Bundling Rewards Both Members and Organizations by Kyle Sexton
“I once was charged more at the drive-thru because I was driving a luxury car,” said no person, ever. Membership organizations which assess dues based on the number of employees find that they are leaving money on the table, and member-satisfaction at the door.
Open membership organizations which hope to grow in revenue can benefit their members – and their bottom line – by offering packages. Properly constructed bundles benefit both the buyer and seller.
My guideline: 300 members or fewer use 3 levels; 500 or more use 5. If you’re in-between, you can thumb-wrestle for it. There are two different types of tiered pricing:
- 4 Good, better, best
- 4 Ascending levels
Ascending levels are often aspirational in nature. Think of American Express cards and benefits, for example.
To build an effective ascending tier schedule, you must first create a solid systematic approach to member segmentation. Getting this right will create a clear path to building value for specific member profiles.
For more information about building membership tiers, check out this free 15-minute webinar on the topic as an introduction. It’s great for your board or your staff. http://youtu.be/QxbvUbS0ZMQ
As you consider your organization’s future pricing, ask yourself if your current pricing punishes members for growing, or encourages them to lie to you about their size. After all, you can’t blame a Cadillac driver for pulling up in a 1987 Yugo in order to save a few bucks.
// Kyle Sexton is an award-winning marketing strategist and international speaker. His book, REMEMBERSHIP – New Thinking for Tomorrow’s Membership Organization is fueling transformations in membership organizations throughout North America. He builds value-based pricing tiers for membership organizations and subscription-based businesses, and his innovations have been featured in The Wall Street Journal. He can be reached at 888.899.8374 or get his free resources at KyleSexton.com.MicroNet Staff