The Membership Model: Take a Page Out of the Tech Industry Playbook
The membership model can benefit almost any organisation, no matter the size or industry. Some of the most successful and well-known companies in the world (Amazon, Apple, Spotify, and Netflix, to name a few) have either started with or built a membership model into their business. In this article, we’ll seek to show you the four ways that memberships can help you continue to grow, streamline and stabilise your business.
The membership model generates stable, predictable recurring revenues.
Recurring revenues, especially memberships, are the portion of your monthly revenues that you can depend on with a fair degree of certainty because a client is contractually obligated to pay you a certain amount each month, for a set number of months. Memberships can be customised to suit your industry, but the goal is the same no matter the organisation: to create financial stability and certainty.
Memberships foster ongoing relationships and regular visits.
Memberships are not transactional; they represent the beginning of an ongoing and potentially long-term relationship. This ongoing relationship encourages and incentivises clients to visit your business on a more regular basis, which can not only boost loyalty but also the sale of other goods and services. For example, if your membership includes a discount on retail items, clients will have one more reason to visit you and be incentivised to buy other items from you as well.
The membership model generates data and valuable insights.
Due to the ongoing and often long-term nature of memberships, the data generated by members can be used to provide you with both reliable and valuable insights into client behaviours and preferences. Whether it’s understanding preferred class or appointment times and days, or discovering historically busy or slow periods, the consistent data members generate—which is tracked seamlessly in your MINDBODY software—will enable you to make informed, data-driven decisions about your business.
Memberships are easy to sell, track and process with MINDBODY.
With MINDBODY, memberships are built right into your software. You can easily sell, manage and track all your memberships, including their payments, in one place, so the only thing you need to do is figure out what kind of memberships you want to sell based on the goals you are trying to achieve.
Feeling inspired to evolve your business but unsure of where to start or what to include in your membership?
Here are some real MINDBODY clients already offering memberships across the health and wellness spectrum:
Ready to set up and start selling your membership?
Read these easy-to-follow steps to get you started.
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