3 industry-leading membership programs and what your Shopify brand can learn from them

While customer acquisition costs (CAC) keep rising and lifetime value (LTV) stays stubbornly flat, memberships are quietly transforming how brands build predictable revenue and loyalty.

If you’ve ever thought memberships were out of reach, too complex, the same thing as product subscriptions, or only feasible for billion-dollar brands, think again. 

In this guide, we’ll break down how three iconic membership models work, why they thrive, and how your Shopify brand can apply these lessons and launch your membership program within two weeks, without needing an army of engineers.

What is a membership program? 

A membership is a paid program where customers exchange an access fee for exclusive benefits. Unlike a simple product subscription (where you auto-ship the same item), memberships are tied to the shopper’s relationship with your brand. They often include perks like discounts, early access to launches, special content, or store credit. 

Read our in-depth guide on membership programs to learn more. 

And now let’s explore how some of the world’s biggest brands have turned memberships into their most reliable growth engine.

Example 1: Amazon Prime membership – The “no-brainer” value proposition

Amazon hardly needs an introduction. From books to groceries, it has become the default place to buy almost anything. Back when eBay was its main competitor, Amazon’s differentiation strategy was simple: convenience and speed. 

They launched a membership program in 2005. 

Today, for $14.99/month or $139/year (in the US), over 200 million people pay to be Prime members. And they spend, on average, twice as much as non-members.

Psychological drivers behind prime memberships

1. Sunk-cost fallacy

One of the most powerful psychological levers behind Prime is the sunk-cost fallacy.

With Prime, this effect is magnified by the upfront annual access fee of $139. Once a shopper has paid it, every time they consider making a purchase elsewhere, there’s friction. Because each purchase reinforces the habit and the logic that the membership is “paying for itself.”

For example, buying a single $10 item still feels worthwhile because shipping is “free,” even though the customer already prepaid for the shipping with the membership access fee.

Amazon also makes sure to frequently remind members of these savings. When shoppers see messages like “Free delivery with Prime,” it reinforces that they are smart for sticking with Amazon instead of shopping elsewhere.

2. FOMO (Fear of missing out)

Prime-exclusive deals, early access to sales, and limited-time promotions trigger urgency. For example, during Prime Day—Amazon’s massive annual sales event—Prime members get access to steep discounts before anyone else.

The messaging is everywhere in their marketing:

  • “Only for Prime Members.”
  • “Early access starts now.”
  • “Ends in 3 hours.”

This approach turns shopping into an event. It creates a scenario where customers feel they’re part of a privileged group, and that not participating means losing out on significant value.

3. Perceived free benefits

The most brilliant part of the Prime strategy is reframing what customers are actually paying for. While the membership technically costs money, Amazon’s messaging is that you’re getting all these perks “free.”

Every part of the experience reinforces this idea:

  • Free two-day shipping and same-day delivery
  • Free streaming of thousands of movies and TV shows
  • Free access to e-books and audio content

When a shopper places an order, the checkout doesn’t say, “You already paid for shipping,” it says, “Free delivery with Prime.”

This framing makes each purchase feel like you’re winning and getting added value that others don’t have. 

Quantitative impact

All these psychological triggers have turned Prime into one of the most successful loyalty programs ever created.

  • Prime members spend an average of $1,400 per year, compared to $600 for non-members.
  • Prime shoppers spend $100 more per year than they did a year ago, while non-Prime spending is declining.
  • Prime members spend about twice as much as non-Prime customers in a given year.

UX tactics

Apart from the psychological factors, they also make sure to use their UX to emphasize the memberships. 

  • One-click enrollment at checkout.
  • Prominent banners on product pages.
  • Side-by-side comparisons showing value.
  • Clear ROI messaging (“Members saved $X last year”).

What makes it work

When Prime first launched in 2005, the promise was simple: unlimited two-day shipping on millions of items. 

But the company kept adding benefits over time:

  • Prime Video brought thousands of streaming movies and TV shows into the fold, turning Prime into an entertainment platform.
  • Prime Music offered ad-free music streaming—another perk that made the membership feel more like a lifestyle choice.
  • Prime Reading and Audible Channels added access to e-books and audiobooks.
  • Prime Pantry and Fresh made same-day grocery delivery possible in many cities.
  • Whole Foods Discounts extended Prime perks to in-store shopping.

How Shopify brands can apply 

So, how can you apply these learnings as a Shopify brand?

  • Use store credit or VIP access instead of free shipping to anchor value.
  • Make enrollment frictionless on product pages, cart, and checkout.
  • Favor annual or quarterly billing to reduce perceived cost.
  • Show clear ROI (e.g., “Members saved $320 last year”).
  • Keep evolving your membership with benefits your customers care about.

Next, let’s look at a membership model that thrives in the luxury segment.

Example 2: Restoration Hardware – Premium membership for high AOV

When your products cost thousands, discounting can feel off-brand. But Restoration Hardware shows how a paid membership can reinforce prestige and drive massive revenue.

Restoration Hardware (RH) is a luxury home furnishings retailer. In 2016, it launched its RH Members Program, offering 25% (now 30%) off all purchases and 20% off sale items for a $200 annual fee.

For RH’s high-ticket audience, this was a no-brainer because if you’re buying a $3,000 sofa, the membership pays for itself instantly. 

Psychological drivers behind Restoration Hardware memberships

1. Anchoring & immediate payback

One of the biggest psychological levers behind Restoration Hardware’s membership is anchoring. Shoppers immediately anchor the $200 annual access fee against the potential savings on their first large purchase.

For example, the average order value (AOV) at RH is around $1,200. With membership pricing, that single purchase saves you 25% or $300, which already covers the membership cost.

If you’re buying a bigger piece, like a $4,000 sectional, you instantly save $1,000—five times the fee. This creates a powerful sense of immediate payback.

Even if you were hesitant about paying for a membership, seeing the math in black and white reframes it as an obvious decision: Why pay full price when one order pays for my membership?

2. Exclusivity and prestige

RH has carefully built its brand around luxury and sophistication, and its membership program extends that perception.

Joining isn’t just about discounts, it’s about gaining access to an elite club. Members get:

  • Early access to new collections.
  • Complimentary design consultations.
  • Invitations to exclusive events.

All these perks reinforce the idea that you’re part of a private circle of discerning customers. This taps into a core psychological driver: people love to feel special and recognized.

By creating a sense of prestige, RH prevents the discounting strategy from eroding its luxury positioning.

3. Reducing decision friction

Big-ticket purchases come with a lot of hesitation. A $4,000 order isn’t an impulse buy.

RH uses its membership program to eliminate much of that friction:

  • The clear, upfront savings remove second-guessing.
  • The idea of “smart shopping” replaces guilt about splurging.
  • The exclusivity reassures customers they’re making a sophisticated choice.

Together, these elements create momentum. A shopper who might otherwise delay a purchase feels reassured that joining the membership is the intelligent move—both financially and emotionally.

UX tactics

Here’s how they’ve designed their website to emphasize memberships. 

  • Clear comparison of non-member and member pricing on every product page.
  • Prominent sitewide banners explaining the benefits.
  • In-store associates pitching the program.
  • Seamless sign-up during checkout.

What makes it work

Restoration Hardware’s program succeeds because it balances clear economic ROI with brand-aligned emotional value.

Here’s why it’s so effective:

  • Clear, immediate ROI: The membership pays for itself on the first purchase. This tangible, easily understood value proposition is especially persuasive in high-AOV categories.
  • Exclusivity that matches the brand: RH is a luxury brand. The membership reinforces that status by making customers feel they’re insiders with privileged access and services.
  • Emotional validation: Shoppers feel clever and elite, not cheap or discount-hunting. That positive emotional association fuels repeat purchases and advocacy.

Put simply, RH shows that a membership can drive massive retention and revenue without compromising premium positioning.

Quantitative impact 

Here’s how much their memberships have contributed to the success. 

In the quarter following the program’s launch, RH saw a 13% increase in revenue to over $615 million. Same-store sales, which had decreased 3% the previous year, rose by 7%. Within a year of launch, 95% of RH’s core business was driven by members. 

By 2024, the program had nearly 400,000 members, becoming the backbone of RH’s customer base.

How Shopify brands can apply

Here are some practical ways you can apply these learnings. 

  • Highlight side-by-side price comparisons to show immediate savings.
  • Emphasize first-purchase payback.
  • Frame your membership as a VIP experience.
  • Add non-monetary value (e.g., exclusive services or experiences).

Now let’s take a look at yet another brand that does memberships well.

Example 3: Adore Me – Store credit model to drive retention

What if your customers don’t need predictable replenishment? Adore Me cracked the code with a flexible credit-based membership.

Adore Me is a fast-growing lingerie brand that redefined the traditional intimate apparel market. 

But instead of relying solely on product subscriptions—which don’t make sense in a category without routine replenishment—Adore Me created a membership model that feels more like a loyalty wallet than a subscription. 

For $39.95/month, members get store credit they can use anytime, plus access to exclusive perks.

Psychological drivers behind Adore Me membership

1. Sunk-cost fallacy

This is the most powerful driver behind Adore Me’s success. Each time a shopper pays $39.95 access fee, they’re preloading value into their account. Whether they shop right away or not, the money is already committed.

That creates a psychological urge to come back and use the credits. Letting them sit unused feels wasteful. So, even if a customer skips a month or gets distracted, the reminder that they have “money in the bank” pulls them back in.

2. Perceived flexibility and control

Traditional subscriptions often feel rigid: skip too many times, and you risk cancellation or hassle. Adore Me flips that dynamic. Their members can:

  • Skip any month without penalties.
  • Get bank credits indefinitely.
  • Shop when it suits their needs.

This flexibility reduces friction and removes the guilt associated with joining the membership. It also builds goodwill because customers feel like they’re in control, not locked into something they’ll regret.

3. VIP status

On top of credits, Adore Me layers exclusive perks that make members feel like insiders:

  • Early access to new collections.
  • Special welcome offers (up to 50% off the first order).
  • Invitations to members-only sales events.

This sense of belonging is critical. It reframes the membership from merely a financial transaction to an emotional connection with the brand.

UX tactics

Having a clear UX also helps with increasing membership signups. Here’s how Adore Me does this. 

  • Default opt-in to membership during checkout.
  • Prominent reminders about accumulated credit.
  • Seamless “skip month” functionality.
  • Clear messaging on how credits work.

What makes it work

Adore Me’s approach succeeds because it combines psychological nudges, financial incentives, and emotional rewards in a single model.

  • Store credit feels like real money: Unlike discounts that can feel intangible or gimmicky, prepaid credit feels like cash waiting to be spent. It has clear, immediate value that motivates action.

  • Flexibility and trust:  The ability to skip or bank credits reassures customers that they’re not trapped. This sense of autonomy is key to retention.

  • Perceived high value: Because credits are redeemable across Adore Me’s large catalog, members feel the membership is always relevant, whether they want something practical or indulgent.

How Shopify brands can apply

If you sell products with occasional replenishment—like beauty, fashion, wellness, or home goods—this model can help you increase your LTV.

Here’s how to adapt it:

  • Use prepaid store credits instead of one-off discounts to create an always-on reason to return.
  • Allow customers to skip months or bank credits, reducing churn.
  • Send automated reminders about unspent credit to drive repeat purchases.
  • Combine credits with exclusive perks—early access, special gifts, or member pricing.

This approach is especially effective in categories where purchases are frequent but not on a fixed schedule.

While the brands we discussed above had big teams and resources, you don’t need any of that to create a powerful membership experience your customers will love.

Here’s how. 

How Subscribfy creates memberships in weeks, not months

Building a membership program used to require big budgets, months of development time, and teams of engineers working behind the scenes.

But that’s no longer the case.

With Subscribfy, Shopify brands can launch best-in-class memberships—without heavy technical lift, expensive custom builds, or complex integrations. You get everything you need out of the box to create, scale, and optimize a membership program. 

Custom pricing, tiers, and credits

Design flexible plans tailored to your business goals—whether that’s offering tiered memberships with increasing perks, providing recurring monthly credits like Adore Me, or creating exclusive VIP access similar to Restoration Hardware. Every component is customizable to match your brand, pricing strategy, and customer expectations.

One-click enrollment & self-service dashboard

Remove all friction from the sign-up process. With Subscribfy, shoppers can join in one click—directly from your product pages, cart, or checkout. Once enrolled, members get a beautifully branded self-service dashboard where they can track credits, manage their plan, and access perks anytime. No more clunky experiences that cost you conversions.

Automated billing and credit logic

Forget about manual billing headaches. Subscribfy automates everything—from initial charges to renewals, credit allocations, and failed payment retries. Whether you charge an access fee monthly, quarterly, or annually, the platform handles all the logic so you can focus on growing your business, not managing spreadsheets.

Advanced analytics

Gain full visibility into your membership performance. Subscribfy’s dashboards help you track critical metrics like retention rates, churn risk, member lifetime value, and average spending. Use these insights to refine your membership program, optimize offers, and drive even higher ROI.

White-glove onboarding

We know most teams are already stretched thin. That’s why our onboarding experts work side by side with your team to plan, design, and launch your membership program. 

And we don’t disappear after launch. Once your membership is live, our team stays with you to monitor performance, optimize offers, test new ideas, and ensure your program keeps driving revenue and retention over time.

Ready to create a membership program that turns your best customers into loyal brand advocates? Book your free demo and see how the right membership can increase your LTV.

Or, read our detailed guide on memberships vs subscriptions if you’re unsure of which is the right strategy for your brand.