Customer acquisition cost (CAC) is among the most important metrics for you to focus on as a Shopify brand - alongside customer lifetime value (LTV), of course. One of the best ways to keep LTV high and offset rising CAC figures is to start a membership program. This creates a predictable source of recurring revenue.
But what makes a GOOD membership program? Not all brands do it right, and missteps in setting up, managing, and marketing the program lead to wasted resources and lackluster results. Here’s what we think separates the best Shopify membership programs from the rest:
- Clear value for the customer
- Data-driven personalization at every interaction
- Tiered/flexible structures that cast a wider net
- Ease of use (friction is an engagement killer!)
- Reliable tech and support to make it all seamless
We’ll talk more about how to create a membership program that generates a strong ROI below. The best thing you can do, though, is set yourself up for success with a Shopify Plus membership program powered by Rivo, the platform built for retention. Learn more today!
What is a Membership Program?
This is a structured system where customers pay (either with money, engagement, or both) in exchange for exclusive perks. They’re becoming more and more common as brands discover how powerful they can be for their bottom line.
Unlike basic loyalty programs, which typically revolve around points and discounts, membership creates an elevated relationship between the brand and customer. Instead of simply rewarding transactions alone, it’s an ongoing value exchange that feels more like belonging than earning.
Membership programs typically fall into one of three categories for eCommerce brands:
- Paid memberships: Customers subscribe to get consistent benefits like free shipping, early product access, or members-only pricing.
- Freemium memberships: Customers join for free but unlock deeper perks through upgrades.
- Tiered memberships: Programs evolve with the customer, offering higher-value perks as they spend or engage more.
But whether you go with a subscription vs membership model, you can rest assured you’re using your internal resources wisely. Let’s touch on some of the benefits of building out a membership program below.
Why Does Your Brand Need One?
A well-designed membership program has the potential to solve deeper business challenges. Here’s where the real impact shows:
Tackling Customer Acquisition Costs (CAC)
Paid ads are expensive and competition is only growing. So, the average customer acquisition cost for ecommerce has gotten a little crazy. Membership programs shift the focus from constant acquisition to retention, reducing dependence on paid channels.
Think about it - customers are committing to your brand on a far deeper level when they opt into a membership. That means fewer dollars spent chasing new customers, and more value extracted from existing ones.
Creating Predictable Revenue Streams
Membership fees or renewals create reliable, recurring income. Even freemium models have the potential to introduce consistency into cash flow when paired with tiered upgrades.
This stability makes forecasting and planning far easier than relying solely on unpredictable one-off sales for eCommerce brands. Sure, you still have to worry about churn - but not quite as much.
Standing Out in a Competitive Market
Ecommerce is crowded, and every brand fights for the same customer attention. A membership program cuts through the noise by offering something no ad campaign can replicate - a sense of belonging.
Whether it’s gated products, a VIP community, or curated perks, memberships create a reason for customers to choose you again and again, even when cheaper options exist.
So, what makes a good membership program?
What Makes a GOOD Membership Program?
We’ve seen so many brands prop up a membership program overnight and hope it yields an ROI. But it’s not that easy. A good membership program needs to be more calculated and thought-out. Read below to learn what the best brands do that others don’t.
Value Clarity
The first rule of a good membership program is that customers should understand its value instantly. If they need to dig through fine print or do mental math to figure out why it’s worth it, you’ve already lost them.
Think of Amazon Prime: “Free shipping, streaming, exclusive deals.” The offer is obvious, immediate, and hard to ignore. One brand that uses Rivo for membership, Fresh Chile, does this really well, too. Every customer that’s part of the program gets:
- 20% off every single order
- 5% back in store credit on every purchase
- $10 in Fresh Chile Cash when they sign up
- Another $20 in Fresh Chile Cash on renewal
- And more!
Clarity builds trust. Customers should know what they get, when they get it, and why it matters.
Tiered or Flexible Structures
Not every customer wants the same experience or can afford the same price. That’s why tiered or flexible memberships often outperform flat, one-size-fits-all models. For example, a beauty brand could offer:
- Free tier: Basic rewards, birthday perk.
- Mid-tier: $20/year for exclusive product samples and double loyalty points.
- Premium tier: $99/year for early access to limited editions, free shipping, and quarterly gifts.
This creates an on-ramp for casual shoppers while offering aspirational tiers for loyalists who want more. Nobody is left out, and your brand can maximize ROI.
Personalization is Everything
One of the most profound customer retention statistics we’ve come across over the past few years speaks to personalization: customers who receive personalized experiences are 60% more likely to become repeat buyers!
So what makes a good membership program? It never feels generic. Customers want to feel like the program was built for them. That means tailoring rewards, messaging, and perks based on purchase history, product preferences, or lifetime value.
A fashion brand could segment by style preference, sending denim lovers unique offers while pushing dress perks to another group. This becomes a lot easier when you have the right platform in place for your membership program, because you can use REAL data.
Ease of Use and Accessibility
Even the best perks won’t matter if redemption is a headache. Good membership programs are intuitive, frictionless, and accessible across every channel where customers engage. Customers should be able to:
- Sign up in seconds during checkout.
- View benefits in their account dashboard.
- Redeem rewards in one click, online or in-store.
People won’t bother if your program feels like work. Brands like Costco prove this offline: swipe your card, and the benefits are automatic. For Shopify brands, the digital equivalent is Shopify-native integration (which is possible with Rivo). Discounts, tiers, and perks are linked to customer accounts and apply seamlessly without manual steps.
Engagement Beyond Transactions
The strongest membership programs go beyond just discounts. They create ongoing reasons to engage, even when customers aren’t buying. A few examples of this include:
- Exclusive content: Tutorials, recipes, or insider guides for members.
- Community spaces: Access to private groups or forums where fans can connect.
- Experiential perks: Invitations to virtual events or product launch previews.
This transforms membership from a transactional perk into an ongoing relationship. Customers stay connected to the brand story, not just the discount code.
Integration With Existing Marketing Channels
A good membership program doesn’t live in a silo. It plugs directly into your marketing stack to amplify everything you’re already doing. After all, even the best membership program won’t deliver results if customers aren’t aware it exists (or what makes it worth it).
We wrote an entire guide on how to market a membership program effectively. You should be sending Klaviyo flows that highlight unused perks, SMS nudges reminding members of expiring credits, or pushing membership-exclusive sales through email. Integration with Shopify POS syncs in-store purchases with online benefits for a seamless omnichannel experience.
Reliable Tech and Support
Finally, no membership program thrives without reliable technology and strong support. Customers expect rewards to track accurately, credits to apply instantly, and dashboards to update in real time.
This is why you need the best Shopify loyalty apps powering your program.
Merchants need responsive support teams who can troubleshoot integrations or customize workflows quickly. Programs that lag, glitch, or require constant manual fixes erode trust faster than any weak perk could.
But more importantly, they cost you revenue. That’s the last thing you want out of a membership program! So, learn more about the Shopify loyalty program awaiting you at Rivo.
You get Shopify-native technology, drag-and-drop customization, 100+ integrations, and live support that doesn’t hide behind enterprise price tags. It’s the #1 Loyalty Lion alternative, Smile.io alternative, and Yotpo alternative. Find out why today.
Get Started Increasing Retention With Rivo Today
Membership programs are no longer optional. They’re one of the most effective ways to increase retention, drive predictable revenue, and deepen brand loyalty. But what makes a GOOD membership program? Hopefully, you have a solid grasp of what comes next.
You need to offer clear value, keep customers engaged beyond transactions, and integrate seamlessly with existing marketing channels. If your brand is serious about retention, building the right foundation is the smartest thing you can do. That’s where Rivo comes in.
We’ve built the only Shopify-native membership platform for brands that want flexibility, scalability, and speed without compromise. With 150+ features, 100+ integrations (Klaviyo, Recharge, Attentive, Postscript, and more), drag-and-drop customization, VIP tiers, and deep Shopify POS support, you can design a program that feels truly on-brand and grows with you.
Launch a membership program your customers will actually use - start with Rivo today.
