Paid Loyalty Programs

When a customer trusts a brand for the experiences received in the past, they would be willing to pay a particular amount of money upfront to receive exclusive rewards and benefits. This would emotionally keep the customer connected to the brand and thus build robust customer loyalty.

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Features and benefits

A customer who is ready to pay you to get that ‘special’ treatment is for sure a loyal brand advocate whom you can count on.

Creating an emotional connect

If a customer is spending on you to receive premium privileges, you can be quite sure that the customer is connected to you more than just the business. For the money paid, they will try to make the most of it by engaging closely with the brand and building a deeper emotional connection.

Higher ROI through high-quality customers

The exclusive benefits that you are planning to offer would entice high-quality customers who would amplify your products and services to their peers. This could also increase purchase frequency and basket size, boosting brand affinity. The program fee that these customers pay could be used as funds to run the program.

Higher customer retention rates

The experiential advantages with a higher emotional quotient like member-only content, discounts, or vouchers that you offer could help you gain brand affinity and retain customers for a longer period of time.

Classify customers into categories

With paid loyalty, it will be easy to categorize and differentiate your customers. For example, an average shopper will pay only the lowest price whereas those who pay for the highest package are more likely to be frequent shoppers who are keener on benefits. With this classification, it will be easier to curate benefits and rewards to satiate customers belonging to each category.

Paid loyalty examples

Experience and exclusivity are sure to make customers feel privileged. Delivering them the best of products and services that are member specific would improve their image among their peers. These paid members are less likely to switch to other brands for the emotional connection that they might have built with the brand.

The program is ideal for the fashion, beauty, retail, and entertainment industries.

How can the paid loyalty program benefit your business?

Customers who are ready to spend on you would look at your terms and conditions in delivering your experiences. But as a brand, you should be able to identify why you would want to offer paid loyalty programs for your customers.

Generate high-quality data

Customers using the paid loyalty program tend to spend and transact more frequently. This would enable them to engage with the brand’s wider suite of privileges and perks. This could help brands obtain data and insights which can be helpful to restructure organizational strategies and get an idea of varying consumer behavior.

Lesser chances of switching brands

When a customer signs up with your brand's paid loyalty program, they can be your brand's advocates who spreads the word within their circle of influence. With premium and exclusive benefits being offered to them, the possibilities of customers switching to other brands are low to nil.

Higher benefits more sign ups

Unlike the usual coupons and discounts, some brands offer paid international trips for customers on a paid loyalty program. When customers are offered benefits that are out of the box, it could help you drive more sign-ups resulting in higher business growth and value.

Add more glam and glee to your brand with the paid loyalty program

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