Building an In This Article
Why membership programs are so valuable
How to better understand your customers
Designing your membership program with customers at the center
for your customers
A membership program can often be the key to creating better customer loyalty, higher retention, and increased customer lifetime value (LTV) for ecommerce stores. To be successful, merchants need to tailor their membership program to their customers’ preferences and needs—which requires a deep understanding of their current customers and target audience.
In this post, we’ll cover the difference between membership programs and traditional customer loyalty programs, plus how to understand your customers better so you can design a membership program that is exactly what they’re looking for. The more personalized and tailored your membership program, the more successful you’ll be.
Key takeaways Building an
Use market research, customer data, and customer personas to better understand your audience.
To design a membership program with customers at the center, brands should keep personalization and flexibility top of mind.
Offering a membership program with different options and customizations can help you be more successful.
Why membership programs are so valuable
The value of a membership program is undeniable. When customers buy into your brand, either with a one-time or recurring fee, they’re making a commitment that will lead to a stronger relationship with your store.
Memberships help merchants to increase their LTV by encouraging a higher purchase frequency and better brand association. Members are 60% more likely to spend more on a brand after joining—compared to just 30% for free loyalty program members.
A membership is also a great way for your brand to gain insights into your customers’ behaviors and preferences, since most members will purchase directly from your brand and not through a third party. Memberships encourage direct shopping by giving customers specific benefits that they can’t receive from other retailers or third parties. This means brands can collect meaningful data that will then make it easier to personalize the shopping experience—a win-win belize email list 35573 contact leads for both you and your customers.
Memberships vs. loyalty programs
With rising customer acquisition costs, the focus has turned back to customer retention. How can ecommerce merchants increase loyalty among existing customers?
Free loyalty programs often come to mind. But, as we’ve discussed above, memberships are really the ticket to creating a higher level of loyalty. Perhaps because a cost is associated with them, unlike unpaid loyalty programs. Customers have to actively choose to participate, and therefore are more likely to engage and purchase with the brand, knowing their loyalty will be more user-generated video content discoveries rewarded in ways that are appealing to them.
Subscription products also work much like a membership, where the customer commits to buying a product or service on subscription, and be numbers receives special benefits like free shipping or discounts because of it. So whether you offer a paid membership or subs
