“To fee or not to fee ?” will be the question many retailers ask themselves this year, as paid loyalty programs steadily take hold. While the paid model isn’t new — Costco is a pioneer in this space and game-changer Amazon Prime launched back in 2005 — more retailers are viewing pay-to-play as a compelling option for both members and their businesses. Restoration Hardware, GameStop, Bed Bath & Beyond, and GNC have all jumped on board, and the pay-to-play movement will only grow from here. While members are used to getting rewards for free, a meaningful proportion of consumers now agree certain perks are worth paying for. In The Loyalty Report 2018 , which surveyed 16,000 consumers in the U.S., 37 percent said they’re willing to pay a fee for enhanced benefits in a loyalty program. Gen Z consumers (47 percent) and millennials (46 percent), as well as households with children (44 percent) and early technology adopters (69 percent) are even more willing to pay for premium loyalty programs. The Loyalty Report 2018 What’s in it for members who pay to be in a loyalty program? Many paid programs offer benefits such as free shipping, members-only pricing, and exclusive access to sales. GNC’s premium membership, for example, includes “Pick-Your-Sale Days,” giveaways and “Pro Boxes” with samples and coupons delivered to members’ doors twice a year. The $40-a-year program seems to tick the box on what makes a paid tier successful: high-perceived value for members and low cost for the business to fulfill. Restoration Hardware is another example of a high-value paid program. For $100 a year, the RH Grey Card offers members complimentary interior design services, reduced interest rates on the RH credit card, as well as 25 percent savings on all regularly priced merchandise and 20 percent off […]

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Source:  Total Retail