Join the Club: 4 Reasons Why Every Business Needs a Membership Club

Ira Nachtigal
November 15, 2021
3 min read
membership clubs
Ira Nachtigal
November 15, 2021
3 min read

A glance at data in the membership club field reveals that loyalty programs are all the buzz. A dedicated study found that around 90% of companies have some form of loyalty program in place. Still, certain businesses, particularly SMBs, may struggle to see how membership clubs can boost their growth. The following list of advantages isn’t just meant to highlight the necessity of loyalty membership clubs but also inspire you to embrace specific use cases you may have overlooked.

1. It’s all about the money

Maybe not all, but a lot. The bottom line is a justified focal point for businesses and loyalty programs equal profit. Research shows that loyalty club members are 59% more likely to choose your brand, and 62% will also spend more than non-members who purchase from you. It’s easy to see why considering that customers themselves are concerned with the bottom line and want to spend less and gain more.

For businesses, membership clubs save marketing dollars because they provide an accessible communication channel owned by the business. If loyalty programs didn’t exist, companies would then have to chase new customers around the clock, investing five times more compared to the cost of retaining existing audiences.

2. Staying in touch

We’ve mentioned loyalty programs as communication channels, and now it’s time to dive in a bit deeper and explain how that works. Membership clubs, particularly digital ones, give brands the priceless option of sending push notifications and other promotional messages to customers who offered their contact info and consent. Membership clubs become a direct and efficient communication hub for brands, making it easier than ever to send the right message at the right moment.

This brand advocacy opportunity allows businesses to send updates, ask for feedback, and keep in touch with relevant audiences. Dedicated research in the field showed that push notifications encouraged loyalty club members to redeem twice as many loyalty rewards and spend 14% more. The overall result was an 11% margin increase.

Bear in mind that access to customers’ contact info and digital channels should not be taken lightly. Getting explicit consent before sending messages and building a smart notification strategy are must-do steps.

3. Data-driven profit

When customers carry your loyalty app with them and make purchases using your membership club benefits time and again, fascinating and valuable insights are often revealed. Data drives better results for small businesses worldwide, and loyalty data is so effective that 61% of companies use it in at least three business departments. Offline membership clubs offer their own data insights, but they are less advanced than what a digital club can achieve. Once again, we remind you that data privacy isn’t just a buzz term. Users’ consent is required by law in many places and helps build better relationships with customers.

4. Loyalty is a relationship

As you very well know, shoppers have more than enough options. Competition over people’s wallets is stronger than ever, and the ability to order products online makes it even more fierce. In this competitive climate, nurturing loyalty helps businesses rise above the noise and differentiate the shopping experience.

Loyalty improves customer lifetime value (LTV) and creates a stronger bond with businesses. Customers who describe their connection to the brand as emotional have an average LTV that’s more than 300% higher. Membership clubs encourage customers to choose you. They also turn shoppers into brand ambassadors who promote your business voluntarily and effectively. Once again, we see that making customers feel appreciated when they return to your establishment is always the right move.

If you need another reason to implement a digital membership club, know that it’s easier than ever with Glue Loyalty.

Contact our loyalty experts and see how every benefit on the list becomes an active profit source for your business following a short and effortless process.

With so many great reasons to embrace membership clubs today, there’s absolutely no reason to wait.

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