Solving the problem that never seems to go away
A low rate of membership renewal is like a bucket with a hole in it. Ignore the problem and bail harder, or you can fix the hole. The Membership-Renewal Program shows you how to fix the hole in the bucket.
Association Executives: Here’s Why Membership Renewal is Your Biggest Opportunity
The Hole in the Bucket
As an association executive chances are that your budget, board relations, and staff tenure are all dependent upon membership renewal and recruitment. I am sure you'd rather say “Where should we spend the surplus?” rather than “Where do we have to cut?”
Most associations lose over 20% of their members each year because they fail to renew, and the rate is even worse for first-year members. Every year you need to replace members just to stay even. We can help you keep a higher percent of current members which is much less costly than finding new members.
Sure, you have to recruit new members but you don’t have to start from way back. Our Membership-Renewal Program moves the starting line forward by keeping more of the members you already have.
What is the Hole in Your Bucket Costing You?
For many association executives it is surprising to learn how much it costs to lose a first-year member. Here's a conservative example.
Assume that your dues are $95 a year. Research on renewal indicates that on average a first-year member who renews will likely stay for three more years. In this example, if the new member fails to renew you have not lost $95, you have lost $285 ($95 times 3 years).
If the association has 10,000 members and a renewal rate of 80%, then there are 2,000 non-renewing members. When you multiply 2,000 by $285 each that’s a grand total of $570,000 that is lost.
Now you’re not going to keep all of them but we can help you keep a good proportion of the members who might not renew. In the above example let's say you can keep 15% of the 2,000 members who drop -- you now pick up $85,500. (300 members times $285 each)
We are not including the other monies that these members spend with your association or the money you save by not having to do repeated efforts to try and get them back.
That hole in the bucket looks a little bigger now doesn't it.
Allegiance Research Group, serving associations since 1987, announces the "Membership-Renewal Expert™" Certificate and the innovative "Membership Renewal Game™." Learn about them here.