As mentioned above, your membership’s value must exceed the cost to join. Customers are making a financial commitment to your brand with their membership, so the benefits must correlate with their membership fee. Brands can go one of two ways with their membership cost, either:
The volume of product or discounts and other benefits must pay for the price of the membership
Or the membership must grant access to valuable benefits that would otherwise be unavailable
There are a number of factors to consider beyond these two options when considering pricing. What is the monetary value of each of your benefits to your customers? How frequently will members pay their fees? How frequently are they shopping with you?
Each of these questions—along with france telegram screening determining whether or not you plan to offer different levels of membership with different benefits and pricing—will help you determine the right fees for your program. It’s also crucial to consider average order value (AOV) and LTV in comparison to your fee. Your monthly membership cost shouldn’t exceed your AOV.
With the right tactics and strategies, your ecommerce business can create a successful paid membership program and start reaping the rewards, along with your members.
The value of a successful paid membership program will just increase with time, as you hone your offerings to give customers exactly what they’re looking for. For more information and inspiration, check out our guide, The ecommerce membership advantage.
At Recharge, we value privacy and handle personal information accordingly. Learn more about how we handle personal information by reviewing our Trust Center.