JB Hi-Fi was established in 1974 by Mr. John Barbuto (JB), trading from a single store in East Keilor, Victoria. He had one simple philosophy: to deliver a specialist range of Hi-Fi and recorded music at Australia’s lowest prices.
JB Hi-Fi has recently launched their new loyalty program, JB Hi-Fi Perks. The program was launched in November 2022 and is available nationwide.
The fact that JB Hi-Fi has long stayed away from a program is likely because of margins (revenue has increased every year for the last 10 years) and their low-price positioning. However, given the upcoming loss of third-party cookies at the end of 2023, marketers will no longer be able to track consumers online. This may be a driver for JB Hi-Fi to build up their member database via JB Hi-Fi Perks.
Joining the program
Anyone who wants to join JB Hi-Fi Perks must have a JB Hi-Fi account. Once the account has been created, the only information required to join the loyalty program is to enter birthday (optional) and mobile number for verification.
Members can access the below perks as a part of the program:
JB Hi-Fi have allowed members to have receipts stored in their online account for quite some time already.
However, the other perks are new and exciting for members. As it stands, the main drawcard for members would be the $10 Perks coupon just to join the program. Members receive the coupon via email and there are clear instructions on how to redeem online or in-store. Offering a welcome voucher is a great way to increase the member base, which should lead to more sales and increased revenue for the business.
Currently, members are also receiving a $10 coupon for the birthday perk. It is fantastic that JB Hi-Fi are offering a coupon instead of discount – this is one of the 12 ways to offer a memorable birthday benefit.
Since joining the program in November 2022, the exclusive member discounts I have been receiving have been generous discounts of 50% off selected products. However, I have never considered buying any of products included in the communications, nor have I clicked on the products when browsing the website, because they aren’t relevant to me. Since JB Hi-Fi has my receipt data, the expectation is that they know what I’m buying.
A way to keep members engaged with the program and utilise exclusive member discounts would be to offer personalised offers based on past purchases.
JB Hi-Fi regularly provide generous discounts to anyone – regardless of whether they are a member – and the discounts for JB Hi-Fi Perks members are only slightly better. A recent example was within the last couple of months; JB Hi-Fi Perks members were able to get $40 off the cost of eligible purchases over $300. However, anyone who wasn’t a part of the program could still get the discount, but it was reduced to $30 instead of $40.
Providing members with better discounts in the future will demonstrate more value and they will be more likely to stay engaged over the longer term.
JB Hi-Fi could explore a couple of ways to engage members by looking at one of their biggest competitors, EB Games. Elements of gamification is used with EB World – the loyalty program for EB Games – to stimulate specific behaviours:
Tiers: The use of a 5-level tiered membership gets members engaged to climb tiers and receive better rewards.
Leader boards: In 2021, EB Games introduced leader boards. To qualify for their Level 5 membership, members must be ranked in the top 9,999 points earners.
In 2016, The Good Guys was purchased by JB Hi-Fi. Currently, The Good Guys already have their own loyalty program – Concierge Membership. However, it will be interesting to see whether eventually JB Hi-Fi Perks may expand to cover both businesses in a coalition model. By creating a coalition model, this would strengthen loyalty and encourage members to shop more frequently across the two brands instead of their competitors.
In conclusion, I am excited that JB Hi-Fi finally have a rewards program. It is easy to join and there are already some great benefits – $10 welcome coupon and $10 birthday coupon. Also, they are sending regular exclusive member discounts. However, personalisation, gamification, and the introduction of a coalition model, may take JB Hi-Fi Perks to the next level and help them stand out over their competitors.