A Report of Overall Renewal Rates for Associations

The results of MGI's 2011 Membership Marketing Benchmarking Study will be published next month! In anticipation of this, I wanted to share with you a smattering of the results. As we're all interested in renewal rates and given the last 36 months, I figured you may be interested in how, as an industry, our renewal rates are doing. 

 

• In the current study, there is an increase in the percentage of associations reporting overall renewal rates of 90% or higher. This percentage shows a substantial rebound from the precipitous drop between the 2009 and 2010 study.

 

• There is a similar decrease in the percentage of association reporting renewal rates between 80% to 89%, suggesting that some of the associations reporting an 80%-89% renewal rate in the 2010 research, may have been able to increase their renewal rates past 90%.

 

• There is an increasing trend in the number of associations reporting renewal rates between 70%-79%.

 

• Small associations with up to 1,000 members are significantly more likely to report renewal rates above 90%, while associations with more than 1,000 paid members are significantly more likely to indicate renewal rates between 70% to 79%.

 

• Organizational/trade associations are significantly more likely to report renewal rates above 90% compared to individual member associations or those with both types of members (36%: trade vs. 16%: individual; 14%: both).

 

• Association industries most likely to show renewal rates at 90% or higher include:

• Finance/Accounting (41%) 
• Manufacturing (43%) 
• Education (23%)

• Association industries most likely to show renewal rates between 80% and 89% include:

• Building/Construction (45%)
• Scientific/Engineering (44%)
• Healthcare (37%)
• Professional Services (31%)
• Philanthropic (30%)

 

If you have not already signed up to receive a copy of the results, please email me your request with you name, association and email address and I'll gladly put you on my list.

Are Renewal Incentives a Good Idea?

I read a posting on the ASAE Membership Listserve asking about “kinds” of renewal incentives to use. While I’m not against using (and have used) renewal incentives, I think that, if an association is delivering value, the ‘incentive’ is being realized throughout the year (you may want to test adjusting your renewal copy to indicate just that).

Incentives are great tools to provide that ‘little something extra’ to get someone to try something new or join. But, if after using the resources of the association for a year you still need to provide a ‘little something extra’ to get people to come back, perhaps you're missing something?  (In fact, here’s a thought: if you use a premium, perhaps you segment off those members who renewed to the premium offer and place them in an “intensive” engagement program” then try to renew them without the premium? Just a thought.)

That “something” could be pricing, the wrong people joined, lack of knowledge as to the resources provided by the association, inability to use/find resources to solve their issues (why they joined), left the company/industry, etc.(this feeds directly into using the MEMBERSHIP LIFECYCLE as a strategic diagnostic tool. If you'd like to learn more about it, I'd be happy to forward some information).

In all of these cases, I don’t really see a renewal premium as the ‘silver bullet,’ but I do see the need to analyze who is not renewing by:

•     Who joined (title, company, etc.)?

•     When they joined?

•     Why they joined?

•     Have they participated in the association?

•     To what extent have they participated?

•     Who is paying for their membership?

•     How long have they been members?

•     etc.

With that said, if you use a premium go with one that links directly to the value proposition – information, career tool, etc.  And keep it inexpensive, renewals are about increasing ROI.

That’s my two-cents.

To Willard Wigan, "small acts" create BIG returns

In accordance with my Sunday ritual, after having breakfast with my father I came home and watched CBS' Sunday Morning. A feature focused on Willard Wigan (www.willard-wigan.com), an AMAZING artist. While we often read about or see large works of art, he has gone to the other extreme creating sculptures on the heads of pins and in the eyes of needles. His tools are not paint brushes or chisels held in his hands, but his own eye-lashes or even the hair from a fly. You must view his art through a micro-scope. And he is being paid about $100,000 per piece.

Small act but a tremendous reward.

He is a modest man. He openly states that he hates doing the work but takes great pride in having done it. I really like this guy.

So why am I bringing him up? Well, it seems to me that Willard can teach us a few things about working with our members and team mates. Primarily, small acts pay great rewards. We make a promise, we keep it. A member calls, we listen and offer respect and concern to satisfying their complaint or observation. This may seem small, but it will reap huge rewards like increased renewal rates, increased product sales and increased word of mouth advertising which impacts member acquisition.

We may not like the customer service training or the extra time it takes, but we'll be proud of what we've accomplished.

Have a great week and check out Willard Wigan when you can.

Are Your Member Communications Relevant?

In discussions centered around the Membership Lifecycle, a key ingredient from the perspective of the member is 'relevance.' I know that this is a "blinding flash of the obvious" as an old friend from my Tyson Foods days would say, but I'm always astounded by how quickly marketers forget about it in their promotions.

If we follow the Membership Lifecycle, starting at "Awareness," the only reason we become aware or acknowledge an association or a product is that, at that point in time, it became relevant to us - in either a good OR bad way. We continue to grow that awareness by continually proving the relevance of the membership or product to the individual.

At some point, we "ask for the sale" but not until we usually demonstrate one final point of relevance to the now member/customer. They "Join."

We then ask them to "Engage" with the association by filling out surveys, buying more product, attending conferences or participating in delivery of some value that the association provides to its membership (committees, articles, etc.). Again, relevancy is key to continued engagement. If the Annual Softball outing is not relevant to me, why would I participate?

At "Renewal," we ask the member/customer to continue our relationship. But, if we're not relevant to the member, why would he/she? Therefore, many of the most successful renewal programs continually remind the member of why they are relevant to them.

Now to my point...

If we agree on the importance of relevancy in our on-going, ever increasing, communications with our members/customers, why do we continue to offer up one-size-fits-all tactics? While many don't have the technology necessary to subset their data based upon buying behavior, age, sex, length of membership...or the like...that doesn't mean that they can't do some level of personalization using simple overlays (that don't cost an arm-and-a-leg), or by source, or other ways. It simply takes a little imagination and some time.

If doing this will increase your renewal rate a few points, isn't that 'relevant' to you?