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I'm part of the Customer Success team here at , and I work closely with our clients to support them to grow their membership businesses. In the coming months, as we work to connect with new customers and aid the growth of their membership, I'll be sharing some key learnings and outcomes that we're witnessing when it comes to our overall membership strategy.

A recent hot subject of discussion among our customers is price hikes. Customers are asking concerns:

• "How do I determine if I'm able to successfully increase prices without triggering an enormous churning event?"
• "How can I boost prices?"
• "When is the right time to raise prices?"

Clearly, there's no one-size-fits-all solution in this case. If there isn't a specific strategy in place, there's significant risk in raising prices . But, after walking through this journey recently with some of our customers I'm certain that there are clear signals that indicate when prices can successfully increase with little risk. These signals comprise:

A high percentage of people are taking monthly plans over annual ones. plans that are monthly

The memberships with a strong growth in the number of people who subscribe to annual subscription over monthly ones are able to offer significant pricing. If memberships have at 70 percent of the first-time subscribers purchasing an annual plan over a period of minimum four months, this is highly an indication that the membership is undervalued.

If this is the case, a price increase by 10% to 20% is likely to be received well by the members.

Constantly expanding formats for content

Memberships that continually increase their content offerings may increase prices frequently (i.e. each year). Take the case where member benefits are typically focused around newsletters. The expansion of these benefits to new formats such as videos, podcasts, and more could increase the benefits of members.

If it's content reused, or completely new, the expansion of content creates the possibility of ongoing price increases in the range between 5% and 10% every 12-18 months.

Operating in an under-served market

Memberships in unserved areas can be more expensive. In such cases there is a lack of competition and there are a few qualified experts that can compete on the market.

A membership that offers an in-depth analysis of the subject and top-of-the-line research in a niche subject, is sure to attract prominent executives, thought leaders and innovators in similar markets. This is an audience who's ready to spend a significant amount to comprehend the effects on their industries and customers. Members who serve such groups in these markets hold significant pricing power.

Statisticians and guidelines

Below are some general trends that we've observed through our studies:

• Customers who have seen the biggest success with price increases do so gradually - not exceeding an increase of more than each twelve to 18 months.
• When a pricing plan involves each year's price increase, 10% per year is easily absorbed by the members.
• Annual memberships that do not have previously raised rates (or for more than 18 months) and have yearly retention minimum 75% are likely to increase prices as much as 20% with no negative impact.
• The results of customer surveys show that the rate of price hikes is more relevant than the price increase itself when the customer is operating within the 10% to 20% price rise price range.

I hope this is helpful. I'll share more of these lessons in the coming months as we progress forward!