It is a rare association executive who
is not concerned with membership renewal. If you're in that unusual group
who is not interested in renewal, you can skip this section and
concentrate on the many other benefits of YTheyJoin. But chances are that
your budget, your opportunity for promotion, and your very tenure are
dependent upon member renewal.
Ironically, it is the
first-year member who is the key. If you can get them to renew once, they
are likely to renew several times but if you lose them you have probably
lost them for good. Unfortunately, very little is known about first-year
members because they have not built up a track record, and tools such as
data mining are of no value. Your initial communication creates a lasting,
and sometimes fatal, impression. You need to know what motivates these
members and this is where YTheyJoin comes in. But first, let's address the
value of first-year members.
Value of First-Year Members
Unless you are familiar
with the concept of life-time value, you have underestimated the
importance of first-year renewal. Here's an example. Assume that your dues
are $85 a year, probably a conservative estimate. Extensive research on
renewal indicates that on average a new member is likely to renew their
membership three years. In this example, if the new member fails to renew
you have not just lost $85, you have lost $255. If the association has
10,000 members and a renewal rate of 92%, then there are 800 non-renewing
members. When you multiply 800 by $255 each that's a grand total of
$204,000 that is lost. Now you're not going to keep all of them but
YTheyJoin target marketing can help you keep a good proportion of the
members who might not renew, maybe a third of them. In this example, if
you can keep a third of the 800 members who drop, you pick up $67,830.
(266 members times $255 each) We are not including the other monies that
members spend with your association plus the money you save by not having
to get them back. So even a relatively small association with a good
retention rate saves a considerable sum just by communicating more
effectively with first-year members.
Special Strategy for First-Year Members
has a first-year program that codes new members. The YTheyJoin form that
members complete is included with the membership application or
welcome-aboard packet and is designed to get new members coded as quickly
as possible. These are the members with the least ties to your association
and you want to build loyalty as soon as possible. Membership applications
are cold-looking and impersonal and can be greatly improved by including a
from that asks about their needs and what they expect from the
association. Many forms come back saying "Thanks for asking!"
soon as the new member is assigned the 3-digit marketing code by
YTheyJoin, you can start using the target-marketing strategy which
includes the following steps.