Will Bed Bath & Beyond move on from its longstanding coupon program?
This past fall it was reported that the company could possibly be getting rid of the coupons and move instead to a membership program approach.
During a recent earnings call, CEO Steven Temares said one of Bed Bath & Beyond’s 2017 marketing initiatives included the launch of a beta test for a new annual membership program called “Beyond Plus.” For an annual fee of $29, members will receive 20% off their purchases as well as free standard shipping on every order for a year.
The test includes a small cross-section of Bed Bath and Beyond’s customer base, and the company will monitor the purchasing behavior of members over time.
“We will formulate the next test for this program based on key learnings from the beta test, which to date remain encouraging,” Temares told analysts.
MCM’s Musings: Bed Bath & Beyond has seen an increase in coupon expenses so it makes sense that the retailer is looking at other, cheaper avenues. In the second quarter of 2016 it did see an increase in usage and a slight decrease in average coupon amount. The 20% coupon has always been part of the company’s value proposition, so will this new membership program help or hurt them? It does make perfect sense to roll out a test before going full steam ahead with a fairly substantial marketing shift. Customers have associated discount coupons with Bed Bath & Beyond for as long as it has been in existence. So it will be interesting to see if they will embrace the new membership approach, or if the tried-and-true coupons are a better marketing strategy for the company.