Barnes & Noble has launched a "Premium Membership" program that costs $39.99 per year and features "offers, perks, and exclusives," as well as "everyday discounts and many more benefits," the company noted. The Wall Street Journal reported that in asking customers to pay an annual fee for a range of perks, the bookstore chain is following some of its competitors, including Amazon and Walmart, "whose respective Prime and Walmart+ programs offer no-minimum free shipping, among other benefits."
B&N is also launching a free, lower-tier membership program that allows members to earn a virtual stamp for every $10 spent in a purchase (10 stamps = $5 reward).
Noting that both new programs "will give Barnes & Noble the opportunity to learn more about its customers--from what they read to when and how often they buy--so that it can pitch them more effectively," WSJ wrote that the offerings are loosely modeled after a membership program at Waterstones, which is also owned by Elliott Management.
"If you don't have a free program, the vast majority of your customers are blank to you," said James Daunt, CEO of B&N and Watestones, adding that with such a program, "you can learn what they are buying, and then promote to them and engage them."
Daunt added that the new paid-membership program would replace a previous one, which offered discounts for purchases made inside B&N's physical stores--as well as free shipping for most online orders--and cost $25 a year. He estimated that at least three-quarters of the 5.5 million people currently paying $25 annually would sign up for the new $40-a-year program, and that number will be bolstered by new customers attracted to the Premium Membership.