Membership marketing is an excellent tool for converting customers who buy from you occasionally into more regular buyers who spend more on your products and services. These programmes provide huge benefits for companies that will enhance performance and drive sales forwards. Here we examine some of the latest research on membership marketing and provide techniques that have been used successfully by other consumer based organisations.
Frequency of Visits
When you’re targeting customers for your membership scheme, consider when they last visited your store or used your services, as those that did so within the past year will be five times more inclined to sign up than those who last visited between one and two years ago.
Check Your Prices
The cost of your fees will have an impact on the effectiveness of your membership management system. The higher you set your prices, the lower your overall revenue will be, so it’s useful to research the price customers would be happy to pay. A lower entry point could increase the number of members. Research has shown that when a fee rose to £50 from £30, the revenue nearly halved and it was less than 25% when schemes increased their price to £60.
The Benefits for Customers
All customers expect a certain level of benefits when they sign up to a membership scheme, and by giving them something different to other programmes, you could significantly increase your take-up. They want benefits that they can use instantly and that are accessible and valuable to them, as opposed to just empty promises that don’t have any meaningful use.
When you’re researching ‘what is a membership management system?‘, it’s vital to pay attention to the quality and value of the benefits you’re offering, as the higher they are the more revenue you will attract. This might seem like an obvious comment, but it’s important that membership programmes see the direct link between their overall revenue and the benefits they provide.
Maintaining membership numbers for your scheme is essential if you want to make it profitable and rewarding, so you constantly need to be looking at ways of reaching out to new members and incentivising them to join. With a properly managed membership system, your customers will understand all the benefits of joining and be more likely to sign up.