The Ultimate Guide to Membership Upsells for Video Streaming Businesses

If you run a membership-based business, you know how important it is to retain your customers and increase their lifetime value. But did you know that there is a simple yet powerful way to do both at the same time? It’s called membership upsells.

Membership upsells are when you offer your existing or potential members a higher-priced or longer-term membership plan than what they are currently subscribed to or considering. For example, if you have a monthly and an annual plan, you can upsell your monthly members to switch to the annual plan by offering them a discount or a bonus.

Membership upsells can have a huge impact on your revenue and profitability. According to Uscreen, a video streaming platform that offers a subscription upsell feature, their customers who used this feature saw a 553.8% increase in revenue in the first 4 months of 2021 alone 1. That’s 6.5X growth!

But how can you implement membership upsells in your own business? Here are some tips and best practices to help you get started.

Choose the right timing and placement for your upsell offer
One of the key factors that determines the success of your upsell offer is when and where you present it to your customers. You want to catch them at the right moment when they are most likely to be interested and receptive to your offer.

Some of the best times and places to show your upsell offer are:

• Before the checkout page: This is when your customers are about to complete their purchase and are already committed to buying from you. You can use this opportunity to show them a better deal or a more valuable option that they might want to consider. For example, Recharge, a subscription management platform for Shopify, allows merchants to add a membership upsell app block to their product pages, cart pages, or checkout pages 2. This way, customers can easily add a membership program to their cart along with their regular purchase.

• After the purchase confirmation: This is when your customers have just completed their purchase and are feeling happy and satisfied with their decision. You can use this opportunity to thank them for their purchase and show them how they can get even more value from their membership by upgrading to a higher plan. For example, you can send them an email or a push notification with a special offer or a limited-time discount for upgrading.

• During the onboarding process: This is when your customers have just signed up for your membership and are eager to explore your features and benefits. You can use this opportunity to show them how they can unlock more features and benefits by upgrading to a higher plan. For example, you can create an onboarding video or a tutorial that showcases the different plans and what they offer.

• Before the renewal date: This is when your customers are approaching the end of their current membership term and are deciding whether to renew or not. You can use this opportunity to remind them of the value they get from your membership and show them how they can save money or get more value by switching to a longer-term plan. For example, you can send them an email or a push notification with a renewal reminder and an upsell offer.

Highlight the benefits and value of your upsell offer
Another key factor that determines the success of your upsell offer is how well you communicate the benefits and value of your higher-priced or longer-term plan. You want to make it clear to your customers why they should upgrade and what they will get in return.

Some of the ways to highlight the benefits and value of your upsell offer are:

• Use contrast and comparison: Show your customers how much more they will get by upgrading compared to staying on their current plan. For example, you can use a table or a chart that compares the features, benefits, and prices of different plans side by side.

• Use social proof and testimonials: Show your customers how other members have benefited from upgrading and how satisfied they are with their decision. For example, you can use quotes, ratings, reviews, or case studies from happy customers who have upgraded.

• Use scarcity and urgency: Show your customers that they need to act fast before they miss out on a great deal or a limited-time offer. For example, you can use countdown timers, expiration dates, or stock levels to create a sense of urgency.

• Use incentives and bonuses: Show your customers that they will get something extra or something exclusive by upgrading. For example, you can offer them a discount, a free trial, a free gift, or access to premium content or features.

Test and optimize your upsell offer
The final factor that determines the success of your upsell offer is how well you test and optimize it based on data and feedback. You want to make sure that your offer is relevant, appealing, and effective for your target audience.

Some of the ways to test and optimize your upsell offer are:

• Use A/B testing: Try different variations of your upsell offer, such as different headlines, copy, images, colors, buttons, or placements, and see which one performs better in terms of conversions, revenue, or retention. For example, you can use tools like Google Optimize, Optimizely, or VWO to run A/B tests on your website or app.

• Use analytics and tracking: Monitor and measure the performance of your upsell offer, such as the number of impressions, clicks, conversions, revenue, or retention. For example, you can use tools like Google Analytics, Mixpanel, or Amplitude to track and analyze your upsell metrics.

• Use surveys and feedback: Ask your customers for their opinions and suggestions on your upsell offer, such as what they like, dislike, or want to see more of. For example, you can use tools like SurveyMonkey, Typeform, or Hotjar to collect and analyze customer feedback.

Conclusion
Membership upsells are a powerful way to increase your revenue and profitability by offering your existing or potential members a higher-priced or longer-term plan than what they are currently subscribed to or considering.

To implement membership upsells in your own business, you need to choose the right timing and placement for your offer, highlight the benefits and value of your offer, and test and optimize your offer based on data and feedback.

If you want to learn more about how to grow your membership business with video streaming, check out OTTFast, the corporate video streaming platform that lets you share live and on-demand presentations, webinars, and trainings with your colleagues and clients. OTTFast also offers a subscription upsell feature that can help you increase your membership revenue by 6x with one small change. Click here to learn more.