All of the hard work that you do to acquire new members is effectively useless without a solid renewal strategy. In this post, we’re going back to basics on membership renewals. Whether you are new to membership or are a seasoned veteran, here are the four T’s to keep in mind when planning and executing your membership renewal strategy.
1. Timing
Questions to ask: Are we sending out renewal reminders early enough? Do we have enough renewal touches in our renewal cycle? Are we sending out the last renewal reminder after members’ expiration dates to remind them to renew?
We all know that timing is everything! We find that successful renewal programs have a four month window during which reminders are sent. These renewal touches generally start about two months prior to expiration with one reminder sent each month through the month after expiration, for a total of four reminders.
2. Tracking
Questions to ask: Are we tracking renewal effort results? Are we tracking renewal rates by touch? Are we looking at renewal rates yearly for mature renewal rate?
Tracking your renewal efforts is very important. The first metric to know is your renewal rate. Knowing your renewal rate allows you to plan ahead and create accurate budget forecasts. Additionally, tracking by renewal touch can help you see the efficacy of your renewal reminders. Tracking by touch allows you to see how each renewal touch is performing, and it can show you if you need to add another renewal touch or if you are sending out renewals too early. Finally, you can get a matured renewal rate by seeing how many people still haven’t renewed after a year and comparing those numbers to the original renewal numbers at the start of the cycle.
3. Touches
Question to ask: Are you sending out multichannel touches?
Successful membership renewal programs utilize a multichannel approach. Mailed letters should have accompanying emails that mirror the look and feel of the mailed reminders. These emails are often sent out a week or so before the mailed reminders are sent. Additionally, there are digital marketing opportunities for renewals—such as uploading your list to Facebook and sending targeted renewal reminder ads to your expiring members—this can give your renewal program an added lift!
4. Testing
Question to ask: Are you testing your current strategy to maximize your renewal returns?
Just like we test direct mail letter packages in acquisition, we should also be testing renewals. Do we need a four-color outer envelope or will a two-color design work? Are we sending the right messaging about the support our members give us with their membership renewal, or should we focus more on benefits? Do we need a full letter package for each mailing, or will a postcard work for one or more mailings? Each of these can offer testing opportunities for your renewal packages. And remember: test only one aspect against the control each test for the clearest results!
Do you need help creating the best renewal strategy and implementation for your program? Just fill out the form below to find out how we can assist you in your most successful renewal strategy yet!
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