Best Buy is testing out a new membership program called Best Buy Beta that is priced at $199.99 per year, $179.99 a year for Best Buy credit card holders. The program provides customers with widespread benefits including technical support, pricing that will be exclusive to members, two years of protection on most product purchases, free shipping and delivery, and free installation on most products and appliances.
The Best Buy (BBY) Beta membership program will also provide access to a concierge service that will be available 24/7 by phone, email, chat or through the Best Buy app.
Best Buy’s chief customer officer, Allison Peterson said, “As we look to evolve our membership programs, the goal of Best Buy Beta is to create a membership experience that customers will love and to leave them feeling confident throughout their relationship with Best Buy. This pilot offers premium service, complete with support aimed at anticipating our customers’ needs.”
Currently, the new membership program is available in select stores in Iowa, Oklahoma, and eastern Pennsylvania. The company intends to expand Best Buy Beta to about 60 stores by taking it to stores in Minnesota, North Carolina, and Tennessee this month. (See Best Buy stock analysis on TipRanks)
Last month, Loop Capital Markets analyst Anthony Chukumba reiterated a Buy rating and a price target of $150 on the stock. Chukumba said that Best Buy could stand to benefit from the liquidation of electronic appliances retailer, Fry’s Electronics, and is positioned to benefit from electronics and appliances sales, while further solidifying its “importance and leverage” over its suppliers.
The rest of the Wall Street community is sidelined on the stock with a Hold consensus rating. That is based on 5 analysts suggesting a Buy, 7 analysts recommending a Hold and 2 analysts suggesting a Sell. The average analyst price target of $117.46 implies around 2.6% downside potential to current levels.
BBY scores a 6 out of 10 according to the TipRanks Smart Score system, indicating that the stock is likely to perform in line with market averages.