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My name is on the Customer Success team here at the firm, and am working with our clients in helping the growth of their membership-based companies. While we work with more customers and help expand their business I'll also be sharing significant experiences and results we've seen in the context of general strategies for membership.

The topic that has been the most popular that our customers have been discussing concerns cost hikes. Our customers are making inquiries regarding:

• "How do I know when I'm in a good position to raise prices, without having to create a huge churn event?"
• "How do I increase price?"
• "When is the ideal moment to increase prices?"

It's clear that there's no standard solution here. If no plan is that is in place, it's a risk of raising rates. But, as I've been in the course recently with several of our clients , I'm certain that there are certain signs to show that price rises could be possible, without the danger. These indicators include:

Many people are taking annual plans , as opposed to. month-to-month plans

Memberships that have an outstanding rate of organic acceptance of annual plans in comparison to the monthly plans are in a position to provide an impressive value. If memberships have at minimum 70% new members who purchase the annual plan over 4 months, that is evidence that the membership is priced at an undervalued.

In such cases the case of an increase between 10-20 and 10% is more likely to be received well by customers.

The formats of content continue to evolve.

Memberships that continuously expand the contents they provide will increase the cost of membership frequently (i.e. every year, at least once). Membership benefits, for example, were traditionally focused on periodic newsletters. The expansion of these benefits to different formats such as podcasts, videos as well as other formats can increase the value of membership.

If it's the reuse of content or completely new content Content expansion can create the opportunity for an increase in costs that vary between 5% and 10% each 12-18 months.

In a market that is not well-served

Memberships operating in unserved locations may incur higher fees. The it is difficult to compete and there's a lack of professionals in the market.

Memberships that offer deep analysis and the latest research into a certain area, will attract high-profile business leaders, thought leaders and innovative individuals from different markets. This is a market willing to invest a substantial amount of money to study the effects on their business and clients. Groups that are similar to their clients are likely to make major price changes.

Statisticians and guidelines

Here are some of the general concepts we've observed during our research:

• Customers who have seen the greatest success with price hikes do so slowly - never over the number of price increases per 12-18 months.
• If the price strategy that is required every year's price increase of 10% each year, they are quickly absorbed by customers.
• The annual renewal of memberships that haven't been previously increased (or more than one calendar year) and keep the minimum retention rate at 75% or higher will likely raise the price by up to 20% with no adverse impact.
• The results from the customers reveal that the pace of price hikes is more significant than the price increase itself as long as you stay within the 10-20 percent price increase price range.

Hope this can be helpful. We'll continue to share the details as we take steps forward!

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