Membership programs offer exclusive benefits
Membership programs are reinventing loyalty among young consumers—more than eight in 10 youth in the U.S. aged 14-34 have joined or are interested in joining a membership program, as found in our SHOP Report. Cassandra’s Global Head Alina Diaz spoke with James Cook on the future of retail in last week’s Where We Buy podcast to explore other ways to reach today’s young consumers.
Bulk retailer Boxed, akin to an online Costco, is launching a new paid membership program. For $49 a year Boxed Up members will receive free rush shipping on orders over $20, price matching, cash back, access to exclusive discounts, and entry to giveaways. Nearly a quarter of young consumers are interested in unlimited delivery service, and though Boxed Up doesn’t guarantee two-day shipping like Amazon Prime, it is nearly half the price and most orders do arrive within two business days.
Customers of home goods retailer Wayfair can join the MyWay membership program for just $29.99 a year and receive benefits including exclusive access to insider sales, a 25% discount on assembly and installation services, free shipping, and next-day delivery. A segment of new furniture brands aimed at Millennials are catering to their eco-conscious desires by creating circular retail economies; some more established brands, like Wayfair, are using methods less disruptive to their retail model to appeal to young consumers, including membership programs like MyWay.
RH, formerly Restoration Hardware, launched a membership model that accounted for 95% of the company’s core business in the last quarter of 2017. The successful program provides members with a 25% discount on full-priced items, an additional 20% off sale items, complimentary services by RH Interior Design, concierge service for managing orders, and early access to clearance events, for an annual fee of $100. In a move catering to young consumers’ preference of Community > Commerce, RH also plans to integrate hospitality aspects into its showrooms, such as cafes, wine vaults, and barista bars.