Member Retention Archives | Sequence Consulting

December 5, 2023April 10, 2024

Maximize Member Retention: Research-Based Best Practices for Member Renewal

Reading Time: < 1 minute

Member Renewal Best Practices

A Bespoke Research Study By Sequence Consulting

We conducted in-depth research with ten highly prominent organizations with renewal-based business models to understand member retention best practices and benchmarks across industries.

Participating organizations included associations, publishers, financial services, and philanthropic organizations.

The research topics include:

- Value Proposition
- First-Year Renewal
- Auto-Renew
- Renewal Stream and Duration
- Renewal Timing
- Grace Periods

The result is a revealing look at what works in renewal across the board, regardless of the business you are in, and practical insights you can use to improve your own member retention.

To learn more about member renewal best practices see The Art of Member Retention: 3 Essential Strategies and Membership Retention and Renewals: Strategies, Processes, and Tips

March 20, 2022March 2, 2024

Cracking the Code: The Real Reason Members Don’t Renew

Decoding Member Non-Renewal: Unraveling The Mystery

August 31, 2023March 2, 2024

Baby, Come Back! How to Win Back Lapsed Members and Why You Should

Win Back Lapsed Members: A Guide To Success.

Reading Time: 4 minutes

This article first appeared in Associations Now as “Baby Come Back! How to Win Back Lapsed Members and Why You Should”

Learn common reasons why members leave their associations and creative strategies to pull them back in for the long term.

When a member leaves, it doesn’t mean goodbye forever. Members who have walked away may be the easiest ones to get back. Most organizations turn to recruiting new members to fill gaps in enrollment, but since they don’t already know you, this group is more challenging to convert. You have much convincing to do before they’re ready to sign on.

Meanwhile, for every four or so new members you get, you lose one existing member who doesn’t renew. Let’s put it this way—if your retention rate is 75 percent, you must replace a quarter of your membership with new members every year before you see any growth.

If you want to boost enrollment, your organization’s best bet is improving retention. Engaging new members immediately when they join is the key to cultivating an engaged base that renews without a second thought.

Despite your best efforts, some members are bound to leave. The keys to getting them back are how long you offer them opportunities to renew and how well you understand their needs.

IT's NOT YOU; IT'S ME

Ask yourself why members leave. The odds are that it’s not personal. Research reveals that the top reason for nonrenewal is usually “I didn’t see the value in membership” (followed by “I just forgot to renew.”) Lapsed members aren’t disgruntled. They’re just disinterested—for now. As often as not, losing a member is not about you. Maybe membership with your organization is a classic case of “right person, wrong time.” The best examples of this are recent graduates and young professionals; while they might not need their association right away, they frequently rejoin seven to 10 years later when it makes sense for their career.

PLAYING THE LONG GAME

But you’ve already asked, and they said no, right? On average, we’ve found that the most successful organizations start renewal campaigns 3.9 months before the membership in question expires. Throughout that period, they invite that member to renew 7.1 times. Even after being offered every opportunity to renew, some members still don’t. Why bother to keep trying? Because these same successful organizations keep asking for over a year after a member lapses, sending 5.8 more invitations to rejoin. And it works.

If you focus on what your members care about, your chances of creating a loyal base that renews repeatedly are strong.

Nonmembers who know you, like lapsed members, are far more likely to respond to your invitations than anyone else. In one of our recent tests, nonmembers who had previously engaged with the organization in any way were six times more likely to respond than those who never had.

Lapsed members know you. At one point, they saw the value in membership, whether they experienced it or not. With lapsed members, you don’t have to make any introductions. You need to find the right way to make the ask.

YOU KNOW EACH OTHER

This brings us to the next point: You know them, too. If you track member data (and if you don’t, you should), you have information about what your lapsed members are interested in. What did they open, download, or attend as members? That information is the key to bringing them back. Time and again, tests show that the most effective membership messaging is segmented by interest. Engage with members on things they care about, and they’ll respond.

This is especially true for lapsed members who already know you and need a reminder of the unique value you have to offer them. For example, 75 percent of previous American Lung Association (ALA) donors had not engaged in over a year. Initially, ALA thought donors cared about over 30 things. Upon close inspection, they found that their base was focused on three significant areas: lung health, clean air, and smoking cessation.

ALA immediately increased email engagement by 50 percent by tailoring their messaging to these three interests. Although many of their donors had lapsed for over two years, ALA reactivated 7 percent of their file in one year. In two years, they reactivated 300,000 donors and grew their active file by 50 percent. (See How We Helped American Lung Association Grow Their Base 50%)

By understanding what individual members care about and tailoring your messaging accordingly, this massive growth is within reach for your organization.

The Way Forward TO WIN BACK LAPSED MEMBERS

But will they stay this time? If you focus on what your members care about, your chances of creating a loyal base that renews repeatedly are strong.

If your association is like most, your audience is not infinite. Only so many people can join, many of whom are already members. Many have never been. In between sit people who were once members but are no more. Treating the middle ground like your best prospects is a winning formula for growth.

May 31, 2022February 29, 2024

The Art of Member Retention: 3 Essential Strategies

3 Key Strategies For Member Retention: Mastering The Art

Reading Time: 2 minutes

Retention: A Data Driven Approach

It’s no secret that member retention is critical. How to achieve it is another story. Sequence unlocks three clear and evidence-based paths to reaching successful and effective member retention.

Member retention lies at the core of every thriving membership organization. Yet, understanding the key drivers of retention and implementing effective strategies to achieve it remains a challenge for many. In this article, we delve into three evidence-based paths uncovered in recent research by Sequence Consulting that pave the way for successful and enduring member retention.

1. Bet Big on First-Year Renewal

The first renewal holds disproportionate significance in the trajectory of member retention. Research indicates that each subsequent renewal significantly increases the likelihood of continued membership. For instance, while a new member may have a 50% chance of renewing initially, this likelihood escalates to 80% in the following year and continues to rise thereafter. Moreover, as members renew repeatedly, the cost of retention diminishes over time.

Investing in the retention of new members is thus paramount, as it not only secures their continued engagement but also sets the stage for prolonged membership. However, this does not imply neglecting existing members; rather, prioritizing new member retention can yield long-term benefits for the entire membership base.

Investment in retaining new members is the best membership investment you can make

2. Watch the 90-Day Clock

The initial 90 days following a member’s enrollment represent a critical window of opportunity. Research indicates that during this period, members are most receptive to engagement, driven by their initial excitement and curiosity. However, this enthusiasm diminishes rapidly over time, underscoring the importance of timely and impactful engagement efforts.

Effective onboarding is essential during this period, but mere information dissemination is insufficient. The goal should be to inspire action and foster meaningful interactions that create value for members. Encouraging participation in events, classes, and other activities fosters a sense of belonging and investment in the organization’s offerings, increasing the likelihood of long-term engagement.

3. Not All Engagement Is Equal

While engagement in any form is beneficial, certain types of engagement hold greater significance for retention. By analyzing data on member activities, organizations can identify which engagements correlate most strongly with renewal rates. Recurring engagements such as subscriptions and annual plans, as well as member-to-member interactions, emerge as potent drivers of retention.

Moreover, research suggests that multiple high-value engagements significantly enhance the likelihood of renewal. Members who engage in three or more meaningful interactions exhibit a near-perfect renewal rate, underscoring the importance of ongoing engagement efforts beyond the initial interaction.

In conclusion, while delivering high member value remains paramount, a focused approach to new member engagement is key to long-term retention success. By prioritizing first-year renewals, capitalizing on the initial 90-day window, and promoting high-value engagements, membership organizations can cultivate a loyal and committed membership base, ensuring sustained growth and relevance in the long run.

To learn more about member retention, read The Secret Reason Your Members Don’t Renew and How to Make Membership and Offer They Can’t Refuse.

This article was originally published in Associations NOW as Three Keys to Solving the Member Retention Puzzle.

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Founder, The Harwood Institute for Public Innovation

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CEO, American Psychological Association

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VP Corporate Strategy, AARP

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COO, American Medical Association

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VP Member Services, American College of Rheumatology

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CMO, American Bar Association

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CMO, American Lung Association

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Chief Communications Officer, AARP

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Category: Member Retention