The Rewards of Membership

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Brands are increasingly turning to membership programs in order to attract repeat customers and build an engaged, loyal audience. In fact, many of them are working; Nike reports that NikePlus members spend three times more overall than non-members, while Ulta members are responsible for an incredible 95 percent of the beauty retailer’s sales.

Loyalty programs are popular. 62 percent of consumers feel that they add value, according to the brand marketing agency Stella Rising. That said, engagement needs work, with Mintel noting that over half of memberships are inactive. Consumers are seeking flexibility with their programs and expect an excellent experience. Notably, 76 percent of younger consumers will give brands only two or three chances before ceasing the relationship.

As the accompanying infographic from Stella Rising illustrates, successful loyalty is driven through multidimensional programs, delight, shared values, price and quality.

Source: Stella Rising