Why You Should Work "Memberships" Into Your Small Business Structure

Practical strategies to increase revenue and build a loyal customer base are critical for small businesses. One powerful approach is to add membership programs into your business model.

Ebbo’s Loyalty Program Study notes that around 80% of consumers belong to a loyalty program. Similar studies reveal that loyalty program membership influences purchasing behaviors.

Offering exclusive benefits and a sense of community can attract and retain customers while boosting your bottom line. In this blog, we’ll explore creative ideas for integrating membership structures into your business.

1. Define Your Membership Tiers

Before launching a membership program, define different tiers to cater to varying customer needs. Because customers’ needs and budgets vary, offering multiple tiers lets you meet different customer needs.

Consumers noted that features like coupons, cash back, shipping savings, member-specific experiences, rewards, and prizes were desirable. Customers also mentioned accumulating points and brand engagement as positive program benefits.

Structure your tiers to offer benefits consumers want. Layering benefits make top-tier memberships more attractive. Your top-level members should feel valued and experience personalized service and elite membership.

Small business memberships typically offer three or four tiers:

• Free MembershipThis tier can offer options like collecting points towards free or discounted products. Customized emails cultivate a sense of loyalty among new customers.
• Basic Membership: This tier is the most affordable "paid" membership. Offer your customers essential perks such as early access to new products, member-only discounts, and a monthly newsletter. Ensure the member package value is greater than the price to your customers. This membership level helps attract new customers who want to try your service while building a relationship and sense of loyalty with them.
• Premium Membership: In addition to the benefits offered in your basic membership, add more benefits like personalized recommendations, exclusive events, and priority customer support.
• VIP Membership: This tier is for your most loyal customers. Customers at this membership level expect top-notch support and access. Personalized gifts, one-on-one consultations, and behind-the-scenes access are common features of this membership level.

2. Leverage Recurring Revenue Models

Membership programs thrive on recurring revenue. 72% of consumers use 50% or less of their paid memberships.Thismeans your small business stands to make more profit with reduced costs. Consider these recurring revenue models:

• Subscription Boxes: Subscription boxes allow customers to enjoy your products, receive surprises, and even purchase subscriptions for friends and family. Curate monthly subscription boxes with your products or partner with other businesses for cross-promotions to keep your customers engaged.
• Digital Memberships: Digital memberships are cost-effective, eco-friendly, and convenient. Create an online community where members access premium content, webinars, and expert advice.
• Service Retainers: Here, consumers pay a monthly fee to use your services. Offer ongoing services (e.g., marketing consultations, fitness coaching) through monthly retainers.

Recurring revenue stabilizes cash flow and builds long-term relationships with customers.

3. Foster Community Engagement

Customers want to feel connected to a brand. A sense of belonging and feeling "known" are essential for many consumers. Brands also benefit from offering consumers a sense of belonging.

A successful membership program isn’t just about benefits; it’s about creating a community. Here’s how:

• Member-Only Events: Hold virtual or in-person events exclusively for members. Think workshops, networking sessions, or product launches. Create opportunities for members to interact as a community while feeling recognized as valuable customers.
• Private Forums: Set up a members-only forum where customers can connect, share experiences, and seek advice.
• Ambassador Programs: Encourage members to refer friends and earn rewards. Consider rewarding them for reviews and social media posts, too. Word-of-mouth marketing within the community is powerful.

Adding memberships to your small business structure isn’t only about boosting revenue; it’s about building lasting customer relationships. Consider how membership programs can elevate your business and the benefits they provide.

References:

1. https://www.mightynetworks.com/resources/how-to-grow-membership-in-an-organization
2. https://memberclicks.com/blog/growing-association-membership/
3. https://memberclicks.com/blog/increase-membership/
4. https://www.thinkific.com/blog/membership-business/
5. https://www.wildapricot.com/blog/membership-model
6. https://www.ebbo.com/insights/blog/loyalty-program-statistics-you-need-to-know/