Understand Your Buyer > How To Convert > The Club Effect
What is it?
The Club Effect is a variation of the Loyalty Effect where you incentivise people to be “registered” buyers and thus stay loyal to you.
Why does it work?
It works because there are incentives. Often there will be a regular price and a “club” price for something. It’s seemingly a no-brainer to sign up for free to be a member of a club where you get access to discounts, so many opt to do so. Repeatedly seeing what better a deal you are getting has feelings of exclusivity and as you are being “rewarded” with lower prices, it creates a positive feedback loop.
How can you use it?
Depending on your offering, could you create a “club” which is free to join (or may even have a nominal joining fee) that you can then use to not only incentivise people to buy, but to also monitor their behaviour to help you improve your offering?
Example
Superdrug’s Health & Beautycard is a great example. Shoppers can sign up for free, and members automatically get lower “club” prices compared to regular shelf prices. Every time they shop, they see the difference between the standard price and their discounted “member price,” which encourages loyalty and repeat purchases.
See also
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