Another Affiliate Shakeup: Is the Time of the CUG Upon Us?

The way people shop is shifting. In 2024, a consumer research survey found that 69% of consumers preferred to purchase from brands they interacted with in an online community. And this trend is enduring, especially amid the rise of AI, with consumers placing greater emphasis on authenticity and like-minded brand communities.

At the same time, brands are rethinking the funnel and consumer targeting. With non-linear consumer journeys and new modes of discovery, there’s an increasing emphasis placed on incremental value, and companies are looking for more assurances when it comes to the conversion path.

Against this backdrop, Closed User Groups (CUGS) — member-only discount environments — are on the rise.