Deal-seeking shoppers like to enroll in retailer loyalty programs. In addition to price incentives, shoppers expect these programs to be more personalized, holistic and integrated with other key activities. Although most membership programs charge an upfront annual fee, these services create added costs for retailers. Membership programs offer an opportunity for members to shop regularly at the same retailer – a long-term relationship that could benefit both the shopper as well as the retailer. In the hopes of building such loyalty, several retailers (online as well as brick-and-mortar retailers) have placed a priority on their membership programs.
One way to create loyalty is to build ongoing relationships in addition to just transactions.
The key to building a successful membership program will lie in the ability of retailers to build relationships and experiences with their members so as to add value instead of just driving transactions.