The Memberful Pulse provides quarterly commentary on the membership industry through the lens of major economic factors to give you the broader context and insight needed to be the smartest membership operator in the room.
New summaries will be added quarterly.
During Q2 2024, membership products continued to perform well. A continued trend of revenue expansion remained intact from Q1, however, membership operators observed higher rates of member churn during July.
The consumer is showing signs of optimism as tight macroeconomic conditions resulting from higher interest rates and inflation have the potential to loosen as we head into Q3 and Q4.
Membership operators are also optimistic heading into the second half of 2024. Operators are expecting acquisition to rise from current levels during Q3 which is typically a strong quarter for membership across the board.
Even though consumers remain cautious about subscription products, we saw strong annual renewal rates during Q2. Historically, this is a sign that strong performance of monthly and quarterly plan renewal rates are soon to follow.
Notable trends observed during Q2 were:
Acquisition: The average membership saw an uptick in acquisition to the tune of 12% Year-over-year (YoY)
Churn: The average membership saw an average churn increase of 1.8% YoY.
Revenue Growth: The average membership saw stable revenue growth during Q2 of 6.4%. This is a result of operators continuing to leverage Retention Discounts and well-defined email funnels to convert free subscribers into paying subscribers.