Borders is introducing a new rewards program and lowering prices on its e-book readers to gain some traction in its competition with Amazon, Barnes & Noble and others.
Beginning today, Borders' customers will have a choice of two loyalty programs with the chain. The first is free with some additional perks over the previous plan, while the second, Borders Rewards Plus, will cost $20 and include higher savings on purchases and free shipping on most online orders.
Both programs include members-only discounts in stores and online, personal shopping days, free coffee and a birthday gift from the chain.
"We saw a great opportunity to differentiate Borders in the marketplace by offering the choice of a paid program or a free program," Borders CEO Mike Edwards, said in a press release. "The new Rewards program will provide members with more relevant content, benefits and discount offers. It's yet another example of Borders' commitment to creating an outstanding customer experience."
The bookstore chain also announced that it was lowering prices on its Kobo eReader (to $129.99) and Aluratek "Libre" eBook Pro (to $99.99) beginning today.
"We're committed to making it as easy as possible for all Borders customers to enjoy e-reading," Mr. Edwards said. "We envision this price reduction, enabling the purchase of these devices as a second e-reader in a household, as a more affordable option."
Borders' action is seen as another step towards a price war in the category. Rival Amazon is offering new, less expensive Kindle e-readers at $189 for the Kindle 3G and $139 for the Wi-Fi model. Staples has also announced that it will begin selling the two models along with the more expensive Kindle DX this fall. Target is also carrying the Kindle in its stores.
Discussion Question: What will have a more positive effect on Borders' business; its new loyalty program options or lower e-reader prices? Is Borders taking the types of steps necessary to turn the chain around?
- Borders Launches New Paid 'Borders Rewards Plus' Loyalty ProgramFree, Enhanced Borders Rewards Program Also Launches Today - Borders Group, Inc./PRNewswire
- Borders Reduces Price of Kobo and Aluratek eReaders to $129 and $99 - Borders Group, Inc./PRNewswire
- Staples to sell Kindle, Borders cuts reader prices - Reuters