Paid Memberships Are Taking Over.
↳ (‘loyalty landscape’ infographic)
Consumers are done with points programs.
They offer no real value:
‣ Confusing redemption processes
‣ No clear way to track points
‣ Lack of usage, engagement
Paid loyalty is where things change.
Think Amazon Prime, DashPass, Walmart+, Target Circle, Uber One. These programs offer immediate value, leading to a major shift in consumer behaviour:
‣ High usage
‣ High engagement
‣ Increased spend
Members spend more because they have “skin in the game”.
For example, Prime members spend an average of $1,400/ year. That’s double what non-members spend on Amazon. Other paid loyalty programs see the same lift. That increased revenue enables companies to reinvest in customer benefits like:
‣ Free shipping
‣ Discounts
‣ Exclusive events
This creates a cycle: more value → more engagement → higher spending.
Free points programs are done.
Paid loyalty is here.
Retention is Revenue
Churn is now a boardroom problem. If you’re in the
