DTC brands face rising acquisition costs that make customer retention more valuable than ever. Membership programs offer a proven path to increase lifetime value, build recurring revenue, and create lasting customer relationships. Whether you're launching a Shopify loyalty program or exploring paid membership models, the right approach can transform one-time buyers into loyal advocates.
Key Takeaways
- Membership programs can increase customer spending by 2x compared to non-members, making them essential for DTC growth.
- Top platforms like Rivo offer Shopify-native solutions with 4.8/5 ratings and proven ROI for fast-growing brands.
- Paid membership models generate predictable recurring revenue—Fabletics VIP produces $500M+ in annual revenue.
- Tiered loyalty programs like Sephora Beauty Insider drive engagement through experiential rewards and exclusive access.
- Modern platforms process 2.9 billion API calls annually, enabling seamless integration with existing tech stacks.
This guide covers the top platforms for building membership programs and real-world brand examples that demonstrate what works. From developer-friendly tools to successful program structures, DTC brands will find actionable insights for launching or improving their retention strategies.
1) Rivo — Shopify-Native Retention Platform
Rivo stands as the first open platform for Shopify Plus membership programs, processing 2.9 billion API calls annually with 99.98% uptime. The platform serves 7,000+ brands and has generated $1.5 billion in attributed revenue for clients.
These numbers reflect Rivo's scale in the retention space. Processing nearly 3 billion API calls shows the platform handles high-volume brands without performance issues. The $1.5 billion in attributed revenue demonstrates measurable ROI that goes beyond vanity metrics.
Key Features
- Developer Toolkit with REST API, JavaScript API, and native Liquid metafields
- 8+ checkout touchpoints allowing customers to spend points as a payment method
- Rivo Activate feature enabling 500-1000% increase in activated accounts via passwordless login
What sets Rivo apart is its modern architecture built specifically for Shopify. The platform uses theme app extensions that load in under 100ms and supports weekly product updates using the latest Shopify Plus features like checkout extensions and stackable discounts.
Proven Results
Kitsch generated $5.8M in loyalty-attributed revenue with 1.2M activated customers and an 8.7x higher repeat purchase rate for top-tier VIPs. HexClad drove $450K in referral revenue within 90 days, achieving a 92x ROI.
The 100% bootstrapped company offers month-to-month contracts instead of annual commitments, making it accessible for brands at various growth stages.
Best For
Fast-growing Shopify Plus brands seeking developer-friendly loyalty and membership tools
Price
Free (up to 200 orders) to $499/month
2) Yotpo Loyalty
Yotpo Loyalty delivers an enterprise partnership approach with dedicated Customer Success Managers and quarterly strategy sessions. The platform combines loyalty, reviews, and SMS marketing into a unified solution.
Key Features
- Unified marketing suite eliminating the need for separate platforms
- Advanced VIP tiers with flexible point expiration rules
- Strategic partnership model with dedicated support
The platform powers programs like Princess Polly Rewards, demonstrating its capability with Gen Z fashion audiences. Brands that need tight integration between loyalty data and marketing campaigns benefit from this all-in-one approach.
Best For
Enterprise brands seeking a unified loyalty, reviews, and SMS platform
Price
Custom pricing
3) Smile.io
With 91% of ratings at 5 stars and over a decade in the market since 2012, Smile.io offers the largest validation dataset in the Shopify loyalty space. The platform's Loyalty Hub integrates directly into Shopify customer accounts.
Key Features
- Deep Klaviyo integration for loyalty-driven email campaigns
- Built for Shopify badge with highest review count
- Loyalty Hub for signed-in members
For brands that value stability over cutting-edge features, Smile.io's incremental improvement approach provides confidence in long-term platform reliability.
Best For
Brands prioritizing stability and proven track record
Price
Free (up to 200 orders) to $999/billed yearly
4) LoyaltyLion
LoyaltyLion focuses on advanced analytics with RFM segmentation and robust reporting for omnichannel retailers. Research from Harvard Business Review shows that increasing customer retention rates by just 5% can increase profits by 25-95%, making data-driven optimization increasingly important.
Key Features
- Industry-leading analytics suite
- POS support for omnichannel retailers
- Focus on non-transactional customer behaviors
Brands that view loyalty as a strategic lever requiring deep analytics will find LoyaltyLion's measurement capabilities particularly valuable.
Best For
Data-driven brands requiring advanced analytics and RFM segmentation
Price
Starting at $199/month
5) BON Loyalty
BON Loyalty launched in August 2021 and quickly achieved a perfect 5.0/5 rating with 97% of ratings at 5 stars. The platform supports 250+ languages and includes AI-powered automation.
Key Features
- Anti-cheat referral program with fraud detection
- AI-powered automation for loyalty campaigns
- Free forever plan includes full referral and points programs
The perfect rating demonstrates consistent delivery for brands expanding internationally or serving diverse customer bases.
Best For
Global brands needing multilingual support
Price
Starting at $23/month
6) Sephora Beauty Insider
Type: Free tiered loyalty
Industry: Beauty
Key Metric: Three tiers driving increased engagement
Sephora's Beauty Insider program, launched in 2007, remains the benchmark for tiered loyalty in beauty. The program features three tiers: Insiders, VIB ($350/year spend), and Rouge ($1,000/year spend).
How It Works
Members earn 1 point per $1 spent with access to the Rewards Bazaar, where products change every Tuesday and Thursday to create urgency. The mix of savings, samples, and experiences keeps members engaged beyond simple discounts.
According to Forrester Research, loyalty program members generate 12-18% more incremental revenue per year than non-members. Sephora's tiered structure capitalizes on this by creating aspirational status levels that encourage increased spending.
Key Takeaway for DTC Brands
Create urgency through rotating rewards and combine transactional benefits with experiential exclusives.
7) Alibaba 88 VIP
Type: Paid membership (~$140/year)
Industry: Retail/Technology
Key Metric: Members spend 2x as much as non-members
Alibaba's 88 VIP program, launched in 2018, demonstrates the power of ecosystem memberships. For 888 yuan annually, members receive 5% off any purchase, free same-day delivery, and automatic enrollment in food delivery and travel programs.
The 2x spending increase shows that paid memberships attract your best customers. These members have already demonstrated commitment by paying upfront, creating a psychological investment that drives continued engagement.
How It Works
The program includes gold elite hotel status and early access to products 6 months before release. According to Miya Duan, Tmall Brand Marketing Director, "88VIP members spend twice as much money as other shoppers on the platform."
Key Takeaway for DTC Brands
Bundle multiple benefits across services to create a membership worth paying for.
8) Fabletics VIP
Type: Paid membership ($49.95/month)
Industry: Fashion/Activewear
Key Metric: $500+ million ARR
Fabletics VIP pioneered the monthly credit model in fashion, generating over $500 million in annual recurring revenue with approximately 10% churn rate.
This ARR figure represents the holy grail of DTC economics—predictable, recurring revenue. At roughly 10% monthly churn, Fabletics maintains a customer lifetime that supports sustainable unit economics even with paid acquisition channels.
How It Works
Members pay $49.95 monthly, credited toward purchases. The skip-a-month flexibility reduces churn while member-exclusive pricing incentivizes continued participation.
Key Takeaway for DTC Brands
Credits that carry over create a "bank" mentality that drives future purchases.
9) Walmart+
Type: Paid membership ($98/year)
Industry: Retail/Grocery
Key Metric: $816/year in savings
Launched in 2020, Walmart+ competes with Amazon Prime by focusing on grocery and everyday essentials. Members receive free delivery, 5 cents per gallon fuel savings at 2,000+ locations, and $0 prescription fills at 4,000+ pharmacies.
Research from Bain & Company shows that members of paid programs shop 2x more frequently than non-members. Walmart+ leverages frequent grocery purchases to create habitual engagement that extends across categories.
Key Takeaway for DTC Brands
Stack tangible savings benefits that exceed the membership cost to create obvious value.
10) Princess Polly Rewards
Type: Free tiered loyalty
Industry: Fashion
Key Metric: Four-tier VIP structure
Princess Polly's rewards program perfectly tailors to Gen Z audiences with four tiers: Newbie, Bronze, Silver, and Gold. The program earns points for purchases and reviews, with early access to sales for top tiers.
Key Takeaway for DTC Brands
Design tier names and benefits that feel native to your brand and resonate with your specific audience.
11) ThirdLove Hooked Rewards
Type: Free tiered loyalty
Industry: Apparel/Intimate
Key Metric: 2x points at Platinum tier
ThirdLove proves that effective programs don't need complexity. With just two tiers—Gold and Platinum ($250/year spend)—the brand creates a clear unlocking goal for customers.
Platinum members receive double earning rates, VIP stylist access, and free shipping with no minimum. McKinsey research indicates that 71% of consumers expect personalized interactions, which ThirdLove delivers through VIP stylist access.
Key Takeaway for DTC Brands
A tiered program doesn't need many levels to drive behavior.
12) Loop Earplugs "The Loop Club"
Type: Free membership
Industry: Consumer Electronics
Key Metric: Focus on belonging over discounts
Loop Earplugs built The Loop Club around community and insider status rather than transactional discounts. Members gain exclusive community access, early product drops, and a sense of belonging.
Key Takeaway for DTC Brands
Understand what truly motivates your customers. If you have a strong community, design your loyalty program to strengthen that connection rather than defaulting to discounts.
13) ALDO Crew
Type: Free tiered loyalty
Industry: Footwear
Key Metric: Gift-sharing for VIPs
ALDO Crew features three tiers with a unique twist: VIP members can share 20% rewards with 5 friends, building referral directly into the loyalty structure. Birthday celebrations escalate from discounts to free accessories to gifts as members progress.
This built-in referral mechanic turns top customers into acquisition channels. According to Accenture, 66% of consumers are willing to pay more for products from brands that demonstrate social good, and enabling customers to share benefits creates that value exchange.
Key Takeaway for DTC Brands
Integrate referral program incentives into VIP tiers to amplify word-of-mouth.
14) MeUndies Membership
Type: Paid subscription ($16/month)
Industry: Apparel
Key Metric: 30% discount on all orders
MeUndies combines replenishment with curation by offering member-exclusive prints each month. Members receive 30% discounts and free shipping on all orders versus $50 minimums for non-members.
Key Takeaway for DTC Brands
Exclusive products create FOMO that discounts alone cannot achieve.
Choosing the Right Membership Approach
The best membership programs share common traits: clear value propositions, appropriate complexity for the audience, and tight integration with existing tools.
Consider paid membership if
- Your products have high repurchase frequency
- You can offer savings that exceed the membership cost
- Exclusive access drives customer behavior
Consider tiered loyalty if
- You want low barriers to entry
- Gamification and status appeal to your audience
- You need flexibility in reward structures
For Shopify brands ready to implement membership or loyalty programs, requesting a demo from a platform like Rivo provides hands-on insight into what's possible with modern retention tools. Rivo's developer-friendly approach means you can customize the experience to match your brand while leveraging proven templates that drive results.
Frequently Asked Questions
What is the difference between a loyalty program and a paid membership for DTC brands?
Loyalty programs are typically free to join and reward customers based on purchases or engagement through points and tiers. Paid memberships charge an upfront fee in exchange for ongoing benefits like discounts, free shipping, or exclusive access. Some brands combine both approaches with free entry-level tiers and paid premium memberships.
How can I calculate my DTC brand's customer retention rate?
Calculate retention rate by taking the number of customers at the end of a period, subtracting new customers acquired during that period, dividing by customers at the start, and multiplying by 100. Tracking this alongside loyalty program metrics helps measure program effectiveness.
What are essential features to look for in a membership platform for Shopify Plus brands?
Key features include checkout integration for point redemption, API access for customization, VIP tier automation, fraud prevention for referrals, and native Shopify compatibility. The platform should support Shopify Flow integration and modern checkout extensibility rather than legacy workarounds.
How do referral programs benefit DTC brands in terms of customer acquisition and retention?
Referral programs turn existing customers into acquisition channels while rewarding loyalty. HexClad achieved 92x ROI with 17% higher AOV from referred customers, demonstrating how referrals bring in higher-quality customers who already trust the brand.
Can membership programs integrate with existing email marketing and CRM tools?
Modern platforms integrate with Klaviyo, Postscript, Gorgias, and 50+ other tools. These integrations enable automated loyalty emails, VIP tier sync for segmentation, and unified customer data across the tech stack."
