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Free game w/new Gamer`s Club Unlocked sub promotion

Status: Tell Us More
by on ‎03-29-2014 06:11 PM
Sounds crazy at first but this is exactly the type of promotion that can be used to sway people into paying full price. In a weekly ad promote this offer to further boost GCU subs. You just completed 2 non ad 50% off GCU subs offers but this promo could actually turn out better for you since some will pick a free game valued less than $60.

Timing would be everything with this promo as you have to ways to attack, either offer this when a big seller is releasing to ensure the heaviest foot traffic possible or during a week when alot of titles have recently come out. The 2nd option would allow the customer to see the benefit in making BB their primary game retailer while getting their primary game free & 2-3 more discounted. You may also see an influx in trades as people would use the credit(10% bonus) to reduce the cost of the sub, so in 1 trip to the store they`ll experience 90% of what makes GCU elite.
Status: Tell Us More
I'm not sure if giving away a free game is where we want to go with this, but I would love to hear from others on this. Remember to vote for an idea if you like it.
Comments
by
on ‎03-31-2014 07:28 AM

OR...GCU could become open online and all sale issues would end... enuf I love yor enthusiasm to try to sell GCU but the best solution is just not being done. 

by
on ‎03-31-2014 09:55 AM

I agree online GCU signups will generate alot of subs but the targeted marketed needed for GCU to thrive won`t be swayed to drop $120 b/c of how they can sign up. A soccer mom with 3 kids that want 3 different games at 1 time may look at this as a "investment in savings"(I may need to copyright that lol). If she was willing to spend $180+ tax for 3 games, a good sales person should be able to upsell the GCU considering the other 2 games also decrease too.

 

A smart rep sells it as "you`re just paying $36(vs $120) for 2 yrs of GCU which has already saved you $24 instantly today AND you`ll recieve another $5 credit in 2 weeks as another benefit of GCU".

by
on ‎03-31-2014 10:04 AM
$216 + $5 credit would be $29 in value on the $36 purchase vs $180. This is why BB should hire me I`d sell more $120 GCU in 1 week than most stores sell in one month using this sales tactic. I`d also do monster sales during a b2g1 week considering I could show a customer how to spend $32 per game all yr rd w/GCU which equals the same $96 for 3 games during a b2g1. Sell it as basically 50% off $60 games yr round.
by Senior Social Media Specialist Senior Social Media Specialist
on ‎04-01-2014 10:27 AM
Status changed to: Tell Us More
I'm not sure if giving away a free game is where we want to go with this, but I would love to hear from others on this. Remember to vote for an idea if you like it.
by
on ‎04-01-2014 12:26 PM
@allan

Curious, what is the difference between a promotion offering 2 yrs of GCU for $60 vs a promotion of $120 for 2 yrs & a $60 game free? BB is actually getting $60 more per sub & that`s assuming the customer picks a $60 game.

If you think I meant this should be a PERMANENT thing no I know that can`t be expected. That would surely increase the $120 to $180-$200 which would be a disaster.

by
on ‎04-01-2014 10:26 PM

I could see maybe a free game under $30, but not a new full-price game.  Even then, I'd be hesitant to add any free products with the subscription.  There's essentially no cost for GCU to Best Buy whereas it would be a straight loss to package out video games (unless they were able to get manufacturers to provide vendor funding/kickback). 

 

I got my GCU for $30 with the coupon, but I still would have paid the full $120 for it if I hadn't.  I've purchased 15 games in 2014 alone (12 new, 3 preowned) and several others with the PS4 launch last year so I've more than reaped the benefits of the GCU.  If I keep this pace, I'll get around 80 games by the end of the 2 years.  Not everyone is going to purchase this many titles, but 10 new games over 2 years is something is very feasible, especially with the new consoles.  $12 off each new game would save $120 in total with those 10 titles and anymore would be pure savings for the customer.

 

You save $50 off of the GCU if you buy a new console with 2 year's Geek Squad Protection covering accident damage and handling (ADH).  Selling the GCU by itself doesn't happen very often for us, but that's mainly because we attach it so well on console sales. IF BestBuy were to run more promos for it, I think that a better approach might be to go with "Save $20 off with the preorder and purchase of select titles* (the titles qualifying for the $10 certs).  While it might be good for the consumer, running half-off or free $60 game promotions just isn't good for the business in my opinion.

by
on ‎04-02-2014 12:24 AM

Offering the program at a discount is different, on Best Buy's end, than offering a product.  The product itself has an associated cost to stock and sell, but the program is mostly an incentive.  The actual cost to BB would not be as high as offering the game, and it is offset when that person continues to purchase at BB.

Discounted GCU - loss of profit on program, but still at a profit for a nontangible item
Free game - will take a lot of game sales to just break even on the promo per customer, then more to begin realizing a profit

by
on ‎04-02-2014 09:32 AM
I see what you`re saying principal but from an accounting/profit standpoint on the paperwork end all the games would show as paid for full price. Here`s an example of what the receipt would look like

The GCU sub would ring up @ $120 & once a $60 game is scanned the $60 would be deducted off the $120 SUB cost NOT the game itself in a package deal. If the customer tried to return the game the pc would be programmed to refund $0.00. The end result is the same $120 for 2 yrs & 1 game but the game iitself isn`t actually FREE. Wouldn`t that solve the issues you guys brought up?

by
on ‎04-06-2014 09:41 AM

Technically, yes.  However, customers aren't going to be too happy when we tell them that we have to return everything from the first purchase and re-ring.  Or when they hear that because of the bundle packaging, they won't get anything back for that game. 

by
on ‎04-06-2014 05:45 PM
Isn`t the fine print on the subscription fee "non refundable" anyways. Plus say the game did ring up free they still wouldn`t get anything back for trying to return it. Although do to a technical issue(s) I could a reason to return/rebuy but as a whole this type of promo would be one & done. Maybe an even exchange from PS3 to XB1 or something like that but the receipt itself could also print a disclaimer along with the same disclaimer in the weekly ad fine print.
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