Urban Outfitters Inc. launched a paid membership service that offers free shipping and returns to consumers for all of its sub-brands, including Anthropologie and Free People.
The paid membership service was launched as a test in February, and the company plans to run it for a period of six months to a year. The service is named UP and it is being tested in both Atlanta and Dallas with two different price points, one at $48 and another at $98.
"The ability to access benefits at all Urban brands, for the price of one membership fee, offers a key differentiator for our program," said Richard Hayne Urban Outfitter's chairman and CEO.
Hayne said that the service will help the company assess how customers respond after becoming a member.
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Key Themes Behind This Trend
- Paid Membership Services
- Opportunity for other retail brands to explore and test the effectiveness of paid membership services in driving customer loyalty and repeat business.
- All-brand Membership Services
- Opportunity for retail brands with multiple sub-brands to offer an all-brand membership service model to provide greater value and attract a wider range of customers.
- Membership Service Testing
- Opportunity for retail brands to test different pricing points and benefits to determine their effectiveness in driving customer acquisition and loyalty.
Where This Applies
- Retail
- Opportunity for other retailers to explore the use of paid membership services to drive customer loyalty and repeat business.
- E-commerce
- Opportunity for e-commerce brands to test the effectiveness of paid membership services in driving customer loyalty and repeat business, which could lead to increased sales and revenue.
- Fashion
- Opportunity for fashion brands with multiple sub-brands to offer an all-brand membership service model to provide greater value and attract a wider range of customers.
