamless and compelling customer experience across the company’s omnichannel retail platform,” it stated.

As for the data collected, those who register for Beyond+ provide a billing and email address, through which they receive offers that are always available to redeem. And there’s the app, which likely has GPS capabilities to track shopper location. When using the discounts in store, the member taps into the app, chooses the discount and shows it to the cashier.

According to the Beyond+ launch page, the 20% discount is always available, assuming of course that Bed Bath & Beyond is always available. The retailer earlier in July said it may close up to 40 locations this year. This, and the failure to actually use the program benefits, are the risks inherent in any membership program, as many gym enrollees can confirm.

Beyond that, it’s likely Bed Bath & Beyond is hoping its prepaid program, combined with the benefits of its credit card rewards program, renews shopper interest in the chain.

Loyalty

Retail

bed bath and beyond

loyalty program

app-based

About the author

Bryan Pearson

Bryan Pearson

President and CEO, LoyaltyOne & President and CEO, BrandLoyalty

As President and Chief Executive Officer of LoyaltyOne, Co. Bryan leads a global set of enterprises organized by Alliance Data under the LoyaltyOne umbrella: The AIR MILES Reward Program in Canada, BrandLoyalty, Precima, and LoyaltyOne Global Solutions.

Joining the organization soon after its founding in 1992, Bryan moved through a series of progressively senior roles, becoming President of the AIR MILES business in 1999 and assuming his current position as President and CEO of LoyaltyOne, Co. in 2006.

A highly regarded expert on enterprise loyalty, retail marketing, coalition marketing and customer relationship management, Bryan has spoken at industry events around the globe, with his views on loyalty, data analytics and privacy widely quoted in national and international publications.

The author of the bestselling book The Loyalty Leap: Turning Customer Information into Customer Intimacy as well as The Loyalty Leap for B2B, Bryan regularly contributes to the Forbes retail column, among others.

Bryan supports a number of community and charitable groups including the CHUM Christmas Wish Foundation and Kids Help Phone. Bryan has an MBA and a BScH (Microbiology and Biochemistry) from Queen’s University.

Bed Bath & Beyond+ Is Not A Loyalty Program, So Can It Generate Loyalty?

Jan 2, 2019, 17:25 PM
Beyond what? This could be the question for Bed Bath & Beyond after announcing its Beyond+ app-based membership program.
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Publication date : Jul 27, 2018, 00:00 AM

Beyond what?

This could be the question for Bed Bath & Beyond after announcing its Beyond+ app-based membership program. The initiative, in beta testing, gives subscribers 20% off of every purchase, as well as free standard shipping, for an annual fee of $29. Heck, that beats Amazon Prime’s $119 fee. But Beyond that, it’s yet to be determined what Beyond+ delivers for shoppers other than freedom from carrying coupons.

And what of those coupons? Will they continue? Bed Bath & Beyond declined to respond to questions about how its coupons will fit into the program and how it plans to use data collected through Beyond+. However, its quarterly report does include several references to improving customer data integration.

This makes sense. Ultimately, today’s consumer is often looking for something that says, “You really understand me and my interests.” The more data gathered on the customer, then the more personalized the engagement strategy can become. Bed Bath & Beyond will gather some shopper information through email and billing addresses as well as the Beyond+ app. Ideally, it can be integrated with its Mastercard data (meaning coupon shoppers pay with their Beyond credit card).

The Coupon Question

Bed Bath & Beyond announced Beyond+ shortly after posting a decline in same-store sales for the first quarter, attributed in part to a reduction in its coupon redemptions. Its earnings outperformed estimates, but the same coupon expenses reduced its gross margins.

Enter Beyond+, a discount that does not require the expense of mailing or printing. The key benefit of the program for members, compared with its coupons, is that the 20% discount applies to every item purchased, whereas the coupon discount applies to just one item.

Members access the discount in the “My Offers” section of the Beyond+ website or app. Nonmembers who register online to get Bed Bath & Beyond coupons receive them via email along with perks such as invitations to store events and first looks at new products. We assume those who enroll in Beyond+ get the same perks.

Beyond+ members also get the benefit of added ease, said Roman Martynenko, founder of the digital commerce agency Astound Commerce.

“A merchant’s goal should be to meet customers’ expectations of a seamless, efficient experience,” Martynenko wrote in an email. “The Beyond+ program can accomplish this by eliminating the need to carry coupons around and allowing the customer to use the savings how and when they want in whatever channel is most convenient for them.”

Beyond+ also eliminates costs for Bed Bath & Beyond, while adding a new revenue stream. However, shoppers only need to spend $150 a year to cover the $29 fee, which could translate to squeezed margins.

The Emotional Equation

Still, the perks and savings might not be enough to elevate the shopper experience to emotional loyalty — meaning shoppers would choose Bed Bath & Beyond because they love it; not just because they’ve been conditioned to expect a discount.

“These and other investments are expected to, among other things, provide a seamless and compelling customer experience across the company’s omnichannel retail platform,” it stated.

As for the data collected, those who register for Beyond+ provide a billing and email address, through which they receive offers that are always available to redeem. And there’s the app, which likely has GPS capabilities to track shopper location. When using the discounts in store, the member taps into the app, chooses the discount and shows it to the cashier.

According to the Beyond+ launch page, the 20% discount is always available, assuming of course that Bed Bath & Beyond is always available. The retailer earlier in July said it may close up to 40 locations this year. This, and the failure to actually use the program benefits, are the risks inherent in any membership program, as many gym enrollees can confirm.

Beyond that, it’s likely Bed Bath & Beyond is hoping its prepaid program, combined with the benefits of its credit card rewards program, renews shopper interest in the chain.

Tags :
  • app-based
  • bed bath and beyond
  • Loyalty
  • loyalty program
  • Retail
Categories :
  • Blog
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Author : Bryan Pearson
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