A review of Q2 customer success
Throughout an exciting Q2, we were hard at work helping customers position their memberships for a challenging quarter. Tightened consumer spending, inflation and other macroeconomic trends continued to shape the membership landscape.
These are the exact types of challenges we encourage our customers to welcome. We believe they present unique opportunities for creative growth and member retention. Throughout the quarter, we helped many customers navigate this landscape with smashing success while uncovering new paths to grow their memberships and protect the recurring revenue they've worked so hard to build.
🎯 The approach
So many of our customers were coming off great membership gains from Q4 2021 and Q1 2022. This period of stellar growth clearly demonstrated the need for a membership strategy that would not only protect these gains but amplify the existing value these memberships were already delivering to members.
We were confident this could be achieved by:
- Adding incremental member benefits to areas that have proven to drive results in prior quarters (for existing members)
- Iterating on existing value propositions to uncover ‘problems to be solved’ for prospective members
Growing recurring revenue is difficult for customers. Maintaining that recurring revenue is twice as difficult. Q2 showed us that customers who were willing to be nimble with their strategy were able to maintain and even grow their recurring revenue in a complex membership environment.
And that’s exactly where Memberful came in. We worked closely with our customers to deliver proven membership strategies that delivered some incredible results during a quarter where many thought membership growth “wasn’t supposed to occur”.
✨ The outcomes
The customers we worked with saw strong and sustainable membership growth during Q2. Across our customer success portfolio, 82% of customers saw YoY revenue growth of 95% on average during Q2. These customers were also able to either maintain or exceed their average member retention from the prior six months.
First, the strategies we implemented involved a mix of landing page optimization, creative audience targeting and promotions designed to coincide with broader market themes that drive membership growth. These acquisition-focused efforts were customized to the needs of each customer and translated to member growth at levels above those seen in Q2 2021.
Second, amplifying the existing value of membership offerings and increasing the overall utility of member benefits proved to be instrumental in driving strong retention throughout the quarter. Finding ways to create incremental value that ultimately finds its way back to members can be a critical factor in shaping outcomes in member retention.
From helping customers partner with industry leaders to drive value to providing exclusive member discounts on complimentary products/services, the strategies we implemented with customers resulted in average member retention of 82.2% during Q2.
🔮 The future
More than ever, we see membership becoming the gateway to a larger ecosystem of offerings, not the end-product.
We’re helping customers navigate the next chapter of membership. We believe that having multiple layers of member benefits that can meet members wherever they are in their journey will be the defining theme of that chapter.
Over the past year, the key question has consistently been "What's the new layer that a membership can provide to grow more and retain more?”.
The answer to that question is now rapidly becoming more legible. And here at Memberful, we couldn’t be more excited about helping our customers continue to capitalize on what we believe is the greatest moment ever to be a membership operator.
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