Why Do I Need a VIP Program?

May 8, 2018 Patrick Trochaniak

Implementing a VIP program can help every ecommerce store get their customers to purchase more while also improving their shopping experience. Don’t believe me?

Here are the reasons a VIP program is so effective.

Those Who Join Your VIP Program Are Worth More

This statement isn’t just powerful - it’s also backed by impressive stats. When you can encourage customers to move up through a series of tiers, you are essentially getting them more and more committed to your brand. That means that the more they shop, the more valuable they become.

As a result, each of your VIP customers are going to make more purchases with you over the course of their lifetime.  After each purchase the chance of returning for another becomes much more likely, with a two time purchaser 45% more likely to buy again, and a 3 time purchaser 54% more likely.


By tying a customer’s progression through your VIP tiers to purchases, you are able to significantly increase your store’s average purchase frequency and customer lifetime value. Your VIP program will also improve your store’s average order value because your best customers typically spend more per order than the average shopper.  In fact, your top 1% spends 5x more than your average, making your most loyal customers also the most valuable.

Get your existing customers spending more with a VIP program.
Discover how to structure your VIP program to maximize its value in our strategy guide.

Social Status Is an Inexpensive Reward

People always like to be better than their peers.  The social status that comes along with VIP tiers is extremely valuable to your customers at no cost to you. Simply moving up through the ranks in your program gives your customers an increased perception of exclusivity within your community that they can’t wait to experience.

Building this type of desirable exclusivity and social status into your VIP program starts with the name you choose. By properly naming each tier, you’re able to motivate your customers to achieve them. This is the first step towards creating an irresistible program, and effectively builds prestige even before you’ve added any rewards!  With this social status on the line, customers will be easily persuaded to join your program and engage with your brand.

They Allow You to Offer a Tailored Shopping Experience

When I walk into Extreme Pita, they already know my usual order and start making it before I can even say hello. VIP tiers make it possible to offer that same relationship even when you are separated by distance and a computer screen.

Tiers make it easy to recognize the customers who spend the most with you and reward these loyal customers with the best experience. The best part is that these rewards don’t have to be big to have a huge impact.  For example, you could include a handwritten note or some freebies with every order that comes from a top tier order. Just like Extreme Pita knowing my order, these small acknowledgements go a long way to making every interaction with your brand a personal one.

Topps Now Rewards Program

Topps does this by rewarding their top “Hall of Fame” customers with free vintage baseball cards each month.  For baseball fanatics who make it to this esteemed tier in the Topps Now rewards program, this is a very pleasant surprise. Without VIP tiers, Topps would have no idea which customers warrant this red carpet treatment.

Use tiers to distinguish who your best customers are and then give them a VIP experience. That experience is what gets them returning time and time again, while also creating brand advocates.

VIPs Are Great For Testing Ideas

If you’re wondering whether a new product will work or not, testing it with a few of your best customers will give you the honest feedback you need. If your biggest fans don’t enjoy the new product, it’s very likely the rest of your customers will have a similar opinion.

On the other hand, if they think the new product is amazing they will already be telling their friends about it.

SUBPAC uses their top-spending customers as an enthusiastic crowd of testers by giving them early access to their new products. This allows tweaks to be made before the final product goes out. Since SUBPAC sells such a unique product (wearable speakers), customer feedback is extremely important when launching a new product that will draw in the most sales.

Subpac Top Tier Exclusive Benefits

Rather than hiring expensive beta testers, get some of your existing customers to try out your new products. Receiving special treatment like early access to products adds to the social status these elite customers already have, ensuring they’ll tell their friends about it and help bring in more valuable VIP customers. Not only will you create a memorable experience for them, you will also receive valuable reviews in return.   

VIP Programs Put the Focus on Your Existing Customer

A VIP program highlights your best customers and makes them feel special. Doing this increases their spending, gives them social status, tailors their shopping experience, and allows you to test your new products with them.

Use VIP tiers to boost the value of all of your existing customers!

Learn how to set up your own VIP program properly.
Our expert’s guide teaches you exactly how to build the most effective VIP program for your business.

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