Customer behaviour changed significantly after the outbreak. But this extends beyond an increase in eCommerce usage. A wide audience was made aware of a number of previously unheard-of features and business methods. As a result, modern consumers seek comfort and special care while doing business with a company, and they are willing to spend more for it. Paid and subscription loyalty programmes are seeing a revival as a result of this trend of privilege-driven client engagement.
This tutorial covers all you need to know if you’re planning to start or update your own programme and are considering a premium rewards programme.
A Subscription Loyalty Program: What Is It?
Paid, premium, or subscription loyalty programs—known by a number of names—are a kind of incentive system that requires users to pay something up front to join. The contribution is typically a one-time or ongoing fee, but it is also possible to implement the paid model without using actual money.
The most crucial feature of a subscription loyalty programme is that it considerably enhances the reward experience to offset the initial expense. And with good reason: according to a Clarus Commerce report, 81% of free loyalty programme participants would enrol in a premium loyalty programme at their preferred store if the advantages were favourable.
Types of Subscription Loyalty Programs That Are Most Common
Here is a list of potential models for paid incentives programmes. Every one of them offers a distinctive experience.
- Programs with a fee
Fee-based loyalty programmes demand a monthly subscription from members, imitating Amazon Prime. Brands with a fee-based product often do not provide a free version, although they may provide a brief trial to persuade people to try the premium programme. The audience for fee-based programming is typically smaller but very devoted. This strategy also guarantees a strong ROI for the entire programme.
- Premium Subscriptions
A current, free loyalty programme would benefit greatly from the addition of premium membership. Customers can sign up and take use of all the services offered by the basic programme, but if they want to optimise their benefits, they can purchase a premium or yearly membership. By offering a premium membership, you may reach the broadest audience without alienating those who are unwilling to pay. You’ll also boost your program’s profit margin at the same time.
- Programs for Life
Lifetime programmes are free loyalty programmes that have a pay-to-play twist on them. Members just have to pay the cost once in this programme, unlike other subscription-based loyalty schemes. This ensures that the rewards programme continues to be successful while keeping it accessible to a bigger group. Giving members a large welcome prize is strongly advised in this scenario to rapidly justify their investment in membership
4.VIP Clubs
Exclusive clubs with points-based entry, VIP clubs are part of an existing loyalty programme. They are comparable to premium memberships, except buyers must use a certain number of loyalty points to sign up. People still need to make an investment by giving up their points to enter VIP clubs, therefore they must make several purchases to build up enough points. As a result, members must wait a bit to sign up (or can join right away by making a sizable purchase), but in exchange, this feature doesn’t feel at all obtrusive.
Ideas for Reward Programs in Paid Subscription Loyalty Plans
Here are some reward suggestions that are typically well-liked by members due to the emphasis on the advantages of paid loyalty programmes:
The program’s relevance is greatly aided by mystery gifts, which are meant to surprise and entertain. Send mystery gifts (such as product samples) to subscribers on a weekly or yearly basis.
Free goods – To make paying members feel that their subscription is worthwhile, occasionally let them choose a product of their choosing (up to a specific value) for free.
Free delivery is the most desired perk a rewards programme can offer, and it might be the persuasive factor that persuades clients to sign up for your high-end loyalty programme.
Early access is a fan favourite since it gives members a sense of privilege and is free of charge. Early access to new product drops or sales is another feature that is popular with customers.
Special events – Invite paying members to special events, such as a brand anniversary party where they may network and meet influencers, to foster a sense of belonging and community.
Huge savings – Customers adore savings. You can make sure you stay inside your profit margin by restricting higher discounts to subscribers only.
Upgrade to existing advantages – If you operate a premium membership where subscription is optional, the paid benefits could be an improvement to the incentives or perks offered to regular members (such as triple points on sales events instead of double)