Not too long ago we held a Webinar on memberships. Memberships are products with recurring payments, that either have a fixed runtime (i.e. one year), or that are regularly extended (i.e. monthly).
Here you will find answers to the most frequently asked questions about memberships.
1) Why are memberships smart?
- Planned revenues. Your revenues remain stable also during low times such as Christmas or summer. This way you always know what your budget resources are.
- Higher customer retention. Customers with memberships come more often and for a longer time.
- No administration effort. Payments and invoicing is entirely automatic i.e. with credit card (as you might already do for Spotify or Netflix). This drastically reduces your administration efforts.
2) Why should you offer memberships online?
- More memberships. According to our data, studios offering memberships online registered an annual increase of sold memberships compared to those who do not offer this option.
- Modern and easy access. Buying a membership online is quick and simple. The easier the process, the more clients will it attract. You might know it already from your experience with other providers (i.e. Netflix and Spotify).
- Efficient communication. You can share the link to your memberships through many different channels (newsletter, website, Facebook etc.).
3) What price should I choose for a membership?
There are various types of memberships that need to be considered separately. We go now through the three most common varieties and their market fees.
- Ulimited access for one year. This memberships lasts at least 12 months. Customers with this membership can visit your open classes and trainings unlimited times. The hurdle to buy a membership for a whole year is of course higher for customers due to the long-term commitment. Therefore the chance of selling this membership online is lower than with flexible, short-term memberships. On the other hand, your turnover is secured for the whole year.
- Unlimited access for one month. The duration of this membership is only one month and will be extended for another month if the customer does not cancel (like it happens for Netflix or Spotify). Customers with this membership can attend your open classes and trainings unlimited times. Customers are very flexible when entering into this membership and can cancel at any time. The chance to sell this membership online is higher due to the low commitment.
- Limited access for one month. Also this membership lasts only one month and will be extended for another month if the customer does not cancel. However, customers with this membership have only a limited number of participations per month (usually 4 participations per month). These customers are very flexible and can cancel at any time. The chance to sell this membership online is higher due to the low commitment.
Now that you are a memberships pro you are ready to create and sell the best deals.
In case you still have any questions, do not hesitate to contact us.