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Keep the Cash Coming in Even When Clients Aren’t

Thursday, June 26th, 2014

Even the most loyal customers are inconsistent if not part of a membership program, the Inc.com article “How to Keep Customers (Happily) Paying Forever” explains. With members, you get paid whether they come in or now. And while saying it like that almost sounds deceitful, it’s your job to provide enough value to make the membership worth it even if they can’t always take advantage of it as much as they’d like. The need for a quality membership program, and steady cash flow, is well documented in this industry, and even though you probably have one already, it could always be more effective. The recent Inc.com article “How to Keep Customers Happily Paying Forever,” offers some tips for attracting members and maximizing profitability. Here’s out to improve and maintain your membership program:

  1. Give customers a good reason to sign up. Customers aren’t going to commit unless you make it worth their while. That obviously starts with a discounted price, but it’s got to be more than that. Price is a great way to draw people in, but it’s an undependable way to keep people loyal. By providing extras that make members feel special – things that aren’t available to non-members – you can create loyalty and save yourself from underpricing your services. And by establishing a “loyalty program” that rewards people for maintaining their membership, you’ll keep the cash coming in even if the customers aren’t.
  2. Prepare for a more intense relationship. Members are going to expect more from you than other customers, and that’s a good thing! As mentioned previously, making members feel special is a cost-effective benefit to provide. First off, make sure everything about the membership is clear and easy to manage –you definitely don’t want members to feel like they’ve been tricked or are stuck in a membership don’t want. Then, be prepared to provide service good enough to justify the monthly cost by itself.
  3. Do market research. Here’s where you can get a little extra out of your relationship with members. Take advantage of the opportunity to ask them about their preferences and how you can serve them better. You don’t want to harass them, but since you’ll basically be asking how you can improve their experience, they should appreciate the attention anyway. This should help you improve your system and gain more members as you go.
  4. Upsell. Now thatyou’ve got members committed to your business, you can take advantage of the regular interactions to try to sell them more products and other services. Once they’ve already agreed to a membership, this process becomes easier, and you can sell products on the fact that they’ll help them get the most out of the money they’ve already invested.
  5. Don’t get stuck on one model. There are many different types of memberships, and you don’t have to remain committed to one forever. Use your experience to evolve your system over time. You may want to try different options like long-term contracts for a reduced rate, monthly cash options for an increased rate, or adjusting your tiers in a way that will push people to a higher level.

Click here to read the article from Inc.com.

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