Loyalty Programs – Is it time to charge for a membership?
Should you take a closer look at charging for a Loyalty Club membership?
Some retailers have begun to change their perspective when it comes to Loyalty Club memberships. While these were initially a method for getting repeat business, the ongoing cost of management of these programs and their effect on a store’s bottom line have forced owners to reevaluate their process. As a result, stores are starting to roll out a ‘paid membership’ program, whereby a fee (one time or annual) is assessed to the consumer in order for them to remain in the program.
There are many ways this can be implemented: first-year free, pay one time, pay annually. While this has gained traction over the past year, it seems that the renewal tolerance is no less than a year; i.e. this is not a program you would introduce on a quarterly or monthly expiration.
There may be a few readers raising their eyebrows at this seemingly shocking reversal of today’s retail mind-set; however I have 2 words in rebuttal: Amazon Prime.
(and of course, we wouldn’t be writing about it if WinePOS didn’t have it available…)