From Customers to Members: How brands are evolving experience to recognize, respect and reward

Cultivating and fighting for customer loyalty is a battle many brands and retailers continue to fight, even more so in this fickle economy. Programs that reward loyalty with dollars off future purchases are commonplace; it’s difficult to find a brand on the planet who doesn’t offer a transaction-based, points accumulation system.?However, what these programs fail to do is create true emotional connections with customers where advocacy and fandom are the result.

Our travels around the globe this past year uncovered several ways brands are evolving their experiences to embrace a “members-first” mentality.?Many of these initiatives involve customers paying for the privilege through annual/monthly fees, in addition to what they spend on purchases.?Yet, it is our opinion that many are still confused as to how to effectively leverage their physical, human and digital assets to deliver on this experiential evolution.

“If I’m paying for the privilege to shop with you, what’s in it for me?” is the question brands must answer. Buy-online-pick-up-in-store (BOPIS) and curbside pickup, once the exception rather than the norm, are now table stakes across nearly all retail categories – independent of membership status. And as fulfillment needs shift to digital channels, the importance of experience in stores – and elevated, brand-led experiences for members – has never been higher.?But how can physical brick & mortar destinations, designed for customers, evolve to cater to the needs of members??By examining and more importantly, experiencing how others (in and out of category) have successfully implemented this philosophy. Best-in-class examples are always willing to test, learn and refine based on economic conditions, cultural nuances and shifting member needs.

One brand that almost always makes it on our Experience Expeditions itinerary is Rapha, whose purpose is to ‘inspire the world to live life by bike.’?In 2015, they launched their Rapha Cycling Club ($95 a year) which gives members exclusive access to sought after products, experiences, brand collaborations, and most importantly, connections to hundreds of rides and events around the globe. Rapha leverages its 21 Clubhouses to build community among members.?Whether it's stopping in to check out the latest gear, or enjoying a coffee and pastry in their cafes, or chatting with other Rapha members about their most recent rides, emotional connections to the brand are made real through their brick-and-mortar locations.? Why do we continue to take clients to Rapha Clubhouses around the world??They embody what it means to elevate experience for members, and not only use their physical assets to retain existing members but attract new ones as well.?And while digital touchpoints are rarely seen in their spaces (they do have an app), their human assets serve as the ultimate ambassadors for the brand and the membership program through passion and expertise.?It’s a place members WANT to go because they believe in the brand, its purpose and in turn, are the truest ambassadors of what Rapha continues to stand for.

It’s important to recognize that paid membership programs are not relegated to the smaller or more premium brands and retailers.?In September 2020, Walmart launched their Walmart+ membership program.?It’s no surprise this move was directly aimed as a response to their biggest competitive threat – Amazon.?While the program’s initial core feature was Unlimited Delivery, it has greatly expanded its benefits to include streaming services (video and music), fuel discounts, early access to deals, and most recently, travel services – all aimed to reward members for subscribing to the program, and more importantly to ensure that members have reasons to stay within the Walmart ecosystem of experiences.?In-store, members have access to an incredible Scan & Go feature which makes them feel like rockstars at checkout (well we did as we can all relate to painful checkout experiences).?Members simply scan a QR code at self-checkout and walk out!? Now that's respecting your members!?Walmart recognizes its primary competitive advantage lies in its footprint where 90% of the U.S. population is within 10 miles of a store, and with almost 5,000 of them, we believe Walmart will continue to leverage its most powerful and differentiating touchpoint to cater to members in new and unique ways in the future.

Finally, we pose the question – does a successful, emotionally connected membership program require the customer to pay something for it??Not always.? Nike is a great example of this and it’s free to sign up.?Whether in flagship locations in New York City, Shanghai or London, we’ve experienced with our clients how being a Nike (formerly called Nike+) member has its privileges.?From first access to the latest drops to invitation to special events, the most loyal Nike customers-turned-members reap great rewards for their loyalty.?From the recognition received upon entry, to the one-to-one, personalized service, the entire in-store experience relies on the Nike app to unlock the magic.?This dependence at times can be problematic, as there were times when shopping wasn’t as seamless as promised due to broken links, dated codes and out-of-stock sizes.?And while some Nike House of Innovation destinations wowed us, others failed on experience due to disconnects between their physical, human and digital touchpoints – all important ingredients to delivering an elevated, differentiated shopping experience.?Despite these inconsistencies, we continue to hold Nike in high esteem when it comes to delivering personalized experiences for all.

In closing, we predict that brands and retailers will continue to explore and experiment with what membership programs and their associated benefits work best for them.?As more features become table stakes, it will become increasingly difficult to maintain relevancy and differentiation.?We continue to prove through our Experience Expeditions that the best inspiration is often found outside of a brand’s category.?Experiences built on a member-first mentality will require new thinking, risk-taking initiatives and a test-and-learn spirit.?We can’t wait to see what’s next!