Memberships

Membership schemes are designed to create a sense of belonging, offer additional value to clients, and establish a consistent source of income for the business.

Adding memberships

Adding a membership component to your current business model can bring a range of benefits to your business and your clients. For the business, it is a new stream of growth that can attract new clients and expand the accounts of existing ones. There is the opportunity to scale a membership offering, use the revenue to predict and forecast and build lasting client relationships. For your clients, it gives them access to a different way to do business with you. The membership offer may help your clients justify financial costs, provide them with flexibility, peace of mind, and increase the contact points that they have with you.

Benefits of Memberships

Building a membership program shows that it’s not just about transactions; it’s about forging connections with your clients. Implementing a membership program can offer various benefits for businesses, including client loyalty, predictable revenue, increased engagement. Your membership program may also become a treasure trove of insights, that shows you the patterns of client behavior and their preferences. Here are some of the benefits of memberships explained further:

Attract new clients.

Not every company has a membership program. You could be the first in your industry or regional area to offer one! When you do, you’ll give yourself the chance to attract new clients that want access to a membership but can’t access what you offer elsewhere. The exclusivity you create with your membership can draw people that want to be part of something that they can see will benefit them.

Retain and grow existing client accounts.

Even your loyal clients are looking for ways to ensure that they are doing business with the right company. They may be looking for a way that they can disperse their annual costs, access exclusive benefits for being a continuous client, as well as having the option to choose. You can retain and grow existing clients’ accounts by providing even more value to them.

Predictable recurring revenue

One of the main benefits of holding membership accounts is that it provides recurring revenue to the business which allows a certain percentage of the revenue to be predicted. The membership business model brings additional benefits that lower the risk profile of the company as it can offset any high and low points of non-membership service sales which are driven by one-off purchases.

Scalability

Membership businesses have the opportunity to be scaled, adapted, and improved over time. It’s easy to keep your offer fresh and relevant to your client base. Essentially you can start your membership offering with a pledge to a Minimum Viable Product (MVP) to kickstart the line of service, and then improve and finesse the offering. It’s also good for showing your clients that you are actively engaged and committed to improving their experience.

Client vs customer relationships

This brings us back to the philosophy that we are doing business with our clients and not customers. Businesses that sell products or services to customers on a one-off basis may find it difficult to build relationships and turn them into clients that they have further contact with.

The membership business model ensures ongoing contact with your clients for as long as they remain members. You can utilize the power of the relationships that you have built by gaining survey responses and feedback to adjust your service offerings accordingly. If you offer flexible pricing plans, you will be giving your clients more choice. With more options, it is easier to develop to what the client wants.