Traditional loyalty programs are free experiences focused on the transaction only – and customers get what they pay for. By contrast, customers pay a fee to join premium loyalty programs. In exchange, they receive tangible monetary benefits (like exclusive discounts and free shipping and returns), one-of-a-kind opportunities and members-only content.
Will they pay? If the benefits are good enough, absolutely – think about what Prime has done to your bottom line recently.
Plenty. In addition to an ancillary revenue stream, they generate increased enthusiasm and loyalty among their best customers, increased order frequency, increased AOV and decreased digital showrooming. Best of all, premium loyalty programs generate real, actionable data on the likes, wants and needs of truly engaged consumers from Day 1.
You’re not in the premium loyalty game alone. Clarus has been providing white-label, turnkey solutions to some of the world’s most recognizable brands for nearly two decades. We have the infrastructure to provide benefits, the creative team to craft an on-brand customer experience, the support team to handle inquiries and the know-how to drive signups and renewals. And did we mention that there are almost no up-front costs for retailers? We only make money if you do.
|PREMIUM LOYALTY||TRADITIONAL LOYALTY
|CORE MODEL||Benefits up front that drive transactions later.||Transaction first, benefits later.|
|BENEFITS||Customers pay a fee in exchange for exclusive benefits.||Customers accumulate points for transactions.|
|PARTICIPANTS||A brand's most engaged & valuable customers.||An essentially random smattering of customers.|
|CUSTOMIZATION||Brands choose the exact benefits they want to offer.||One size fits all; typically, around points and discounts.|
|USAGE||Customers can engage with the program 24/7/365.||Customers are trained to wait for discounts to shop.|
|TYPICAL RESULTS||Increased engagement, AOV and frequency, organic loyalty.||Gaming of points.|
|Amazon Prime||Subway Sub Club|
If you want to become a 24/7 presence in your best customers' lives, it's time to get started.