# Discount-Focused Loyalty Programs The New RH Membership Program Offers A Variety Of Privileges By Rahul Kalvapalle | Published 2016-05-26 | Business Source: Trend Hunter, https://www.trendhunter.com/trends/membership-program References: [retaildive](http://www.retaildive.com/news/restoration-hardware-launches-paid-membership-program-ends-sales/416423/) & [retaildive](http://www.retaildive.com/news/restoration-hardware-launches-paid-membership-program-ends-sales/416423/) California-based home furnishing company [Restoration Hardware](https://www.trendhunter.com/trends/byron-reeded-collection) (RH) has introduced an exciting new paid membership program that is most noteworthy for the manner in which it embraces the premium loyalty program model . This new membership program, which will see the end of regular sales programs at RH, will invite customers to pay $100 a year for the privilege of being able to enjoy 25% discounts in all departments in addition to 10% off clearance items, early access to clearance stocks and lower interest rates on the Restoration Hardware credit card. This is somewhat reminiscent of rewards programs offered by the likes of [Costco](https://www.trendhunter.com/trends/costco-executive-members) and [Barnes & Noble](https://www.trendhunter.com/trends/art-supply-seller). This discount-offering membership program is clearly targeted towards the premium and wealthy demographic of customers who are able and willing to pay a three-figure membership fee up front in order to be able to enjoy consistent and perpetual discounts and rewards. ## Trend Insights (Trend Hunter) - Score: 2.9/10 - Popularity: 36% | Activity: 42% | Freshness: 8% - Audience gender: 50% men, 50% women - Primary generations: Millennial, Gen X - Top markets: North America, Europe ## Categories [Trend Hunter](https://www.trendhunter.com/trends) > [Business](https://www.trendhunter.com/business) ## Key Themes ### Why This Trend Is Growing - **Premium Loyalty Programs:** The rise of paid membership programs with exclusive discounts and benefits for premium customers presents an opportunity for businesses to increase customer loyalty and revenue. - **Elimination of Regular Sales Programs:** The shift towards discount-focused membership programs that replace regular sales programs provides an opportunity for companies to streamline their marketing strategies and create a sense of exclusivity for customers. - **Early Access to Clearance Stocks:** Offering early access to clearance stocks to paid members can create a sense of urgency and drive sales while incentivizing customers to sign up for loyalty programs. ### Industries Being Reshaped - **Retail:** The retail industry can capitalize on the trend of discount-focused loyalty programs by implementing paid membership programs that provide exclusive benefits to customers. - **Home Furnishing:** In the home furnishing industry, implementing a premium loyalty program can help businesses attract and retain affluent customers who are willing to pay a membership fee for consistent discounts and rewards. - **Credit Card:** Credit card companies can partner with businesses offering discount-focused membership programs to offer lower interest rates on their credit cards, providing an additional incentive for customers to enroll. ## Related on Trend Hunter - [Retailer-Backed Rewards Cards](https://www.trendhunter.com/trends/target-circle.md) - [Men-Focused Loyalty Initiatives](https://www.trendhunter.com/trends/members-only-rewards.md) - [Luxury Resale Memberships](https://www.trendhunter.com/trends/rebag-membership.md) - [Progressive Traveler Programs](https://www.trendhunter.com/trends/ennismore-1.md) - [Customer-Led Loyalty Programs](https://www.trendhunter.com/trends/the-iconic.md) - [Phygital Membership Programs](https://www.trendhunter.com/trends/selfridges-unlocked.md) - [Anti-Loyalty Memberships](https://www.trendhunter.com/trends/disloyalty.md) - [Simplified Loyalty Programs](https://www.trendhunter.com/trends/cvs-pharmacy-loyalty-program.md) - [Rewarding BNPL Memberships](https://www.trendhunter.com/trends/klarna-memberships.md)