You may have the assumption that a membership/VIP subscription discount program is not a natural fit for your business. While it is easy to imagine how this materializes in certain industries (such as airlines and hospitality), you may be struggling to realize how it could work in your situation. The following brands are breaking molds in the restaurant, fitness, apparel and software industries. Panera Bread In February 2020, Panera launched a that became wildly successful. How does it work? For $8.99 per month, customers can enjoy unlimited coffee, iced coffee or hot tea. According to Forbes, Panera’s 100-day, 150-unit test run showed a 200% growth of customer frequency and a 90-95% monthly renewal rate. Additionally, most of the customers — 70% — attached a food item to their coffee run. In July alone, Panera had 700,000 new sign-ups for the service. The math says that’s $6,293,000 in additional revenue (not including the extra menu items purchased by the coffee-drinkers). Youfit YouFit Health Club’s Lime Card allows customers to “squeeze” the most out of their monthly memberships. For $24.99 per month, VIP members receive:
- Unlimited access to YouGX group classes;
- The option to bring a guest with every visit;
- Unlimited access to all Youfit locations;
- A free YouCoach fitness assessment;
- Half-price drinks.
At a tier below, members pay $15 a month for single-club access and a YouCoach fitness assessment. For an extra $9.99, VIP members receive many valuable extras. Savage x Fenty Savage x Fenty, Rihanna’s lingerie brand, charges VIP members $49.95 per month, which can be used toward purchases. Members receive a 25% discount on full-price items and gain access to exclusive deals, including the Xtra VIP box that includes styles curated by Rihanna or a special guest of her choice. As an added layer of convenience, customers have the option of skipping their payment (and benefits) between the 1st-5th of every month before they are charged on the 6th. (This is the type of flexibility customers love!) As Victoria’s Secret’s traditional retail model struggles to survive through the coronavirus pandemic, Savage x Fenty’s innovative subscription model continues to flourish with an annual revenue estimated at $150 million. Adobe While Adobe does not make their VIP discounts public, the software company is offering big savings to members behind the scenes. Adobe offers subscription-based licensing to its Creative Cloud, Acrobat DC, Adobe Stock, Captivate and Presenter Video Express. Adobe’s products are the industry standard for many use cases. From small workgroups to large enterprises, Adobe’s VIP perks allow organizations of all sizes to tap into discounted rates that make the desired products more obtainable. Its structure is a powerful example of how companies can use exclusive discounts to drive major bulk purchases. Adobe offers subscription periods of one year, 18 months or three years, with the discounts piling on as the commitment length increases. Additional discount tiers can be unlocked the more licenses are purchased, and predictable annual rates allow businesses to plan around their budgets. Additionally, subscribers always have access to the latest software versions. It’s easy to monitor and control with the Magento 2 subscription and recurring payments extension.
