Guide

The Real Value Of A Membership Program

By September 10, 2020 No Comments

Membership programs are popping up everywhere in the Ecommerce world (think Amazon Prime). But what is the real value of turning your customers into members?

A lot has changed since our Great-Grandmothers went to the same store week in and week out to buy the things they needed for their family.  But they haven’t changed as much as we might like to think.  Yes, we’re spoilt for choice these days and we can shop for almost anything from the comfort of our homes, but as consumers, we still enjoy the feeling that comes from being a valued customer.

Being a member of a community.

Our Grandmothers knew about consumer loyalty only too well.  Shopping at the same store each week earned them rewards such as discounts, first access to new products, a more generous helping of bulk goods and free gifts. And those rewards kept them coming back, even when competitors opened up new stores for them to visit.

If you’ve ever received a loyalty card when buying bread or a coffee, you know what I’m talking about.  Yes you could buy your coffee at the shop across the road, but your coffee shop knows your name and your daily order and they give you a free coffee after you buy 5.   So you stay loyal.

You see, not much has changed! Even now, we still like to be rewarded for our choices and we reward ‘sellers’ in return, with our loyalty.

How do I know?  Well apart from considering my own shopping habits, check out these stats;

  • Existing customers are 50% more likely to purchase your new product offerings
  • Returning customers spend on average 30% more than new customers

What does that tell us about our shopping habits?

We’re just as loyal as our Grandmothers were, which means that as long as we feel valued as consumers, we’ll keep coming back to spend our money with sellers.

Selling more and more often to your customers

As you undoubtedly know, the world of E-commerce is packed with sellers and finding someone to spend money with is as easy as typing a phrase into Google.  So the question for you as an online shop owner is; how do you turn a faceless buyer into a loyal, repeat customer?

You design a membership program with your customers in mind, that’s how.

What are memberships?

Unless you’ve been living under a rock you’ve probably already encountered modern-day membership programs like Prime by Amazon ( the biggest membership program in the world).

82 percent of US households with incomes over 110 thousand dollars per year are Prime members.

Simply put, a membership program is a defined relationship between a brand and a customer whereby the consumer is rewarded for their loyalty to the brand.

For example, as a ‘paid’ Amazon Prime member you will enjoy fast and free delivery and access to special offers.

Popular ways of rewarding members include:

  • Discounts
  • Tiered discounts that reward customers for buying more
  • Exclusive offers
  • Free shipping
  • VIP shopping days
  • Gifts with purchase

But here’s something else we can learn from the Amazon example, preferred pricing is not the only thing that makes a loyal and happy customer – successful membership programs must be backed up with excellent customer service, which is something that’s easy to manage when you sell via your Neto Store which is synced with Mailchimp (an email marketing platform).

What’s the benefit of a membership program for you?

As you can see from the Statistics I shared earlier it’s not just the consumer who benefits from a membership program.  Deepening your relationship with a consumer beyond the first sale, through a loyalty program (membership) is valuable for you as a business owner too.  Benefits include;

  • Recurring revenue for your business which increases the lifetime value of each customer.
  • A primed audience for new products, seasonal offers and sales.
  • Happy customers sharing the love with potential customers.

Yes, members tend to buy more and more often, which increases the lifetime value of every customer you acquire. But loyal members are also a great source of new customers as happy consumers love to share their experience with others (which means more new customers for you to turn into happy members).  Members are also an invaluable source of information for your business.

Understanding your customer – the real benefit of a membership program

A membership program gives you a way to engage with your customers.  It’s a chance to deepen the relationship beyond that first purchase.  And, paying members tend to be more inclined to share their personal information because they can see the link between doing so and the shopping experience they have with you.  The information you are able to collect from your members enables you to more clearly understand what matters to them, so you can continue to improve upon your product offerings and customer experience.  Which should in turn mean more sales and increased profitability for every customer you acquire in the first place.

Talk to Keesubscriptions about a Membership Program for your Neto Store

Now that you understand the real value of a Membership Program you’re probably asking yourself how you get started with one.  That’s where we come in.

With Keesubscriptions for Neto, you can fully automate your membership program for your Neto site. Which means you can start rewarding your members easily and conveniently  with great features including;

  • Coupons & Discounts
  • Free shipping
  • Preferred pricing
  • Membership fee credited as store credit
  • A member only Reward Points Program

Contact the team at Keesubscriptions to find out more and start rewarding your members today.

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Katie

Author Katie

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