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Membership and Loyalty Program Marketing Ideas
Hello Indies!
I hope everyone is having a super week!
Have you ever considered a loyalty and/or membership component to your business?
It may seem odd to some of you, but setting up special arrangements that allow your customers to buy your products in advance or at a discount have many advantages. Here are some examples.
Honest Co.
Movie star and new mom Jessica Alba recently launched the Honest Company, which sells diapers, wipes and baby products on a monthly subscription basis. The products are not available individually or to people who do not sign up for the program.
While the website does not call customers "members," it could easily create community and engagement by doing so -- and by setting up a forum of some kind where customers can gather to discuss newborn and infant child care issues. I would not be surprised if this component was not added in the near future.
Carol's Daughter
Carol's Daughter's loyalty program offers 10% off to all members. The price is $25 a year. Members also get exclusive emails and announcements about in-store opportunities. This is similar to what is offered by Barnes & Noble.
Soap of the Month Clubs
Just Google, they are everywhere. I've also seen a few Sugar Scrub of the Month Clubs, and maybe you've seen other types.
How Your Customers Can Benefit
1. With programs like Honest Company's, customers enjoy the convenience of having products shipped to them before they need them. This is especially appealing to new parents, when it comes to diapers and wipes. Question: Do your customers want your products with such regularity that you can save them time and money by shipping them to them in advance?
2. With programs like $25 Carol's Daughter's loyalty program, customers enjoy automatic discounts which more than cover the price of the membership. If a customer knows they are going to purchase at least $25 in products in a year's time, the program pays for itself. Question: Do you have specialty items and discounts to offer your customers in exchange for a $25 advance payment?
3. We are social creatures. Feeling a part of a community is a benefit in and of itself. The process provides a unique way to enhance and extend your customers's positive buying experience. Question: Could membership of some type enhance your customers's experience of your brand?
How Your Business Can Benefit
1. You are giving your customers one more reason to tell their friends about you, on places like FaceBook, Twitter, and Pinterest.
2. You boost your profits by exchanging order discounts and exclusive offerings and information for a $25 up front fee.
3. Creating community around your products enhances people's awareness of your brand.
These ideas lend themselves in some way to any business on the planet.
Whether they are called "customer loyalty" programs, "friends and family" benefits, or "membership" programs, there's never a bad time to consider adding them to your customer marketing and outreach.
What do you think?
Tags: loyalty, membership, program
Views: 315
Replies to This Discussion
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Permalink Reply by Heather Hamilton on -
Thanks for posting this dM!
I have actually been thinking about doing some kind of member program, but haven't finalized the details yet - and I need a shopping cart that allows for more options than PayPal. I think it is a great way for your customers to feel more connected and like they are getting something special or extra value.
I actually signed up for The Honest Company trial this morning! I have a 6 month old baby and I'm looking forward to seeing how it works and what the products are like. I think it is a really great concept, and I too am interested to see how it evolves.
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Permalink Reply by dM, CEO on -
Heather,
I'm so glad this post was timely for you. How super that you have a great reason to sign up for Honest Company. You'll get a lot of great ideas from seeing how they do it. Nice timing! Let us know what you discover if you get a chance -- between changing all those diapers and being with your sweet wee one!
dM
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Permalink Reply by Tieast Smith on -
Great topic dM. I too have been thinking about this a lot lately. I like the idea of product of the month, but would like to know how other handle the cost of monthly shipping. Would we include shipping in the membership fees? As I speak, I know that Harry & David offers this on their 'Fruit of the Month' so I guess I'll check that out, but would like to hear from others too.
Tieast
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Permalink Reply by dM, CEO on
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Tieast,
Good question, and the price of the product of the month club would have to include shipping. They are not getting a discount necessarily. What they are paying for is the convenience of not having to take the time to order from you each month -- or they are buying the convenience of you delivering a gift for them to a special friend for the next 12 months!
Of course, you can throw in some discounts throughout the year for your club members. Like Flash Sales at your FaceBook page for club members only, or a special holiday shopping discount on a day in December where club members get a discount or a special item for free that non-club members don't get.
Paying special attention to your club members on your FaceBook Page or wherever is also a good idea. Lots of things to consider, but yes, you do not want to have a club program where you lose money on the shipping. There are lots of ways to be creative and cause people to want to be a part of a club where they are treated special.
Not for everyone -- but definitely an idea worth considering.
Harry & David is a good program to check out. Get out your calculator and you'll probably be able to see how they are building in the cost of shipping and how they make club members feel special.
dM
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Permalink Reply by Tieast Smith on
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Thanks dM! This is definitely great ideas. Something worth really looking into.
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Permalink Reply by Chelsea Elam on -
I love the idea but fear having to manage the tracking/administrative side of it. I foresee MS Excel nightmares for me. (laugh). Wonder if there are companies out there that offer that kind of service?
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Permalink Reply by dM, CEO on
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Chelsea,
I have my own custom-designed database for IBN members, but for other lines of my business, I use InfusionSoft.com and I highly recommend it. If database management is the only thing holding you back from considering this, then I'd definitely look into whether InfusionSoft or companies like it could work for you!
dM
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Permalink Reply by La Ishá - Sharon Gnatt Epel on -
What a timely article! I have just finalized La Isha's own Customer Appreciation Program and will be launching it later this month. I know that as a consumer I tend to frequent stores and businesses that reward me for my steadfast, long-term business. I've never understood why more companies don't acknowledge loyal customers, and only offer special deals to attract new ones. Something not quite right there.....
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Permalink Reply by dM, CEO on
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Sharon,
How exciting! Congratulations on the launch of your Customer Appreciation Program. Please keep us posted on when it launches. I'm so glad the article was timely for you.
dM
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Permalink Reply by Chelsea Elam on
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Thanks for the info dM. You rock!!
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Permalink Reply by dM, CEO on
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I came across another cool membership program today, so of course, I wanted to share it with you! It's called BabbaCo, and it's a monthly subscription box for kids ages 3-6, delivered to your door filled with projects, activities, books, digital downloads and online content to keep kids busy and having fun. Everything you need for each project is included.
Monthly spa kits for girls 13 and over would make a nice holiday or birthday gift from parents or aunties. I'm sure there are other fun ideas for people who may be thinking of this as a business model.
Membership and monthly products drops are not for every business, but it's a nice model to consider if you don't have one yet or if you need to tweak the one you have to make it profitable.
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Permalink Reply by Tieast Smith on
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Thanks for the update dM!
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