Calendar

 This is our quarterly investigation into the status of membership where we uncover trends, highlights and what's moving.

The start of 2022 is proving to be the continuation of clearly defined trending in membership that began towards the end of 2021. With a world of digital technology changing rapidly, membership remains to prove a reliable and stable revenue generator as we've seen the membership business model flex its stability in recent weeks.

Highlights

Continued member growth

In the fourth quarter of 2021, we noticed a substantial increase in member registrations. The trend continued to grow and increased to Q1 2022 as consumers were coming off break for the holidays, and returning to work, school as well as other regular routines. A time of year where consumer attention is typically harder to compete for, there was notable strength in the number of new members joining across major membership categories - especially during January to February.

Resilience during headwinds

In the month of March, we saw an abundance of uncertainty instilled into the broader economic landscape and had an impact that was noticeable on the behavior of consumers. The war in Ukraine are two of the main factors which led consumers to become more preoccupied. The changes have slowed those areas of growth that which we observed in January and February.

Although these macro trends have certainly impacted the landscape of membership, we've seen the credibility of the business model really shine through in the face of these headwinds.

In the present, the bulk of the effect we've observed is primarily limited to the acquisition of new members. Member retention has remained 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 so that it actually keeps members engaged on a regular basis. Members who are able to integrate benefits into the member's every day or weekly routine experience less turnover and higher retention even during times that are more uncertain, thereby creating paths to sustainable income and member growth.

What's moving

A new landscape

The landscape for membership is constantly changing. The digital landscape is changing even faster. While our clients explore new possibilities for growth in the future, the importance of an encompassing strategy for acquiring members is never more apparent. Ad costs are growing. The engagement on social media has hit the point of no return. People are less open to traditional acquisition and marketing strategies.

Why is this? In the last two years, all of us were online more than we ever thought possible. This has been a fantastic time for discovering content as well as membership in general. But, the extended internet experience has caused noticeable ad fatigue among users (your prospective customers).

People have been subjected to badly targeted advertisements for so long that they hardly even notice them now - or even take any actions from these ads. Is advertising dead? No. However, given the current environment, the economics and costs are no longer favorable to advertisers.

Member-driven growth

We are seeing the next stage of membership growth heavily influenced by current members. Authentic messaging, trusted opinions and personal experiences build immediate trust , which drives actions.

The introduction of Referrals is the first move towards developing evergreen solutions that can increase the satisfaction and loyalty of members to drive more sales.

Customers using referral strategies do not only see lower member acquisition costs but increased member retention. The increase in retention is due to referring members who receive discounts on membership when they make a successful referral.

The members who are rewarded regularly for referring others are significantly less likely to be churned and they are continuously inspired to refer more members. Incentivizing your members through referral rewards allows them take a trip and initiate conversations with most relevant people. This leads to higher sales and lower cost.

The main takeaway

The shifting landscape that we've witnessed in Q1 clearly demonstrates the necessity of constantly building solid base within your membership. These foundations become an oasis of security during times that are uncertain and enable you to continue doing what you do best and run your organization without fear.

While the landscape of membership continues to grow and evolve, there will always be an ongoing source of leverage for growing, and that's the foundation of your existing members. The continued focus on helping them first will create the trust of your members that will eventually lead to them becoming your greatest supporters.

Be aware of the seemingly small foundations inside your organization. It's those small foundations that will bring your the greatest rewards.