Membership Systems in This Era
Can All Be Redesigned
Author: Deng Fei
"The rebirth of membership systems is a 'humanization revolution,'
Redesigning membership systems
is redesigning the warmth of commercial civilization in this era."
(The membership understood today is not the traditionally defined membership;
the membership discussed in this article is in the context of omnichannel customer management.)
Part.01
From "Transaction Tool" to "Relationship Management"
In today's world of material excess and exploding choices, consumers have long grown tired of promotional gimmicks like "buy one get one free" and instead pursue deeper value identification. The membership system, once simply understood as a "discount card" or "points tool," is undergoing a disruptive transformation. Its meaning is no longer "retaining users with offers" but has evolved into a long-term relationship contract—where businesses and users promise each other and jointly create value.
The one-shot transaction model is already a thing of the past. How to initiate a long-term contractual relationship between brand and user from the perspective of relationship management has become the key turning point. In designing relationship management, it is especially important to enhance the continuous output of brand value from core users, core scenarios, and core business.
For example: Costco's "reverse logic" While most retailers regard "lowering membership fee barriers" as the core of growth, Costco insists on charging an annual fee of 60-120 dollars and even refuses non-members entry to its stores. Behind this seemingly arrogant strategy is an extreme reconstruction of member value:
Identity Privilege
The product prices available only to paying members are essentially "circle identity"—what users pay for is the identity label of a "high cost-performance privileged class."
Trust Economy
Costco controls SKUs to around 4000 (only 1% of Walmart's), replacing massive choices with carefully selected products. Users can buy without comparing prices, saving decision costs.
Data Evidence
Costco's global renewal rate exceeds 90%, reaching 93% in North America, and members' average annual spending is 3 times that of non-members. Users are willing to pay for "filtered certainty"—this is the essence of a membership system.
This experiment proves
The core of a membership system is not "the intensity of discounts" but "selecting high-value users and giving them irreplaceable exclusive value."
Part.02
From "Tiered Levels" to "Emotional Resonance"
Traditional membership systems often use "Silver, Gold, Platinum" to divide levels and define user value by spending amount. But in the experience economy, users crave being "understood" rather than "categorized."
Starbucks' "invisible tiering" The Starbucks Rewards program no longer emphasizes tier names but dynamically adjusts benefits based on behavioral data:
A user who buys an Americano every Wednesday morning will receive a "breakfast combo coupon";
A member who often works in the store may be invited to a "barista private session."
This "seamless tiering" makes users feel "the brand understands me" rather than "I am being calculated." Data shows that Starbucks members contribute 53% of sales in the US market, and the repurchase rate of members in China is 5 times that of non-members.
Behavioral Tags > Spending Amount
Replace cold tiers with interest tags such as "fitness enthusiast" or "late-night orderer";
Dynamic Benefits
Adjust benefits based on real-time behavior (e.g., activity in the last 30 days) rather than annual total spending.
Part.03
From "One-Way Giving" to "Two-Way Co-Creation"
The membership system is no longer a channel for companies to "hand out" benefits but an entry point for users to participate in brand building. "Unsurprising" membership benefits will inevitably become tasteless in users' minds. The annual benefit costs invested by brands eventually become taken-for-granted brand obligations, losing the original intention of differentiating brand interest and stimulating brand loyalty. Brand co-creation allows users to participate in product co-building, benefit co-building, and marketing co-building. Appropriately designing co-creation links will greatly enhance the construction of a positive brand-user relationship and bring unexpected brand growth.
For example: Nike's "Members as Co-Creators" Nike Membership turns members into partners in product innovation, opening up some decision-making rights (such as new product voting, event planning). Member-created reviews and tutorials can be exchanged for exclusive benefits, forming a closed loop of "contribution-reward-re-contribution."
SNKRS App members can vote to decide limited-edition shoe designs;
Offline running clubs are organized by members who spontaneously plan routes, with the brand only providing equipment and supplies. This "transfer of sovereignty" brings astonishing results: member average order value is 30% higher than non-members, and Nike's direct-to-consumer revenue share soared from 28% in 2017 to 45% in 2023.
Part.04
From "Data Harvesting" to "Privacy Co-Creation"
The introduction of the Personal Information Protection Law has, on one hand, made the collection and use of user data more restricted from a legal perspective; on the other hand, as users become increasingly wary of data misuse, membership systems must redefine "data ethics" to make users feel that "giving up data is worthwhile."
For example: Sephora's "Data Transparency Contract" Sephora's Beauty Insider turns member data into a "beauty butler" service. It lets users clearly see how data improves their experience, such as "recommending products based on your skin condition." At the same time, it designs privacy-as-benefit services that allow users to choose to "exchange certain types of data for certain benefits" (e.g., sharing location data in exchange for skip-the-line privileges at nearby stores).
When a user buys foundation, the App automatically displays purchase records of shades from the past 3 years;
A quarterly "beauty consumption report" is generated to remind users to avoid repeat purchases of similar products. This strategy has led Sephora members to contribute over 80% of sales, with Rouge-level members (annual spending over 1000 dollars) accounting for 15% of customers but contributing 45% of revenue.
Part.05
From "KPI-ization" to "Social Value Awakening"
The new generation of consumers demands that brands "care not only about my wallet but also about my values."
For example: Patagonia's "Environmental Points Program" The outdoor brand Patagonia allows members to exchange old clothes for points, while displaying the carbon emissions reduced by each recycled item. Similarly, Saturnbird's Return Program quantifies and publicly displays members' environmental contributions, forming a positive cycle of "consumption-environmental protection-honor."
「Trend Extension」
ESG Benefits
Members who purchase low-carbon products can earn extra points to support public welfare projects;
Common Good Identity
Multiple brands jointly establish a "Sustainable Living Alliance," where member behavior influences the allocation of the alliance's public welfare funds.
The rebirth of membership systems is a "humanization revolution." The membership systems of this era do not need more complex points rules or flashier tier names, but a thorough "humanization revolution." When a membership system becomes a "badge users are willing to wear proactively," the brand truly completes its evolution from "transaction-led" to "relationship symbiosis." Redesigning membership systems is redesigning the warmth of commercial civilization in this era.
Editor lSan
Image lClay
Design lTom