Best Buy Makes New Loyalty Play

Best Buy is making major changes to the high-end loyalty program it launched in 2021, making it affordable for more  customers.

Totaltech initially launched with a $199 annual price tag.

The new offers are called My Best Buy Plus, at $49 a year, and My Best Buy Total, at $179 per year. The company also continues to offer a free loyalty program, My Best Buy.

At their launch, observers called the loyalty offers a potential game-changer for the Minneapolis-based retailer as it continues to differentiate itself from the competition, especially Amazon.

“We’ve learned a tremendous amount from our members over the last couple of years, especially that different customers value very different benefits when it comes to their technology,” saod Patrick McGinnis, senior vice president of memberships, in the company’s announcement.



While Best Buy has 100 million members in its free program, with 40 to 45 million considered active users, it said in its more recent earnings call that it has just 5.8 million members in Totaltech. That’s an increase from 4.6 million.

At the priciest level, the new iteration continues to offer unlimited tech support, VIP access to support, free installation and free warranties.

The lower-priced plan offers less, but it does include access to highly anticipated product releases.

In its most recent earnings call several months ago, Best Buy hinted at coming changes to the program, designed to increase the frequency of interaction with Totaltech members, enriching the experience to make it feel more valuable.

It says the new offers better reflect the different ways customers shop. Some are most interested in lower prices and product protection. Others are most excited about the tech support provided by the Geek Squad.

“Creating these new membership options allows us to be there for all of our customers in the ways that are most important to them,” McGinnis said.

Some observers have questioned Best Buy’s approach.

“We continue to wonder if a program designed to increase customer frequency in a high-price, low-frequency category—at the expense of high-margin warranty sales—is cogent,” wrote Sean Dunlop, an analyst who follows the company for Morningstar.

Best Buy says the new offers will take effect next month and that it’s notifying members through email. And current Totaltech members will get their current benefits through the end of the year.

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