Do you own a member-based business and struggle with new leads?
How to keep your members happy during difficult times
Anyone who owns or runs a business that relies on a membership base knows just how heart-breakingly hard it can be to find new members and keep your existing ones happy – especially when times are tough. It can feel like a constant and never-ending cycle of acquisition and churn. No sooner have you acquired a new customer, then you’ve lost one at the other end.
Yet, member-based businesses can be a fantastic model, when things go right, and create the potential for a strong customer base, ongoing revenue and a vibrant community. So although it might sometimes feel like a hopeless task, for the many businesses, it really is worth the effort. Because once you crack the code and find a way to speak effectively to your current and future members, you’ll discover you have a highly profitable and successful business on your hands.
You could spend big on acquisition, of course. But that will burn a hole through your bank balance and ultimately not serve you well down the line if you’re not speaking correctly to your customers. Instead you need to finesse your approach and work out some economical and effective ways to attract new customers – and keep the current ones happy, to minimise losses.
Here are a few things you should consider:
1) ALWAYS lead with your value proposition
I’ve said it before and I’ll keep on saying it – you absolutely MUST have a clear and easy to understand value proposition for your customers. It’s the only way to stop them shopping purely on price and it’s the #1 best way to set your business apart from the rest of the market. Make it crystal clear to your customers why the product or service you’re offering is better than all the rest, regardless of price. Is it faster? More effective? More sustainable? Locally produced? Does it come with benefits that nobody else offers? Whatever it is that makes your business so special should be the first thing you present to new customers.
2) Pick the right prospects
Never waste time and money going after every possible customer. Unless you’re a multinational with millions to spend on advertising, you should always narrow your focus and make sure you’re targeting and marketing to the right demographic. Time and money spent on market and customer research is rarely wasted and can really help you hone in on hot prospects that are much more likely to convert.
3) Communicate often and well with existing customers
Don’t make the common error of forgetting customers as soon as they’ve converted. New prospects might seem like a better use of your time and resources, and indeed they are important. But don’t forget to show your existing customers and members plenty of love by communicating with them regularly via email and social media. Present them with offers, create content they might enjoy, find ways to keep them interested and reinforce the value of your business to them. Never forget that for each one you lose, you need to go out and find a new customer to replace them – so make retention a key priority.
Special offer: If you need help building or retaining your membership base, book in with me for a free 30-minute consultation and I’ll give you some more ideas on how to find new members and keep your current members happy.