[비즈한국] Competition in the e-commerce paid membership sector is heating up. Recently, Kurly revamped its membership system and began actively recruiting paid members. It is noteworthy that they have introduced a VIP program, which is rare in the e-commerce market. However, industry insiders point out that Kurly needs to strike a balance in member benefits, as focusing solely on perks for loyal customers at the expense of general members could potentially lead to customer churn.
All-in on Loyal Customer Retention: Expanding Paid Membership and VIP Management
Kurly has embarked on an expansion of its paid membership. Starting in July, the company discontinued its existing free membership program, "Kurly Lovers," and transitioned to operating exclusively under the paid "Kurly Members" scheme. This strategy is interpreted as an effort to convert free-tier users into paid members by enhancing the benefits of the paid service.
The previously operated Kurly Lovers program divided members into five tiers—Friends, White, Lavender, Purple, and The Purple—based on monthly spending, offering up to 7% of purchase amounts as points. Kurly also had a paid subscription, Kurly Members, which cost 1,900 won per month and provided members with points and discount coupons.
Instead of the free membership, Kurly has strengthened its paid options. Starting this month, Kurly Members operates under two types: Core (focused on free shipping) and Plus (focused on discounts). Core users are provided with 31 free shipping coupons (for purchases over 20,000 won), while Plus users receive discount coupons worth up to 30,000 won.
A Kurly representative explained, "While the number of Kurly Members subscribers hasn't surged overnight, it is on a steady upward trend. The number of members is consistently increasing due to exclusive daily deals and the significant benefits, such as free shipping."
With the overhaul of the customer tier system, a new VIP program was also introduced. Kurly now selects the top 9,999 customers by purchase amount to manage as VVIPs and VIPs. Those ranked 1st to 999th are designated as VVIPs, and 1,000th to 9,999th as VIPs, with special benefits provided accordingly. VIP members receive a free six-month subscription to Kurly Members, while VVIP customers are offered special gifts and invitations to exclusive premium dining events.
A Kurly official stated, "The VIP program is a replacement for the purchase-based tier system previously used in the free membership (Kurly Lovers). Instead of five tiers, we are now focusing on selecting and rewarding only our top-tier customers. We believe we can provide sufficient benefits to other members through Kurly Members. The intent of the VIP program is to increase customer loyalty by offering more perks to top-tier customers."
While e-commerce companies are racing to introduce paid memberships, providing specific VIP benefits is unusual. Seo Yong-gu, a professor of business administration at Sookmyung Women's University, analyzed, "While e-commerce companies operate membership systems for customer retention, almost none have a formal VIP program. Because Kurly has a dedicated fandom, their strategy is to internalize this and run a VIP system similar to a department store."
Kim Dae-jong, a professor of business administration at Sejong University, also explained, "Currently, Kurly's real revenue comes from VIP members. Unlike other e-commerce platforms, Kurly has a high proportion of loyal customers, so if they operate the VIP system well, it could become a benchmark for the e-commerce industry."
Some argue that Kurly needs to further refine its benefits to maximize the effectiveness of its VIP management. Professor Seo pointed out, "For a VIP system, the ability to provide sustainable benefits is crucial. Department stores offer perks like valet parking and lounge access that members can use anytime. In contrast, Kurly’s offers—such as fine dining invitations or one-time gifts—lack continuity, which is regrettable. It might be difficult to create a lasting impact among members."
Have Benefits for General Members Diminished? "Need to Manage Customer Dissatisfaction Ahead of IPO"
Following the membership overhaul, some complaints have emerged among members. The dissatisfaction centers on the idea that benefits are concentrated solely on VIPs, while the quality of service for general members has declined. Kurly had previously operated a "combined shipping fee support" program for additional orders. If a customer placed an additional order on the same day after their initial purchase, the shipping fee for the second order was refunded as points.
While other grocery services allow adding items to an existing order before shipment without extra charges, Kurly’s system does not allow for modifying orders, which is why they had implemented the fee support program as a customer service measure.
However, this fee support program was abolished during the recent membership revision. While VIP members can get free shipping even on a single item, general users must pay extra shipping fees for additional orders, even if the items are shipped together.
One customer remarked, "I recently requested fee support for an additional order, but was told they no longer offer it. They told me to use the free shipping coupon provided to paid members for orders over 20,000 won. I used to add items comfortably because of the fee support, so it's frustrating that it vanished without prior notice. It feels like customer benefits have been reduced."
Kurly responded, "If you sign up for the paid membership, you can receive free shipping coupons and reduce delivery costs even for combined orders. We are not reducing customer benefits. In a situation where the e-commerce industry is fiercely competing over memberships, there is no reason to reduce benefits."
Industry experts warn that if existing members feel their benefits have decreased, they may leave, necessitating a cautious approach from Kurly. An industry source advised, "Kurly is preparing to push for an IPO again in the first half of next year. Under such circumstances, any movement toward customer churn could be a major burden. Currently, Kurly needs to minimize risks as much as possible. Since they are very focused on managing their performance, it would be wise to proactively manage issues that might cause customer dissatisfaction."
Kurly passed its preliminary IPO evaluation in 2022, but abandoned its IPO plans last year due to the persistent market downturn. As the company successfully achieved its first quarterly profit in the first quarter of this year, the industry anticipates a renewed push for an IPO next year. Regarding this, a Kurly official said, "No specific date (for an IPO) has been set. There are no concrete plans at the moment, and we are monitoring the market situation."