Lately I’ve really been impressed with the conversion statistics and retention rates of many fixed term memberships.
The more results I’ve seen from this model, the heavier I’ve been recommending it to clients.
Front end conversion is increased because people aren’t signing up for a “forever” commitment. They can see when the program ends (whether it’s 3 months, 6 months, or even 12 months). From the numbers I’ve seen it converts just as well as a one time product (many people actually look at it more as monthly payments for a larger product).
Most monthly programs have trouble reaching the same conversion rates as individual products UNLESS you give some level of discount trial for the first month.
Retention improves dramatically because people feel like they’re missing out…and leaving something undone if they drop out.
I can explain this feeling well from my own personal experience. I’ve been in several 12 month fixed term memberships where I felt they started rehashing the material around the 8th month. It wasn’t nearly as good as it was in the first month, but I STAYED in both programs because I kept saying to myself the program is almost over.
I don’t want to miss out on what is coming. I couldn’t take the feeling that it would be unfinished…never to be finished. Because in both of these programs if you dropped out you could not continue from where you left off. If you dropped out you had to start all over…which was another huge discouragement from dropping out of the programs.
Another big benefit of fixed term programs is you can teach your method in a process.
People aren’t dropping in at month 6 or month 11. They’re all going step-by-step through the system. This eliminates the worry that you’re teaching over some people’s heads while more advanced members might be slowed down.
These two benefits (increased retention plus the step-by-step teaching process) is what led me to add the fixed term portion of my Monthly Mentor Club.
For each of the first 12 months someone is a member in the Club, they get another monthly module open to them online.
This is in addition to the monthly print newsletter and the audio/video bonus with each issue.
It’s been a part of this membership long enough now I can confidently say it has given a dramatic boost to the retention rate.
If you have any type of long-term program, add in a fixed term portion even if only lasts for the first months (the majority of cancellations take place in the first 3 months).
This initial fixed term portion could be your beginner start-up or your step-by-step system to move them into whatever long-term portions you have in the program. In other words, catch all the new members up to speed through this series.
The best strategy is to also leave it “undone” from month to month. This can be accomplished by delivering multi-part series. For example you write Part 1 of 3. Part 2 of 3 can also be delivered in the original month, but Part 3 occurs the next month.
Make sure each piece of content covers the subject entirely, but each step continues into the next one. For example if the subject was growing a garden, perhaps part 1 is on how to choose the right plants for your location, part 2 is on the planting, and part 3 is about care while they’re growing.
In case you’re curious…the best retention strategy is to provide the content they WANT in a format they can use as quickly as possible. Quick results equals happy long-term members.
If you want to learn even more retention strategies, check out the upcoming issue of the Monthly Mentor Club being mailed out early Thursday morning, the 10th of June.