5 tips for successful loyalty program subscription price increases

Examining the 4 biggest players in paid consumer subscriptions (Costco, Sam’s Club, Amazon Prime, Netflix), I’ve identified strategies that can be used for any size of organization.

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Photo by Dylan Gillis on Unsplash

Benchmark figures (US market):

. Costco — 73 million US members in 2022 (*)

. Sam’s Club (WalMart warehouse subsidiary) — 69 million members in 2022 (*)

. Amazon Prime — 166 million US members in 2022 (*), *source PYMNTS study, The Benefits Of Membership: Mass Retailers And Subscription Services

. Netflix — 73 million US and Canadian subscribers in 2022, source FZN

All 4 companies are reporting record figures and growth in their member subscriber base. They apply strategies for successfully raising their subscription prices over time. Let’s learn about 5 winning techniques used by these market leaders.

1- Setting consistent, reasonable price increases

Retaining the trust and loyalty of your customer members is critical. They are the raison d’être of your subscription program. By definition, your customer targeting is already done, when you run a paid membership program. Your top priority is to earn the loyalty of customers…