DTC brands are embracing membership models to improve retention

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After operating for seven months as a subscription business, MeUndies pivoted.

Instead of charging customers a recurring monthly credit they could use or waive, it decided to commit them to monthly underwear purchases at a discounted price, plus get additional benefits like limited-edition products and discounts on other MeUndies products. It’s a model that ties together those sweet recurring payments with customer loyalty. Customer retention implies that brands have more going for them than a snazzy marketing strategy. At MeUndies, members now account for 50 percent of overall business, and Shokrian said that these customers spend double the amount than non-members, on average.

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