Zalando Aims to Boost Membership With Exclusive Shopping Invitations

As prices go up, people are cutting back on things they don’t really need. Retailers can keep customers spending by offering attractive perks through memberships. In simple terms, with the right mix of rewards and exclusivity, smart retailers can make people see their spending as more necessary and less optional.

That’s a strategy that Zalando, the online fashion retailer headquartered in Berlin, is betting on with the introduction of an exclusive shopping experience offering invitation-only access to limited and coveted items.

Those interested in exclusive limited editions and brand collaborations can sign up for an invitation to make purchases through the Zalando app prior to the official sales launch. Upon receiving an invitation, they have the opportunity to buy the item within a designated time frame.

In addition to that, Zalando said members enrolled in the Zalando-Plus membership program are more likely to receive invitations, given that an allocation of sought-after products is reserved for them. In a statement, Pascal Hahn, VP of transactions at Zalando, said their invite-only approach is a win-win-win for customers, brand partners, and the company itself.

“Customers now have a more exciting and convenient experience when buying their favorite hyped articles. Partners can tell a compelling story of their product and give customers time to enjoy it, as customers do not have to rush to the checkout anymore. For us at Zalando, it means being able to offer our customers the most exciting assortment that brands can present in the most optimal way.”

The first product being offered is the Fenty x Puma Avanti shoe.

In September, the fashion retailer introduced “Stories at Zalando,” featuring curated editorial content linked to the shopping experience. Now, the invite-only feature adds a matching shopping function.

‘Value Add’ Memberships

Other stores, like Amazon and Walmart, are trying to attract more members by providing exclusive experiences. Recently, PYMNTS highlighted that with the holiday season upon us, both Walmart and Amazon are exploring strategies to increase their subscription counts.

Disney+ and Walmart have collaborated to offer subscribers a $40 discount on a one-year membership to Walmart’s subscription service, initially priced at $98. This offer, part of the Disney+ Perks program, differs from the usual perks limited to Disney’s ecosystem and is available until Jan. 31.

Walmart’s subscription includes benefits such as free grocery delivery, no minimum order requirement for shipping, and discounts on fuel.

This collaboration reflects a trend in the streaming industry, where services partner with others to stand out in the competitive landscape. Companies explore bundled packages, and discussions are ongoing about potential arrangements between Apple, Paramount, and more. As part of this trend, Disney+ is introducing a Hulu bundle.

Simultaneously, Peacock is partnering with grocery aggregator Instacart to boost adoption, aiming to secure the loyalty of Instacart’s audience through a subscription collaboration. Last month, Instacart announced it would offer premium-level subscriptions to the streaming service for its Instacart+ members at no extra charge.

Meanwhile, Amazon is testing a new grocery subscription service for Prime members, letting them enjoy unlimited grocery delivery on certain orders for an extra monthly fee. This trial service will kick off in three cities: Denver, Colorado; Sacramento, California; and Columbus, Ohio.

For $9.99 a month, subscribers will get perks like free Amazon Fresh and Whole Foods deliveries for orders over $35. Plus, they can opt for a 30-minute pickup for orders of any size.

Read more: Amazon and Walmart Put Subscribers on Their Wish List in 2023

Pushing Subscriptions

According to the “Subscription Commerce Readiness Report: The Loyalty Factor,” by PYMNTS Intelligence, loyalists, the most valuable subscribers, make up a significant part of total revenue in retail subscription commerce.

These loyal subscribers show a strong commitment to the brands they subscribe to, spending an average of $65 per month per subscription and keeping their subscriptions for an average of 30 months. This extended duration leads to a projected lifetime value (LTV) exceeding $2,500.

A key trait of loyalists, as highlighted in the PYMNTS Intelligence study, is their elevated income. The research indicates that over half of these valuable subscribers, around 53%, earn over $100,000 annually. This implies that loyalists possess the financial capacity to maintain their subscriptions and actively engage with the products or services provided by the merchants.

Moreover, loyalists are mostly millennials or bridge millennials, underscoring that younger generations are more inclined to show strong loyalty to retail subscriptions. This discovery emphasizes the significance of aligning subscription offerings with the preferences and interests of these age groups during the design phase.

Read more: Loyal High-Income Consumers Spend Nearly $800 per Subscription Every Year