Costco should convert younger customers into renewing members through creating a specialized membership more convenient for millennials.
- Silver Star Membership: 10 visits to Costco a year - $20
- Adding another 10 visits within the year - $25
- App update: virtual membership card, records customer visits, shop and scan feature
Costco’s membership fees account for a large portion of their income, with 72% of its $3.67 billion in revenue in 2016 (Levine-Weinberg 2017). Their current customer demographic is the Baby Boomer Generation (Peterson, 2014). With membership fees being highly important to revenue, attracting Generation X and Millennials is essential for Costco to thrive into the future.