Having a member-only model can guarantee long-term benefits and improve CLTV, but this can only work if you get people to join you. If you have a membership model set up on your eCommerce store on Shopify, you need to ramp up its appeal for shoppers to turn into members. This means leveling up the types of discounts you have on offer.
Here we will look at some common types of member-only discounts that have helped brands attract more customers and increase their memberships.
Types of members-only discounts we recommend setting up
These are some of the best member-only discount types that we highly recommend setting up, to see a boost in memberships:
1. Percentage-based discounts
Percentage-based discounts are one of the most common and straightforward ways to incentivize memberships. And the reason behind its popularity is that besides its simplicity, it works exceptionally well.
Members can save on most of their purchases, giving them an ongoing reason to remain part of your membership program. Be it a 10% discount across categories or category-specific discounts, there is a strong perceived value that is being created, with tangible benefits being offered that justify membership costs.
One of the most popular examples of this is Amazon’s Prime membership which offers great percentage-based discounts to its members on Prime Day.
2. Tiered discounts
By offering increasing rewards based on higher purchase value, tiered discounts for members can motivate them to spend more and reap the benefits. For instance, if a member has a total cart value that hits a specific threshold, they will unlock a higher discount percentage than what they previously availed at a lower tier.
This discount type has been successfully employed by a lot of brands to create a gamified experience with a sense of achievement while offering tangible value for the customers as they move up the tiers. Customers are encouraged to stay as members and continue shopping with the brand and are constantly rewarded for their loyalty.
This is perfectly exemplified in Sephora’s Beauty Insider program, where rewards and incentives are distributed into tiers based on customers’ annual spending.
3. Exclusive product discounts
Customers opt for memberships primarily because they expect exclusive and high-value discounts and benefits. So, providing this exclusivity is crucial to boosting memberships and loyalty. One of the best member-only discount strategies to do this is through exclusive product discounts, that appeal to the customers’ desire for special treatment.
These perks play a crucial role in differentiating your membership program from competitors and make members feel privileged.
These offers could be for limited edition collections, newly launched products, or member-only bundles. For example, a brand that offers fitness products can offer its members early exclusive discounts on their latest special-edition workout gear.
4. Early-bird discounts
Another effective member-only discount strategy is to provide early-bird discounts that provide members special access to sales, product launches, limited-time offers etc. before anyone else.
Through such preferential treatment, you can foster loyalty among your existing customers while compelling potential members to join fast to get the benefits. During key promotional periods, knowing that they will have the first chance to grab the hottest deals or popular products can drive membership sign-ups and encourage more engagement.
Amazon is popular for its Prime Early Bird special sales during major sales events like Black Friday or Prime Day:
5. Volume discounts
For brands selling consumables or items that are often purchased in multiples, offering volume discounts is a perfect way to boost memberships. This member-only discount strategy can also help boost average order values as it encourages customers to buy in bulk by offering good value for money. These discounts also create convenience for members as they can shop in larger quantities at fewer frequencies for better prices.
Costco membership is known for its excellent execution of volume discounts that offer customers significant value for larger purchases.
6. Free shipping discounts
Free shipping is, without a doubt, one of the most desired perks in eCommerce. Shipping costs are often responsible for deterring customers from completing their purchases, so offering members free shipping on all orders, eliminates this friction entirely and in place, makes for a seamless and simple checkout process.
American retail booksellers, Barnes & Noble, for example, adds significant value to their Premium and Barnes & Noble Legacy membership plans by providing free standard shipping on all eligible orders.
7. Credit or cashback discounts
Credit or cash back rewards let members earn points or cashback with every purchase they make, thus attaching a great value proposition to the membership. For example, brands can let members earn 5% cashback coupons or points for every purchase, which they can redeem on later purchases.
This lets you create an effective loyalty loop that encourages repeat purchases and enhances the long-term value of your membership program.
Starbucks offers a great example of incentivizing every purchase through “Star Points” which can be redeemed for cashbacks or free products.
8. Seasonal or holiday discounts
You can share personalized offers for members during holidays or around seasonal themes, aligning your membership program with peak shopping seasons. You can offer members exclusive deals during events like Black Friday, Valentine’s Day, and Christmas or share special summer-themed discounts, making your membership feel timely and relevant. These special seasonal member-only discounts also give customers a reason to shop from you instead of competitors during high-demand periods.
For example, during Christmas, an apparel brand can offer members a special discount on their latest winter collection or Christmas-themed products.
9. Birthday or anniversary discounts
Celebrating personal milestones such as birthdays or membership anniversaries can help create a deeper emotional connection with your members, which can go a long way in terms of inspiring loyalty. Offering special discounts during these times adds a personal touch to the membership program and is a step towards pulling the right heartstrings with a customer to induce loyalty.
These positive experiences can also turn members into active brand advocates who will bring you new member sign-ups organically. Here is how Ulta Beauty does this:
10. Bundle deals for members
Bundle deals are extremely effective at creating a sense of additional value while increasing the average order value from your members. It encourages your members to explore and purchase more products by combining related items at a discounted price.
For example; if you are a skincare brand, you can bundle together different skincare routine kits for different skin types, with a special 30% discount to VIP members, thus appealing to them with both convenience and value.
Bundling products can also help move slower-selling inventory, as they incentivize members to try new products or services that they might not have considered otherwise.
11. Flash discounts
FOMO and a sense of urgency are more powerful psychological triggers than one would think. Use flash sales to leverage this and create buzz among your members. The time limit, the exclusivity of the sale and the unique advantages that are offered, often encourage spontaneous purchases, while compelling non-members to be a part of it by joining.
MasterClass for example has a unique way of using flash sales for increasing membership. The 2-for-1 membership projects greater but for a limited-time deal, thus driving faster decisions, while appealing to both new and existing members.
Conclusion
Discounts and incentives have historically been a go-to strategy to attract more customers across diverse business models. With a perceivable and appealing value proposition, it can really impact how well your members-only subscription works.
And the best way to set up diverse and dynamic members-only discount strategies is with Appstle Subscriptions. From tiered discounts to custom shipping to bundles to other intuitive loyalty features Appstle offers everything you need to boost loyalty organically.