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Importance of Closed User Groups

  • stevecox83
  • Jun 26
  • 3 min read

Updated: Jul 23

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Affiliate marketing thrives on the diversity of publisher types out there, from content creators and coupon sites to cashback platforms. Each publisher type brings unique strengths to the table.  Among these, Closed User Group (CUG) partners stand out for their exclusivity and targeting and they have been a real focus for our publisher recruitment at Planit. Let's explore who they are, why they matter, and how they compare to other publisher types. 

 

What is a Closed User Group? 

Closed User Group partners operate within exclusive, member-only environments that are inaccessible to the wider public. These platforms can include anything from Student networks to employee benefits and fitness incentives programmes. Users are all verified at login, ensuring that only eligible members have access to the offers. These sites perform a specific function that enables them to reward their users by working with relevant brands that cater to them with exclusive benefits. 

While Closed User Groups may appear niche, many are surprisingly large in scale. Platforms like Blue Light Card and UNiDAYS are some of the biggest closed user groups in the UK and are major publishers in the affiliates space, boasting millions of active users. These groups aggregate sizeable and high-intent user bases, making them an efficient channel for both volume and value. For example, UNiDAYS alone connects brands with over 29 million students globally, many of whom are in key purchasing life stages. As such, closed user groups are a secure, brand-safe environment for campaign implementation and affiliate strategy execution. 

 

The Importance of Closed User Groups. 

Connected Bubbles

CUGs offer unmatched clarity when it comes to audience demographics. Whether it’s students, healthcare professionals, armed forces, or corporate employees, brands know exactly who they are targeting. This precision allows for highly relevant and customised campaigns, which are more likely to resonate and convert. Unlike broader affiliate channels, where user intent and background can be unclear, CUGs remove vagueness by verifying eligibility up front, giving marketers a clear profile of their audience from day one. 


With such well-defined audience segments, CUGs enable hyper-focused messaging that speaks directly to the needs, values, and life stages of their users. For instance, a student-focused campaign might emphasise affordability, independence, and lifestyle fit, while an NHS-exclusive offer could highlight appreciation, reliability, and everyday value. This level of tailoring and precise targeting helps brands build emotional resonance and trust, essential factors in both initial conversion and long-term loyalty. Whether it’s targeting university students with tech deals or offering discounted fitness gear to wellness professionals, these platforms cater to niche audiences that traditional publishers often miss. This demographic targeting ensures messaging is not only relevant but also timely, which can improve conversion rates significantly. 


A core feature of Closed User Groups is its security. Due to the verification process, exclusive offers are safeguarded from being widely shared online, helping brands avoid cannibalisation of affiliate strategies. Avoiding any code leakage helps to maintain the exclusivity of the offer in the audience’s eyes. Additionally, working within a CUG reduces the risk of affiliate fraud, as access is confined to trusted user profiles only. This kind of controlled exposure is especially valuable for luxury brands or those managing tiered pricing strategies. Since offers are not readily available on wider internet coupon sites, brands retain their positioning and preserve the brand image. 


Users engaged through CUGs often demonstrate higher lifetime value. These are customers who were introduced to a brand through a trusted, benefit-driven platform, and that trust translates into loyalty. This is especially the case with student discount platforms such as UNiDAYS & Student Beans. Since Students are in the initial stages of forming their brand loyalties, engaging them early can lead to prolonged relationships with repeat purchases over time. 


These platforms are inherently reward focused. Users have access to a variety of benefits, and they return frequently for more. Brands can tap into this behaviour to create meaningful reward cycles, offering deeper discounts or loyalty perks to drive retention. It's not just about acquisition; it's about turning users into brand advocates within a trusted ecosystem.  


How We Use Closed User Groups at Planit 

At Planit, we are currently running a major recruitment drive on Closed User Groups for the reasons mentioned above. We also find that brands favour these partners for the Lifetime Value they promote. Due to the targeted and pre-qualified nature of the platforms, these tend to encourage less price-sensitive shoppers who have a specific buying intent. As a result, we see lower churn and better customer engagement, making them a priority in partner recruitment. 

 

Closed User Groups also tend to offer impressive incrementality, which can be one of the challenges of channel justification. Using Impact’s contribution analysis tool, sites like Blue Light Card average a +85% solo contribution rate for Oddbox, meaning that customers are mostly converting solely through that site alone on the user journey, making it undeniably incremental. 


Summary

Connected hexagon

Closed User Group partners offer a unique blend of exclusivity and precision in an ever-evolving affiliate

landscape. By tapping into these networks, brands can incorporate strategies that can lead to higher-quality conversions and stronger brand loyalty. CUGs are a powerful affiliate marketing channel due to their security and targeting; they are an essential branch of a well-rounded affiliate strategy. 

 
 
 

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