Thursday, June 11, 2015

Simple Mistake That Instantly Kills New Membership Customers

One of the best business models is a membership based business. If you have ever signed up for a gym, learning center or cell phone plan, it is all about the relationship. For most people to commit to a contract, they need to be very comfortable about the services, products or value they are receiving. After all, most people have trouble committing to basic things like short term goals or making a loved one’s recital.
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If your company can communicate and offer enough value, people just might sign up. This is where the real money is for business owners and investors. The income is residual, predictable and stable. It’s no wonder so many companies rely on this great model. You should too.
And it is also a win-win for the customer who gets locked in pricing for services or products that could become higher in demand, leading to higher pricing. Customers are also benefiting from increased stability and reliability. So, what turns them off instantly?
Everyone. It is 2015. Sorry, but hard pressing, high pressure sales tactics just do not work like they used to. Today, information is available instantly. That means, you can not have someone come in for the first time, then tell them, “Hey! We have this deal that ends today!” Sorry, but today’s consumers are way smarter than that and you come off looking sleazy. In fact, if hard sale tactics are done perfectly, you could risk coming off as careless and earning yourself a terrible reputation.
For example, there a high pressure sales people that will actually try to “sell” you and get you to sign up before you have even tried the services or products. Now, if there is no free trial, that is understandable. However, we are talking about asking someone to sign up before they have even toured the gym, seen a lesson plan or unlocked the display phone.
People want to try things out. They need to feel comfortable before making any commitments, big or small. In the off chance, they do give in to high pressure decision-making, they often feel buyer’s remorse (a feeling of regret post purchase).
Furthermore, if you ask someone to sign up before a trial or proof. It really shows that you are not considering how the customer feels. If you are in a membership business, being considerate matters to attract and retain customers. Asking customers to sign up without providing them substantial proof of value just shows that you do not care.
So, be considerate for your customers and avoid pressuring anyone. It does not work. In the end, it just drives away business, fast.

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