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 Welcome to our quarterly deep investigation into the status of membership . We will uncover the latest trends, highlights, and other information that is going on.

The start of 2022 has been a continuation of clear membership trends that emerged at the end of 2021. With a world of digital technology evolving rapidly, membership continues to be a reliable and stable revenue generator and we've seen the business model for membership flex its stability over the past few months.

Highlights

Continued member growth

In Q4 2021, we noticed a substantial increase in the number of new members joining. This trend continued and accelerated through Q1 2022 when consumers were taking their holiday breaks, returning to school, work and their regular schedules. At a time of year where consumer attention is usually difficult to compete for, there was notable strength in the number of new members joining across major membership categories - particularly in the months of January as well as February.

Resilience during headwinds

During the month of March, we witnessed large amounts of uncertainty being injected into the broader economic landscape that had a noticeable impact on consumer behavior. The war in Ukraine were two driving factors that caused consumers to become more preoccupied. These developments have moderated those areas of growth that as we saw in January February.

Although these macro trends have certainly impacted the landscape of membership, we've seen the effectiveness of the business model shine brightly when these headwinds are forming.

At this time, most of the change we've witnessed is primarily confined to new member acquisition. Member retention has remained steady, highlighting the resilience of the membership and its role in a company's strategy.

It also reinforces the importance of structuring member benefits so that it actually draws members in frequently. The memberships that can incorporate benefits into members' every day or weekly routine are able to experience less churn and much greater retention in times with increased uncertainty, providing sustainable revenue and member growth.

What's moving

A brand new scene

The membership landscape changes fast. The digital landscape changes even more quickly. As our customers explore avenues for continued growth, the importance of diversifying their member acquisition strategies has never been more evident. Ad costs are increasing. The engagement on social media has hit a plateau. The public is becoming less open to conventional marketing and acquisition methods.

What is the reason? In the last two years, we all spent more time online than we thought was possible. This has been a fantastic time to discover content and join in general. However, the prolonged internet experience has caused noticeable ad fatigue among users (your prospective customers).

People have been subjected to badly targeted advertisements for such a long time that they don't are aware of them now, or even take any action from these ads. Is advertising dead? No. However, given the current landscape, the economics and cost aren't in favor of the advertiser.

Member-driven growth

We are seeing the next stage of membership growth being driven significantly by existing members. Authentic messaging, trusted opinions and first-hand experiences create immediate trust , which drives actions.

The recent launch of Referrals is the initial step toward creating evergreen solutions which can leverage the satisfaction and loyalty of your member base to generate more sales.

Customers using referral strategies do not only see lower member acquisition costs but increased member retention. This retention increase is due to referring members being offered discounts for membership once they succeed in referring.

Members who receive recurring rewards when they refer others to them are much less likely to be churned and are constantly inspired to refer more members. Incentivizing your members through reward points for referrals allows them to go out and start the right conversations with the most relevant people. This leads to greater sales with lower expenses.

The takeaway

The shift in the landscape during Q1 is a clear illustration of the need for constantly building solid bases in your membership. These foundations become a safe haven during periods of uncertainty and allow you to continue doing what you do best and run your organization without fear.

While the landscape of membership is constantly evolving and growing it will be an ongoing opportunity to grow which is the basis of your current members. Your continued commitment to helping them first will create the trust of your members that ultimately translates to them becoming your greatest advocates.

Do not lose sight of the seemingly small foundations inside your organization. The foundations that are small which will give your the greatest rewards.