Secrets to setting up a highly profitable membership program

Established clients can help us grow our businesses faster than any marketing effort.  Statistics show us that our existing clients spend 31% more than new clients.

Moreover, we must spend five times more to acquire new clients than to retain established clients.

And for those businesses that already have a membership program in place?  Research tells us that an average membership program increases our sales by an impressive 20%.

 

Achieve Maximum Success with a Membership Program

We can personally vouch for the steady stream of additional income brought in by a membership program - not to mention the priceless reward of customer loyalty and high customer satisfaction.  A smart membership program is an absolute must for any aesthetics professional who wants to achieve maximum success!

 

Do you offer a membership program in your business?

If yes, Congratulations!  Use this article to evaluate it for ways to improve.

If not, you’re on the right path.  We’ll show you how.

 

Benefits of a Membership Program

• Provides a predictable and reliable stream of recurring revenue
• Sells more services and products with less effort and expense
• Increases client loyalty
• Increases client satisfaction
• Loyal, happy clients refer their friends and family
• Increases compliance with service and product regimens
• Increases visit/purchase frequency
• Increases lifetime client value

 

Must benefit both the Client and the Business

When designing a new membership program or evaluating a current membership program, be careful to ensure it benefits both member clients and the business.

 

Don’t know where to start?  Use our checklist.

 

How to design a smart Membership Program Checklist

___  Set your membership program goals

Monthly income from membership fees? 

Total number of members?

Number of weekly/monthly member appointments?

 

___  Get input and buy-in from your team

 

___  Appoint a Membership Concierge

A team member responsible for the operation and success of the program

 

___  Plan to include a variety of options

Include a variety of services as “membership benefits,” one or more included as part of the membership privilege

 Select other services to apply a “membership discount;” we discounted 15% for our members

Omit other services from the discount or set a lower discount, if needed

 

___  Plan to discount products & set your discount rate

We discounted products by 10%

 

___  Plan monthly ‘Member Only’ Specials

Makes members feel special and appreciated

Announce the specials by emails and signage

 

___  Name your Membership Program

Give it a branded identity that aligns with your brand

 

___  Design must-have components

Membership Brochure

Dedicated web page or landing page on your website

E-blast announcing the program or changes in the program as they occur

Tabletop signs for your treatment rooms and lobby

 

___  Consider optional marketing materials

“Ask me” buttons

Events to feature your Membership Program

Branded tools to show benefits/savings

Digital or Hard Copy signage 

 

___  Train your team to suggest (and sell) your membership program

Only when it benefits the client - it may not be for everyone

Only when it makes sense for the business - i.e., maybe not for difficult clients

 

___  Evaluate and enhance your Membership Program on a regular basis

Add/adjust services based on feedback

Add/adjust benefits based on feedback

Tweak it to make it more fun or as giving more value 

Quarterly reviews 

Remember everyone loves new things

 

Have fun designing your Membership!

 

Now for the sticky, tricky, not-so-fun part of designing a Membership Program - the Membership Agreement, the legal contract.  You need one.

 

The Membership Program Legal Agreement, ‘the Contract’ Checklist

___  Set the ‘Term’ of the Agreement

Choose from 3 months, 6 months, 1 year

Choose just one term   

Or you could set different monthly fees for different terms

 

___  Decide on the monthly fee for the membership

Consider your costs

Consider the monthly and lifetime value of a member

Set it high enough to allow for discounting 

 

___  Get input and buy-in from your team

 

___  Educate and train your team to explain the Agreement to clients

 

___  Determine your cancellation policies

Will you allow early cancellation

You may have a strict policy

You may have a strict policy, but know you’ll make exceptions 

Determine how exceptions will be handled

Will you require cancellation notice be in writing 

Determine how cancellations will be handled, i.e. thank you’s for being a member, a  system to reach out in 3 months, etc.

 

___  Determine if you’ll allow missed monthly benefits to be carried over

 

___  Determine which team members have the authority to obtain the client’s signature

 

___  Task your Membership Concierge with management of these issues

 

 

Put your Membership Program in Writing

 

Protocols and Processes Checklist

___  After you’ve completed both checklists and have designed your Membership Program, write your protocol and processes for your Membership Program

Detailed and step-by-step

Get each team member to sign off

Use when onboarding new team members

Revise when changes are made 

 

 

Body Contouring Services provide More Options for your Membership Program

Designed properly, memberships hold the power to make dramatic changes in your aesthetic business.  Adding body contouring services to your business presents more options to include in your Membership Program.

 

If you would like more information about creating additional revenue streams with body contouring, visit www.BodyContouringAcademy.com.