Preparing for things to break…

Since last week’s newsletter, several of you have asked about current market conditions and the outlook for membership.

Let’s face it: Things are crazy out there right now.

Markets are on edge and consumers are cautious. As an operator, this is a moment where you must separate the noise from the fundamentals.

And the only way to do that is to prepare for things to break.

Today’s big idea: Uncertainty is a gift to a membership operator.

Let’s dive in…

How to use market turbulence and uncertainty to answer the hard questions about your membership.

When skies are clear, we can all fly.

But difficult markets have a way of revealing what’s really working for membership vs. what you think is working.

The overwhelming majority of membership products aren’t essential to consumers. That means your customers are purchasing your product not based on need, but based on the experience it delivers.

So when turbulence hits and consumers become cautious, your members will take action based on this important question:

What would they miss if your product disappeared tomorrow?

Would they be less fulfilled?

Would they stop learning?

Would they stop laughing?

Would they stop smiling?

These are the hard questions you must ask as an operator. And often, these questions aren’t asked until turbulence hits and things start to break.

Successfully answering (and designing for) these questions in your own membership program will act as a built-in insurance policy when uncertainty emerges.

Remember, at the end of the day, members will ultimately act on the way your product makes them feel.

📌 Resource: Use this cheat sheet to generate member fulfillment within your membership and insulate yourself from market turbulence.

How to structure your membership so that members feel a sense of ongoing growth and betterment.

If members aren’t being guided toward something, they’re automatically less incentivized to continue their membership. The “journey” of membership is essential because, often, membership products help members work toward something (in some form or another).

Is your product structured in a way that communicates growth over time? Is your membership designed so that value compounds over time?

These are questions that are important to a long-term approach to membership.

There’s no better way to unlock member loyalty than by creating opportunities for member fulfillment over the course of their journey with you.

📌 Resource: Use Part 3 in this guide for inspiration on building points of fulfillment into your membership.

Market turbulence is certainly uncomfortable. However, it provides a unique view into what your members and prospects truly value and find essential during times of uncertainty and stress.

Moments like this are rare but instrumental in the long-term trajectory of your business.

The ultimate aim of membership is to have a product that carves out a unique, irreplaceable space in the lives of members - and when that’s accomplished, your product is viewed differently.

So I’ll leave you with this important question:

Is your membership something that customers truly depend on week after week and month after month - even during times of stress?

The answer has huge implications.

Think about it.

My goal is for this email to be the most valuable thing that comes across your inbox each Tuesday. If I’m hitting that mark, share this newsletter with your staff, a team member or friend (just copy and share this URL).

See you next week.

-Michael