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Is Barnes & Noble’s Membership Upgrade Worth $40?

Written by Tom Ryan

Photo: iStock | tupungato

Barnes & Noble’s newly revamped membership strategy, which represents the first change to the program in 22 years, consists of two separate tiers: a paid option that adds more benefits at a higher cost and a free one with more limited perks. The paid tier, now called Premium Membership, costs $39.99, up from $25 under the previous plan. Perks under the new program include:
  • Ten percent discount for purchase at Barnes & Noble stores and bn.com;
  • Free tote bag each year (valued under $19.99);
  • Free size upgrades on drinks from the café;
  • Free shipping;
  • A new “Stamps & Rewards” rewards program tied to purchases. One stamp is earned for every $10 spent in purchases, and the customer receives a $5 reward for every ten stamps.
The old plan only covered the 10 percent discount for store – not online - purchases and free shipping. The new plan eliminates a 40 percent discount on hardcover bestsellers. Perks like the prior program include special member birthday offers, exclusive early access to special titles and events, and exclusive offers. The free tier, called Rewards, only includes the “Stamps & Rewards” program and is being launched after a successful trial. Shannon DeVito, senior director of books, Barnes & Noble, said in a press release, “We now have levels of the program fit for all our customers. We’re especially looking forward to making curated recommendations, supported by compelling and interesting offers both in our stores and online, to the broadest sweep of readers.” Barnes & Noble CEO James Daunt told The Wall Street Journal he estimates that at least 75 percent of the 5.5 million members of the $25 plan will sign up for the new plan. He predicted total paid members to remain the same at year-end as the beefed-up $40 offer appeals to new customers. He further expects the enhanced plan to help B&N deliver better-personalized offers. “If you’re interested in ornithology or cookbooks, we’ll be in a position to offer you recommendations and special offers,” he told the Journal. “It allows us to be much more intelligent and engaging and interesting.”

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