Premium Loyalty™ 101

How Do Premium Loyalty™ Programs Work?

Basically, brands’ more active customers pay a fee to access exclusive discounts, perks, content and experiences. The most famous example is Amazon Prime, which charges an annual subscription fee in exchange for free two-day shipping on many products, video and audio content, and more. Clarus premium loyalty™ programs leverage our pre-built infrastructure, technology platform and years of experience to deliver a similar experience for other retailers and publishers.

How Is Premium Loyalty Different from Traditional Loyalty?

Free traditional loyalty programs are based on punchcards, points and other tallies of purchases. They offer delayed gratification, and require consumers to remember a card or login whenever they make a purchase. As a result, they are increasingly unpopular; according to Accenture, 78 percent of U.S. consumers are “retracting” from loyalty programs.

Premium loyalty, by contrast, rewards brands’ best customers 24/7, increasing mindshare and order frequency. There is a fee for membership in premium loyalty programs, but a recent study indicated that nearly two-thirds of consumers would be willing to join a paid program if one was offered by their favorite brand.

Will Customers Pay for a Loyalty Program?

Absolutely – and especially ones in desirable, younger demographics. In a recent study, seventy-five percent of 18-24 year-olds and 77 percent of 24-34 year-olds said they’d consider joining a fee-based rewards program.

What Kinds of Rewards Can Be Offered?

Just about anything. Typical Clarus premium loyalty programs include in-store and online discounts, free shipping and returns, members-only content and access to physical and virtual experiences. If you can dream it, we can do it.

What Are Some Examples of Premium Loyalty Programs?

Amazon Prime, obviously, is the biggest, but many other retailers and publishers have recently adopted premium loyalty programs. These include Condé Nast, the Bluestem Brands portfolio (including Fingerhut, Old Pueblo Traders and Blair), Restoration Hardware, AMC Theatres, GameStop and Bed, Bath & Beyond.

What Does Clarus Do?

We launch and maintain premium loyalty programs for some of the world’s most recognizable brands. We provide common-sense wisdom and strategy honed by nearly two decades of experience, robust technology infrastructure, on-brand creative, advanced analytics and award-winning service. There’s no extra work for our clients’ marketing or IT teams – only increased order frequency and volume, an ancillary revenue stream and actionable data on their best customers.

How Much Does a Premium Loyalty Program Cost?

With Clarus, most retailers and publishers pay no up-front fees for their program. We’re compensated through a small percentage of the fees program members pay; in other words, we only make money if you do. You can see more on our pricing page.

ARE YOU READY TO GO PREMIUM?

If you want to become a 24/7 presence in your best customers' lives, it's time to get started.