COMMERCIAL STRATEGY
How to Build a Membership Model for a Wellness Business
A session-based revenue model is vulnerable to every form of friction. A membership model is not. What it takes to build one that clients actually stay in, and why most attempts fail before they gain traction.
WRITTEN BY
Glenn Dobson CEO
TOPIC
Commercial Strategy
IN THIS ARTICLE
─── THE COMMERCIAL CASE
Session-based revenue is fragile. Membership revenue is not.
A wellness business operating on a session model starts every month at zero. Each client relationship must be actively maintained and each booking actively secured. Illness, holidays, life events and competing priorities all erode attendance. Revenue tracks these disruptions directly.
A membership model changes the economics entirely. Revenue is committed at the start of the month regardless of whether every member attends every session. The business can plan, invest and hire against a known income base rather than a hoped-for one. Attrition still matters but it is manageable rather than existential.
DIRECT ANSWER
A membership tier structure should have three to four levels, each with a clearly defined scope of access, a specific price point and a logical reason to move to the next tier. The entry tier should be accessible enough to convert hesitant clients. The top tier should reflect the maximum value the business can deliver. Each tier between them should have a clear upgrade proposition.
─── PRICING
How to price membership correctly.
Membership pricing is not a session price multiplied by an expected attendance frequency. That approach produces a number that looks reasonable to the client and inadequate for the business.
Membership pricing should reflect three things: the margin required at each tier to make the model commercially viable, the value the member receives in terms of access, consistency and outcomes, and the pricing of comparable membership offerings in the market. The last factor sets context. The first two factors set the floor.
A membership priced below the margin required to sustain it is not a membership model. It is a slow erosion of the business disguised as a growth strategy.
“A studio with loyal clients and no membership model is leaving its most valuable asset untapped.“
GLENN DOBSON CEO SHRINE LONDON
─── CONVERSION
How to move session clients into membership.
The conversion conversation is simpler than most wellness business owners expect. Clients who already attend regularly have already demonstrated the behaviour that membership supports. The conversation is not about persuading them to change their habits, it is about pointing out that what they are already doing would be better supported, and better valued, under a membership structure.
The most effective approach is to identify the top attending clients, understand their current pattern, and present membership as a natural formalisation of what they are already doing rather than as something new they are being asked to commit to.
─── RETENTION
Why clients leave memberships and how to prevent it.
Membership churn in wellness businesses usually occurs for one of three reasons: the client feels they are not using it enough to justify the cost, their life has changed in a way that makes consistent attendance difficult, or the business has not delivered the experience that justified the commitment.
The first two are addressable through proactive contact and flexible pause options that keep clients in the membership through life events rather than cancelling during them. The third is a delivery problem that no retention tactic will solve. A membership model that does not consistently deliver on what it promises will always face churn regardless of how well the conversion process works.
─── REAL ENGAGEMENT
Yoga & Wellness Studio
A well-loved studio with an unsustainable session-based revenue model. A structured membership ladder was designed, the offer was rationalised, and an instructor development pathway was built to support the long-term retention the membership model required.
If this is relevant to where your business is right now, the conversation starts with a call.
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