Three Keys to Solving the Member Retention Puzzle
Understanding factors that drive retention
Everyone knows retention is crucial to a healthy membership. You can never increase your membership if you lose more members than you bring in. What is far less obvious are the factors that drive retention. Of the 1,000 things that could affect retention, which ones matter? Recent research by Sequence Consulting into the best practices of leading membership organizations across industries point to three key areas that make the most difference.
Bet Big on First-year Renewal
The first renewal is worth more than all the others. A lot more. Why? Sequence Consulting research shows that each time a member renews, they are even more likely to renew the next time. On average, a new member is 50 percent likely to renew. They will be 80 percent likely to renew the following year, and even more likely to renew after that. And the more times a member renews, the less it costs to keep them.
In other words, the first renewal buys you more than just another year of dues—it alters the membership trajectory for years to come. Investment in retaining new members is the best membership investment you can make. However, this does not mean you should invest in new members at the expense of all others. What it does mean is that if you invest in your new members, you won’t need to invest as much in the others.
Please select this link to read the complete article from ASAE's Center for Association Leadership.