Borders Scales Back Rewards Program
Borders Group Inc. is cutting back offers in its popular rewards program and is instead offering customers new benefits to earn discounts more quickly, the company said this week.
The move comes as the company undergoes a significant strategy shift. It plans to close 250 of its 564 Waldenbook stores over the next two years, convert most of its international stores into franchises and start selling books through its own Web site.
Borders is phasing out two programs under its popular Borders Rewards Program: Holiday Savings Rewards and Personal Shopping. In their place, the retailer is adding a new offer called Borders Bucks, under which members will receive a $5 coupon via e-mail every time they spend $150. Customers have one month to redeem the coupon.
With Borders Bucks, customers no longer have to wait until the end of the year for their rewards.
“They can start getting their coupons right away,” Borders spokesperson Ann Binkley said. “We believe our customers will be extremely happy.”
The $5 coupon bonus will help drive traffic to Borders stores and give members the incentive to earn rewards faster, she added.
Changes to the rewards program begin April 12. Borders, the nation’s second-largest book retailer, sent its members an e-mail describing the new benefits on Monday. The company revamped the program in part based on customer feedback, Binkley said.
Borders Rewards, which launched in February 2006, has nearly 17 million members. The program is free to join.
Under the Border’s Holiday Savings Program, members received $10 for every $200 they spent at Borders during the year. That bonus was accumulated and released on Nov. 15 for redemption. Customers have until Jan. 31 to use their rewards.
With the Personal Shopping Day program, members who spent at least $50 in one month received a discount to use on a future purchases. Instead, the company will offer members Bonus Rewards events, during which shoppers will receive special deals during the year. The first event is planned for April, Binkley said.
Members will continue to receive the Borders Shortlist, an e-mail newsletter that features hot titles every Thursday.
The Waldenbooks store outlets have had disappointing sales, according to news reports.
“Our company’s performance has fallen short in an industry that is increasingly competitive, technology driven and price sensitive,” Borders chief executive officer George Jones said in a statement last week. “We have begun to take decisive steps to once again put Borders on a path to profitable growth, and believe that we have an opportunity within our domestic superstore business to build on our key assets. Our energy and resources are focused on this core business segment because the superstore is the foundation of our brand: it’s how we grew into the respected name we are today and we believe it is the key to our future.”
