Wayfair Launches Paid Loyalty Program
Wayfair has launched a premium loyalty program across all of its banners, including Wayfair, AllModern, Birch Lane, Joss & Main and Perigold. Membership costs $29 per year with rewards that never expire as long as subscriptions do not lapse, according to a company press release. Members get 5 percent back in rewards on all purchases, early access to major sales events, and free shipping on orders of any size, among other perks. Wayfair Rewards replaces the retailer’s existing credit card rewards program.
Total Retail's Take: The emergence of premium (i.e., paid) loyalty programs is another revenue-generating channel for retailers and brands, similar to the way retail media networks have become integral parts of many retail businesses. Identifying alternative revenue streams to selling physical goods is becoming more important to retailers' futures. And consumers are on board paying for loyalty programs — as long as they believe they're getting value for their investment.
According to a blog post from all-in-one loyalty company ebbo, nearly two-thirds of consumers (65 percent) believe it is worth joining a paid loyalty program if the rewards are relevant to their needs. Furthermore, 54 percent of 25-34-year-olds surveyed said rewards in fee-based programs are better than those of free programs. Premium loyalty programs identify a retailer's best customers and offer them unique and compelling benefits and experiences. This leads to a retailer's best and most loyal customers becoming exponentially more valuable and creating an ancillary revenue stream.
