(Under Rachel Illingworth)
Paid loyalty programs are filled with savings and benefits, which are then bought by customers at a fraction of the true cost. And they’re gaining momentum in popularity. Why are they so popular with customers? And what makes a paid loyalty program successful?
Larger brands need customer loyalty. In their race for support, a new evolution in loyalty programs has cropped up. Free loyalty programs are everywhere. In fact, how many keychain cards are hanging out with your keys right now? With the prevalence of these free programs, paid loyalty programs become vastly more attractive to customers.
It’s proven that customers who pay for a specific savings program tend to be more loyal to that brand. With paid loyalty programs, companies create “customer engagement, customer loyalty, and incremental revenue,” according to Chris Duncan, CMO for Inte Q. With these newer paid loyalty programs, you build a unique and special relationship with a specific brand.
The complexity of the savings in these programs correlates directly with the cost of the membership. Fortunately, you get what you pay for. You see, the more a paid loyalty membership costs, the more savings you’ll attain.