Borders’ Borrows from Banks’ Christmas Clubs
By George Anderson
Whoever came up with the idea for Borders’ new customer loyalty program must have belonged to a bank Christmas club.
For those who may not know, bank Christmas clubs let consumers set aside a regular amount on an ongoing basis throughout the year so they will have the funds to go out and buy presents when the holidays come.
With its new free loyalty program, Borders Rewards, customers get five percent of all qualifying purchases put aside in a personal Holiday Savings account, which can be used for purchases made between November 15 and January 15.
Other more immediate perks of the program include exclusive savings for card holders during specified weeks and the reward of a 10 percent-off ‘Personal Shopping Day’ each time a consumer spends $50 or more at any Borders’ property during a particular month.
“The Borders Rewards program provides us with an exceptional opportunity to reward our best customers in attractive ways,” said Vin Altruda, president Borders Group U.S. operations in a released statement. “We listened to what our customers told us they wanted from a loyalty program, and we designed something that responds to their needs,” he continued. “Borders Rewards is easy to join, easy to use, and membership is free — all the things our customers told us they wanted.”
Moderator’s Comment: Will its new loyalty program provide Borders with a competitive advantage over Barnes and Noble and other competitors? What do you
see as the benefits/drawbacks of the program? –
George Anderson – Moderator