Back to Basics: Membership Renewals

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!

Membership Acquisition – 25th Anniversary Perspectives

Membership Consultants celebrates its 25th anniversary in 2012! To commemorate that milestone we will take on 25 membership topics – looking back and looking forward – presenting a topic each week until the end of our anniversary year via our blog. We invite you to celebrate with us and weigh in on your membership experiences and opinions.  Here is Topic #2 – Membership Acquisition…

What are your best sources of new members? Direct mail, on-site sales, member-get-a member campaigns? Can you quantify what percent of new members come from what source? If not, get counting!

Having a quarter century perspective on membership can be an interesting place to be. And thinking back even before the start of Membership Consultants to my early days as a membership manager, direct mail was definitely our primary source of new members without question. In fact, the program I served at a botanical garden far outpaced all other organizations in our city with our membership totals simply because our garden and our director was an early adopter of the use of direct mail way back in the 1970’s! He saw it as a scientific experiment – which it still is today.  In those days, direct mail accounted for 60% to 70% of our new members. Today, direct mail probably accounts for 30% to 50% of most viable organizations’ new members. But direct mail IS still a very viable source of new memberships – it is still targeted, timely and YOU control it – you are not waiting for people to come to you! But it may DRIVE people to you in other ways – as in to visit you in person and join at that time. Or to “visit” your online and join in that way. Direct mail is definitely not dead!

On–site sales at a visitation-based organization or sales at the point of purchase for an association (such as when people sign up for your annual convention) has most likely taken over first place from direct mail. On-site sales can account for 40% to 60% of new member sales for some organizations. We have gotten much bolder at asking people to join. Being direct, or in-your-face, is the best way to get a new member. If you have a prospect before you, simply ASK them to join! This method of getting new members is usually the most cost effective – often with a cost per dollar raised of just $.25 to $.50, as compared to direct mail, which may cost $1.00 to $1.50 to raise a dollar.

Other methods of acquiring new members might include using your existing members to bring you new members – often called ‘refer a member’, ‘member-get-a-member’ or a gift membership program.  In fact, this is exactly how most membership programs started. Ladies who lunch would ask their friends to teas and encouraged them to join. Board members of an organization would ask their peers to support their causes – the person-to-person ask. Today these efforts are still alive online, such as when runners in a marathon get their friends to join an organization in support of their fundraising event. Gift memberships, for certain types of membership organizations, are also a viable source of new members. Friends like to share their favorite places with one another, and giving a gift membership is a great way to make sure you will experience your favorite place with your friends. These referral and gift sources can account for another 10% to 20% of your membership totals.

Email campaigns are probably best used to recapture lapsed members or get people with whom you already have a relationship to join or rejoin. After all, if you didn’t already have a relationship, you wouldn’t have the person’s email address, and an email appeal without a relationship is just SPAM, right? That is not to say that there aren’t email campaigns to strangers; the results are just infinitesimal.

There are many types of special projects and promotions that organizations try to get new members. Some work, some are trial and error, but most new members come from one of the tried and true tactics described above.

Know your sources! Figure out where your members are coming from. Then crank up the best producing acquisition activities and start growing!

Thanks for reading. Please feel free to join in, we would like to see your comments.