Retailers Launch Paid Memberships to Drive Sales and Loyalty

Stores and restaurants are offering paid membership programs to make loyal customers feel valued, drive sales, and reduce customer churn. Perks include discounts, freebies, priority service.

Target is launching a $99 per year membership program to compete with Amazon Prime on shipping and other benefits. Chuck E. Cheese has gold, silver and bronze tiers from $8 to $30 monthly.

According to research, paid loyalty members spend 30-60% more than non-members. Programs also strengthen consumer bonds and meet needs to belong.

Some new sites like Long Story Short plan ultra-high end programs for wealthy shoppers, charging $1000 per month for rare luxury goods access.

Risks include making non-members feel diminished, disguising price hikes, and companies reducing benefits over time after sign-up.