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 Welcome to our quarterly dive into the state of membership . We will uncover trends, highlights and what's going on.

The start of 2022 has been an extension of the clear membership trends that emerged in the last quarter of 2021. With a world of digital technology growing rapidly, membership has proven to provide a solid and steady source of revenue as we've seen the membership business model flex its stability in recent months.

Highlights

Continued member growth

The fourth quarter of 2021 saw a significant uptick in the number of new members joining. This trend continued and accelerated to Q1 2022 as consumers were coming off holiday breaks, back to work, school and other routine schedules. In a period of the year where consumer attention is usually more difficult to grab There was an increase in the number of new members joining across all major categories of membership - especially during January to February.

Resilience during headwinds

In March, we witnessed large amounts of uncertainty being injected into the broader economic landscape and had an impact that was noticeable on the behavior of consumers. The rise in inflation and the war in Ukraine are two of the main factors which led consumers to become more preoccupied. These developments have moderated those areas of growth that which we observed in January and February.

Although these macro trends are certainly impacting the landscape of membership, we've seen the effectiveness of the business model really shine through as these headwinds have developed.

As of now, the majority of the change we've witnessed was focused on new member acquisition. Membership retention has been consistent, highlighting the resilience of membership as well as its importance within a larger business strategy.

It is also a reminder of the importance of structuring member benefits in a way that really keeps members engaged regularly. Members who are able to integrate benefits into the member's every day or weekly routine are able to experience lesser turnover and higher retention in times with increased uncertainty, providing sustainable revenue and growth of members.

What's moving

A fresh scene

The landscape for membership is constantly changing. The digital landscape is changing even quicker. As our customers explore ways to grow, the importance of a diversified member acquisition strategy is never more apparent. Ad costs are rising. Social media engagement has reached a plateau. Consumers are becoming less receptive to conventional marketing and acquisition tactics.

Why is this? For the past two years, we all spent more time online than we thought was possible. It was an excellent time for discovering content as well as membership generally. However, this extended online experience has resulted in an increase in ad fatigue for customers (your potential clients).

The public has been exposed to poorly targeted ads for many years that they don't are aware of them now, or even take any steps to remove these ads. Is advertising dead? No. But given the landscape, the economics and expenses are not in favor of advertisers.

Member-driven growth

We are seeing the next stage of membership growth is being driven by the existing members. Genuine messages, trustworthy opinions and first-hand experiences create immediate trust that drives action.

The recent launch of Referrals is our first move towards developing evergreen solutions which can leverage the loyalty and satisfaction of your members base to create additional sales.

The customers who use referral methods are not only seeing reduced costs for joining but also increased member retention. This retention increase can be attributed to referral members who receive discounts on membership when they achieve a successful referral.

Rewards for members who earn recurring payments by referring other members are considerably less likely to churn and are constantly inspired to refer more customers. Incentivizing your members through referral rewards allows them go out and start discussions with the most relevant people. This leads to more sales at lower costs.

The Takeaway

The shift in the landscape in Q1 clearly demonstrates the need for continuously building sustainable base in your membership. These foundations become a safe haven during periods of uncertainty , and permit you to continue doing your best work - run your membership in confidence.

While the landscape of membership is constantly evolving and growing it will remain a factor that can be leveraged to increase your membership, and that's the foundation of your existing members. The continued focus on helping them first will create a level of trust that eventually leads into them being your most powerful advocates.

Do not lose sight of the seemingly small foundations inside your membership. The foundations that are small that can bring you the biggest wins.