When it comes to loyalty programs, retailers often struggle to decide whether to offer a free loyalty program, or charge customers for the added benefits that a premium loyalty program offers.

A free membership program often attracts a larger customer base, but the question becomes – How engaged are these customers?

Consumers are willing to pay for increased value, special access and elevated benefits from a brand that they know and trust. Charging customers for premium loyalty will attract your best customers and allow you to focus your most expensive assets on them.

A traditional one-size fits all, free program is recommended for retailers looking to target a wide net of customers. However, if you aspire to identify and build relationships with your brand’s most valuable customers, a premium loyalty program can drive customer engagement to the next level.

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