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Paid Loyalty Program

Paid Loyalty Program

Paid loyalty, or fee-based loyalty programs, give customers immediate and ongoing benefits for a participation fee.

Example

Create a paid loyalty program with an annual membership fee of $100 that gives your customers free shipping and 5% off all purchases during the duration of their membership.

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Retention
Paid Loyalty Program

Paid Loyalty Program

Paid loyalty, or fee-based loyalty programs, give customers immediate and ongoing benefits for a participation fee.

Example

Create a paid loyalty program with an annual membership fee of $100 that gives your customers free shipping and 5% off all purchases during the duration of their membership.

Main Benefits

A McKinsey study shows that consumers are 62% more likely to spend more on a brand after joining a paid loyalty program. The paid discount provides customer engagement and keeps the discount memorable. By offering a paid loyalty program you make sure only truly loyal customers will take part in it. You can offer better perks and benefits as part of the cost is covered by the membership fee, which can make your program more advantageous and interesting than if you did not charge for it. 


Best Practises

  • Paid programs may require proof-of-value to get signups, but the business can gain higher customer value from members.
  • Analyze your customers’ spending habits to determine what can you offer for which fee not to overspend your budget and to stimulate more often or higher value purchases.

Learn from Leaders

Amazon Prime is the most widely known paid loyalty scheme that offers free delivery and other perks for a monthly or annual membership fee.

Amazon Prime

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