From PSFK's Loyalty Debrief, here's how three brands are leveraging data from their most involved customers in order to ensure rewards programs remain relevant and compelling

Today’s consumers expect their favorite brands to serve as lifestyle partners, and many of them are willing to pay a premium in exchange for exclusive perks and services that add ongoing value and convenience to their daily lives. In fact, 63% of people are willing to pay for a loyalty program with valuable perks like free shipping (for example, Amazon Prime).

Leading brands are implementing loyalty programs that require members to pay a yearly fee in exchange for access to exclusive services and perks, delivering an immediate ROI in the form of membership fees and allowing retailers to identify and cultivate a reciprocal relationship and ongoing commitment with their most engaged customers. Here are three examples that showcase how contemporary retailers are leveraging pay-for-premium loyalty programs:

Wayfair MyWay
Home goods ecommerce retailer Wayfair offers an annual membership program with perks, such as free shipping on everything, 25% off in-home installation and assembly services through its partner Handy, and access to exclusive content and insider sales. The program, which costs $30 a year, can be used across its family of brands, including Wayfair, AllModern and Joss & Main.

 

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Alibaba 88VIP
Chinese ecommerce giant Alibaba upgraded its 88VIP paid loyalty program to offer members access to exclusive rewards and experiences. Members can redeem the rewards across its popular platforms, both online and offline, including video-streaming hub Youku, on-demand delivery service Ele.me, movie-ticketing platform Taopiaopiao and music-streaming app Xiami. In order to encourage members to write reviews and shop within the Alibaba ecosystem, it charges ones who interact more a lower yearly membership fee.

CVS CarePass
Drug store retailer CVS is piloting a premium membership program at its locations in the Boston area, which offers members exclusive perks, such as free shipping for online purchases, free prescription delivery, a 24/7 pharmacist helpline and a 20% discount on all CVS brand products, for $48/year or $5/month. As an additional reward, members will automatically receive a $10 promotional reward at the beginning of each month that they can use to purchase items in store or online.

For more best-in-class examples and actionable insights surrounding modern-day loyalty programming across all retail verticals, download PSFK's Loyalty Debrief, out now.


Lead image: stock photos from Flamingo Images/Shutterstock

Today’s consumers expect their favorite brands to serve as lifestyle partners, and many of them are willing to pay a premium in exchange for exclusive perks and services that add ongoing value and convenience to their daily lives. In fact, 63% of people are willing to pay for a loyalty program with valuable perks like free shipping (for example, Amazon Prime).

Leading brands are implementing loyalty programs that require members to pay a yearly fee in exchange for access to exclusive services and perks, delivering an immediate ROI in the form of membership fees and allowing retailers to identify and cultivate a reciprocal relationship and ongoing commitment with their most engaged customers. Here are three examples that showcase how contemporary retailers are leveraging pay-for-premium loyalty programs: