Will REI Membership Soar With Its New Lifetime Program? – RetailWire
March 08, 2022
For the first time in 84 years, REI has updated its lifetime membership program with five new perks and a higher price ($30 one-time fee vs. $20 previously). The retailer is launching it with the aim of more than doubling the number of members to 50 million by 2030, from 20 million currently.
The co-op is introducing the new benefits in addition to its traditional benefits which include an automatic 10% discount on almost everything in the store (repaid as an annual dividend), member-only coupons, and discounts on rentals, classes, events and adventures. Existing members graduate into the program.
The five new additions are:
- Free delivery: Free standard shipping in the USA on all orders, no minimum purchase required. (Exceptions for international shipments and oversized items.)
- Collection of members: REI will launch a larger, curated set of member-only offers each month, such as brand collaborations, limited editions, early access, and special offers.
- REI Cooperative Action Fund Donation: With every new membership purchased, REI will donate $5 to the REI Cooperative Action Fund to support organizations committed to justice, equity and outdoor belonging.
- Used equipment reserved for members: Used equipment offers, now called Re/Supply, are now exclusive to members.
- Shop service discount: Discounts on in-store bicycle, ski and snowboard services are doubled to 20% for members.
Interest in outdoor activities, from camping to hiking and biking, has increased as the pandemic has brought indoor activities to a halt. A report last year, the Outdoor Industry Association’s (OIA) “New Outdoor Participant (Covid And Beyond)” found that new entrants were more likely to be female, younger, living in an urban area and slightly older ethnically diverse than existing participants.
Many aspects of REI’s new program — including limited-edition collaborations, thrift sales, and targeted giving — seem geared toward younger kids.
REI’s chief marketing officer, Vivienne Long, said WWD“The reality is that we need to attract not just more people, but the next generation – younger, more diverse – in order to attract almost different types of people than we have traditionally had in our membership base. of our benefits is really about asking, “What are the needs of a future generation of outdoor enthusiasts?”
DISCUSSION QUESTIONS: Will improvements to REI’s Lifetime Membership program help the co-op reach a younger, more diverse audience? Is the program straying too far from REI’s roots or not going far enough?
“There is no doubt that this will increase the number of new customers as well as their LTV.”