Ep 157: Why Industry Benchmarks Don’t Matter for Your Membership

Feb 18

Why Industry Benchmarks Don’t Matter for Your Membership (And What to Do Instead)

Membership owners love to ask about benchmarks:

What’s a good retention rate?
What’s an average engagement rate?
How many members should be consuming content regularly?

While these questions seem helpful, the truth is that comparing your membership to industry benchmarks can hurt more than it helps. Instead, focusing on tracking your own data is the key to sustainable growth.

I’m Shana Lynn, and I’ve helped my clients add over $3.4 million in annual recurring revenue by focusing on what truly matters—their own data. Here’s how you can do the same.

Why Industry Benchmarks Don’t Work for Memberships

Benchmarks seem like a good idea, but they rarely tell the full story. Here’s why:

1. Too Many Variables

Your membership is unique. Metrics like retention and engagement are influenced by:

Your Niche: Weight loss, art, B2B, career opportunities, etc.
Your Pricing: A $10/month membership has different challenges than a $1,000 coaching program.
Your Audience: Hobbyists, professionals, or course alumni will all engage differently.
Your Membership Model: Monthly plans behave differently from annual or quarterly plans.

Comparing your metrics to someone else’s is like comparing apples to oranges—it’s just not helpful.

2. Different Business Models

Even memberships within the same niche can have wildly different metrics depending on their goals. For example:

A low-cost membership relies heavily on volume and low churn, making churn rate a critical metric.
A high-ticket coaching program may be able to afford a slightly higher churn rate if the lifetime value (LTV) is high and customer acquisition cost (CAC) is low.
Memberships exclusive to course alumni will need to put a lot more emphasis on retention efforts as enrollment is limited.

3. Misleading Comparisons

Benchmarks don’t account for your personal goals or circumstances.

Sally may have a membership generating a million dollars annually, but she works 50+ hours a week to maintain it.
Jill might aim to work just 20 hours a week, but her goals are based on Sally’s numbers, which are unrealistic for her lifestyle.

Instead of chasing someone else’s metrics, focus on tracking your own progress.

The Value of Tracking Your Own Data

When you focus on your own data, you gain clarity and control over your membership’s growth. Here’s why it matters:

1. Measure Your Progress

Stop aiming for arbitrary benchmarks like a 90% retention rate. Instead:

Compare your metrics quarter over quarter.
Celebrate progress, like improving retention from 85% to 88%.

2. Spot Trends and Patterns

Tracking your own metrics over time helps you notice trends.

Are you losing members at a specific point in their journey?
Is call participation higher on certain days of the week?
Does community engagement drop during the holidays?

These insights allow you to make informed decisions about where to focus your energy.

3. Set Meaningful Goals

Your data helps you set realistic, actionable goals that align with your membership. For example:

If you’ve maxed out acquisition, focus on reducing churn.
If you want to shift from coaching-heavy to content-focused, aim to improve content consumption rates.

4. Understand Your Membership’s Unique Rhythm

Every membership has its own dynamics. By tracking your own data, you’ll uncover what’s normal for your community and what needs attention. For example:

Identify leading metrics (like engagement) that influence lagging metrics (like retention and LTV).

How to Shift Your Focus

Ready to move away from benchmarks? Here’s how to start tracking the metrics that matter:

1. Track the Right Numbers

At a minimum, track these metrics:

Cost Per Acquisition: The cost to get a new member into your program.
Retention Rate: The percentage of members staying in your program.
Lifetime Value (LTV): The total revenue a member generates over their membership.

Tip: Use my free retention and LTV calculator at memberltv.com.

2. Track Over Time

The key isn’t a single snapshot of your data—it’s tracking trends over weeks, months, and quarters.

Long-term tracking reveals the real story behind your metrics.
The longer you track, the more valuable your data becomes for decision-making.

3. Ask the Right Questions

Instead of asking, “Is my retention rate good?” ask:

“How has my retention rate changed since I improved onboarding?”
“Why are members dropping off at month three, and how can I fix it?”

The right questions lead to better solutions.

4. Focus on What You Can Control

Benchmarks are out of your control, but improving your own metrics is not. Focus on strategies to:

Improve retention.
Increase engagement.
Enhance the overall member experience.

For actionable ideas, download my free retention guide at retainguide.com.

The Bottom Line

Forget industry benchmarks. Your membership is unique, and your progress matters more than anyone else’s numbers.

Track your own data.
Watch for trends over time.
Focus on what you can improve.

That’s how you’ll build a thriving, sustainable membership.

Stay Connected with Shana Lynn

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Shana Lynn