Have you ever wondered why so many merchants are still using the old-fashioned free points cards? Honestly, I recently looked at some data and feel that many companies are missing out on a huge opportunity.

This all starts with Amazon Prime. That annual membership plan requires users to pay upfront and then immediately enjoy the benefits. This model sounds simple, but its power is enormous. Early research shows that Prime members spend about five times more annually on Amazon than non-members. Plus, the renewal rate is shockingly high—most first-year members continue to renew. What does this tell us? It indicates that as long as you provide real value to users, they are willing to pay for it.

The current issue is that consumers are actually ready to pay for this kind of premium membership experience. Studies show that a large portion of young consumers say they would consider joining a paid membership plan if their favorite brands offered one. The logic behind this is straightforward: paying means you can get better things. Compared to free points programs, consumers feel that paid memberships offer more tangible benefits.

But here’s the contradiction—consumers want it, yet merchants are not widely implementing it. Why? Because building and maintaining a truly premium loyalty system requires huge investments. From technological infrastructure to human resources, from differentiating from competitors to managing financial complexities, these are real challenges. Many companies lack the specialized talent in this area and don’t have enough budget to invest.

However, if you can solve these problems, the returns can be very substantial. Many retailers and media platforms have already recognized this and are rethinking their membership strategies. Instead of relying on traditional one-time transactions, it’s better to build a genuine premium loyalty ecosystem that keeps customers engaged and continuously benefiting. In this model, a one-time customer could turn into your core user.

Honestly, there is still a lot of room for growth. Although Amazon Prime has dominated the e-commerce space, premium loyalty programs in other industries and categories are still far from enough. For merchants willing to invest and patiently refine their products and services, this could be the next growth engine. The key is to understand that today’s consumers no longer just want cheap—they want worth.