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Use Case

Paid loyalty program

Create a paid loyalty program with an annual membership fee that gives your customers unique benefits during the duration of their membership.
Table of contents

Create a loyalty program with a membership fee that gives customers immediate, ongoing perks in return. In this recipe, customers pay $100 per year to join and receive benefits such as free shipping and 5% off all purchases during their membership period.

Why use it?

This setup helps you reserve your best perks for customers who are most likely to stay engaged and spend more. Because part of the value is funded by the membership fee, you can afford to offer stronger benefits than in a free loyalty program. The page also points to McKinsey research saying consumers are 62% more likely to spend more with a brand after joining a paid loyalty program.

How it works?

Customers pay an annual fee to join the program, and in return they unlock benefits that apply across future purchases for the duration of the membership. In Voucherify’s example, the core benefits are free shipping and a permanent 5% discount while the membership is active.

Best practices

Make sure the value of the membership is obvious enough to justify the fee. Analyze customer spending habits before setting the price and perks, so you can offer benefits that feel attractive without overspending your budget. The goal is to use the program to encourage more frequent purchases, higher-value orders, or both.

Are you optimizing your incentives or just running them?