Subscription-Based Loyalty Programs

Of all the different customer loyalty strategies you have at your disposal, setting up subscription-based loyalty programs can be among the most lucrative. 

This approach guarantees recurring revenue and provides a predictable source of cash for your Shopify brand each month. Your customers want you to set one of these up, too. More than half of all customers are subscribed to at least one subscription service.

There are a few ways you can go about it, from paid enrollment programs or premium loyalty programs. We’ll help you weigh your options below and share some subscription loyalty programs examples you can use as inspiration.

You’ll also get tips on getting your own subscription loyalty program off the ground. It’s quick and easy when you use Rivo as your Shopify loyalty program platform, so join hundreds of leading Shopify brands today and start boosting retention and revenue!

What is a Subscription-Based Loyalty Program?

It’s no secret that loyalty programs are the backbone of sustainable revenue for a business. There are plenty of customer retention statistics to back this up - the right loyalty program can provide a 25% lift in revenue annually. 83% of customers are more willing to continue doing business with a brand that offers a loyalty program, too.

But today’s savvy shoppers want more than just a punch card or a points system. They want a seamless, value-packed experience that feels worth investing in. That’s where the subscription-based loyalty program comes into play.

This is a unique model where customers pay a recurring fee in exchange for exclusive benefits, perks, or rewards that deepen their connection with your brand. 

Subscription loyalty programs can strengthen the bond between your brand and your audience - but reliable revenue streams, deeper customer insights, and higher retention rates are all reasons to try and set one of these up in your business.

Types of Subscription-Based Loyalty Programs

There are two specific types of loyalty programs that fall under the subscription umbrella - paid enrollment and premium loyalty. Each has its place, but only one is right for your business. It all comes down to timing.

Paid Enrollment Loyalty Programs

This type of subscription program stirs up excitement and tries to drive immediate engagement through time-limited benefits. 

Customers pay a one-time fee to join and gain access to exclusive perks for a defined period, such as special discounts, early access to products, or members-only events. For example, a fashion brand might offer a 3-month VIP membership during its summer collection launch. 

The limited-timed perks generate quick adoption, and this is also a great way to re-engage customers that are lapsing or at-risk of churning. It can even be used to attract new customers, though.

Premium Loyalty Programs

On the other hand, premium loyalty programs have no time constraints. Instead, they focus on long-term relationships by offering consistent, on-demand benefits in exchange for a recurring fee, typically charged monthly or annually. 

Amazon Prime, or the Dash Pass on Door Dash, are two great subscription loyalty programs examples that fall under this tier. The customer gets value from the program year-round. Perks can be anything from free shipping to exclusive features.

We see a lot of brands offering premium loyalty programs alongside their traditional points-based loyalty program. In these instances, the premium loyalty program is positioned as a “VIP-Tier.” 

Subscription Loyalty Programs Examples You Can Emulate

There are countless subscription loyalty programs examples you can draw inspiration from, including Amazon Prime and Door Dash as we touched on above. We’ll unpack these along with some of our own success stories here at Rivo, like Fresh Chile:

Fresh Chile

Fresh Chile set up a unique subscription loyalty program with Rivo. Members get 20% off every single order, but they also get 6 other compelling benefits, including:

• 5% back in store credit on every purchase
• $10 in Fresh Chile Cash on signup
• $20 in Fresh Chile cash on annual renewal
• And more!

What makes this one of the most exciting subscription loyalty programs examples is how seamless it is behind the scenes. Everything is automated. As long as a customer is logged into their account, discounts will apply at checkout automatically. 

Better yet, the Fresh Chile team is able to manage all their customer loyalty analytics thanks to Rivo integration with Shopify reporting. This allows for a better understanding of customer behavior and the customer journey as a whole, supporting data-driven decisions on refinement.

Both from a repeat purchase rate perspective and a company ARR perspective, the Fresh Chile program delivers. Members spend 156% more and have driven $40k in membership ARR in just 90 days. Fresh Chile tells us they’re seeing an 18x ROI from Rivo!

Bartesian

While it’s not one of the traditional types of subscription-based loyalty programs, the way in which Bartesian incorporates loyalty into a subscription tier is worth exploring as well. They set up on the Rivo platform and the entire rewards program looks great - take a look here.

Bartesian has set up VIP Tiers that don’t require a one-time fee to join - rather, you just have to spend a certain amount over the course of the year. 

For example, customers can spend $600 across different orders to join the Mixologist tier, or $1,000 to join the Master Distiller tier. The rewards unlocked at these tiers are point-based, but the more VIP the tier, the more compelling the rewards:

• Free Member: 4 points/dollar spent, 500 points on B-day.
• Mixologist Member: 5 points/dollar spent, 1,000 points on B-day.
• Master Distiller Member: 6 points/dollar spent, 1,500 points on B-day, Bartesian Cocktail Concierge access.

These perks are in addition to free shipping, 50% off all accessories, up to 20% off cocktails, and first to access new limited edition roll-outs. 

Amazon Prime

It would be impossible to talk about subscription loyalty programs examples without giving credit to one of the pioneers and most well-known brands - Amazon, and their Prime membership program. 

Members pay an annual or monthly fee to access perks like free two-day shipping, Prime Video, exclusive deals, and early access to sales. The convenience and value customers get from Amazon Prime greatly outweigh the nominal fee to join.

Once customers are in, they tend to stick around for life. They save so much time and money - and maybe fall in love with a show that’s only available on Prime Video - which creates reliance on the program.

Barnes & Noble Premium Membership

Barnes & Noble also has a premium membership available or just under $40 annually that unlocks a sea of rewards - including but not limited to:

• 10% off almost everything
• Free shipping
• A free tote
• One free eBook per month
• Free beverage upgrades
• Special birthday offers
• And much, much more!

The program is perfectly aligned with book lovers who are going to spend the money anyway - this just incentivizes them to spend more, and to always choose Barnes & Noble rather than other places you can buy books. It strengthens the emotional connection with customers.

Best Buy Totaltech Membership

The Best Buy Total Tech membership is steep at $179, but the perks make it worth it for those who want peace of mind protecting their gadgets. It gets you 24/7 access to Geek Squad tech support and 20% off repairs. Members get advanced protection plans, too.

But, this subscription loyalty program isn’t just about servicing your tech. Members get better pricing on thousands of items, exclusive access to sales/events, and free 3-day shipping. 

DoorDash DashPass

DoorDash realized that their delivery prices were a barrier to entry for many customers who would rather go pick up their order themselves than spend $5 to $10 on delivery - not including tips. The DashPass was rolled out to address this.

It unlocks not just free delivery but also reduced service fees, 5% back in DoorDash credit, on-demand grocery delivery, and the best selection of local and national restaurants. All of this for just $9.99 per month - if you order just a few times a month, the DashPass pays for itself! 

REI Co-op Membership

REI’s one-time $30 membership fee is one final example of subscription-based loyalty programs moving the need that we want to highlight. 

Members gain access to annual dividends (10% back on eligible purchases), discounts on rentals, exclusive sales, and access to adventure classes. REI does a great job making the benefits clear, as the headline for their page reads “$200 million saved among members!”

But REI also recognizes that its audience cares as much about the outdoors as it does savings. Another benefit of the Co-op is that 1.2 billion trees have been planted. The program has also facilitated more than $6 million in donations to non-profit partners and $1 billion for state parks.

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You can explore more customer retention examples in our blog or check out these case studies to get a better sense of what’s possible. In the meantime, let’s get into how you can bring your own subscription loyalty program to life. 

Getting Started With Subscription-Based Loyalty Programs 

The best way to get started building out subscription-based loyalty programs is by connecting with the experts at Rivo. We’ll talk about your Shopify brand and what you hope to get out of the program, and from there, guide you through the next steps.

But in general, here are some tips on getting started with subscription loyalty programs.

Set Goals From the Jump

It’s not as simple as saying you want to generate more recurring revenue or boost retention. You need to set much more specific, actionable goals so that you can gauge program success and make adjustments as needed.

Are you aiming to increase customer retention, drive higher average order value (AOV), or encourage subscription upgrades? Pick a single goal and then make it more measurable - for example, boosting retention rates by 20% in six months or increasing subscriber LTV by 15%.

The goals don’t necessarily have to be limited to retention or revenue, either. Think back to our subscription loyalty program examples where we talked about REI and how they’re using their program as a means of giving back and preserving our planet.

Get to Know Your Audience Better

Taking your time to work through loyalty segmentation is essential for making the most of a subscription program. This allows you to target your best customers who are most likely to join the program straight away once you roll it out. 

Divide your customer base into meaningful segments based on purchase behavior, demographics, and engagement levels. For example, frequent buyers might value early access to sales, while first-time customers could be incentivized with sign-up bonuses.

This is also a good opportunity to figure out what perks and rewards you’ll offer for customers who join the program. Use surveys, focus groups, and customer data. Is your audience drawn to exclusive discounts, access to unique experiences, or tangible rewards like free products? 

The point is you shouldn’t play the guessing game as you start structuring your rewards program. Everything you do should be rooted in customer data. 

Choosing a Loyalty Program Platform

The platform you build your loyalty program on can make or break its success. It will not only influence how well the program works but how easy it is to set up and manage.

It goes without saying that the platform needs to integrate seamlessly with Shopify since that’s where you sell, but look into integrations with the rest of your tech stack too - like Kklaviyo, Attentive, Sendlane, Gorgias, Recharge, etc.

You’ll also need to be able to create an intuitive, personalized landing page for the program within the platform. This is where you’ll provide customers with information about your program and what they stand to gain, along with how to join.

One mistake we see brands making is failing to account for scalability. The last thing you want is to spend all this time and money getting your program live, only to find that you need to migrate as you outgrow it. 

Whether you plan to introduce tiers, expand internationally, or incorporate new reward types, your platform should support those aspirations without requiring a complete overhaul. There’s one platform that checks all these boxes.

Rivo is a fully customizable loyalty program Shopify sellers can count on to drive repeat sales and boost customer retention. It’s what was used in many of the subscription loyalty programs examples we shared above.

If you care about retention, design, and personalization, we encourage you to request a demo and learn more about what makes Rivo right for you. You can also compare our solution to the field:

• Loyalty Lion alternative
• smile.io alternative
• Yotpo alternative

More than 7,000 brands run on Rivo, with an average ROI of 52x and 4% total revenue driven from Rivo. Brands have also seen a 3.1x repeat purchase rate after getting started. Take the next step today. 

Creative Ways to Reward Customer Behavior

A common reason why loyalty programs fail is the rewards just don’t align with customer expectations. That’s why it’s so important to come up with creative rewards customers actually want. This will involve some surveying, but you can’t go wrong with any of these categories:

• Recurring Discounts or Rebates: The key theme of any subscription-based loyalty program is a discount, be it 10% off every purchase or something more periodic like 10% off purchases upon renewal.
• Anniversary and Longevity Rewards: Celebrate milestones like a subscriber’s 1-year anniversary with your program. Or, surprise them with an exclusive gift, an upgraded service, or a complimentary add-on when their birthday rolls around to reinforce loyalty.
• Tiered Subscription Perks: Not all your customers share the same level of loyalty. Those who go above and beyond should get better perks. Basic subscribers might receive free shipping, while premium members gain access to quarterly curated boxes or personalized recommendations. 
• Exclusive Content and Experiences: Subscribers should feel they’re part of an elite group. Early access to new product lines, members-only webinars, or insider tutorials are all great options.
• Loyalty Layers Within Subscriptions: Blend traditional loyalty concepts with subscription perks. For example, subscribers could unlock additional discounts or rewards for referring friends who sign up for the service.

The possibilities are endless, and we can likely help you hone in on what makes the most sense for your unique brand as we walk you through a demo of Rivo.

Tracking and Managing the Subscription Loyalty Program

The job is far from finished once you get your subscription loyalty program live. It’s going to require ongoing management and regular refinement to make the most of it. 

Think back to the goals you set from the start, and make sure you are tracking the right KPIs to gauge success. This could be subscription retention rate, reward redemption rate, and customer lifetime value (LTV).

Ask your VIP customers what they think of the program after a few months. Are they satisfied with the rewards? Do they find the enrollment process seamless? Where can you improve? Use this feedback to create a better experience for all your customers. 

You can even look into A/B testing different reward structures, email campaigns, or engagement strategies. You might find that a one-time offer of 20% off moves the needle more than 10% off every order.

Make sure you’re regularly refreshing the program with seasonal campaigns, limited-time rewards, or surprise perks. Subscription fatigue can be real, and it’s up to you to prevent it. 

Wrapping Up Our Guide to Subscription Loyalty Programs

Subscription-based loyalty programs are a powerful way for brands to boost retention and enjoy consistent, predictable streams of revenue. We hope this guide on subscription loyalty programs examples has left you inspired and excited to get started bringing yours to life today with Rivo.

Our blog has more tips on how to reward customer loyalty or set up a Shopify referral program. We also have resources on topics like customer acquisition vs retention, customer acquisition journey, customer retention formula, LTV vs CAC, and more.

Otherwise, it’s time to take the next step in creating a loyalty program that drives meaningful results, both in terms of your bottom line and your connection with your audience. Learn more about how Rivo supports subscription loyalty success today.