Subscription-Based Loyalty Program
A subscription-based loyalty program is a powerful strategy that businesses can utilize to incentivize customer loyalty and foster long-term engagement. In this model, customers subscribe to a payment plan, and in exchange, they gain access to exclusive benefits such as personalized perks, discounts, early access to new products, and enhanced customer service. This not only enhances customers' connection with your brand but also provides a predictable revenue stream for your business.
Benefits of Subscription-Based Loyalty Programs:
- Increased Customer Engagement: The commitment required by subscription-based loyalty programs encourages customers to establish a stronger bond with your brand.
- Predictable Revenue Stream: Subscription-based loyalty programs provide you with regular, recurring income, enabling more accurate financial planning and growth projections.
- Enhanced Customer Lifetime Value: Subscription programs significantly extend the lifetime value of your customers, resulting in higher revenue and profitability for your business.
- Deeper Customer Insights: These programs allow you to gather in-depth data on customer preferences and buying behavior, helping refine marketing strategies and deliver targeted promotions.
- Continuous Relationship Building: A subscription-based loyalty program enables you to continually nurture customer relationships, fostering long-term customer retention and advocacy.
- Exclusivity and Differentiation: Subscription-based programs offer exclusive benefits to subscribers, setting your brand apart from competitors and providing a compelling reason for customers to choose your brand.
Note: This will only work if your POS has built-in discount/loyalty functionality (listed in the "Enhanced" section of this spreadsheet).
Before proceeding, you'll need to determine the price of your subscription-based loyalty program, the discounts your subscription members will receive, and the cadence of the subscription (typically monthly or annually).
- Setup a Non-Stock SKU: Create a non-stock SKU in your Point of Sale system and note the SKU name.
- Create an Audience: Next, create an audience in AIQ. Go to Audience > Performed event > Purchased SKU – Contains – ((name of your membership SKU)), then adjust the in range to the desired date range, depending on your subscription model.
- Build Your Discounts: Now, it's time to build the discounts that your members will receive. Make sure the audience you created in the previous step is selected for the discount/discounts to appear. Under Ecomm and POS, input the discount % or $ that the member will receive.
With these steps completed, your subscription-based loyalty program is now set up and ready to go!
