Why customers are willing to pay to be loyal

Some customers don’t just shop with you – they invest in you.

They pay for faster shipping, access to exclusive deals, even premium content or points that turn into rewards. In return, they expect value that makes their membership worthwhile. Every purchase is part of a deeper connection with your brand.

That’s the value of a paid loyalty program.

For growing brands, these memberships can turn occasional shoppers into committed customers who spend more, stay longer and advocate for your brand.

What is a paid loyalty program?

A paid loyalty program is a membership customers purchase to unlock a host of special benefits:

• Free or faster shipping
• Free returns
• Exclusive discounts
• Premium content
• Extended return policies
• Enhanced rewards points

Unlike free loyalty programs, paid memberships ask customers to invest upfront as a sign they see clear value in what’s offered. Popular examples include Amazon Prime, Costco Membership and points‑based programs like plum+ or PC Insiders.

What this means for your business

Paid loyalty programs work when the benefits are relevant and tangible. Knowing what your customers value most helps you design a program they’ll be eager to join and keep renewing.

Brands leading the way: Paid loyalty programs Canadians are willing to pay for

To understand what works, it helps to look at the programs Canadians are already paying for. Some paid loyalty programs have become household names, setting the standard for what customers expect from a membership. Each offers a distinct mix of benefits, from shipping perks to exclusive deals to enhanced rewards, that keeps members engaged and renewing year after year.

What paid loyalty program memberships Canadians currently hold

Costco Membership

Amazon Prime

Plum+ (Indigo/Chapters)

PC Insiders (Loblaws companies)

What this means for your business

You don’t need to match the scale of these brands to succeed. What matters is a clear, standout benefit that customers can’t get elsewhere and delivering it consistently. 

Why customers pay for loyalty programs

Benefits are the heart of any paid loyalty program. The reasons customers join tell us what they value most. For some, it’s the convenience of free or faster shipping. For others, it’s access to exclusive deals, premium content or rewards points that turn into savings. The mix of benefits varies by program, but the goal is the same – give members a reason to keep coming back.

Paid loyalty program customers are motivated by similar perks, no matter the brand

Members-only free shipping

Enhanced loyalty points and programs and rewards

Exclusive deals

Instant discounts, without having to accumulate points

Access to exclusive or premium content

Extended returns policies

What this means for your business

Don’t worry about everyone else. Identify the single biggest driver for your audience and make it the hero of your program. Supporting perks should complement the core benefit, not compete with it.

How demographics influence paid loyalty program success

Who your customers are can be just as important as what you offer. Not all customers join a paid loyalty program for the same reasons. Age, gender, even location can shape what members value most. Ignoring these differences can mean missing opportunities to connect.

• Least likely to have a warehouse club membership

• Strongly motivated by exclusive deals

• Respond to both exclusive deals and faster shipping

• Place higher importance on extended returns policies

• Value access to exclusive or premium content

• More likely than men to join a paid, annual membership program from stores like Indigo, Coles

Final takeaways

Paid loyalty programs turn occasional shoppers into committed customers by offering benefits they value enough to pay for. Whether it’s shipping perks, exclusive deals, premium content or enhanced rewards, the key is aligning your offer with what matters most to your audience.
When you deliver consistent value, members stay longer, spend more and become advocates for your brand.

All statistics were taken from Canada Post’s 2024 eShopper Survey, a survey of 5,000 Canadian online shoppers conducted by Phase 5 Consultation.