Barnes & Noble Launches Two-Tiered Membership Program

Barnes & Noble has expanded its offerings in the growing membership program competition.

The retailer of books and digital media now offers both a free membership program and one that costs $40 a year.

“Barnes & Noble is excited to introduce valued customers to two new membership levels,” the company said in the FAQ section of its website.

The Wall Street Journal reported Friday (Feb. 17) that the new offerings replace a previous Barnes & Noble program that cost $25 a year and offered discounts on purchases made in its physical stores. For online shoppers, the program offered free shipping but no discounts.

Barnes & Noble’s new free B&N Rewards program allows shoppers to earn rewards that can be redeemed on future purchases, according to its website.

Its new $40-a-year B&N Premium Membership delivers B&N Rewards as well as a discount on in-store and online purchases, free shipping, free drink upgrades in its cafes, a new tote each year and exclusive offers, the website said.

PYMNTS research has found that retail membership is a strong indicator that consumers will spend more with the brand to which they are subscribed.

For example, Amazon Prime members spent 113% more than nonmembers each month, while Costco and Sam’s Club members respectively spent 101% and 109% more in-store than nonmembers, according to the PYMNTS report, “The Benefits of Membership: Mass Retailers and Subscription Services.”

Barnes & Noble CEO James Daunt told the WSJ that he expects that 75% of the members of the company’s current program will sign up for the new, more expensive one and the new $40 program will have as many members as the existing program by the end of the year.

Daunt also said the free rewards program would enable the company to learn what its customers are buying and tailor its offers to them.

“If you’re interested in ornithology or cookbooks, we’ll be in a position to offer you recommendations and special offers,” Daunt said, per the report.

Barnes & Noble’s tweaks to its programs come about two weeks after Petco announced that it is bringing together products and services in a single membership program.

Replacing two existing membership offerings, the Vital Care program has two tiers — one free and one paid — and includes products, grooming services and veterinary care.