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The Benefits of a Subscription-Based Loyalty Program And Why It's a Win-Win for Businesses & Customers

Businesses need to build and maintain strong relationships with their customers to succeed. 

One way to achieve this is through various customer loyalty programs, which incentivise customers to continue purchasing from a company by offering rewards for continuously patronising their goods or services.

Benefits of Subscription Based Loyalty Program

A type of customer loyalty program that has gained popularity recently is the subscription loyalty program. And unlike traditional programs that reward customers for individual purchases, a subscription loyalty program offers ongoing benefits in exchange for a recurring fee.

In this article, we’ll explore the benefits of a subscription-based loyalty program in more detail and the best types you can use to your advantage. 

So go ahead and read on to find out more.

Subscription-based Loyalty Programs Is The New Loyalty Trend

Subscription-based loyalty programs are beneficial for both customers and businesses. 

For customers, they provide a predictable way to earn rewards and save money, as well as a sense of exclusivity and community with fellow subscribers. 

For businesses, they offer a reliable revenue stream, increased customer retention, and valuable insights into customer behaviour.

In fact, loyalty programs are known to increase brand reputation in more ways than one.

For instance, 71% of consumers normally suggest a brand to others if the business has a good, hyper-personalised loyalty program.

About another 71% of individuals would more likely recommend a brand if they are emotionally engaged with the business, which may be compromised by 64% of women who make up the “Quiet Loyal” group too!

Customers & Businesses Love Subscription-Based Loyalty Programs, and Here’s Why

Old and new customers will always love a good loyalty program that rewards them equally for the money they put into a business. Let’s call it the art of give and take.

With subscription-based loyalty programs, since they are paying a premium for a pool of benefits equal to their money, it’s the perfect program to get them hooked no matter the season.

Here are other more reasons why they love it:

  1. Predictable rewards and savings: With a subscription-based loyalty program, customers know what benefits they’ll receive and how much they’ll save over time. This can be a major draw for budget-conscious customers who want to get the most value for their money.
  2. Convenience and flexibility: Many subscription-based loyalty programs are designed to be user-friendly and flexible, with options to customise rewards and adjust subscription levels as needed. This can make it easy for customers to get their desired benefits without feeling locked into a rigid customer loyalty program.
  3. Increased engagement and sense of exclusivity: Subscription-based loyalty programs often come with exclusive perks and opportunities for engagement, such as early access to sales or VIP events. This creates a sense of community and loyalty among subscribers, which can increase overall customer satisfaction.
Customers & Businesses Love Subscription

On the other hand, businesses would gain a lot from using a subscription-based loyalty program because:

  1. Steady revenue stream: By charging a recurring fee for access to rewards, businesses can create a predictable and reliable revenue stream to help them plan for the future.
  2. Enhanced customer retention and lifetime value: By offering ongoing rewards and benefits, subscription-based loyalty programs can encourage loyal customers to stick around and do more business with a company. This can increase customer lifetime value and ultimately lead to higher revenue over time.

Data-driven insights for targeted marketing and personalisation: Subscription-based loyalty programs can provide valuable data about customer behaviour and preferences, which can be used to inform targeted marketing campaigns and personalised communications. This can help businesses better understand and meet the needs of their customers.

The Best Types of Subscription-Based Loyalty Programs Your Business Should Try

Businesses like yours can offer several different types of subscription-based loyalty programs– each with its own benefits and drawbacks. 

Here are three of the most common types used today:


In a points-based program, customers earn points for purchases or other actions, which can be redeemed for rewards. 

Subscription-based points programs often offer higher point accrual rates than traditional points programs and ongoing benefits like free shipping or exclusive access to sales.


In a tiered program, a loyal customer can be assigned to different tiers based on their subscription level, with each tier offering its own set of rewards and benefits. 

Higher-tiered subscribers typically receive more benefits, creating a sense of exclusivity and motivation to upgrade.

Subscription Based Loyalty Program


In a paid loyalty program, every new and existing customer pays a recurring fee for access to exclusive benefits and rewards. One can say that, in essence, a subscription loyalty program is exactly like a paid loyalty program already.

A paid loyalty rewards program often offers the highest exclusivity and personalised benefits but can also be the most expensive for customers.


Subscription-based loyalty programs are a powerful tool for businesses looking to improve customer retention & customer experience, brand loyalty & customer lifetime value, and simultaneously increase revenue. 

By offering ongoing benefits and rewards for a recurring fee, businesses can create a sense of exclusivity and community among their most loyal customers while generating a reliable revenue stream.

To implement a successful subscription-based customer loyalty program, businesses should focus on clearly communicating the program’s value proposition. 

They should start making it user-friendly and mobile-friendly, personalising rewards and communications, and regularly evaluating and optimising the program for maximum effectiveness.

If you’re a business owner looking to improve customer loyalty for every new and existing customer, consider implementing a subscription-based loyalty program you can use to your advantage. 

And if you need the right people to make that loyalty program for you, DX United is here to help.

You can rely on our experts to build you the loyalty management platform that will help you:

  • hyper-personalise the way you connect with your customers, 
  • improve customer engagement, 
  • gauge customer behaviour, and 
  • offer the most exclusive benefits to make your customers feel special.

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