Club memberships are very popular, and they seem to be gaining momentum. It seems that everywhere you look another company is offering a membership program for its customers. If you own a business that sells a product or service and you don’t already have a membership program, you might consider setting one up. Many business owners wonder what the benefit of developing and maintaining a membership program are; below are a few examples.
Contact Information
When people sign up for a membership program they often have to provide contact information. This can be a simple email address, or it can be a full set of contact information including a phone number and physical address, as well. Any contact information you can obtain from your customers is a benefit because it allows you to engage in target marketing and better connect with your customers. Having contact information allows you to send out email or direct mail ads or coupons that may encourage your current customers to use your services again.
Membership Fees
You can choose whether or not you want to charge for your membership program, but in most circumstances charging a small fee for the benefits obtained by being a member is advised. This fee should cover the cost of maintaining the system plus a little more. That way, it will add to the bottom line. Don’t charge so much that people don’t want to join. A small yearly fee for a certain amount of annual savings for a customer is often worth it.
Benefits Mean Business
There’s a reason so many companies set up membership programs and rewards programs for their customers: more business. If a shopper has a membership card or receives e-mail coupons and deals from a certain store, it’s likely they’ll shop there – and frequently. This has been proven over and over again, and is one of the main benefits of setting up a membership program.
Advanced Payment
Another benefit of a membership program might also include getting paid up-front or in advance for services or products that will be rendered or dispersed at a later time. For instance, when club members book private jets on jetsuite.com, they can book a certain number of flights of miles in advance. They save money by purchasing a larger number of miles and you as the business owner gets guaranteed future business. You don’t have to wait for that money to come in. Another example is runn
The above benefits are just a few of the many reasons a membership program can help your business. Not only will you be able to keep in touch with your customers, know who they are, encourage more business, and help your bottom line, but you’ll be able to provide a higher level of customer service, meaning happier customers and long-term growth.