Report Monday 6th November 2023

Building loyalty through paid memberships & subscriptions

Inside the report

Consumers have become more discerning with their subscription repertoire, with money-saving options being the preferred benefit.

54%

Of consumers said good value is the most important consideration

Components for success

A SIMPLE, HIGH-VALUE HOOK

Making members pay for benefits gives a strong incentive to maximise their value, helping to capture share of wallet and lock-in the best customers.

Components for success

UNLIMITED IS RARELY UNLIMITED

It is critical to implement the right guardrails to ensure profitable usage. This can involve limiting access to certain locations or products and limiting how often or easily customers can access them.

Components for success

DON’T FORGET THE POPCORN

Incremental value is typically created through ‘bolt-on’ spending. A detailed understanding of customer economics is required to price at a level to drive uptake and make profit on the total basket.

Components for success

FLEXIBILITY TO FINESSE

Pricing and proposition flexibility should be built-in to the proposition to allow for unexpected demand and to capture new audiences.

Components for success

ONE TIME TO EVERY TIME

Pricing and introductory offers should make upgrading a one-time purchase the obvious choice within the existing customer booking journey.

of

An increasing number of travel, leisure, and hospitality businesses are launching paid membership and subscription programmes.

Many are finding that giving customers exclusive benefits, rewards, or product access in exchange for a one-off, monthly, or annual fee can be an effective strategy to drive new revenue streams, build customer loyalty, and increase lifetime value.

In this context, throughout our latest insight we delve into the current offerings in the market, examine consumer motivations, and, most importantly, shed light on what it really takes to make a loyalty programme commercially valuable.

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Have you already launched a membership or subscription service, but think there’s untapped potential?

Alternatively, maybe you’re considering one but are uncertain about how to approach it for maximum value.

Either way, we can help you take the lead on seizing the opportunity and build long-term value for both business and customer alike.

To find out more about our experience in the leisure space get in touch with out experts.

Key Contacts

John Franklin

John Franklin

Partner & Global Analytics Lead

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