Membership Retention - How Does Your Organization Measure Up?
The old business adage that it is easier to keep a customer than to get a new one applies to the world of member-based associations in that it is easier to keep a member than to get a new one. Your members are your organizations’ reason for being – are you keeping them happy? While our last blog focused on ways to attract new members, this one will touch on ways to keep the members you have.
Does your organization track its membership retention rate? The American Society of Association Executives (ASAE) reports that the average renewal rate is 83% for member-based associations. How does your association measure up? ASAE provides the following formula for measuring member retention:
Total Number of Members Today – 12 Months of New Members/Total Number of Members in Previous Years = Renewal Rate
The first year of membership is often referred to as the conversion year, since this is the time when a new member is most likely not to renew. They may have decided to try the association out, or perhaps they joined through an incentive program, however if the value is not there for them they are unlikely to renew.
So, how do you weather the conversion year? Two words - engagement and communication.
ASAE provides some interesting statistics that help to emphasize the importance that membership engagement has on retention:
- Members who attended a membership meeting in the past year were 19% more likely to renew
- Members who attended four or more meetings were 30% more likely to renew
- Members who placed a product order in the past year were 28% more likely to renew
Are you providing regular opportunities for your membership to get together? If not, look to incorporate this in, as face-to-face is the best way to engage your members. Are you reaching out to your members to involve them in the various volunteer opportunities your organization may have available? In a study done by Statistics Canada in 2010, 45% of respondents indicated that they didn’t volunteer because no one had asked them to do so. So, ask away….what better way to get your members more entrenched with your organization then by making them an active part of the team.
Which leads to our second point – communication. Ensure that your members know what is going on within the organization. Remind them time and time again why they joined your organization, and of the value that your association brings. Make sure that this communication goes two ways though – reach out to your membership on a regular basis through surveys and polls to ensure that you are in fact meeting their needs and to identify new growth areas for the organization.
Keep your members engaged, keep them informed, and keep them involved in regular two-way conversation, and you can look forward to a long, happy, healthy relationship.
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