How a Data-Driven Strategy Improves Membership Renewal Programmes
21 Jan 2020
Any organisation that has a membership programme understands the difficulties of retaining members. It’s common to see membership renewal numbers decline even as new membership numbers increase. This disparity can be the cause of problems in the future, especially if retention rates continue to fall.
Organisations adopt different strategies to encourage existing members to renew with them. But these one-size-fits-all strategies are ineffective with today’s consumers. Personalisation is the key to effective strategies. Failure to understand this will lead to ineffectual retention strategies that result in lost members and profits.
Strengthen your renewal strategy with the help of your member database. Utilising that information gives you the insights necessary for developing effective membership management programmes. Employ data-driven strategies to shift your focus towards areas that drive membership renewals.
Use Predictive Analytics in Developing a Membership Renewal Strategy
Predictive analytics uses information from your member database to create behavioural patterns that predict outcomes and trends. The information here offers insights that might have eluded other analyses.
Using previous year renewal data, determine who among your members are the most likely to renew. Part of creating an effective renewal programme involves understanding that not everyone will continue their membership with your organisation. Shift your focus and efforts on those who will stay with your organisation.
Aside from your data, gather information from your industry and competitors. Members who choose not to renew often move on to the competition. Compare renewal rates and retention initiatives to provide members with competitive services.
Craft a Data-Driven Communications Strategy
Renewals fall short because of an ineffective communications strategy. Determine which channels are the most effective for your members to create strategies that produce positive results. Additionally, tailor your renewal messages to each member for a personalised touch.
Email Notifications: The shift towards digital has made online renewals a common option for different organisations. Use email notifications to drive members towards your online renewal platform.
Snail Mail Reminders: Do not discount traditional letters from your communications strategy. Include an invoice and a set of instructions in the letter so your members are fully informed of the renewal process.
Phone Call Alerts: Phone calls are the easiest to personalise per member. This communication method allows you to directly pitch your renewal plan to members.
Offer Incentives to Encourage Renewals
When a member chooses to renew their contract, it means they trust your brand. Show them your appreciation by offering incentives upon their renewal.
It’s common practice to provide discounts for on-time or early-bird renewals. Another option would be to offer an instalment payment plan. Aside from these, you can include a rewards system in your renewal strategy. Some organisations partner with third party businesses to gift members with perks like travel packages.
Before deciding on an incentives programme, it is important to determine its effectiveness before implementation. This saves you the trouble of investing in the wrong incentives.
Working with Membership Management Specialists
Membership renewal is essential in developing your organisation. It fosters brand loyalty by reminding members of your value. Improve your renewal with a reliable partner, Romax.
We are a team of experts committed to helping you manage memberships. Our data-driven approach creates solutions that strengthen your connection with your audience. We use a combination of off-line and on-line services to develop a comprehensive membership management programme that yields results.
Find out more about our services here. We would love to hear from you!