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Memberships and Loyalty Programs: Why the Best Venues Run Both

Memberships and Loyalty programs

One of the biggest misconceptions I hear from operators is that memberships and loyalty programs compete with each other. In reality, they solve different problems for different guests. The strongest operators don't choose one over the other. They use both intentionally to guide guests from their first visit to becoming long-term advocates.

Memberships create commitment. Loyalty creates momentum. When combined, they help operators increase annual guest value, improve retention, and build more predictable revenue without relying solely on attracting new guests.

Memberships vs loyalty: what's the difference?

So who is each program for? Memberships are designed for your most committed guests. They involve an upfront financial commitment in exchange for ongoing access and value. When a guest pays for a membership, they've already made a decision about your venue.

Loyalty programs remove that barrier by allowing guests to earn rewards through normal spending, making them accessible to a much broader audience. Rather than making a commitment up front, loyalty rewards specific behaviors guests are already showing.

Industry research suggests memberships represent roughly 5–15% of a venue's guest base, while loyalty programs can engage 20–30% or more. Just as important, the ROLLER 2026 Pulse Report found that 41.2% of guests already visit regularly without belonging to either a membership or loyalty program. It’s this group that represents one of the biggest growth opportunities operators have.

Why memberships and loyalty complement each other

A great loyalty program rewards guests for behaviors you already want to encourage: visiting more often, spending more, and engaging with your venue. As guests experience the value of those rewards, the jump to a paid membership becomes much easier because they've already developed the habit of returning.

Think of loyalty as your relationship-building program and memberships as your commitment program. Guests rarely become members after one great visit, but they often become members after a series of positive experiences that prove your venue deserves a bigger share of their family’s entertainment spend.

I‘ve seen operators build strong membership programs, but skip loyalty. The gap always shows up in the same place: the casual visitors who make up the majority of a guest base. They come once or twice a year, enjoy themselves, and never come back. There's no mechanism to reward them for the visit they just had or give them a reason to return. Adding loyalty gives operators a way to reach these guests without diluting the value for existing members.

That's what the journey looks like when you have both in place: a first-time visitor becomes a loyalty member. A loyalty member becomes a frequent guest. A frequent guest becomes a member. A satisfied member becomes an advocate who brings friends, books birthdays, and spends more over time. When every stage naturally leads to the next, retention stops being accidental and becomes intentional.

And the relationship shouldn’t end when someone becomes a member. Members should continue feeling rewarded and recognized after they join. Pairing memberships with loyalty rewards creates additional touchpoints that encourage food and beverage purchases, birthday bookings, arcade spending, and premium attractions. Instead of asking, "How do we keep members from cancelling?" ask, "How do we continue to remind members why they joined?"

Here’s a tension I see all the time: poorly designed programs can compete with one another. If loyalty rewards become nearly as valuable as memberships, guests lose incentive to upgrade. The solution isn't offering fewer rewards. It's creating a progression of value. Memberships should always deliver a higher level of access, convenience, or exclusive experiences than loyalty alone. Loyalty should encourage the behaviors that eventually make membership the obvious next step.

The business case for running both

The most important mindset shift I encourage operators to make is measuring annual guest value, not individual programs. Operators often evaluate memberships and loyalty independently, but the better question is how both influence annual guest value. When a member also purchases food, redeems rewards, books birthdays, and returns more frequently, the combined impact is far greater than either program could deliver on its own.

Tracking visit frequency, average annual spend, birthday conversion, redemption behavior, and membership retention provides a much clearer picture of long-term success than looking at enrollment numbers alone.

I've heard operators say that running both programs sounds like too much work. My response is simple: the amount of work only matters when compared with the value of the outcome. If you tried loyalty with punch cards and spreadsheets, the memory of that lift shapes how you think about it now. Modern technology has eliminated much of the manual effort that once made these programs difficult to manage. If leadership is aligned, expectations are clear, and the right systems are in place, the ongoing work becomes part of normal operations. Saying no before measuring the opportunity may be one of the most expensive decisions a venue makes.

The bottom line

Memberships and loyalty programs are not competing strategies. They're complementary tools that influence different guest behaviors. Memberships provide recurring revenue and deepen commitment. Loyalty broadens engagement and creates more opportunities to increase visitation and spending.

If you're already running one program, don't ask whether you need the other. Start by calculating your current annual guest value, model the financial impact of even a modest increase in repeat visitation, and decide whether the opportunity is worth pursuing. In most venues, it will be.

What excites me most about where the industry is heading is that operators finally have the tools to think about retention holistically. For years, memberships and loyalty were built in silos because that's what the technology allowed. That's changed. The operators who intentionally build a walk-in-to-loyalty-to-membership journey will be the ones best positioned to outperform their competition over the coming years. Start simple, measure what matters, and let the results guide where you invest next.

 

Ready to put this into practice? Explore how ROLLER Loyalty helps venues turn first-time visitors into repeat guests.

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