Bed Bath & Beyond is testing a new membership loyalty program, reports The Wall Street Journal.
The program costs $29 per year and comes with a 20% discount on all purchases and free shipping. Bed Bath & Beyond’s move into subscription memberships opens up a new stream of revenue for the company after net sales declined slightly in Q2 2016, and will help it capitalize on the expanding online furniture market.
A membership program can boost Bed Bath & Beyond’s business after a recent dip in sales. During Q2 2016, net sales for Bed Bath & Beyond totaled nearly $3 billion, declining 0.2% YoY, as comparable store sales sank. However, the company’s e-commerce sales actually grew 20% YoY.
Bed Bath & Beyond’s membership program would capitalize on its digital performance, while bringing in a new revenue stream via membership fees. Moreover, the yearly price is lower than that of competitors like Amazon Prime, which costs $99 per year. This could attract a high volume of customers and subsequently boost Bed Bath & Beyond’s total performance.
Bed Bath & Beyond’s digital shift is vital as the furniture market moves online. After a slow start, digital is beginning to disrupt the furniture retail market. BI Intelligence estimates that nearly one-fourth of all furniture purchases will take place online this year.
Read the full article on Business Insider
And check out Zuora’s guide – 5 Key Customer Retention Strategies for Retail!