Getting new members for your membership website requires time, effort and money. You’ve got to find them, capture their attention, convince them you’ve got the solution to their problem and convert them to a sale.
While getting new members is a very important part of growing a membership business – it isn’t only one way to give your bottom line a boost. Once you’ve got a good stream of new subscribers, it’s time to turn your attention to retention.
Why Member Retention Matters
The real beauty of a membership business is that it gives you repeat income. Your members pay you month after month, giving you stability in your cash flow and meaning you never have to start a month wondering where your next cash is coming from.
But there’s one thing that’s not spoken about nearly enough in the membership world – customer churn.
No matter how great your membership is, some members will cancel their subscription. Every customer will eventually leave you – the question is how long can you keep them engaged and willing to pay?
Small Changes For A Big Impact
If you’ve been in the membership business for some time then you’ll probably already know your average customer lifespan: the average number of months your members stick with you. This is an important metric to calculate, understand and track because just a small change in either direction can have a big impact on your bottom line.
So what can you do to increase your customer lifespan? How can you keep your customers coming back month after month?
It’s all about engagement.
If your members are using your membership and getting great value from it then they’re much more likely to stay. However, if they lose interest, forget about their membership or feel they don’t get good value then your monthly payment is going to get stopped the next time they notice it leaving the bank.
How To Keep Your Members For Longer
There are three simple ways to increase customer engagement which will, in turn, increase your customer retention.
1: Remind Them To Use Your Membership
So many people sign up for things then never make use of them. It’s your job as a membership business owner to ensure that your customers are actually using your membership and getting the most out of their subscription.
Automated emails and text messages are an easy, affordable way to remind people to log in, complete your courses or take part in any live lessons and webinars.
2: Make Them Feel Part Of A Community
There’s a common saying in the membership world; people join for the information and stay for the community. If you can build an interactive community into your membership then the pain of leaving becomes so much more and people will hang around.
With Memberlab you can incorporate live lessons, forums, groups and member directories to help build relationships between your costumes and keep them coming back.
3: Show Them Progress
People love to progress. They want to feel like they’re achieving something and moving forward. By incorporating gamification, certification and progress reporting into your membership site you’ll be able to give them that fuzzy feeling inside and keep them interested.
So there you have it: three simple ways to boost your customer retention and keep your customers paying you for longer.
Want to learn more about making money with membership websites? Check out my previous blog post “5 Ways A Membership Site Can Make You More Money” here…