There’s a reason why calling has enjoyed so much success in recent years, when marketers are competing with each other.
Costco doesn’t have to worry about profit margins the same way other retailers do because it has a secret weapon in its back pocket – membership revenue.
During Costco’s last fiscal quarter, membership fees increased 14% over the previous year. And a lot of that came from the Great Member.
Costco members get a choice of membership tiers when they sign up. A basic star membership costs $65 a year, while an advanced membership costs $130.
But the members of the Executive got the war added.
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2% cash back on most Costco purchases
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Early shopping hours weekdays and weekdays
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A $10 monthly credit For same-day messages of $150 or more
Costco has invested in more senior members because it wants more people to participate or develop in that strategy.
But the company may be taking things too far with its latest move.
The more revenue Costco can enjoy in the form of membership fees, the better. So it’s easy to see why Costco would love it if more members renew at the Executive Tier.
Until now, Costco has been encouraging employees to approach shoppers at checkout and ask if they are interested in renewing their membership.
But those workers often do so in a depressing way. And many Gold Star members are tired of being abused.
Related: Costco is making a big change in the food court
As Bob in Central New Jersey commented, “the last few times I’ve gone to check, I’ve gotten third parties about my membership. It’s really getting old.”
“I don’t find myself here much,” he continued. “The membership I have makes sense to me.”
Some members expressed frustration at the delayed development.
“I already had the cashier call someone to give me this road,” said one red user. “I was upset that I had to tell this woman ‘no’ three times before she left.”
Not only are more and more Gold Star members at Costco going to issue pushy upgrade requests, but some store employees are upset that they’ve been put in the position of getting memberships for customers.
“We’re sick and tired of harassing everyone to improve,” one Costco employee vented on Reddit. “We even have one employee apologize before starting a speech because they know the pressure this puts on you.”
