COSTCO customers are slated to receive a $10 credit each month as part of a new perk intended to boost the value of a membership.
The monthly credit, automatically applied to qualifying orders placed via a popular service, expands on a key partnership Costco rolled out in 2017.
Costco is taking strides to boost the value of its membership[/caption]
Select Costco members will see a new perk roll out by the end of the month[/caption]
Costco operates on a members-only model, boasting approximately 140 million members worldwide and an over 90% membership renewal rate.
Member satisfaction is at the forefront of Costco’s mind, according to company CEO Ron Vachris, who previously revealed that membership was the “most important” item sold by the retailer.
“Everything we do supports that transaction,” said the top executive.
The warehouse club offers three main membership tiers – Gold Star, Executive, and Business – and is constantly looking for ways to enhance the value it provides to its loyal members.
In a move to do just that, Costco announced on Wednesday that it would be rolling out a new delivery perk, offering a $10 monthly credit toward same-day delivery or Costco via Instacart.
The perk will begin on June 30, available to Executive Members in the US and Canada on order of at least $150.
Costco is offering Executive Members a free $10 credit each month for qualifying delivery orders[/caption]
“Costco Executive Members expect exceptional value – and now, they can get even more delivered to their door,” said Daniel Danker, chief product officer at Instacart.
“Our new monthly credit makes it easier than ever for members across North America to get Costco’s warehouse items with the convenience of fast and reliable delivery through Instacart.”
The monthly $10 credit will be applied automatically to eligible Costco orders placed via same-day delivery or Instacart.
The warehouse club first teamed up with Instacart, the leading grocery technology company in North America, for same-day delivery in 2017.
The duo later expanded their partnership in 2021 to launch Costco’s same-day delivery site powered by Instacart Storefront Pro.
BIG SPENDERS
While Costco’s retail merchandise accounts for the majority of its sales, its real money maker is its membership cards.
The majority of its profits come from the retailer’s hefty annual membership fees, particularly from its Executive Membership level.
Although Executive Members make up 37.6 million of Costco’s 79.6 million memberships, according to Costco data, they account for roughly 73% of the company’s profits.
Membership and store cards on offer from major retailers
Here is a breakdown of the store cards on offer to customers from various retailers and their benefits
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Costco:
- Gold Star Membership: $65 per year, shop all Costco stores and online with two additional cards for your household.
- Executive Membership: $130 per year, annual 2% reward, additional discounts and benefits on Costco services, shop online and in-store, and get two additional cards for household use.
- Sign up for a Costco Membership here
Sam’s Club:
- Club Membership: $50 per year, bonus offers, same-day delivery, instant savings, Sam’s Club Mastercard, members-only fuel savings, tire and battery center, complimentary membership, and add-on memberships.
- Plus Membership: $110 per year, all benefits of Club membership plus Sam’s Cash, free shipping, free curbside pickup, early shopping, and pharmacy and optical savings.
- Sign up for Sam’s Club Membership here
Target:
- Target Circle: A free-to-join reward program allowing users to earn 1% in Target Circle earnings rewards when an eligible purchase is made, access deals and personalized offers, get a birthday gift, and earn a vote to help direct how Target helps out your community.
- Target Circle Card: A credit, debit, or reloadable account card that gives users 5% off in-store and online as well as exclusive offers, free two-day shipping, and an additional 30-day returns window. Formerly Target RedCard.
- Sign up for Target Circle here
Walmart:
- Walmart+: $12.95 per month or $98 per year with a free 30-day trial. Offers members free delivery, free shipping with no minimum spend, fuel savings, Paramount+ subscription, auto car, Walmart+ travel, returns from home, mobile scan and go in-store, and early access to deals and product releases.
- Sign up for Walmart+ here
Costco’s Executive Members tend to spend more at the warehouse due to the structure and benefits of their $130 membership, which is double the price of the standard Gold Star Membership.
The chain works hard to ensure their top spenders are satisfied.
For example, Costco announced earlier this month it would be rolling out earlier hours for its Executive Members.
Beginning on June 30, Executive level customers can shop at Costco one hour earlier than Gold Star members, per Business Insider.
“Our Executive Members are our most loyal members, and we want to reward them for their commitment to Costco,” read an internal email seen by the outlet.
Costco’s Executive Members enjoy other perks as well, such as 2% cash back on every dollar spent at the warehouse club.
The retailer strongly believes in the value of its membership, even promising to refund the difference between a Gold Star membership and Executive Membership in a shopper’s first year if they are not satisfied.
As Costco launches new perks for its top-paying members, all shoppers will see changes over at the food court.
For example, Costco is making a “dumb” ordering change, sparking chaos with shoppers as it “slows things down.”
Plus, Costco is giving Starbucks a run for its money as it quietly rolls out a “refreshing” $2.99 food court treat in time for summer.
