{"id":1535,"date":"2021-04-12T11:49:53","date_gmt":"2021-04-12T09:49:53","guid":{"rendered":"http:\/\/i360.trejka05.pl\/?p=1535"},"modified":"2021-07-16T08:49:08","modified_gmt":"2021-07-16T06:49:08","slug":"premium-loyalty-schemes-and-paid-membership","status":"publish","type":"post","link":"https:\/\/i360.com.pl\/en\/programy-lojalnosciowe-typu-premium-i-platne-czlonkostwo\/","title":{"rendered":"\u201ePremium\u201d loyalty schemes and paid membership"},"content":{"rendered":"

\u201ePremium\u201d loyalty schemes and paid membership<\/span><\/strong><\/p>\n\n\n\n

In Poland, there is already a glut of loyalty schemes on the market. For this reason, their organisers are trying to stand out in some way by using new techniques or ideas. Despite this, such schemes are still quite similar to one another.<\/p>\n\n\n\n

The free ones are by far the most popular loyalty schemes<\/a>. They are very popular because users do not need to actively participate in them \u2013 all they have to do is register and use the card or app. But how can we effectively encourage participants to get involved and take an active part? One of the best methods is what is known as \u201esegmentation\u201d. This is a very complex issue, so it is best to discuss all the related aspects in detail. It is, amongst other things, extremely important to identify \u2018premium\u2019 participants.<\/p>\n\n\n\n

METHODS OF SEGMENTING PARTICIPANTS<\/h2>\n\n\n\n

Organisers of loyalty schemes aim to engage participants, thereby strengthening their loyalty to the brand. For this to succeed, it is first necessary to capture the audience\u2019s attention and then motivate them to take action.<\/p>\n\n\n\n

One of the best motivational tools is what is known as participant segmentation. What does this involve, and what are the different types of this method?<\/p>\n\n\n\n

1. Participants can be segmented based on the value of their shopping basket; for example, if a customer has spent at least 10,000 zlotys over the course of a year, they are classified into a higher tier. This entitles them to better benefits.<\/p>\n\n\n\n

2. Segmentation is also often carried out through participation fees. Once they have taken out a subscription, participants receive better benefits, which are of greater value than the fee itself. It is, of course, not compulsory, but the very possibility of doing so effectively encourages participation.<\/p>\n\n\n\n

3. In the financial sector, segmentation based on the products held is the most common approach. Customers are usually categorised according to their payment cards, which are granted VIP status. Their holders are granted additional privileges.<\/p>\n\n\n\n

\u201ePREMIUM\u201d LOYALTY SCHEMES\u201d<\/h3>\n\n\n\n

.<\/span><\/span><\/p>\n\n\n\n

To begin with, we will briefly outline a few popular \u201epremium\u201d programmes in Poland and around the world, in which participants are segmented according to the fees they pay.<\/p>\n\n\n\n

One of the best-known examples on our market is the programme Allegro Smart<\/strong>.<\/p>\n\n\n\n

Fees<\/span> The membership fees are: 10.99 z\u0142 for a monthly package (30 days) and an average of 4.08 z\u0142 for an annual package (12 months).<\/p>\n\n\n\n

How can one attach<\/span> How do I join the programme? You need to create an account on allegro.pl, then add the relevant item to your basket. Next, select a payment method and complete the transaction.<\/p>\n\n\n\n

The organiser offers a money-back guarantee on your first purchase of the service after you have tried Allegro Smart for a month (30 days). Students, meanwhile, can use Allegro Smart for free for up to 6 months to start with.<\/p>\n\n\n\n

To benefits<\/span> The services provided by this programme include:<\/p>\n\n\n\n

  • free delivery to parcel lockers and collection points on orders of at least 40 z\u0142;<\/li>
  • free courier delivery on orders of at least 100 z\u0142;<\/li>
  • free returns (BUT: parcels from a parcel locker can only be returned via a parcel locker; parcels collected from a collection point can only be returned at Poczta Polska branches; courier parcels can only be returned at Poczta Polska branches or via parcel lockers);<\/li>
  • access to exclusive SMART offers.<\/li><\/ul>\n\n\n\n

    A paid programme is also a popular option Empik Premium<\/strong>, which runs alongside the free Empik Premium Free version.<\/p>\n\n\n\n

    Fees<\/span> Membership is available in three packages: a monthly package for 9.99 z\u0142 (when paying by card), a six-month package for 6.67 z\u0142 (totalling 39.99 z\u0142) and a twelve-month package for 4.17 z\u0142 (i.e. 49.99 z\u0142 for the package).<\/p>\n\n\n\n

    In order to attach<\/span>, you need to create an account on empik.com and sign up for the M\u00f3j Empik programme. You can then purchase the relevant package and make the payment.<\/p>\n\n\n\n

    Participants receive 10 z\u0142 towards future purchases, have 30 days to return items without a receipt, and support school libraries with every purchase.<\/p>\n\n\n\n

    Among benefits<\/span> The services offered by this programme include:<\/p>\n\n\n\n

    • free delivery on all orders of at least 40 z\u0142;<\/li>
    • exclusive offers;<\/li>
    • a permanent discount of 15% in high-street stores and up to 20% on empik.com;<\/li>
    • Advance ticket sales and up to 20% discounts at Helios cinemas;<\/li>
    • over 13,000 free audiobooks, e-books and podcasts on the Empik GO service;<\/li>
    • a 20% discount on the entire range and 50 prints for 1 z\u0142 to get you started with the Empik Photo service;<\/li>
    • 6 months\u2019 free music after signing up to Empik Music for the first time;<\/li>
    • 3% cashback on purchases in-store and at empik.com.<\/li><\/ul>\n\n\n\n

      Abroad, paid loyalty schemes are nothing new. One of the biggest is Amazon Prime<\/strong>.<\/p>\n\n\n\n

      Fees<\/span> cost 12.99 $ per month or 119 $ per year of membership. There is also the option to join the Prime Video programme only, which costs 8.99 $ per month.<\/p>\n\n\n\n

      How attach<\/span>? First, you need to create an account on Amazon, save and confirm your payment method in your account. Then, all you need to do is express your wish to join the programme and pay the fee.<\/p>\n\n\n\n

      Participants can take advantage of a free 30-day trial.<\/p>\n\n\n\n

      The programme offers a wide variety of benefits<\/span>, which are often specific to a particular geographical area. They can be divided into several categories, including:<\/p>\n\n\n\n

      • delivery \u2013 free two-day delivery, same-day delivery, two-hour delivery, delivery on a specified date, standard delivery or Amazon Day (discounts on delivery);<\/li>
      • Reading \u2013 Prime Reading (book and magazine loans), Amazon First Reads (free early access to new books);<\/li>
      • streaming \u2013 Prime Video (unlimited streaming of films and TV channels, paid access to HBO, SHOWTIME and STARZ), Prime Music (unlimited access to Prime Playlists and over two million songs, discounts on monthly and annual Amazon Music Unlimited plans) and Prime Gaming (free games and add-ons, as well as a free subscription to a selected channel on Twitch.tv);<\/li>
      • shopping \u2013 member discounts and 5% cashback with the Amazon Prime Rewards Visa card, access to Amazon 4-star and Amazon Books stores, Virtual Dash Buttons, Amazon Fresh, finance options with the Amazon Prime Store Card, Prime Wardrobe (one week to try on clothes at home), Personal Shopper by Prime Wardrobe (paid, monthly stylist support), special offers and discounts with Amazon Family, Prime Early Access (30-minute early access to Lightning Deals on Amazon.com), Amazon Elements (access to Amazon\u2019s own-brand product range);<\/li>
      • photos \u2013 the ability to store photos, along with additional search and organisation features on Amazon Drive;<\/li>
      • AMAZON HOUSEHOLD \u2013 two adults living in the same household can set up what is known as an Amazon household.<\/li><\/ul>\n\n\n\n

        Another interesting example from the international market is the programme BARNES & NOBLE<\/strong><\/p>\n\n\n\n

        Fees<\/span> They are available in only one option and cost 25 $ per year of membership.<\/p>\n\n\n\n

        If you want to go there will join<\/span>\u0107<\/span>, you need to create or have an active account, then add the membership option to your basket (just like a product), and finally complete the payment.<\/p>\n\n\n\n

        Participation in the programme offers the following benefits<\/span>:<\/p>\n\n\n\n

        • discounts on eligible purchases;<\/li>
        • 40% discounts on best-selling hardback books;<\/li>
        • 10% discounts on the marked retail price of Barnes & Noble and other eligible products;<\/li>
        • free standard delivery (no minimum spend);<\/li>
        • a birthday offer sent to your email address;<\/li>
        • periodic exclusive offers.<\/li><\/ul>\n\n\n\n

          Another interesting programme is, for example,. REI.COM<\/strong>.<\/p>\n\n\n\n

          Interestingly, on the subject of fees<\/span>, it is paid only once. A payment of 20 $ secures lifetime membership of the scheme.<\/p>\n\n\n\n

          In order to attach<\/span>, you must have an active membership account, to which you must add the option to join the programme to your basket, and then complete the transaction in the same way as you would for a standard product.<\/p>\n\n\n\n

          The programme offers a unique benefits<\/span>, such as, amongst others:<\/p>\n\n\n\n

          • an annual dividend payment in March (for active members, this amounts to 10% of a rebate on eligible REI purchases. Activity is determined on the basis of net purchases or dispatch volumes, which must total at least 10 $ per year);<\/li>
          • access to special services, e.g.: Garage Sales (second-hand or returned goods, with discounts of over 50%), REI OUTDOOR SCHOOL (discounted prices on classes and events), access to equipment hire, cycle and ski shops, and REI Adventures trips;<\/li>
          • The REI Co-op World Elite Mastercard\u00ae, which gives you the chance to receive a REI gift card worth 100.00 $ after your first purchase.<\/li><\/ul>\n\n\n\n

            CONCLUSIONS<\/h3>\n\n\n\n

            PAID PARTICIPATION<\/span><\/p>\n\n\n\n

            The programme fee provides high-margin revenue and, in addition, gives participants the opportunity to enjoy more valuable benefits more quickly, meaning they do not have to spend a long time collecting points or accumulating rewards.<\/p>\n\n\n\n

            QUALITY OF PARTICIPANTS<\/span><\/p>\n\n\n\n

            As a rule, customers who choose to pay to take part in the programme are more loyal, active and determined to take action, and as a result they bring added value and contribute to the success of the campaign.<\/p>\n\n\n\n

            ADAPTING TO EXPERIENCES<\/span><\/p>\n\n\n\n

            Free loyalty schemes usually attract as many customers as possible, but paid schemes are better received and more sought-after, and also offer greater benefits to both parties.<\/p>\n\n\n\n

            LOYALTYONE SURVEY ON PAID LOYALTY SCHEMES<\/strong><\/p>\n\n\n\n

            In this context, it is also worth noting the findings of research relating to paid loyalty schemes:<\/p>\n\n\n\n

            • 62% of all respondents admit that they would consider taking part in a paid scheme if their favourite brand offered one. This option is particularly appealing to younger consumers \u2013 75% people aged 18\u201324 and 77% people aged 25\u201334 would like to join such a programme;<\/li>
            • 65% of all respondents confirmed that the rewards are worth the extra cost if they meet their needs. Younger respondents were once again even more favourable towards this \u2013 79% people aged 18\u201324 and 76% people aged 25\u201334 believe that it is worth paying for interesting rewards;<\/li>
            • 47% of all respondents stated that rewards in paid schemes are more valuable than those in free schemes. In line with this trend, younger age groups were even more convinced of this \u2013 61% people aged 18\u201324 and 54% people aged 25\u201334 prefer rewards from paid programmes.<\/li><\/ul>\n\n\n\n

              MCKINSEY RESEARCH ON PAID LOYALTY SCHEMES<\/h3>\n\n\n\n

              The 2020 McKinsey survey on loyalty programmes also yielded some interesting results:<\/p>\n\n\n\n

              • \u200b\u200bParticipants in paid loyalty schemes are 60% more likely to make more frequent purchases after taking out a subscription. Free schemes contribute to this by only 30%;<\/li>
              • Paid loyalty schemes have a greater impact on increasing purchase frequency, basket value and brand choice consistency (compared with free schemes);<\/li>
              • Paying members generate several times more value than free users, even without taking into account the revenue from membership fees alone.<\/li><\/ul>\n\n\n\n

                ELEMENTS OF A STRATEGY FOR RUNNING \u201ePREMIUM\u201d LOYALTY PROGRAMMES\u201d<\/h3>\n\n\n\n

                1. Paid membership<\/p>\n\n\n\n

                \u201ePremium\u201d loyalty schemes are aimed at customers who are already loyal to a particular brand. These are consumers who stand to gain the most from the additional benefits offered by paid membership of the scheme.<\/p>\n\n\n\n

                2. Instant gratification<\/p>\n\n\n\n

                Participants can enjoy the benefits immediately, which is why they are more engaged with the brand and more likely to make purchases.<\/p>\n\n\n\n

                3. Additional non-monetary benefits<\/p>\n\n\n\n

                Customers taking part in the premium programme also gain access to so-called non-monetary benefits, including events, experiences, dedicated services and exclusive content (e.g. music, e-books, videos).<\/p>\n\n\n\n

                4. The Pareto Principle<\/p>\n\n\n\n

                Whilst free programmes are chosen by 80% viewers, those 20% premium customers are often far more engaged.<\/p>\n\n\n\n

                5. Partnerships with luxury brands<\/p>\n\n\n\n

                Participants can make use of valuable services or selections relating to the brand and\/or product.<\/p>\n\n\n\n

                MAIN DIRECTIONS OF \u201ePREMIUM\u201d LOYALTY PROGRAMMES\u201d<\/h3>\n\n\n\n

                Taking into account research, companies\u201e experience and the most popular trends relating to \u201dpremium\u2019 loyalty schemes, the following main approaches to running them can be identified:<\/p>\n\n\n\n

                1. Customer engagement \u2013 free programmes are risky because participants often lose interest in them over time, resulting not in loyalty but in indifference;<\/p>\n\n\n\n

                2. Mobile app \u2013 a dedicated loyalty app makes it easier to use the programme and also streamlines communication with participants, who nowadays mainly use digital communication channels;<\/p>\n\n\n\n

                3. A unique experience \u2013 the range of \u201eluxury\u201d programmes allows participants to feel special. Dedicated customer service, information about prestigious events and access to advance ticket sales are well received, as they convey a sense of exclusivity.<\/p>\n\n\n\n

                4. Personalisation of the programme \u2013 options tailored to each participant\u2019s individual needs and expectations make them feel valued and understood.<\/p>","protected":false},"excerpt":{"rendered":"

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