Richard J. George, Ph.D.

Borders Alters Loyalty Program, Lowers E-Reader Prices

September 1, 2010

FROM RETAILWIRE:
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. What will have a more positive effect on Borders' business; its new loyalty program options or lower e-reader prices?      [more...]

I have little confidence in the impact of reducing the price of Borders' e-reader. It is apparent that e-readers will go the route of most electronic innovations, namely, lower prices, more features, and eventually commodity priced.

On the other hand, as noted by others, a sound continuity of purchase program (please do not call it a loyalty program) can be a tool to differentiate Borders' offerings, assuming the offer is of value, is relevant, is valued by the consumer, and is clear in its positioning and communication. To this end Borders needs to insure that these points are clearly addressed. If not, the adage "a confused mind always says NO" is operative.