Costco's membership model includes a popular and costly Executive tier, which provides 2% cashback on purchases but can be difficult to exit from. Members often face a tough process when trying to downgrade, requiring lengthy phone calls or visits to the store, which may deter them from proceeding. The intention behind this policy is thought to be encouraging customer retention, though it can result in members overspending on memberships they no longer desire. Overall, the Executive membership’s higher price may not be justified by the benefits for all members.
The Executive membership at Costco, while popular, presents challenges for members wishing to downgrade, as it involves a lengthy and uncomfortable process with customer service.
Costco’s policy of requiring personal interaction for downgrading aims to discourage members from leaving, leading to extended payments for unwanted services.
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