Premium loyalty is not a new concept.
People have been paying for Amazon Prime since 2005. But lately, premium loyalty programs have been on the rise.
So, why are more retailers launching these programs? And do consumers mind paying for them?
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Nearly 70% of consumers agree their loyalty is more difficult for a retailer to maintain than ever before.
Consumers have infinite choices, so your loyalty program cannot feel similar to others. It has to be unique and show value.
More than 71% of consumers who do not currently belong to a premium loyalty program would join one if their favorite retailers offered them and the benefits were valuable.
That’s why major brands like Lululemon, CVS and Restoration Hardware have seen success by offering their customers the option to pay for heightened benefits.
87% of consumers who are satisfied with the special benefits offered by a retailer’s premium loyalty program will likely choose that retailer over a competitor that is offering a lower price.
Even though loyalty is challenging, your premium loyalty members would rather stick with you even if they can find an item or service for less money elsewhere.
But what about the benefits? What types of perks do program members want? How often to they want to use them?
67% of consumers said instant discounts that can be used whenever you shop are perks that motivate them to invest in premium loyalty programs. 61% said it’s free shipping.
Transactional benefits like instant discounts and free shipping are the perks that get people in the door, but experiential benefits like exclusive events and curated services make people feel special and allow brands to differentiate even more.
Six out of 10 consumers expect to see benefits from a premium loyalty program at least once a week.
Rather than using points that reward slowly, premium loyalty members reap the rewards from the moment they sign up.
More than half of all premium loyalty participants shop with that retailer at least once a week.
This means more store visits, more website transactions, and more touchpoints with your customers.
What about people that haven’t joined? What does the future look like for premium loyalty?
58% of consumers currently belong to a premium program while just under 65% of those who belong to a premium loyalty program plan to join additional programs in the next 12 months.
Consumers have already started adopting premium loyalty programs in a big way.
80% of millennials said they would be willing to join a premium loyalty program if their favorite retailers offered them and the benefits were valuable to them.
We all know how much of a challenge it can be to gain the loyalty of millennials, but they care deeply about intangible things like experiences – An area where premium loyalty programs shine.
31% of consumers say they have yet to join a premium loyalty program because the retailers they shop with don’t offer them.
There is a huge opportunity to build better relationships with your customers through a premium loyalty program of your own.
So, what are you waiting for?