Loyalty Register glossary
Member pricing
Lower prices on selected products that only identified program members receive at checkout.
Member pricing means lower prices on selected products that only identified loyalty members receive. The shelf or product page shows two prices, one for members and one for everyone else, and the member price applies when the customer identifies at checkout. Tesco Clubcard Prices work this way: members scan the app or card at the till, in store or online, to get them.
Updated · By Loyalty Register Editorial TeamRelated terms
How is member pricing different from earning points?
A points program gives members a future reward and creates a liability the business carries until the points are redeemed or lapse. A member price is settled at the checkout: there is nothing to redeem later, no points liability and no breakage to estimate. That is one reason grocers often choose member prices over points, even when the cost per basket looks similar.
Why do retailers use member pricing?
It gives customers a clear reason to identify at every visit, which links purchases to a member profile. That data supports personalized offers and helps the retailer see how members shop. The saving is also immediate and easy to understand, which matters in categories where customers shop often and compare prices.
What are the risks?
The discount costs margin on every member purchase, and the saving grows with the basket: a hypothetical 20% member discount takes $4 off a $20 basket and $8 off a $40 one. The bigger risk is the regular price. If nearly every shopper is a member, the higher price stops being a real price and only makes the member price look like a deal, which can draw scrutiny. Retailers also need to be clear about what data members share in exchange and how it is used.
How do you know whether member pricing works?
Compare members with similar non-members over the same period: visit frequency, basket size and how often they buy the discounted items. If members only buy the discounted products and nothing more, the program is a cost, not an investment.