Earlier this year, Western Australia-based Wesfarmers announced the relaunch of its OnePass paid membership program, which offers free home delivery and other benefits across almost all of its retail businesses. Currently, Kmart, Target, Catch and Bunnings are covered under the program, with Officeworks soon to join.OnePass signifies a large opportunity for the business – one that encourages customers to shop across its entire slate of brands.In the case of OnePass, consumers pay $4 per month, or $40 per year, to gain access to free home delivery at any of Wesfarmers’ participating brands (though Bunnings has a minimum order requirement of $80 to qualify), as well as earn rewards and other benefits.Adam Posner, author of The Point of Loyalty told Inside Retail the simplicity of OnePass was a strength, and that in terms of other fee-based free delivery services, it is one of the most reasonable. “The value for Australians who make at least one purchase online from any of [Wesfarmers’ brands] at least once a month seems to be a no-brainer,” Posner said. “While there are other offers and rewards which are one-offs, these are candles on the cake to light up the base financial layer of the free delivery offer.”According to Posner, the key reason customers sign up to paid membership programs is always how much money they can save.“There might be other exclusive benefits and utility, or other overt benefits, such as streaming through Amazon Prime, however the core customer motivation is ‘how much will I save if I’m paying a subscription’,” he explained.Taking on giantsRetail-specific subscription services have become more common over the last few years, with the likes of Amazon Prime ($59 per year) and Ebay Plus ($49 per year), as well as Woolworths’ Delivery Unlimited ($119 per year) and Everyday Extra ($59 per year) offers, Coles Plus ($19 per month), and Costco’s entire business model ($60 per year) also in play.However, as subscription software Zuora’s strategy officer Nick Cherrier told Inside Retail, OnePass will have to become “much more than an online fulfilment service” in order to succeed – but it can learn from the mistakes of others.“Australia Post’s Shipster is a cautionary tale from not that long ago. It was an attempt to implement a free shipping subscription covering multiple retailers and it had to close down after just 18 months,” Cherrier said. “One of the reasons for that was because it couldn’t get the merchant adoption it needed, in many cases because retailers were already working on their own subscription schemes.”This isn’t such an issue for Wesfarmers, however, as its offer only extends to its own brands and will likely be extended to further businesses in its own house such as the recently acquired Priceline.The other advantage Wesfarmers has is that it is basing its offer on some of the best in the world, according to Cherrier.“Costco and Amazon are pioneers in this domain, and have enjoyed great success with paid loyalty subscriptions not just in the US but around the world. OnePass is very much fashioned in their image because, to a great extent, it’s an attempt to compete with them,” Cherrier said. “Wesfarmers can be confident because well-structured programs fighting against the dominance of Amazon Prime have worked exceptionally well elsewhere. In the US, for instance, Walmart Plus launched in September 2020 – within nine months it had attracted 54 million subscribers and has held onto them.”Customers will be the judgeThe fact that customers are beginning to want more from their subscription services comes as a direct response to the changing shopping behaviour seen post-Covid, according to Cherrier. A Zuora study found that customers’ understanding of online selling tactics evolved over the last few years, and they are now largely able to see through a “tacky membership scheme” and can recognise a “thoughtfully implemented subscription program” when they see it.And although OnePass has Wesfarmers’ scale on its side, its success isn’t necessarily a given. “It’s a fine balancing act,” Cherrier said.“At the moment, [OnePass] is in its infancy, but is a sensible first step in recognising the need to change its business model. It’s an exciting period for the company as they seek to grow their share of wallet and create deeper engagement. “But the proof, ultimately, will be in their long-term subscriber numbers.”