Calendar
This is our quarterly deep investigation into the status of membership . We will uncover the latest trends, highlights, and other information that is happening.
The beginning of 2022 has been the continuation of clearly defined patterns in the membership market that were evident in the last quarter of 2021. In a digital landscape that's evolving rapidly, membership continues to be an solid and steady revenue generator as we've seen the business model for membership flex its stability over the past few weeks.
Highlights
The growth of members continues
In Q4 2021, we noticed a substantial increase in member registrations. This pattern continued and picked up speed through Q1 2022 as consumers were coming off holiday breaks, returning to work, school and their regular schedules. A time of year where consumer attention is usually more difficult to compete for There was an increase in new member acquisition across the major membership categories, especially during the months of January to February.
Resilience during headwinds
In March, we experienced significant amounts of uncertainty injected into the overall economic environment which had noticeable effects on consumer behaviour. The rise in inflation and the war in Ukraine were the two main reasons which led consumers to become more cautious. The changes have slowed those areas of growth that which we observed in January and February.
While these macro developments have certainly impacted the world of membership, we've seen the effectiveness of the business model truly shine as these headwinds have developed.
At this time, most of the change we've witnessed is primarily limited to the acquisition of new members. The retention of members has been steady, highlighting the resilience of the membership and its role in a company's strategy.
It also reinforces the importance of structuring benefits for members to ensure that the benefit keeps members engaged frequently. Memberships that are able to establish benefits into a member's daily or weekly routine consistently are able to experience less churn and much higher retention during periods that are more uncertain, thereby creating paths to sustainable income as well as growth for members.
What's moving
A fresh landscape
The membership landscape changes fast. The digital landscape also changes faster. Our customers are exploring avenues for continued growth, the importance of a diversified member acquisition strategy is never more apparent. Ad costs are rising. The engagement on social media has hit the point of no return. People are less open to conventional marketing and acquisition methods.
How come? For the past two years, all of us have spent more time on the internet than we had ever imagined. This has been a fantastic time to discover content and join generally. But, the extended web-based experience has led to the perception of ad fatigue in customers (your prospective customers).
People have been subjected to ads that are not targeted many years that they don't are aware of them now, or even take any actions from these ads. Is advertising dead? No. But given the landscape, the economics and costs are no longer for advertisers.
Member-driven growth
The next phase of membership growth being driven significantly by existing members. Genuine messages, trustworthy opinions and personal experiences build immediate confidence that motivates action.
The recent launch of Referrals is the initial step toward creating evergreen solutions that allow for leveraging your members' loyalty and satisfaction your member base to generate new sales.
Customers using referral strategies do not only see lower member acquisition costs but increased member retention. The increase in retention can be attributed to referral members receiving membership discounts when they succeed in referring.
The members who are rewarded regularly when they refer others to them are much less likely to churn and they are constantly motivated to refer even more people. Incentivizing your customers with reward points for referrals allows them to take a trip and initiate discussions with the most relevant people. This leads to greater sales with lower expenses.
The Takeaway
The shifting landscape that we've witnessed during Q1 is a clear illustration of the necessity of continuous building solid base in your members. These foundations become an oasis of security during times of uncertainty , and permit you to continue doing what you do best and run your organization without fear.
As the membership landscape grows and changes, there will always remain a factor that can be leveraged to increase your membership which is the basis of your existing members. Your continued commitment to serving them first will establish an atmosphere of trust which ultimately translates into them being your most powerful supporters.
Be aware of the tiny foundations within your group. The foundations that are small which will give you the biggest wins.