As many brands rethink their respective loyalty strategies, seeking to make them more personalized and relevant, some have opted for a paid, premium loyalty option.
Just ask Wayfair, which offers one of the world’s largest online selections of furniture, home furnishings, décor, and goods, including more than eight million products.
This week Wayfair launched a premium loyalty program called MyWay, which carries with it an annual membership fee of $29.99. MyWay members receive benefits including access to insider sales, 25 percent discounts on installation and assembly services, free shipping with no minimum, and next-day delivery.
The new program’s benefits can be applied to purchases at its Joss & Main, AllModern, and Birch Lane banners. MyWay is also available at Wayfair.ca with benefits specifically tailored to Canadian customers.
The Wayfair Paid Loyalty Program Creates Genuine Value
Traditional and one-size-fits-all loyalty programs, while still appealing to many, struggle to create significant differentiation that truly modifies customer behavior and creates brand advocates.
Customers have needs ranging from transactional utility to emotional connection. There are many ways to deliver utility and transactional benefits beyond discounts, which include focusing on the experience—making shopping easier, offering enhanced shipping, member-only checkout, etc.
Brands understand that they need to strengthen consumer relationships through trust and reciprocity. Creating a value exchange that occurs at every touch point between you and your customers is vitally important to gain brand loyalty.
That genuine value exchange can come from a premium loyalty program.
65 percent of customers said they thought that it was worth joining a paid program if the rewards were relevant to their needs. What’s more, 54 percent of 25-34-year-olds surveyed said rewards in fee-based programs are better than those of free programs.
Premium loyalty programs identify your best customers and offer unique and compelling benefits and experiences. As a result, your best and most loyal customers become exponentially more valuable and create an ancillary stream.
More Retailers Are Getting On Board with Paid Loyalty
Catering to your most valuable and loyal customers is the best way to earn sustainable brand advocacy. For example, consider how a premium loyalty program transformed Restoration Hardware.
In early 2016, Restoration Hardware CEO Gary Friedman knew things had to change and the main focus was delighting the customer. So in April of that year, Restoration Hardware launched its RH Members premium loyalty program and, by doing so, eliminated its antiquated promotional initiatives.
For a $100 annual fee, members receive 25 percent off all full-price purchases immediately after signing up. What’s more, members also receive experiential benefits like free interior design services.
Bottom line: Ninety-five percent of Restoration Hardware’s business is driven by members of its premium loyalty program.
According to Friedman, a premium loyalty program has “enhanced our brand, streamlined our operations, and vastly improved the customer experience.”
Prime, which eclipsed 100 million members in April, is the shining example of the potent power behind a premium loyalty program that offers engaging and exciting benefits. Brands like Amazon have created premium loyalty programs that are tailored to their customers’ specific needs, supporting their brand messaging, impacting the customer experience, and delivering results.
A premium loyalty program targets your best customers, entices them to become members, to stay engaged, and creates brand advocates. It creates a profound value proposition that makes members think about your brand every day.
CX metrics play a vital role at Wayfair, which leverages technology and strong visual merchandising to assist customers and provide the best possible shopping experience for home.