To understand the tactics used by discount clubs companies in the US, like Costco, BJs, and AAA, to gain loyalty from their members to create a better understanding of how discount clubs retain members.
Costco offers a personal and business membership. Both have a standard and an executive membership level. The personal and business standard membership is $60, while the personal and business executive membership is $120.
The difference between the four membership types relates to the additional services offered. All memberships receive a free card that is valid at all Costco locations globally.
Features that are unique to both the personal and business executive membership are a 2% reward on annual Costco and Costco travel purchases and extra benefits on select Costco services.
The standard business and executive business memberships also include the ability to purchase for resale and the opportunity to add additional people to the membership for a fee of $60.
Costco also offers a student membership for $20. This opportunity is offered through UNiDAYS and requires membership to the UNiDAYS website to access. Upon signing up for the personal membership, students also receive a $20 Costco gift card and a Google Nest Mini.
A military membership that offers additional savings and free products to the value of $60 is also available to active duty, veteran, and retired military members. To sign up for this membership, a Costco Membership Activation Certificate is required. A military status needs to be obtained through ID.me to access this offer.
Costco Membership Numbers
Costco has experienced a steady annual increase in the number of members globally over the last five years. In 2018 Costco had 94.3 million members globally. This was up from 76.4 million in 2014.
Amazon Prime has recently surpassed Costco as the number one membership in the US. There are a number of households in the US that electing to buy a membership to only one of the discount clubs. Despite Costco having less expensive prices overall, Amazon Prime is starting to eat into Costco's membership numbers in the US.
Amazon Prime offers additional perks to its members, including free two-day shipping, a more extensive selection of brands and prices, and free access to books, television shows, and movies.
The percentage of houses that pay only for Amazon Prime membership was 16.2% in 2016, while the percentage that pays only for Costco membership was 9.8%.
Our first hour of research has found there is a significant amount of information available in respect of membership discount clubs, the best practicestoadopt when setting up a discount membership club, and the motivations people have when joining them.
Sam's Club (Walmart) and Amazon Prime have been identified as two other discount membership clubs of significance in the US.
Only the project owner can select the next research path.