What:  A “Prime” like program to attract more customers

Why it is important: paid memberships are usual for retailers who are able to propose additional perks (such as free delivery) but less for brands

Urban Outfitter has decided to launch a paid membership program (cost: USD 48 or USD 98) in order to boost customer loyalty. It aims to drive more traffic instore by granting to members specific perks: free shipping & returns, 15% discount, USD 10 coupon every month and a discounted promotion to clothing rental Nuuly.

According to McKinsey, customers who pay to access a membership program are 60% more likely to spend, to be compared with 30% in the case of a free loyalty program. Also, it has consequences on the average basket size and ticket.

Urban Outfitters tests paid membership program to boost loyalty