Friday, December 25, 2009

BestBuy's Reward Zone, Not So Rewarding:


The Issue:

I obtain the BestBuy's reward zone in anticipation that it will give me a true reward for being loyal to their brand. However, I have been proven wrong. When purchased my Nikon D5000 camera as a bundle for approximately $970 dollars plus the camera bag, the only goods I was rewarded to was the bag I purchased at a full price. The Camera and lenses were not considered as the purchase for the reward point as they were 'instantly discounted' from the original point.

I did not have time to fight for the reward, thought, there must be some explanation to this discrepancy. Late November, I purchased a JVC camera ($130 dollars instant discount) from the base price of $599 for $469.99 dollars along with the camera bag at a full price of $20 dollars; I was given the credit only for the camera bag.

The Investigation:

The second similar event got me started to investigate the root cause. I asked the salesman, the cashier and even the floor manager on the discrepancy, and they all had simply one answer: Please visit 'myrewardzone.com' for any questions, concerns. We do not address any issues in stores.

Root Cause:

BestBuy, out of their corporate heart, decided not to reward anything that has been discounted, given an instant rebate or have mail-in rebates. BestBuy indicates their newest 'rules' for non-qualifying purchases:
Non-Qualifying Purchases
The following items are considered non-qualifying purchases for which points will not be awarded: instant rebates and the value of mail-in rebates on purchases, purchases made for resale or paid with a Reward Certificate or Best Buy Gift Card, sales tax, state fees, shipping charges, delivery charges, service charges, restocking fees, commercial purchases, other excluded charges, and certain items that are excluded in particular promotions. Reward Zone program points will be earned on Best Buy Gift Card purchases but not on Best Buy Gift Card redemptions. Gift Card purchases are excluded from all double, triple and similar point promotions. Members will earn 1 point for every $1 of Gift Card purchases. Other exclusions may apply.

The Scam:

The only way BestBuy can have a competitive advantage is by lowering their prices. To lower their prices, they MUST give instant rebates, mail-in rebates and discounted prices to lure the potential customers. If consumer purchased a good at a discount price, almost always the reason to purchase the goods, then their purchase falls under the Non-Qualifying Purchases clause. Hence, BestBuy generates a potential false marketing ploy to assure their customers to give rewards for their loyalty, yet, not give them any based on technical classification of the goods purchased.

Conclusion:

BestBuy's reward program is fitting only for goods that are sold at regular prices. This clause can deter any potential buyers to think before they make any purchase. Most people may not care about the reward program, but those who do, will think twice before they make a final purchase. Besides, Amazon.com, Walmart.com and Buy.com are fairly competitive to sink BestBuy, if they continue their ill practices of deceiving customers. We all remember Circuit City, don't we?

Word of Advice:

BestBuy, learn to appreciate your existing customers. Gain their loyalty, not their disdain.

Sunday, May 11, 2008

Ibteda

Blogging for some people have become a profession, while for majority, it is simply fun. I on the other hand will use this blog to showcase my personal views on our geo-political scene.