The company is looking to compete with Amazon and needs to expand beyond its retail base, according to Bloomberg.
Some of the other benefits include exclusive prices, up to two years’ protection on most purchases, free deliveries and a concierge services that is available to answer questions at any time, Bloomberg reported. The service will be available in around 60 stores by the end of April.
With the program, Best Buy is aiming to get more revenue from services. Last year in the fourth quarter, services only comprised 4 percent of the company’s U.S. sales, which was the same number as the previous year at that time, according to Bloomberg.
Best Buy had previously rolled out Total Tech Support, a five-year plan focused on services, new eCommerce strategies and new areas like healthcare. That program will be replaced by Best Buy Beta in the test markets, and it may eventually replace the program as a whole, Bloomberg reported.
Rolling out membership programs has been a strategy for companies like Walmart, which has worked as well to try and counter Amazon Prime. Amazon Prime had 142 million members as of the end of 2020, Bloomberg reported, citing Consumer Intelligence Research Partners.
Subscription services can be used by retailers in order to lock in customers with exclusive subscriptions and perks like free or quicker shipping. Amazon uses its streaming service in order to entice customers to keep paying the $119 annual fee. And Walmart’s Walmart+ offers gas discounts, Bloomberg reported.
Despite Walmart’s best efforts, Walmart+ is still being eclipsed by Amazon Prime as of February. And while Walmart has made some strides, they haven’t been enough to beat out the eCommerce giant. Walmart CEO Doug McMillon said he thinks people will see that Walmart+ “makes life better.”
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