Competition in eCommerce is only increasing. Brands are constantly trying innovative ways to increase revenue.
One strategy that has proven to be powerful is exclusivity. eCommerce memberships help brands create exclusivity.
Exclusivity taps into human psychology, makes consumers feel special, creates a community of select people, and increases the perceived value of customers’ engagement with brands.
Exclusivity as a psychological tactic gives eCommerce brands multiple ways to tap into revenue generation. In this blog, we look at the various strategies to monetize exclusive memberships for Shopify stores.
Why does exclusivity work?
Implementing exclusivity strategies helps brands enhance the perceived value of its membership programs. For instance, when something is available to everyone, it is considered regular. However, when the same thing is made exclusive for a select few, its value increases.
It is human psychology. We like to feel special, exclusive, and stand out from the crowd. Whether this feeling of exclusivity is through price, invitation, special benefits, or timing, when something is rare and scarce, we value it more.
Moreover, we also like to be part of communities, something that membership programs are able to create for customers. Customers are willing to pay more for such exclusive experiences. And for brands, membership programs offer opportunities to create these exclusive experiences as well as monetize them.
Let’s look at some reasons why customers pay for exclusivity:
- The feeling of being special and VIP
- Access to limited-availability products
- Connection with like-minded communities
- Learning opportunities and inside knowledge
Consider these statistics:
- In 2023, 75% of US consumers belonged to at least one membership program. (McKinsey)
- 57% of customers say quality and value are the main reasons to consider paid memberships. (KPMG)
Strategies to monetize exclusive membership access
Merely setting up a good membership program will not help you generate revenue. You will have to implement different strategies to transform memberships into revenue. Here are four such strategies to monetize exclusive memberships.
1. Early drops
Early drops or exclusive access to new products makes customers feel exclusive. This exclusivity encourages them to make purchases. Early access is one of the most common tactics used by eCommerce brands to cater to their VIP and premium members.
Human beings are wired to seek exclusivity and feeling special. For brands, this is a great way to monetize exclusive memberships. For instance, Nike’s SNKRS app offers its members exclusive access to limited-edition products. The brand has seen increased sales as well as a reduction in customer acquisition costs.
Here are some tips to set up exclusive access campaigns:
- Create a buzz through teaser campaigns, such as countdowns, hints of upcoming releases, etc.
- Create segments or tiers for early access. For instance, VIP members get access 48 hours early, regular members get access 12 hours early and general public get access to the products only ones it is launched
- Send personalized email and SMS notifications with links to the early drop product pages
- Display FOMO elements, such as scarcity indicators, real-time inventory countdown, etc.
2. Generate revenue through content
Shopify brands offering memberships can also generate revenue through content. For instance, when brands focus on establishing expertise in their industry subject matter and create a compelling story around their brand, they can monetize content strategically and generate membership-based revenue.
Here are some ways you can monetize exclusive content marketing via your memberships:
- Offer your members paid educational courses
- Offer how-to-guides and product usage tips
- Create a paid newsletter with exclusive content for members
- Run exclusive content marketing campaigns for members only
- Create behind-the-scenes content around product development
- Create a subscription model for your exclusive content; example, newsletter
- Offer member-only discounts on certain types of content
By offering exclusive content to members, you can build deeper relationships, and provide value beyond transactions. Moreover, when customers see added value in your memberships, it can increase the retention rate, thus, leading to higher customer lifetime value.
Example
3. Paid memberships
Membership programs can be paid or free. Creating paid membership benefits programs can help you build a community of high-value customers. Paid membership programs are an effective revenue stream for brands, helping brands monetize exclusive memberships.
One of the best examples of paid memberships is Amazon Prime. The brand charges an annual membership fee. This fee brings recurring and predictable revenue, increases the CLV, increases purchase frequency of customers, and lowers customer acquisition costs. All these factors lead to more revenue.
However, a critical factor in paid memberships is the pricing or the fee. Let’s look at some ways to price membership programs:
- Create multiple tiers or levels and different price points. For instance, silver tier $100, gold tier $150 and platinum tier $200 and offer different exclusive VIP customer perks to each tier
- Value-based pricing could be somewhat variable and depend on usage. For example, members who purchase $5000 per year pay $50 membership fee, while those that purchase less, pay $100 fee
- Premium pricing that creates exclusivity through members’ financial commitment
4. Premium access beyond products
Today, customers expect more than just products and transactional experiences. Apart from products, there are many other factors that help in engaging them. And these other elements also drive revenue.
Here are some non-product based factors that can help you increase membership-based revenue:
- Offer early access to members to sales and events
- Create exclusive shopping windows for members. This can help increase membership sign-ups
- Clearly communicate about the exclusive window
- Use a Shopify membership app that allows seamless verification
- Organize exclusive live streams and Q&A sessions for members
- Create private forums and communities for members
Let’s look at some tips and cues to keep your Shopify exclusive membership program relevant for customers:
- Keep your Shopify store updated with products in demand
- Regularly update exclusive VIP customer perks
- Frequently communicate with customers
- Create a member community
- Create members-only activities
- Gamify your ecommerce membership program
- Consistently follow up with members
- Enable perks-sharing for members
How to set up exclusive member access on Shopify
There are many different ways to set up exclusive access memberships on Shopify. There are a number of apps designed to help brands set up membership programs. Shopify also has in-built features that support membership features.
For instance, Shopify customer accounts and tags for basic segmentation, password protection for exclusive collection pages, and discount codes specific to member groups, are some of these features.
Shopify apps, such as Appstle Memberships enable seamless set-up and managing for recurring billing and transactions. Moreover, Appstle also has customization features that can help brands tweak and integrate unique features to meet their specific requirements.
With Appstle Memberships app, you can set up various types of membership plans, offer different VIP customer perks, set up automated billing and notifications, offer customized perks, enable smart member tagging to associate the right perks with the right member plans, etc.
Another important aspect of membership programs is effective communication. Integrating and automating communication via SMS, email, WhatsApp, etc., can help brands communicate with members effectively.
Moreover, personalization is a must when you want to create exclusive membership experiences. It enhances the value perception of your program. For instance, with personalization strategies, you can share dynamic content with different member segments, offer personalized perks and benefits, etc.
Examples of membership programs with exclusive access strategies
In this section, we look at a few examples of successful membership programs and share key takeaways that you can implement in your Shopify membership programs.
1. Baking for Business
Baking for Business is an online membership model that caters to home bakers who want to launch their baking business. Apart from free courses and guides, members can sign up for the paid membership and get access to courses, recipes, social media templates, and business classes.
Key takeaways:
- Simple membership model
- Free access to courses
- Exclusive content, courses, recipes, and business lessons for paid members
- Offer a community experience to members
2. Vintage Sewing School
The online sewing school, Vintage Sewing School, offers online classes, courses, and a community of like minded members interested in sewing. The brand offers video courses, new courses every month, advanced lessons, and a community of members to support each other. The brand also organizes events and contests for members.
Key takeaways:
- Affordable membership pricing
- New content every month to keep members engaged
- Advanced classes and courses add value to members
Get started with monetizing exclusive memberships
From paid membership benefits to exclusive content marketing for members to offering perks beyond products, there are a lot of ways you can monetize exclusive memberships on your Shopify stores.
However, for a seamless membership experience for your customers, you will need a smart Shopify app that supports various features, easy integrations, and automation.
Appstle Membership App is designed for Shopify and Shopify Plus stores to incorporate strategies such as paid memberships benefits, exclusive content marketing, and other such monetization tactics that take memberships beyond products and transactions.
You can implement these strategies with the help of Appstle Memberships App.
