Well – yes! If you get it right, and people think they’re getting MORE value than they’re paying for, then paid-for loyalty clubs can work brilliantly.
Zooplus are a great example.
We have two dogs. Bob, our rescue Cojak (that’s a Corgi x Jack Russell, in case you’re wondering!) is fat. Our collie Jess is not.
It’s a pain, because we have to give them different dog food (even though Greedy Bob usually tries to eat both anyway).
So 6 or 7 times a year, we order two big old sacks of dinner from Zooplus, an online pet store.
What’s really clever is that when you go to their checkout page, they give you the option to buy into their “VIP Savings Plan” loyalty club.
It costs £1.99 for one year; or £2.99 for two years.
And that ‘buys’ you a 3% discount on your order + all future purchases, for one or two years.
It’s another no-brainer.
We saved more than £1.99 on our first purchase alone. Our dogs need to keep eating. So why wouldn’t we buy into their loyalty club?
The clever part is charging for it. It’s a weird human psychology thing, that when we pay for something (rather than getting it for free), we value it more.
You’ve spent money on it, so you want the value. And you’ll keep going back to get it.
Now – Zooplus are great in many ways. They’ve never let us down or not delivered. They’re competitively priced; delivery is fast + free; re-ordering is easy.
If any of these things changed, then clearly a £2.99 investment would probably NOT be enough to keep a customer loyal.
But assuming the product & service remains the same, it’s a smart way to get customers coming back to YOU, rather than drifiting off to a competitior.
The 3% cost to your business is the price you pay to keep that customer coming back, over the next year or two.
It’s smart. I certainly can’t see us going anywhere else to buy our dog food. And I’m sure a lot of other people feel the same.
Could it work in your business? Is there a way you could offer your customers something of value – more value than they perceive it costs – to keep them loyal to you?
Especially if you’re a retailer, food-based business or have customers who buy what you sell regularly – it’s GOT to be worth serious thought.
It’s something we’ll be working on with our clients over the coming weeks, anyway!
Until next time
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