Points Programs Are Dead

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.

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