Phil Rubin

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...]

Borders seems to change its loyalty program more often than just about anyone else out there, though this time they seem to have a better approach. Dropping the price of their e-reader isn't going to hurt but it's not going to be enough to compete with Amazon's Kindle, Apple's iPad or Barnes & Noble's (much less any of the other ones out there!).

Borders is smart to continue their push towards data-driven customer marketing and, assuming they really use their data, they should be better--at least in terms of loyalty and relationship marketing--than B&N. As we've written here before, Amazon is untouchable across many retail categories, and of course books is where their roots are...so, enough said.

It's refreshing to see something good coming out from Borders and it will be interesting to see what B&N does. They appear to be the most vulnerable here.