The Supreme Society, an Australian membership and rewards program, is one such pioneering company … [+]
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When the economy looks uncertain, unnecessary spending goes out of the window. People are more focused on their necessary monthly bills to shore up finances and prepare for the unexpected. In 2020, retail markets suffered when consumer spending took a significant slump. People stayed inside, were less likely to buy, and made more conservative purchasing decisions. As in any other industry last year, executives have had to innovate and find new ways to reach their target market and generate revenue.
One way companies could learn to innovate was by developing membership programs. These programs can be offered to different types of buyers and apply to all businesses. It also creates a unique sense of loyalty and ensures a certain level of customer loyalty. Cafes, gyms, and retail stores developing these programs can leverage the consistency of having customers who keep coming back to support these businesses.
The Supreme Society, an Australian membership and rewards program, is one such company that has pioneered the concept by creating an environment with exclusive access at a discounted rate. Through their program, members have access to everyday items at a discounted price. No matter what industry you are in, you can benefit from this new business model. Here are three reasons why more consumers will embrace the membership model that is being driven by the ongoing digital transformation.
Memberships benefit brands as well as consumers
Brands benefit from the fact that membership programs already tend to buy their products and consumers benefit from discounted prices for the items they want, creating an equal exchange and a sense of trust between them.
For brand partners of the Supreme Society, which started out as a largely auto-focused group, members are already interested in the products they offer and ready to invest in them. The Supreme Society gathered potential customers for these luxury automobile brands and gave them access to the products they wanted.
This type of membership access minimizes wasted marketing dollars by focusing efforts on the most accessible audience.
Both buyers and brands benefit financially. Buyers receive an exclusive, discounted price on products under the membership program. Brands receive targeted leads and an increase in customer benefit for life.
Builds customer loyalty into the business model
This initial investment in membership ensures that buyers are taking advantage of the services on offer because they want to maximize their ROI. Ultimately, this focuses the buyer’s spending energy on the brands that have partnered with the member service.
The luxury travel and vacation company Inspirato proves this point. Members pay an annual fee only for access to exclusive travel accommodations in desirable locations. In addition to this $ 600 monthly fee, they pay for every travel experience they make under the program. With their initial investment and monthly payment, members are motivated to return to the company every time they travel. This generates consistent revenue for the company as returning customers are already built into the business model.
This strategy will provide the consistency many markets need to weather the economic impact of 2020, whether memberships are about travel, apparel, or vehicles. By focusing on energy consumption, buyers get access to their products at a discounted price. These brands benefit from the fact that their customers keep coming back, thanks to both the benefits of membership and their initial investment.
Maintains the community around common interests
Over the past decade, millennial spending habits have transformed the retail market. They valued experiences about things, and this changed the way brands responded to their interests. These spending habits are changing again as Gen Z becomes a major player in the shopping world. The digital natives of this generation are growing up in a world in which influencers present luxury items on a daily basis and experiences with shopping coincide.
Membership programs will bridge the generation gap because they offer an experience and a product at the same time. Members have a common interest in the products or services they have subscribed to and are automatically part of a group of like-minded people. The Supreme Society takes advantage of this community aspect with events, reward programs and giveaways to further fulfill consumer demands for exclusive products and experiences.
Membership programs are a unique way to get consumers to learn more. As the world returns from standstill, people yearn for connection, unique experiences, and the feeling of having access to something exclusive. I am confident that we will only see this business model on the rise in the years to come.