Calendar

 This is our quarterly look into the current state of membership . We will uncover trends, highlights and what's going on.

The year 2022's beginning is proving to be the continuation of clearly defined patterns in the membership market that were evident at the end of 2021. In an environment that is growing rapidly, membership has proven to prove an reliable and stable revenue generator as we've seen the membership business model flex its stability over the past few weeks.

Highlights

Growth in membership continues

In the fourth quarter of 2021, we saw a significant uptick in the number of new members joining. This pattern continued and picked up speed to Q1 2022 in the midst of consumers coming off holidays and returning to work, school and other routine schedules. At a time of time when consumer interest is usually harder to get There was an increase for new member acquisition across major membership categories - especially during January and February.

Resilience during headwinds

In the month of March, we experienced an abundance of uncertainty instilled into the overall economic environment which had noticeable effects on the behavior of consumers. The war in Ukraine were two driving factors which caused people to be more prudent. These developments have moderated the growth areas as we saw in January February.

These macro-trends have certainly impacted the landscape of membership, we've seen the credibility of the business model shine brightly as these headwinds have developed.

In the present, the bulk of the change we've witnessed was confined to new member acquisition. The retention of members has been steady, highlighting the resilience of membership along with its role in a strategic plan of business.

This also underscores the significance of structuring benefits for members to ensure that the benefit engages members frequently. Memberships that are able to integrate benefits into the member's regular routine are able to experience less loss of members and higher retention during periods that are more uncertain, thereby making it possible to sustain income and member growth.

What's happening?

A fresh environment

The membership landscape changes fast. The digital landscape also changes faster. Our customers are exploring possibilities for growth in the future, the importance of a diversified member acquisition strategy has never been clearer. Ad costs are increasing. The engagement on social media has hit the point of no return. People are less open to traditional marketing and acquisition methods.

What is the reason? In the last two years, we have all have spent more time on the internet than we thought was possible. It was an excellent time to discover content and join all around. However, the prolonged web-based experience has led to the perception of ad fatigue in customers (your potential customers).

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

Member-driven growth

The next phase of membership growth is being driven by the existing members. Authentic messaging, trusted opinions and first-hand experiences create immediate confidence that motivates action.

Our recent introduction of Referrals is the first step toward creating evergreen solutions which can leverage the loyalty and satisfaction of members to drive more sales.

Referral strategies of customers do not only see reduced costs for joining but also more members staying. This increase in retention is being driven by 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 be churned and they are constantly motivated to refer even more people. Incentivizing your members with referral rewards allows them go out and start the right conversations with the right people - leading to more sales at lower costs.

The main takeaway

The shifting landscape that we've witnessed in the first quarter clearly illustrates the necessity of constantly building solid foundations in your members. These foundations become an oasis of security during times of uncertainty , and permit you to carry on doing what you do best - run your membership in confidence.

As the membership landscape is constantly evolving and growing it will be an ongoing source of leverage for growing which is the basis of your current members. The continued focus on serving them first will establish the trust of your members that will eventually lead to them becoming your greatest advocates.

Don't lose focus on the tiny foundations within your organization. The foundations that are small that can bring your the greatest rewards.