The Operator Pulse | Q4 2024
The Operator Pulse provides quarterly commentary on the membership industry through the lens of major economic forces to give you the broader context and insight needed to be the smartest membership operator in the room.
New summaries will be added quarterly.
The Landscape.
During Q4 2024, membership operators saw significant follow-through growth from Q3, confirming the strong rebound in member acquisition that emerged in recent months.
We’re seeing the average membership consumer become more enthusiastic as overall conversion rates doubled from Q3, a strong signal that audiences are actively seeking closer connections to the voices they trust most. Membership operators continue to capitalize on the trust they’ve built with members in recent years as long-term retention trends are on the rise.
Membership Performance.
Acquisition remained strong in Q4, which is a seasonally strong quarter for membership. Seven out of ten membership operators introduced at least one new member benefit in Q4, amplifying the value of their programs for new and prospective members.
Notable trends observed in Q4 were:
A 7% YoY increase in 12-month retention for annual membership products
A 22% YoY increase in new member acquisition
A 19% YoY increase in the average price paid for new memberships, signaling a strong appetite for annual membership products and a great tolerance for price increases
Global Membership Metrics.
Acquisition: The average membership saw an uptick in acquisition to the tune of 22% Year-over-Year (YoY). We see this being driven by an increasingly resilient membership consumer and new benefits introduced by membership operators.
Churn: The average membership saw an average churn increase of 2% YoY, a sharp decline compared to Q3. This churn, however, was entirely offset by strong growth in member acquisition.
Revenue Growth: The average membership saw stable revenue growth during Q3 12.2% YoY, driven by a mix of price increases, strong acquisition and favorable market trends.
Member Tendencies.
We’re seeing a trend of major confidence in membership operators among new members. Niche products, unique points of view and strong trust are proving to be differentiating factors driving continued growth and appeal strongly to prospects.
Notably, membership operators have been working to create personal conversations, narratives and stories around their membership products in various formats. Highly personal email campaigns and video content were heavily utilized in Q4 to drive engagement and new member sign-ups.
Membership operators who utilized video marketing to appeal to prospects in Q4 saw their conversion rates triple compared to non-video marketing efforts.
There’s no doubt that stripped-down, personalized content that speaks directly to prospects will occupy significant space in the overall marketing approach of operators moving forward. We see this being a significant growth lever in the coming year.
Outlook.
We are in a growth environment for established memberships. Given the positive signals observed in member acquisition, we believe this trend is here to stay for 2025. Membership operators who are able to craft personal, compelling narratives around their products and over-deliver on member experiences are positioned well to take advantage of this strong environment.
Moves to Make Right Now.
Take some time to reflect on the core reasons for running your membership.
What inspires you? What does your membership mean to you?
Answering those questions will allow you to naturally weave a personal touch and story into everything you do and create closeness among you and your members.
Remember, membership allows us to get closer to things that matter to us. Consider how to pull back the curtain in order to bring your current and prospective members closer to the mission of your membership.
