Best Buy Zones in on Big Spenders

Best Buy is taking its Reward Zone loyalty program to a new level by upgrading top customers to "Premier Silver" status. Reward Zone cardholders who spend at least $2,500 during the calendar year will become Premier Silver members, thereby receiving such perks as longer product return and price windows, free shipping with online purchases, a dedicated customer service hotline, free in-home theater consultation by the Geek Squad (a $99.99 value), and preferential treatment at Reward Zone-sponsored concerts and events. Member status will be re-evaluated annually each February. Silver cardholders also will receive 1.25 reward points for each dollar spent (compared with the one point earned by other members) and won't be charged the 15% restocking fee often placed on returns. An upfront stanchion sign near checkout and a full-page feature in the retailer's June 22 circular promote the upgrade. Eligible customers have been notified directly. The five-year-old Reward Zone program has approximately 27 million members who account for more than 50% of total sales. Best Buy, Minneapolis, operates 1,003 U.S. stores, including 949 flagship locations, 13 Magnolia Audio Video stores, 20 Pacific Sales showrooms, seven stand-alone Geek Squad sites and 14 stand-alone Best Buy Mobile stores. The company reported domestic sales of $7.5 billion in first-quarter 2009 (ended May 31), an increase of 11.0% from the same period last year. Comparable-store sales rose 3.5%. The company opened 26 Best Buy stores during the quarter, and has opened 106 stores in the last 12 months.

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