Memberships help build relationships for marketers. Memberships can create profits in greater loyalty and better lifetime value.
The fact is, people like to be a part of something larger than themselves. It’s basic psychology.
Can your product or service benefit from a membership club? Your customers’ perceived benefits are many:
- Your customer feels a sense of belonging
Amazon has a program called Prime, with 80 million subscribers. For $99 a year, members get free two-day shipping, unlimited streaming of movies and TV shows, unlimited streaming of music, and more.
- Customers are rewarded with discounts and special offers
Women’s sportswear merchant Title Nine offers a $29 annual membership that gains the customer 5% off all purchases, as well as shipping upgrades and prior notice of upcoming sales and product instructions. Perception is key, with actual benefits.
- Customers perceive a higher level of quality and service.
Skincare giant Clinique offers their club members personal product recommendations, the ability to shop from past purchases, faster checkout, makeup tips, and free samples.
- Customers appreciate exclusivity.
One of our clients wanted to create a high-end program for his investment newsletter. We developed a special newsletter limited to a fixed number of subscribers only, then created a special “members only” URL and sign-in website page that made his subscribers feel as though they were in a group of elite members.
The campaign was a massive success and cash flow cow.
How to Structure Your Program
First, analyze how to create a program best suited to your product or service. What are benefits your prospects will get excited over?
Be Aware of Perceived Value
If you decide to charge a fee for your membership program, make sure your customer perceives a savings value. No one wants to spend $39 to save $%.
VIP Means “Very Important Prospect”
Another facet of your program could be to a VIP program that enables access to special or limited-edition products, which also helps shoppers come back to the site. Plus, email marketing is much less of a perceived nuisance, but wanted and viewed.
Your weekly advertising email might not mean much to your consumer right now, but a biweekly “Secret Sale” email may be just the thing to get your customer to make the purchase. A special logon URL can also work wonders and give an air of exclusivity.
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