Best Buy RewardZone program changes
 

I received a letter from RZ yesterday regarding some upcoming changes to the program in September. Highlights are:

1) membership becomes free
2) reward point structure changed to 1 point for $1 spent
3) $5 reward cert for every 250 points :down:

It sucks. Cash back is effectively 2%.

Are you serious? Anyone know if this is widespread or regional? I'm glad my recent tv purchase should still be under the 3.33% payback. Bleh. At least it is free... Sucks that we're also losing < $1 points. I assume they're just chopping the pennies instead of rounding them? Suddenly, Office Space comes to mind...

I don't know if it's regional or not. I'm in the west coast if it matters.

Btw, the letter came with a 12% off coupon for one item in select category, (good from 6/23-7/23, I think).

Great... I wonder if this recent change was "because of customer demand" too.

meh.

of course i'd like a bigger rebate/discount rate, but I only go to BB when I can get a low price/PM, so it really doesn't matter to me that much. I guess I could see why they're lowering it, since RZ isn't "elite" anymore..

I was a huge fan of the Reward Zone program when it first came out. As time has passed, the perks seem to be getting less and less. I'm definitely not as impressed with it as I once was.

IMO I am 100% against paying any store to become a member of their club. Best Buy has given me free renewals each year so I can't complain. I buy sometimes at FYE and I always refuse their offer to join their club. I use to pay for other clubs in the past and I got burned when one store closed/changed. Bottom line do NOT pay stores to shop with them!

I've only paid a couple times for these kind of things. All of those times, I had found enough merchandise to effectively make the discount card "free" at the time, so it was a no-brainer.

I'll probably renew my GameStop/EB card for the 10% off all pre-owned, but probably won't do it until I actually find something to buy, so that I don't waste any of my months just having it sit around.

As for the BB card, I got it for free through some promotion, and they've been renewing it for free every year, so I can't really complain. I usually buy all my new releases at BB, doing price-matches as necessary. I get $5 RZ cards fairly often, but if they bump the threshold to $250, I won't be getting them very often at all.

Wow, what a surprise. As I predicted, the reward zone program getting devalued again. People who paid money in hte last year for this program should be rightfully pissed.

I just checked the reward zone website and found this as one of their announcements, so I guess it is nationwide:

"FREE AND EASY


Some exciting changes are coming for your Reward Zone® program. After September 18, 2006, it will be easier than ever to receive great rewards.

What are the changes?

New, no-fee membership. Just make one purchase per calendar year at Best Buy or BestBuy.com® to continue your membership.
A simplified point system. Get 1 point for nearly every $1 spent.
Earn 250 points and get a $5 reward certificate.

How will this affect my membership benefits?
You'll continue to enjoy the benefits you already receive, including:


Everyday member benefits like free paper every time you buy 2 ink cartridges
Exclusive members-only deals
Sweepstakes and memorabilia offers
Access to special store sales events

What does this change mean for me?
You will still accumulate points with your purchases at Best Buy and online at BestBuy.com. After September 18, 2006, you'll enjoy a no-fee membership and simplified point system.

When will these program changes take effect?
Your new Reward Zone program will be effective after September 18, 2006.

What happens to the points I accumulated before the changes go into effect?
At the time of change, all of the points in your account will be converted to the new point system - without losing any of the value of points currently in your account. The new point system gives you 1 point for nearly every $1 spent.

Eligible Purchases Points Reward Certificates
$250 250 $5
$500 500 $10
$1000 1000 $20


Do I need to do anything?
Nope. Just enjoy the rewards.

Why the change?
These changes are part of our efforts to continually evolve the program, making your participation easier and the rewards more meaningful."

Wow. $250? That blows.

Just gives me more of a reason to increase my shopping at CC. CC has been putting some good deals up lately compared to BB.

So to those who just spent $10 on a new membership...they just wated there money? Id be pissed if I just bought one for $10, and then its free 2 months later. Then they change the point system to...WTF. No incentive to us?

Yeah, because CC gives you 0% back (and won't save you any money at all over BestBuy and pricematching).

I don't really get why everyone hates the RZ program. I certainly don't like the changes (I always got it for free anyhow), but still... no other big-box electronics store has a similiar program. And with price matching, it is guaranteed you get the best (B&M) price possible at BestBuy. The 2% is a nice bonus you cannot get elsewhere, even if it used to be 3.33%...

Agreed, the changes suck but IMHO it's still better than shopping at CC ;)

I got the dreaded letter in the mail yesterday :(
Oh well, as others have already said the 2% is still better than the 0% currently being offered by Circuit City, Target and Wal-Mart.

Got the same letter in the mail as everyone else, but they were nice enough to include a $10 certificate since I paid for the RZ membership when I picked up my 360 in January. Earned about $25 in RZ certs since joining since I'm happy they reimbursed me.

0% back on a DVD that is $5.00 less at CC is a better deal. I don't hate the program, but it's getting worse. It's free, OK. I'll continue giving them my card. But before, even if CC had a cheaper DVD, I would still shop BB first.
As I said, my shopping at CC will probably be increasing now.

I'm definitely in the 'free is better' camp, but while I still like to browse Best Buy, I don't find myself buying as much there anymore. I can usually find stuff cheaper at CC or online, and while BB may price match CC, they probably don't PM etailers; and a chance at eventually getting 2% back [since you have to spend 250 to get it] isn't worth the gas to drive to BB. Like someone else said, if I buy something there I'll flash my card [it's always been free for me too], but I won't go out of my way.
Of course, points probably expire--so if you take too long to spend 250, you'll lose whatever you've 'earned.'

HOL UP...

CC offers 0% back?

I am THERE man!

It really does suck. Granted, it's free, and better than getting nothing back. It still bites, though, that you only used to have to spend $150 to get a $5.00 Reward Zone certificate, and now, you have to spend $250 to get that same $5.00 RZ certificate. My membership has always been free, since I purchased an item that gave me a free membership, and they have renewed it for free, since then. However, it's the wording of the whole thing that gets me. They state it is even easier to get your rewards, now. I'd like to know how spending an extra $100 is easier? It might be "easier" for Best Buy, but, not for the customer.

Kind of reminds you of the Lando/Vader scene in The Empire Strikes Back. I have altered the deal. Pray I do not alter it further.

I suspect that they're trying to enforce store loyalty with as little payout as possible. They've probably run every analysis imaginable and come to the conclusion that the typical Best Buy consumer spends under $250 in the amount of time it will take him to lose his Reward Zone card. It's just a carrot on a stick.

I wonder if they won't start making most their sales for Reward Zone members only, or run special offers that pay out double or triple points for certain items.

After years of holding out from joining RewardZone, I finally gave in and purchased a membership just a week ago. I couldn't have purchased it at a worse time if they're giving it for free come September. I guess if I plan to make any big electronics purchases, it's best to do it before the changes they plan to make. Boy, do I feel bad. Hopefully, they will mail me a $10 certificate, not that it would make me feel that much better.

Its free people, so stop complaining. Most other retailors would make you get their credit card in order to give yoy 2% cash back. besides, all the curent members should be getting a 10 FREE Rz CErt

Bummer...but not a big deal. Best Buy is ALWAYS as cheap as CC or even Fry's Electronics as I price match nearly every week and have made over $700 in "cash back" coupons. They will slow a bit now, but still better than none.

It was always free for me, and quite a few other people here. I've had a free account since day 1 of the RZ program. They've now made the RZ program even worse, free or not. What's going to happen to all of the points we have on account? Suddenly, those are all devalued now. Free or not, we had a 'deal' with them, and now they've changed it on us and made it worse. What's not to complain about?

And all current members will not be getting a $10 RZ Cert, just those that have paid $10 to join.

Thanks, eau! I was going to make the very same point, but you stole my thunder.

Now instead of getting a 66-cent reward on a $20 DVD, your reward will now be 40-cents with the 2% cash back. I guess that's worth celebrating!

But, of course, BB is giving its own spin on the changes by telling the user that the RZ program is now "easier than ever."

Just goes to show you how BB tries to please its customers! :confused:

They definitely weren't trying to please customers with this change. I'd say they were losing too much money with this program (I know I'm not the only one who made a large sum of rebates) and had ta tweak it to keep it from being discontinued. The letter sounds like a marketing geek trying to put a positive spin on it, not realizing he is insulting the very people he is trying to 'spin."

If it's a choice between 2% and none, I'm sticking with the 2%. Close, price match anything I bring in (Since Anita knows me and does some pretty wild things for me) and better than $0.00 rebates.

Terrible changes. Effectively worthless unless you buy alot of media or on big purchases.

Here is a chart showing how much each version of the program earns you during a year of purchases, assuming you pay $10 to join the Reward Zone for 1 year. The intersection point is at $750 in purchases. Below that, the new program benefits you more. Above that, the old program does. Remember, the first $300 spent under the old program only brought you to the break-even point on your investment.

Spend___Old RZ Earned____New RZ Earned
$300____$0.00___________$6.00
$400____$3.33___________$8.00
$500____$6.66___________$10.00
$600____$10.00__________$12.00
$700____$13.33__________$14.00
$750____$15.00__________$15.00
$800____$16.66__________$16.00
$900____$20.00__________$18.00
$1000___$23.33__________$20.00
$2500___$73.33__________$50.00
$5000___$156.66_________$100.00
$10000__$323.33_________$200.00

So it seems like we can conclude Best Buy is trying to attract more customers who will spend under $750 a year (under $62.50 a month) at the expense of offending customers who spend more than that in a year. It's hard to say how much more or less money Best Buy will be paying out in certificates now. But my guess is the DVD market is so competitive, they needed to pay out more to keep those customers shopping for low-priced items like DVDs and had to make the high-spending customers pay for it. It's probably a good move for keeping customers, since the 2% discount on more expensive items will still probably create a big enough discount to sway the consumer into buying it from Best Buy, while the free Reward Zone membership will be an attraction to low spenders.

By the way, I purchased my Reward Zone membership in early November last year. I received the notice today but I didn't get any refund in any amount even though I am losing 6 weeks of value off of my membership. Not that I plan to make a stink about the $1.00 or so that would amount to.

I could be wrong, but I thought a Reward Zone membership could be returned for a full refund within 30 days. At least I think I was told that once.

Before opening it, I knew the moment I got the letter in the mail stating important info about the RZ program that they would be increasing the points required to get a certificate because such programs rarely get better. The only surprise was the free membership. With free membership coming soon there is no reason (other than laziness) that everyone who shops at BBY won't join. That means there probably won't be any more of those special discounts for RZ members only because almost everyone will be a member.

I'd suggest to BBY to do this: why not simply deduct 2% off the subtotal on every purchase made at the register? There's no more RZ card to carry, people get their piddly 2% back immediately, and they can advertise it as "get 2% cash back instantly... no hassles". Then they could get rid of all the online infrastructure for the RZ and nobody would need to check for missing transactions because you could look at your receipt. It would be (to quote Darth Vader) "all too easy".

Wait a minute... this would be too logical, so it'll never happen (just like the flat tax). I think the RZ program is meant to be like a (very small) rebate where they hope enough people will forget the rebate or not purchase enough that they won't get their 2% back, but that it'll attract additional customers. 2% wouldn't even factor in my average decision unless I'm buying a big ticket item like a TV which happens about once every 3-5 years. The previous 3.3% wasn't much of a factor either. The only reason I go to BBY more often than CC is that BBY is closer and has a slightly better inventory.

I hope I can get enough points to get my next $5 certificate before the threshold increases. I assume on Sep. 18th they'll convert existing point balances by dividing by 100 rather than reset everyone back to 0 points?

Thanks, but a funny thing happened to me while purchasing this RZ card. Their register screwed up and my receipt got chewed up. After waiting for half an hour for them to print a receipt in a backroom somewhere, I finally gave up and told them, "You know, I probably don't need it anyway." I guess I'll settle for the $10 coupon if I ever get it, buy whatever big I plan to before that September date and request my $5 certificates.

Well, this is becoming similar to the free cards at grocery stores... they're free, but not everyone signs up and/or is willing to sign all the paperwork for small purchases. If they do sign up, BB gets instant tracking data on the customer... what they bought, what they returned, etc... much easier to track with a 'club card' than trying to get similar info through credit cards. Also, the coupons not only come in the mail months later, but they also expire, meaning that some won't even use the discounts (I shop at BB pretty regularly and even I had some coupons expire).

It does say 1 point for NEARLY ever 1 dollar... is it true that the cents in a purchase won't count?

That was nice of them.

While it does suck that the threshold for earning certificates was raised again, I'm not going to complain. At least I'll be earning some kind of reward without having to sign up for a major credit card. Hopefully, since I'll be done with school in April, that I'll have more money to spend there. :)

I've been an RZ member for less than a year, haven't received any email or mail regarding changes. Is this because I'm a Business member in the RZ program? Or maybe my mail is just really slow. They gave me a membership for free last fall cause I own a business.

I just checked the website I sign on to and it says for $600 spent I get $20 back, $1200 spent I get $40 back, and so on. Perhaps the website hasn't been updated yet though.

Best Buy is segmenting it's customer base. RZ is a great way for them to track your purchases and buying patterns. It's getting competitive out there, so Best Buy is trying to stay one step ahead.

The new rates don't start until September, right? I don't think they'll be advertising them until then.

They still have those Reward Zone $10 signup cards all over the stores. Can't blame them for not pulling all of them, I guess, since the change just came about recently, but I was sickened that they're still pushing them at the cash register. I didn't use my card because I was just buying gift cards, and the cashier immediately went into a spiel about how the reward zone is a great deal, blahblahblah.

Reward Zone changes
 

No one has brought this up but when I started with RZ on the 1st day you earned $5.00 for every $125.00 you spent, so it was actually a 4 percent give back.

I got the letter in the mail yesterday explaining all the changes and how RZ is now "easier than ever" and "better than before."