Calendar

 This is our quarterly dive into the state of membership where we uncover the latest trends, highlights, and other information that is moving.

The start of 2022 has been an extension of the clear membership trends that emerged towards the end of 2021. With a world of digital technology evolving rapidly, membership continues to be an steady and reliable income generator as we've seen the membership business model flex its stability during recent days.

Highlights

Growth in membership continues

In Q4 2021, we witnessed a dramatic increase in the number of new members joining. The trend continued to grow and increased through Q1 2022 when consumers were taking their holiday breaks, returning to work, school and their regular schedules. At a time of season when attention from consumers is usually difficult to get there was a notable increase for new member acquisition across major membership categories - particularly in January as well as February.

Resilience during headwinds

During the month of March, we experienced an abundance of uncertainty instilled into the economic landscape that had a noticeable impact on the behavior of consumers. The war in Ukraine were two driving factors that caused consumers to become more prudent. This has tempered the growth areas as we saw in January February.

These macro-trends have certainly impacted the membership landscape, we've seen the effectiveness of the business model truly shine when these headwinds are forming.

In the present, the bulk of the effect we've observed is primarily focused on new member acquisition. The retention of members has been steady, highlighting the resilience of membership along with its importance within a larger strategic plan of business.

This also underscores the significance of structuring member benefits in a way that really draws members in regularly. Memberships that are able to establish benefits into a member's regular routine experience lesser churn and much more retention even during times of increased uncertainty - providing sustainable revenue and growth of members.

What's happening?

A new landscape

The landscape of membership changes rapidly. The digital landscape also changes quicker. Our customers are exploring ways to grow, the importance of diversifying their member acquisition strategies has never been clearer. Ad costs are increasing. Social media engagement has reached the point of no return. People are less open to traditional acquisition and marketing methods.

Why is this? In the last two years, we all have spent more time on the internet than we ever thought possible. This has been a fantastic time to discover content and join all around. However, the prolonged web-based experience has led to noticeable ad fatigue among users (your potential customers).

The public has been exposed to ads that are not targeted many years that they don't are aware of them now, or even take any steps to remove them. Is advertising dead? No. In the context of the changing circumstances, the economics and expenses are not in favor of advertisers.

Member-driven growth

We are seeing the next stage of membership growth being driven significantly by existing members. Genuine messages, trustworthy opinions and direct experiences help build trust that drives action.

Our recent introduction of Referrals is our first step towards creating solutions that are evergreen that allow for leveraging the loyalty and satisfaction of your member base to generate additional sales.

The customers who use referral methods have not just seen lower member acquisition costs but more members staying. This increase in retention is due to referring members who receive discounts on membership when they succeed in referring.

Rewards for members who earn recurring payments by referring other members are considerably less likely to churn and they are always driven to refer more people. Incentivizing your members through referral rewards allows them to take a trip and initiate the right conversations with the right people - leading to higher sales and lower cost.

The main takeaway

The changing landscape we've seen in Q1 clearly demonstrates the need for continuously building sustainable base in your membership. These foundations become a safe haven during periods of uncertainty , and permit members to do the things you love to do manage your membership in confidence.

As the membership landscape is constantly evolving and growing There will always be a constant factor that can be leveraged to increase your membership as well as the base of your current members. The continued focus on helping them first will create a level of trust that ultimately translates to them becoming your greatest advocates.

Be aware of the tiny foundations within your organization. It's those small foundations that can bring you the biggest wins.