Once consumers start getting the VIP treatment with their retail subscriptions, PYMNTS Intelligence shows, many seek out more and more of this exclusive access.
The PYMNTS Intelligence report “The Impact of Subscription Models on Consumer Choice,” created in collaboration with sticky.io, draws from a census-balanced survey of more than 2,100 U.S. consumers to understand the motivations driving different types of subscribers’ behaviors, among other matters.
The results reveal that the 27% of subscribers who belong to VIP membership programs — programs designed to reward loyalty, granting early or special access to products or other loyalty perks unavailable to other members — get used to their special treatment and seek out more such subscriptions. Specifically, among the 73% of these subscribers who are very or extremely likely to expand their portfolio of subscriptions, 61% are highly likely to add another VIP membership.
Indeed, an increasing number of subscription services are adding VIP and other super-premium tiers to target these consumers’ demand for special treatment.
Consider at the extreme end, Tinder Select, the app’s $499/month, invite-only program, which offers a range of exclusive features.
On the app’s parent company Match Group’s earnings call Wednesday (Nov. 1), Chief Executive Officer Bernard Kim noted that, so far, the invitation count remains “at a very low level,” but the app will issue more in the future. He noted that Match is “optimistic about the financial potential of the product,” expecting “tens of millions of dollars of revenue in the next year” from this membership.
Additionally, X, the social media platform formerly known as Twitter, announced last week that it was rolling out X Premium, which comes with three subscription levels: Basic, Premium and Premium+. The higher-level tiers offer their subscribers benefits such as a blue checkmark and an ad-free timeline.