Subscriptions and memberships both promise something every e-commerce brand craves: predictable revenue, stronger customer relationships, and a reason for shoppers to keep coming back.
The problem is, many Shopify brands get stuck choosing between a subscription vs membership program. It’s easy to see why, since there’s quite a bit of overlap. Each model fuels growth. The way they drive loyalty, deliver value, and shape your brand is very different, though.
Choosing between a membership vs subscription model isn’t always straightforward, and picking the wrong fit can leave money (and customer goodwill) on the table. We’ll compare the two below to help you get a stronger sense of which aligns most with your brand today.
Rivo helps Shopify brands grow with loyalty and membership solutions built for flexibility, personalization, and measurable results. You can effortlessly customize your program with 50+ features out of the box, and ensure a cohesive brand experience at every touchpoint.
Connect with our team today and learn more about our Shopify plus membership program.
What is an E-Commerce Subscription Service?
This is a recurring purchase model where customers pay on a set schedule - that could be weekly, monthly, or annually - to get products or services automatically. Instead of making one-off purchases, shoppers “set it and forget it.”
This makes the customers’ lives a whole lot easier, and it benefits the brand by creating predictable income. Common types of subscription programs include:
- Replenishment subscriptions: Automatically send everyday essentials like coffee, pet food, or skincare refills.
- Curated boxes: Surprise customers with themed assortments (beauty boxes, meal kits).
- Access-based subscriptions: Offer ongoing digital services or content, such as online courses or software.
Some of the absolute best beauty loyalty programs run on a subscription service. Let’s take a look at the pros and cons for brands and members alike, along with some common challenges to be prepared for.
Benefits for Brands and Customers
- Steady cash flow: Revenue predictability makes forecasting and scaling easier.
- Deeper customer relationships: Recurring contact builds trust and familiarity.
- Convenience for customers: Products arrive when needed without reordering. A lot of subscription services offer a discount for customers as well (10-20% is standard).
- Increased lifetime value: Customers stick around longer when they’re committed to a plan. This can help offset the rising customer acquisition cost in today’s e-commerce environment.
Potential Challenges to Consider
- Churn management: Even loyal subscribers can cancel if they feel oversupplied or underwhelmed. You’ll need to keep a close eye on your churn rate.
- Upfront operational setup: Requires reliable fulfillment systems and billing infrastructure.
- Market saturation: Standing out from countless other subscription options can be tough.
What is an E-Commerce Membership Program?
A membership program grants customers exclusive perks, experiences, or access in exchange for a one-time or recurring fee.
Unlike subscriptions, memberships don’t always focus on recurring product deliveries. Rather, they’re about privileges that elevate the buying experience. That’s the key difference between a membership vs subscription model. Here are some common types:
- Paid memberships: Members pay for benefits like free shipping, exclusive discounts, or early access (Amazon Prime).
- Freemium memberships: Offer a free tier with optional paid upgrades for premium perks. This helps you capture users and nurture them slowly over time.
- Community-focused memberships: Combine exclusive events, forums, or networking opportunities with product perks.
A membership program can be one of the top customer loyalty strategies, but is it right for your Shopify brand? Let’s take a look at some benefits and challenges below to find out.
Benefits for Brands and Customers
- Loyalty through exclusivity: Members feel valued and “in the club.”
- Revenue beyond product sales: Monetize access, not just items.
- Personalized engagement: Data from members can inform tailored offers and content.
- Brand differentiation: Stand out by offering experiences competitors can’t match.
Potential Challenges to Consider
- Ongoing value delivery: Members need consistent reasons to renew. You can’t let the program get stale.
- Benefit cost management: Perks must be appealing without eroding margins. There’s a fine line between being enticing and being a financial liability.
- Clear communication: Customers have to feel membership is worth paying for, and that requires effective messaging of the value proposition.
Subscription vs Membership Program: Which Makes the Most Sense For Your Brand?
It’s easy to see why brands get stuck choosing between a subscription vs membership program. They’re both popular types of customer loyalty programs, and technically, they’re “paid” models.
But the differences between a membership vs subscription model become obvious when you take a closer look. Let’s compare the two side by side below to help you understand the nuances at play.
Comparing Revenue Models and Predictability
Subscriptions are a set, recurring revenue stream. If you have 2,000 subscribers paying $30/month, you can confidently forecast $60,000 in recurring sales - barring churn, of course. That kind of predictability makes inventory planning, staffing, and growth investment easier.
That said, memberships bring a very similar benefit. There is just a slight difference in frequency and predictability, depending on your model. A one-time annual membership fee gives you a cash influx upfront but you must keep members engaged over a long stretch to earn renewals.
From a predictability perspective, subscriptions have the edge. Yes, customers can churn at the drop of a hat - but they tend to be steadier on a month-to-month basis.
Impact on Customer Acquisition and Reach
Subscriptions typically require a bigger commitment up front (both financially and mentally), so customer acquisition can be a bit more challenging. Prospects might hesitate if they’re not sure they’ll use the product regularly.
That barrier tends to be lower with memberships, especially if you offer a freemium tier. Customers can start with a free or low-cost plan, experience value, and then upgrade to paid status.
In this sense you can reach more people faster with membership programs than subscription programs, but how quickly you convert them to paying customers is up in the air to some extent.
The trade-off is worth considering: subscriptions can hook customers quickly if you have a product that people naturally reorder. Memberships may cast a wider net if your brand thrives on community or exclusive perks.
Customer Loyalty and Retention Differences
This is where it isn’t quite so apparent which is better in comparing a subscription vs membership program. Both keep customers around, but the retention mechanics differ.
Subscriptions create loyalty through convenience. You’re saving customers the time and effort of reordering. But convenience only carries so far. Churn will ensue if the product doesn’t feel essential or the novelty wears off.
Memberships rely more on emotional loyalty. Members aren’t just customers - they’re part of something exclusive. That could be early access to products, special events, or members-only discounts. This can sometimes lead to longer-term engagement, even if the customer isn’t buying every month.
Operational and Fulfillment Considerations
You might need to choose between a subscription vs membership model based on which is feasible for your current operational bandwidth.
Subscriptions are operationally demanding. You need airtight inventory management, reliable logistics, and flexible fulfillment systems to handle recurring shipments. Even small delays or stockouts can damage trust and spike churn.
On the other hand, memberships might be a bit lighter on physical fulfillment. You can offer quite a few digital perks (exclusive content, VIP access, early sales) to minimize the operational strain of shipping products on a set schedule.
You do still need the internal infrastructure to support a membership program, though - and that’s where Rivo comes into play. Our software connects directly to your Shopify storefront for seamless setup and management.
Brand Positioning and Perception
To some extent, picking between a membership vs subscription model can be dictated by how your brand is positioned. Or, how you want to be positioned.
Subscriptions often position your brand as a utility or essential provider - reliable, consistent, always there when the customer needs you. In contrast, memberships tend to skew a bit more exclusive. They exude status and belonging. That difference matters.
Of course, these perceptions can blend. Brands like Amazon Prime blur the line, delivering physical products on a schedule while also building a sense of belonging through perks. This begs the question…do you HAVE to choose between one or the other?
Does it Ever Make Sense to Have Both?
In many cases it’s not necessarily a matter of one or the other between subscription vs membership programs. You can execute both - as long as you have the internal resources to oversee both effectively.
Running a subscription and a membership program together allows you to capture different customer mindsets. Someone might join your membership for exclusive community perks, then add a subscription for their favorite product. Or, maybe they’ll start with a subscription, love the experience, and join the membership for deeper engagement.
The key is avoiding overlap that confuses customers. Your messaging should make it clear why each exists, how they’re different, and why they’re complementary. This is easy when you have separate landing pages for each program - and that’s where Rivo comes in.
Whether you’re setting up a referral program vs affiliate program or a membership vs loyalty program, our Shopify app supports seamless integration and lets you customize the experience at every touch point. Learn more about our solution today!
Bringing Our Comparison of the Membership vs Subscription Model to a Close
Choosing between a membership program and a subscription model comes down to your brand’s goals, how your customers interact with you, and the kind of loyalty you want to build. Hopefully you feel more confident choosing between a subscription vs membership model now.
Both have the potential to strengthen retention and boost lifetime value - but only when the structure aligns with your operational strengths and brand identity. So, connect with our team at Rivo now and discover what our platform can do for your Shopify brand.
