8 Subscription and Membership Loyalty Program Examples & Why They Work

Subscription and membership loyalty programs have surged in popularity as brands seek to deepen customer relationships. In these paid programs, customers pay a recurring fee, either monthly or yearly, for ongoing rewards or privileges. According to the PwC customer loyalty survey, about 55% of consumers now subscribe to at least one service.

For marketers, these loyalty programs are valuable because they yield predictable revenue and drive retention. Leading retailers see membership fees as strategic. For example, Amazon Prime now covers roughly 75% of U.S. households, and Prime members spend about four times more than non-members. 

With such results, brands are proving that charging for membership can lock in loyalty while delivering convenience and personalized value. Subscription loyalty programs offer a powerful way to create predictable revenue and deepen customer bonds.

What are Subscription and Membership Loyalty Programs?

Subscription loyalty programs, also called paid memberships, are plans where customers pay an upfront fee to receive ongoing benefits. Unlike traditional points-based programs, members in these loyalty models gain rewards immediately and regularly for being enrolled. 

Key traits of subscription-based loyalty programs include the following:

• Recurring paid access: Customers pay monthly or yearly to join the program, creating a sense of commitment and unlocking premium benefits from the start.
  
• Tiered Perks: Benefits often scale with different subscription levels, offering more value as customers upgrade or maintain their membership over time.
  
• Early Access: Members of subscription loyalty programs often get first dibs on deals, bookings, product launches, or limited-time offers before the general public.
  
• Exclusivity: Subscribers enjoy access to members-only rewards, offers, or services, making them feel part of a privileged group.
  
• Convenience: Subscription models are designed to simplify the experience—bundling perks like priority support, faster check-ins, or free upgrades for seamless travel.
  
• Immediate Rewards: New members usually get a sign-up gift, like a free item or credit, and regular perks thereafter.
  
• Personalization: perks often tailored offers that strengthen the brand relationship.

This model differs from standard loyalty points because customers essentially pre-pay for perks. Brands use subscription loyalty in many industries, like retail, dining, beauty, etc., to improve retention. 

From the business perspective, a subscription loyalty program creates predictable revenue streams and usually higher customer lifetime value. For customers, subscription loyalty often means a simpler, more exclusive experience. Instead of juggling points, members receive guaranteed perks and priority that reinforce their VIP status, reinforcing loyalty.

Take a closer look at: Benefits of loyalty programs and how they build lasting customer relationships.

8 Great Subscription and Membership Loyalty Program Examples

Mentioned below are detailed explanations of eight real-world subscription and membership loyalty programs, what works in their favor, and what marketers can learn from them.

1. Amazon: Amazon Prime

Amazon is a global e-commerce leader, and its Prime program, launched in 2005, set the benchmark for subscription loyalty models. For $139/year or $14.99/month, Prime bundles fast, unlimited shipping with a suite of digital perks including Prime Video, Prime Music, Kindle e-books, and exclusive shopping events. The program’s appeal lies in its all-in-one convenience as a single subscription covers entertainment, shopping, and everyday essentials.

Amazon constantly adds perks like Prime Day deals, same-day grocery delivery, cashback in the Amazon Pay wallet, and more to maintain member excitement and justify the fee. About 75% of U.S. households have Amazon Prime, and Prime members spend more than four times as much as non-members. For example, members-only events like Prime Day now drive over $13 billion in annual sales, showing the power of exclusivity.

Takeaway for Marketers: Bundling convenience, entertainment, and savings under one paid tier can massively boost retention rate and lifetime value.

2. Walmart: Walmart+

Walmart+ is Walmart’s paid membership program designed to compete directly with Amazon Prime. For $98 a year or $8.17 a month after a free 30-day trial, subscribers unlock perks like unlimited free delivery from stores with members saving up to $9.95 on Express Delivery total fees, fuel discounts of up to 10¢ per gallon at 13,000+ stations nationwide, 24/7 access to free online pet care, and mobile scan-and-go for faster in-store checkout, among other offers. Walmart+ members also get early access to major sales events and partnerships like free Paramount+ streaming for additional entertainment value.

The program positions itself as a money-saver and time-saver, appealing to budget-conscious families who shop at Walmart frequently. Walmart has reported that Walmart+ members spend significantly more per visit and visit more often than non-members, with internal estimates suggesting annual savings of over $1,300 per household.

Takeaway for marketers: Focus on everyday utility and cost savings, especially for value-driven segments, to encourage subscription uptake and repeat engagement.

3. Best Buy: My Best Buy Total

Best Buy’s loyalty ecosystem blends free and paid tiers, culminating in My Best Buy Total, formerly Totaltech, at $179.99 per year. This premium tier caters to tech enthusiasts and frequent electronics buyers by combining exclusive pricing with robust support benefits. Members receive 24/7 Geek Squad tech support, protection plans including AppleCare+, on most new purchases, and 20% discounts on repairs. Lower tiers, the free one and My Best Buy Plus, which costs $49.99 per year, offer benefits like free shipping and extended return windows.

The tiered design ensures both casual shoppers and heavy tech users find value. By layering premium services and peace of mind, like extended warranties and priority support, Best Buy encourages loyalty among high-spending customers, who are most likely to value the reassurance of ongoing coverage.

Takeaway for marketers: Offering service-based benefits, not just discounts, can justify higher membership fees and appeal to premium customer segments.

Explore more: Cost of building a loyalty program and what factors affect long-term investment.

4. REI: Co-op Membership

Outdoor retailer REI operates a lifetime REI Co-op membership program built on a one-time $30 fee, a rare approach in the loyalty landscape. Members earn a yearly 10% dividend, called Co-op Member Reward, on eligible full-price purchases, which often offsets the initial fee within the first year. Beyond this core benefit, members enjoy free standard shipping, exclusive discounts on REI classes and adventure trips, and savings on gear rentals and shop services like bike flat-tire repairs and ski waxing.

What makes REI stand out is its community-driven model. Members vote in co-op board elections and participate in decisions shaping the company’s future. This sense of ownership fosters deeper emotional loyalty and positions REI as a lifestyle brand, not just a retailer. The co-op model reinforces shared values around sustainability and outdoor stewardship, aligning with its customers’ passions.

Takeaway for marketers: A modest lifetime fee combined with community perks and shared values can create long-term loyalty and advocacy.

5. Barnes & Noble: Premium Membership

Bookseller Barnes & Noble revamped its loyalty program to introduce a Premium Membership tier priced at $39.99 per year. This paid tier offers members 10% off all purchases made in-store and online, free standard shipping with no minimum spend, and exclusive early access to seasonal promotions and events. Unique lifestyle perks, such as an annual canvas tote, free drink upgrades in in-store cafés, and birthday treats, add experiential value beyond simple discounts.

A hybrid rewards mechanic enhances engagement. Members earn digital “stamps” for every $10 spent, and every 10 stamps converts to a $5 reward. This blend of immediate savings and earned rewards appeals to both frequent shoppers and occasional visitors, encouraging them to consolidate their book buying with Barnes & Noble. The program also strengthens cross-brand loyalty by extending benefits to Paper Source, B&N’s sister brand.

Takeaway for marketers: Combining financial savings with lifestyle perks can turn a retail loyalty program into a broader brand experience, encouraging recurring visits and higher spend.

6. Taco Bell: Taco Lover’s Pass

Taco Bell disrupted the quick-service restaurant space with its bold Taco Lover’s Pass, a subscription model launched in 2022 to reward frequent taco fans. For just $10 per month, members could claim one free taco per day for 30 consecutive days, choosing from favorites like Crunchy Taco, Doritos Locos Taco, or Soft Taco Supreme. Redemption was handled exclusively through the Taco Bell app, which helped the brand drive digital engagement and app downloads at scale.

The program’s simplicity in offering a free taco a day was a huge part of its appeal. Customers quickly understood the value, often pairing the free taco with additional paid menu items, boosting average order value. The promotion also created a sense of daily habit formation, encouraging repeat visits throughout the month. Although time-limited, the campaign generated buzz on social media and served as a real-world test of how subscriptions could work in fast food.

Takeaway for marketers: Low-cost, high-frequency subscriptions can spark digital adoption and drive habitual engagement, even in value-driven categories like quick service restaurants (QSR).

7. Panera Bread: MyPanera & Sip Club

Panera Bread has built one of the most interesting layered loyalty strategies in the fast-casual dining space. Its MyPanera rewards program is free to join and offers members surprise-and-delight perks such as free pastries, birthday treats, and free delivery for the first 30 days. On top of this base tier, Panera introduced the Unlimited Sip Club, a paid beverage subscription priced at roughly $14.99 per month plus taxes. Members enjoy unlimited self-serve coffee, tea, and fountain beverages, redeemable every two hours throughout the day while users are in the cafe.

This hybrid model appeals to both casual guests and heavy users. MyPanera captures broad sign-ups, while the Sip Club monetizes frequent visitors, particularly beverage drinkers by making Panera part of their daily routine. The subscription has been credited with boosting visit frequency and driving incremental spend, as beverage-only visits often turn into food purchases.

Takeaway for marketers: Layering a paid subscription on top of a free rewards base can convert light users into habitual customers and unlock steady recurring revenue.

8. Costco Wholesale: Membership Program

Costco Wholesale has built its entire business model around a paid membership program, making loyalty not just an add‑on but the core of its value proposition. Customers choose between the Gold Star membership, priced at $65 a year, or the Executive membership, priced at $130 a year, which includes a 2% annual reward on purchases up to $1,250 plus additional perks like travel discounts and insurance benefits.

Unlike many loyalty programs, Costco doesn’t rely on points, gamification, or tiers beyond these two options. The primary benefit is access to low prices on bulk goods and services, from groceries and electronics to gas and optical care. The savings are so substantial that most members quickly recover their annual fee through everyday shopping. This simple, high‑value promise has resulted in renewal rates of about 90% globally and 93% in the U.S. and Canada, some of the highest in retail.

Takeaway for marketers: A straightforward membership anchored in undeniable economic value can drive exceptional retention and customer trust without complex mechanics.

How CleverTap Promos Supports Loyalty Programs 

CleverTap Promos is an API-first loyalty and rewards platform built to power subscription and membership programs. It empowers brands to move beyond generic rewards and instead deliver real-time, personalized incentives that boost customer retention, increase revenue, and create long-term value.

• Loyalty Wallet Management: Issue and track points, cashback, coupons, and tier statuses in a real-time digital wallet for each customer. This wallet allows marketers to issue and track rewards seamlessly across the entire customer lifecycle.
  
• Dynamic, Usage-Based Rewards: Create perks based on customer actions, like plan upgrades, usage milestones, or renewal behavior. For instance, you can award bonus points when a user upgrades from a monthly to an annual plan, or automatically apply a renewal discount a few days before subscription expiration.
  
• Personalized Nudges and Triggers: Send automated, context-aware messages, such as renewal reminders, upgrade incentives, or milestone unlocks, to drive engagement.
  
• Segmentation and Targeting: Run campaigns tailored to specific customer segments based on behavior, lifecycle stage, or loyalty tier, such as sending a birthday bonus, unlocking VIP access after consistent engagement, or offering a coupon just before churn signals emerge.
  
• A/B Testing and Cohort Analysis: Test different rewards, offers, and messaging strategies to identify what drives the highest retention and ROI. Whether you’re looking to launch flash sales for members, reward long-term subscribers, or import third-party partner vouchers, CleverTap Promos gives you the flexibility to create truly tailored experiences.
  
• Seamless API-First Integration: Easily plug into any tech stack to power real-time loyalty workflows across channels. It acts as a central hub for all loyalty operations.
  
• Partner Voucher Support: Import and distribute third-party vouchers or co-branded offers within loyalty campaigns.
  
• Campaign Performance Tracking: Measure redemption rates, customer engagement, and campaign ROI from a centralized dashboard.

CleverTap Promos ties loyalty into your marketing engine. It ensures that every subscription upgrade, renewal reminder, or VIP incentive is executed and optimized. With wallet management, triggers, segmentation, and analytics built in, it gives marketers the toolkit to make paid loyalty programs truly effective.

In addition to its robust Promos features, CleverTap boosts loyalty programs with its omnichannel engagement tool across 15+ channels, AI-driven personalization capabilities for timing, content, and channel selection, and long-term data retention via TesseractDB™ for deep behavioral targeting. CleverTap’s dvanced customer data and analytics tool with funnels, cohort analysis, RFM segmentation, and real impact dashboards helps brands measure and optimize every interaction. It ensures rewards, upgrades, and win-back campaigns are always contextual and effective. 

Ready to see how CleverTap can transform your loyalty strategies? Talk to us today and start delivering personalized rewards that truly retain customers.

Make Membership Work Harder for Your Brand

Paid subscription and membership loyalty program models have proven their worth across industries. By charging a fee for premium perks, brands create exclusivity and clear value. The examples discussed in this blog clearly show how sticky memberships can be. 

Well-designed subscription loyalty programs deepen customer engagement and drive retention. For loyalty teams, the takeaway is to offer meaningful, personalized perks that justify the fee, and to use data and testing to refine the program. Ultimately, only the highest-value memberships will retain subscribers.