Best Buy Shrinks Reward Zone Program
Reader IfThenElvis forwarded us the following email he received alerting him to changes in the Reward Zone program from Best Buy. He adds, "I can't tell if this is good new or not. I suspect not." It's not the end of the world or anything, but it definitely marks a slight constriction in the program.
This seems to be the evolutionary path of every reward program: gradually shave off benefits, tighten redemption windows, and create small leaks intended to void some of the perks. You just have to evaluate the overall benefits each time the terms are changed and ask yourself whether it's still worth participating in.
Here's an edited version of the email, with some of the marketing spin taken out (emphasis ours):
Your Reward Zone® program is changing on October 31, 2009
Reward certificates will only be available at MyRZ.com
Reward certificates will no longer be transferable
Lastly, for the following two conditions, points will be cashed out, available certificates will be sent, and any remaining points under 250 will be forfeited:
You will need to use your points in the year they are earned. Reward Zone is becoming an annual program, which means that points no longer roll over from year-to-year.
You will need to make one purchase every 12 months to remain in the program.
Thank you from the Best Buy® Reward Zone program.
Update: Reader C.W. wrote in to say his notice only mentioned the new non-transferable policy, and said nothing about the move to an annual program or forfeiting unused points under 250.
I have not seen the drastic restrictions in my notification rec'd: 06/29/09. I wonder if the restrictions are based on RewardZone Members' status (i.e. "Regular" and "Premier", etc.)? I'm in the Premier status. If a newer one has been, or is being, sent out, I've not gotten it as of today (07/05/09). Just wanted to help contribute to the whole picture. Keep in mind, that Premier users get to "bank" their points for larger prizes in the RZ online catalog.The Reward Zone® program is changing
We're making a change to your program rules. Reward certificates will no longer be transferable. This safety measure helps prevent others from redeeming your reward certificates without your knowledge.
For an even better membership experience, we're asking members to change their certificate preferences in their profile, so we can:
* Issue rewards more quickly and conveniently
* Deliver benefits more safely and securely
* Be more environmentally friendly by reducing the amount of paper we useWe appreciate your membership, and we want to help you take full advantage of the Reward Zone program. To receive the benefits of faster, more secure reward delivery, visit MyRZ.com to update your certificate preference.
Thank you from the Best Buy® Reward Zone program.
(Photo: Robert Scoble)
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Comments:
Oh well. This is better than the alternatives. While we don't know why they changed the rewards program, I'm willing to bet it has something to do with the current economic crisis. I'd rather they do this than raise prices or lay-off employees.
"You will need to use your points in the year they are earned"
That seems to imply points earned in 2009 have to be redeemed in 2009. That's what I hate about Dick's Scorecard program. You lose all points and start over every February.
That's actually good news if it encourages you to shop elsewhere. I've never had a problem with their service or anything like that, but Best Buy just doesn't have great prices. They have some decent deals in their Sunday sale flyers, but most other stuff you can get for less elsewhere.
@Cant_stop_the_rock: I only buy from them if I can't wait for an online order. I bought a camera case online for 10 bucks, BB wanted $16.99; I saved 5 bucks and I didn't have to spend $250 to do so.
Good news for me. That Reward Zone card has been taking up space in my wallet, and I hardly ever use it. I'm happy to get rid of it since I don't think I would ever rack up enough points in a year to make it worthwhile.
No big deal, really. I typically use the $5 rewards as soon as I have enough points, since there's no incentive to save up, and they've allowed you to print your certificates instead of waiting for them in the mail for a while too. It sucked when they changed the points needed for a reward a few years back, but at least you don't have to pay $10 a year anymore.
I remember when I first got a Reward Zone membership when I bought my big screen about 4.5 years ago. Here is the chain of events, roughly:
- $5 for every $125 spent including tax
- $5 for every $150 spent including tax
- $5 for every $150 spent not including tax
- $5 for every $250 spent not including tax
So I have to spend a grand to get back $20 in store credit and pay tax. Or I could just go to Amazon.com, spending probably $700 final cost, use my Amazon rewards, and earn almost $25 in rewards right there.
@Cant_stop_the_rock: That's the thing a lot of people miss. I've gotten better prices there than I could find online, you just have to watch the ads and the website, and a lot of times you can combine the RZ rewards or the 10% coupons they're always mailing and it comes out cheaper or so close to online prices it doesn't matter. If it comes down to just a small percentage difference in total price, I'd rather keep sales tax here locally than pay for shipping and still have to wait a week for whatever it is to get here.
@chris_l:
They charged $9.99 to sign up when it was $150 (it was never $125), now it is free. So, going up to $250 made sense on the business side.
@TVGenius:
Right, you can get good deals at Best Buy. The point of loyalty programs is to encourage you to also buy stuff there when you're not getting a good deal.
This is why my wallet is bereft of store loyalty cards. I don't use them. Period. My left butt cheek thanks me kindly for not having to sit on a wallet stuffed full of useless plastic cards from every store on the block.
Your left butt cheek should NEVER sit on your wallet. It's horrible for your hips. You'll cause your left leg to rotate higher into the socket. I no longer carry a wallet. Everything goes in my front pocket and my hips and back are very happy.
Some pimple-faced thumbdick cashier at the King of Prussia, PA Best Buy looked at me like I had 10 arms and green skin when I told him (3 times) I wasn't interested in signing up for the rewards program. This article more or less shows why.
As Best Buy reduces the value of your "rewards", will they voluntarily reduce number of times they sell your demo information to corporate partners?
@mrm514:
Have to disagree with you here. I'm 99% sure it was $125 for $5, but I may be wrong. But charging $10 for a card when you were routinely giving out $150+ on TVs made sense, and it gives people that false sense of value in the program. What is it they say, you get what you pay for? Spending $10 when they offer you $150 in rewards with your purchase right off the bat sounds great, but dicking down the rewards and giving it away for free makes it sound like every other shitty "let us get your customer info for extremely shitty discounts" program out there.
@rpm773: I never gave them my email for that very reason, and I got a robocall last Thursday telling me about this change. They wanted me to go to MyRZ.com to register my email address by October 31 or else I would no longer be eligible for the program.
With this on top of the change to annual, I don't know why they're expecting me to give them my email address when the plan is basically worthless to me now. I'd rather just let it expire.
@Cant_stop_the_rock: I think the reason for the changes is because people aren't using their rewards points as frequently as BB would like, so they are laying down some restrictions to try and force people to use them (by shopping in store or online) more frequently.
I signed up about a year and a half ago and the purchases I made in the store never made it onto my account. I have never gotten it to work since then, and they always tell me at the counter that I can just put it on my acct online.
Good Riddance
Best Buy tightening up on their customer incentives now that Circuit City is out of the picture?? What a shocker!
If they can force Microcenter, Fry's and HHGregg out of business, then they can start charging you to enter Best Buy, kind of like Six Flags. (I was going to add Radio Shack to that list, but no one shops there already.)
the not carrying over from year to year is annoying.
the email required makes a lot of sense.
best buy was sending out unbelievable amounts of paper with little to no effect.
Actually, Wal-Mart is the one to worry about. In fact, they're somewhat responsible for Circuit City's downfall. Two years ago, Wal-Mart drastically slashed prices on flat screen TVs. The price cuts were so deep, Wal-Mart was barely turning a profit on those items. In order to compete, Best Buy and Circuit City had to follow the lead of Wal-Mart. Best Buy is large enough that it survived the hit in sales. However, Circuit City wasn't large enough and now they're gone.
@mrm514: It most definitely was $125 early in the program, and I probably have the paperwork in a file drawer somewhere.
I used to buy a lot from BestBuy. Now, the only time I *might* venture into a store is when my boys want to buy a video game.
Their return policy isn't as good as it used to be with restocking fees.
The warranty policy isn't as good (they used to give you credit for the purchase price if something broke. Now they ship it to the manufacturer if there is any manufacturers warranty left).
The prices have increased relative to competitors.
I use to pay to be a reward member, now the program is worthless.
This retailer has driven me away. I used to spend thousands of dollars with them every year on applicances, PC upgrades, music, games, etc.
Yay, one less card in my wallet. This is just useless now, unless I'm buying a huge appliance that needs installation. Games and small items can be bought online with no tax.
Also sometime late last year they changed gift card policy to close the giant eagle loophole.
I used the following steps in jan 08 and it worked but not in feb 09
Go to Giant Eagle.
Purchase $1000 in Best buy gift cards with Amazon.com Credit card.
($1000 toward CC reward program)
($4.00/gal off gas with Giant Eagle reward program)
Purchase $1000 computer at BB
($1000 toward BB Rewards)
When I went to do this more recently they asked if the gift card came from giant eagle and if so it wouldn't count towards my BB RZ.
@ECN2: I bought a $900 laptop there (to replace a broken one), signed up for the program, and got $15 in reward zone certificates. I don't think I'll ever spend a third of that at BB in a year (minimum cashout is $5), so yeah, I see what you're saying.
The only time I would shop from Best Buy is if there was a good sale on a particular item. In regards to the rewards zone, I only use this with my Worst Buy credit card to get in on the interest-free purchases. Buy myself a Dell laptop for $899 with no interest for 18 months. =).
Of course, you'd better watch those statements like a hawk. The second you miss a payment you can kiss your interest free plan good bye.
@HurtsSoGood: Not even supermarkets? There's no excuse in not having and using supermarket cards, especially for someone posting on this site.
@MitchV:
Best Buy no longer has restocking fees on anything.
The regular reward zone program is changing to make sure that customers remain engaged with the store. We have tens of thousands of lapsed members, i.e. people who haven't shopped with us in a long time. It costs millions of dollars in paper and postage and transportation to mail the certificates and coupons to people who never redeem them. Making the certificates available online saves trees and time, the certificates arrive faster and don't get lost in mail.
Also, the Silver Premier tier is going to expand a lot, with tons more rewards and perks, to reward the most loyal shoppers.
As an employee of the company and an environment enthusiast, anything we can do to curb the wanton use of mailers is a good step forward.
@Zclyh3: Of course, you'd better watch those statements like a hawk. The second you miss a payment you can kiss your interest free plan good bye.
Yup - If u have online bill pay you can set up a recurring monthly payment to make sure that you never miss a payment.
@outlulz:
Especially for the privacy freaks:
Just say you forgot/lost your card and to speed up the line the cashier will usually give you a card and an application to turn in or mail in. The card is good instantly and you never have to mail in the form.
I have several of these cards, some more than 5 years old and working fine.
I just called Best Buy (obviously a call center in Philipines) and was told by a supervisor (Gonzalo) that point will roll over from year to year and "the email I got was not from Best Buy." The e-mail I did get is identical to the one posted above. Clearly, there is some confusion even within the Best Buy organization.
I still haven't been able to get clarification on what is actually changing. This is most frustrating and irritating since I use the program frequently.
@Radi0logy: By god, I'll keep my local MicroCenter in business even if it means covering their payroll with the money in my retirement account.
@ryan89: It's a dirty decision by Best Buy. A lot of shopping will be done around Christmas time and customers will forfeit those points a few days later.
That explains why my "birthday present" from Reward Zone was triple points when I spend money at their store. "Hey! Happy birthday! Listen, I didn't get you a gift, but if you come by and buy some stuff you don't need, I'll give you some extra points that'll net you a $5 coupon, as long as you spend it this year."
I haven't been in a Best Buy since 1996. Went into one once, and never returned.
@Gramin: Interesting read, but I'm honestly not convinced by that article that there is more than a casual relationship between lcd price cutting and the loss of circuit city and compusa
one question: if RZ is annual, what happens to all the points earned right around Dec 25th? Sometimes it takes a week until points even post to my RZ. Will we forfeit all of our xmas shopping points before we can use them, or will points earned be good for a year from the purchase that earned them?
Never again will I voluntarily buy stuff at Best Buy after this Christmas nightmare of shipping charges ( ~20% of the order total was S&H ), screwed up orders ( sent me the wrong items ), return nightmares ( I'm sorry you can't just exchange the item in store for the right one, we have to credit the gift card that was used for the purchase and you will have to fight with bestbuy.com for a new card ), being ignored by "customer service" ( we'll get back to you ), jyping me on a return for $10, and in the end I still don't have the movie that I ordered last December.
/can you tell I'm a little miffed
@BZMedia: Good for you, don't you feel all self-important now.
If you haven't shopped at BB since 1996, why are you bothering to comment on this?
@Gramin: I'd rather they just lower prices and try to attract people to their store to buy stuff rather than doing stuff that destroys their reputation.
@outlulz: Market Basket doesn't have them and is MUCH cheaper than the stores that do. Just that fact alone makes me want to shop there. I hate those cards. I have one and the other store I may go to from time to time scans in a store card.
@Skaperen: Best Buy has a long running habbit of punishing 'bad' customers. Google "Best Buy Angels and Devils" for more reference.
i remember like 5 years ago when you had to accrue 12,500 points for a $5 rebate check. back then $1 = 100 points, thus you only had to spend $125. then they changed it, and worded it that they'd be doing you a favor by dropping it from 12,500 points to only 250!!! but they also dropped the 100 points per dollar to 1 point, thus making it $250 for $5. wow. a 2% rebate. that's intense. careful you don't break the bank, BB.
PHOTOSHOPPED!!!
that image has been photoshopped.