When The Membership Model Breaks Down

by Susan Paige on September 7, 2019 · 0 comments

when the membership model breaks down

Entrepreneur contemplating his membership model

Almost anyone who has been in business for a while can attest to the power of memberships as a tool of growth and retention. When your customers simply buy what they want in the short term, such as if they make a single call to the tech support when a problem arises, you get paid once. But then, when they have a membership, you get paid over and over again. This can even work if there are months where a given client doesn’t have any particular tech-related problems.

Of course, nothing is perfect, and the membership business model is as imperfect as anything else is. There are pros and cons to this revenue model, and you can work with them both. When you get the tumblers aligned in just the right order, the lock opens up, and you can do that much better despite the problems.

Collecting on Rough Accounts

There are a lot of issues that can come up in a business where you never see your customers face to face. Since they don’t see you, they are less likely to feel guilty about scamming you out of some money. This can involve doing a chargeback on a transaction, such as your monthly retainer, or it can even involve charging back for a special call that helped them to solve a major issue.

Unfortunately, this is a part of the tech support business you’ll have to deal with. This is why it’s crucial to arm yourself with an effective tech support merchant account that can work with chargebacks in a better way than some more mainstream accounts do. While there are merchant service providers who may go so far as to cancel your entire subscription over a few chargebacks of this nature, the right company won’t. This is a search to do early on and to be rigorous with.

Ensuring Client Satisfaction

Sometimes, a tech person will have all of the necessary tech skills that one might need, but could be lacking in the softer skills. It’s important to remember that blaming a person directly serves no purpose, and tends to simply put them on the emotional defense. For this reason, having a mute button and an easy way to tell if it’s working is important for moments where you’re tempted to shout at someone who’s acting ridiculous.

It’s also important to ask some follow up questions with every call, no matter how long you’ve been affiliated with a given client. When the client feels as if you’ve taken their pain point and eased it entirely, they are more likely to give you a good review and more likely to stay with you. While one or two additional questions may take up some time, getting the client to verbally confirm that they are satisfied with the service you just provided can go a long way toward keeping them with you. As well, doing so on a recorded line could come in handy if they try something shady later on.

Image source: Unsplash.

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