Calendar

 We're pleased to present our quarterly deep dive into the state of the membership, where we reveal patterns, trends and highlights as well as what's going on.

The start of 2022 is proving to be the continuation of clearly defined trending in membership that began towards the end of 2021. In an environment that is growing rapidly, membership has proven to be a solid and steady source of revenue as we've seen the business model for membership flex its stability in recent months.

Highlights

The growth of members continues

The fourth quarter of 2021 noticed a substantial increase in new member acquisition. The trend continued to grow and increased into Q1 2022, even when consumers were taking their holiday breaks, returning to school, work as well as other regular routines. At a time of time when consumer interest is typically harder to compete for, there was notable strength in new member acquisition across all major categories of membership - especially during January to February.

Resilience during headwinds

During the month of March, we saw significant amounts of uncertainty injected into the broader economic landscape which had noticeable effects on consumer behavior. 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 the growth areas we noted in January in February.

Although these macro trends are certainly impacting the world of membership, we've seen the reliability of the membership business model really shine through in the face of these headwinds.

As of now, the majority of the impact we've seen is primarily limited to the acquisition of new members. Membership retention has been consistent, highlighting the resilience of the membership and its importance within a larger strategic plan of business.

It is also a reminder of the importance of structuring member benefits to ensure that the benefit draws members in regularly. Members who are able to establish benefits into a member's daily or weekly routine consistently are able to experience lesser churn and much higher retention in times with increased uncertainty, creating paths to sustainable income and growth of members.

What's happening?

A new scene

The landscape of membership changes rapidly. The digital landscape is changing even more quickly. While our clients explore new possibilities for growth in the future, the importance of a diversified member acquisition strategy has never been more evident. Ad costs are increasing. Engagement on social media has reached a plateau. Consumers are becoming less receptive to traditional acquisition and marketing tactics.

How come? Over the past two years, all of us were online more than we thought was possible. It was an excellent time to discover content and join generally. However, this extended online experience has resulted in an increase in ad fatigue for consumers (your potential clients).

Audiences have been so exposed to badly targeted advertisements for many years that they don't ever notice them - much less, take steps to remove these ads. Is advertising dead? No. But given the circumstances, the economics and cost aren't in favor of the advertiser.

Member-driven growth

The next phase of membership growth heavily influenced by current members. Authentic messaging, trusted opinions and personal experiences build immediate confidence that motivates action.

The recent launch of Referrals is the first step towards creating solutions that are evergreen that can increase your members' loyalty and satisfaction your member base to generate more sales.

The customers who use referral methods are not only seeing lower member acquisition costs but an increase in retention of members. This increase in retention is due to referring members being offered discounts for membership once they succeed in referring.

Rewards for members who earn recurring payments by referring other members are considerably less likely to be churned and are always driven to refer more people. Incentivizing your customers with reward points for referrals allows them to go out and start conversations with right people - leading to more sales at lower costs.

The Takeaway

The changing landscape we've seen in the first quarter clearly illustrates that you must continuous building solid foundations within your membership. These foundations become the safest place to be during periods of uncertainty , and permit you to continue doing your best work - run your membership with confidence.

The membership market continues to grow and evolve, there will always remain a opportunity to grow which is the basis of your current members. The continued focus on helping them first will create the trust of your members that ultimately translates to them becoming your biggest advocates.

Do not lose sight of the seemingly small foundations inside your organization. These tiny foundations that will bring you the most significant wins.