Why Trader Joe's Doesn't Offer Membership Or Loyalty Perks

Shoppers join grocery store membership or loyalty programs to get discounts and other perks like free items and an early chance to buy sale products. For instance, you get perks at Whole Foods with an Amazon Prime membership, because the two companies are linked by ownership. Stores offer these programs with features like membership cards for discounts, redeemable points, and online coupons to entice people to keep shopping with them. But Trader Joe's doesn't use any of these, relying instead on other ways to inspire customer loyalty.

A central reason Trader Joe's doesn't have a membership or loyalty program is its belief that all customers should get the same prices. The store's focus is on providing quality products at low costs, making its inventory available for everyone without extra discounts for select shoppers. It's the same reason TJ's never offers discounts on its food — because its lowest prices are already on the shelves.

Not having to deal with cards, points, and other systems for tracking discounts or creating targeted offers also reduces costs. That, in turn, helps Trader Joe's keep prices low. It also means the chain isn't collecting data on shoppers and their purchases, which some see as a privacy advantage.

Trader Joe's relies on other practices to win customer loyalty and keep stores bustling. One key factor is low prices for quality products, and instead of using loyalty programs to track customer preferences, it takes a simpler approach: seeing which products sell. It also emphasizes helpful customer service, with employees who make it easier to cinch hard-to-spot Trader Joe's favorites.

The in-store shopping experience is another big part of the strategy. The goal is to make it fun and enjoyable to shop at Trader Joe's. Jon Basalone, then-president of stores for the chain, explained in an "Inside Trader Joe's" podcast episode a few years back: "For us, the store is our brand, and our products work the best when they're sold as part of this overall customer experience within the store" (via YouTube). For that reason, you can't order online, and delivery services like Instacart aren't an option. However, customers can shop for products on Trader Joe's website and add them to an online shopping list, which they can access on their phone in the store or print out to bring along.

Along with its podcast, the grocery chain builds customer interest and brand connection with its free  Fearless Flyer product catalog. The periodic catalog, released online and in print, highlights featured products with thorough, conversational descriptions, along with quirky illustrations, jokey comments, and recipes.