How to Retain Members

1. How to Retain Members Kathryn Powers NCMA Board of Directors Huntsville Chapter NCMA Leadership Summit 2005 Charleston, South Carolina June 17-18, 2005

2. Why is this important? • Organizations must grow in order to survive and thrive. • The cost of new member recruitment (in money and effort) is higher than ever and increasing. • We lose 15-20% of our members each year due to retirement, career change, unemployment and other economic reasons, lack of employer support, dissatisfaction, or simply failure to pay dues. • We suspend 6,000-7,200 members each year, but only reinstate 2,700-3,200 members.

3. Where Do We Start? • Why do people join associations? • To solve problems (best practices, learning, tools). • To meet social needs (networking, belonging). • To meet economic needs (credentials, promotions, jobs). • To protect the right to do business (advocacy). • To exercise leadership (volunteerism).

4. Where Do We Start? • Why do members stay (renew)? • The interaction was positive and fulfilling. • Their needs are met. • Their investment (money and time) is deemed worthwhile.

5. Retention Begins When They Join • Members’ first experiences greatly affect their propensity to renew. • How easy was it to join? • How timely was the processing? • How professional was the communication? • Were difficulties resolved expertly? • Did the chapter contact them promptly with chapter information? • Were they ‘welcomed’ at their first chapter meeting? • Were they asked to volunteer?

6. Retention Continues Throughout Their Membership • Members’ subsequent experiences greatly affect their propensity to renew. • Was the reason they joined NCMA answered? • Is it convenient to renew? • Is it affordable? • Were any difficulties resolved expertly? • Did the chapter contact them throughout the year? • Was their offer to volunteer promptly acted upon? Were they ‘included’?

7. This is Before Members Assess The Value of Membership • If the service was unsatisfactory at any level, the likelihood of renewal is greatly diminished. • This is true regardless of the quality or value of the programs and services we provide.

8. Major Sources of Customer Dissatisfaction • Not receiving magazine. • No chapter programs. • No chapter communications. • Failure to respond to inquiry. • Joined at NES but didn’t get anything since then. • Didn’t receive renewal invoice. • Meeting time or location inconvenient. • Programs not of interest. Requires collaboration of the Chapters and the National Office.

9. How Can We Improve Retention? • National initiatives: • Membership processing within 48 hours of submission (for manual applications). • Launch of e-web for online joining and renewal (an e-commerce system that eliminates data entry delays and errors). • E-web also enables customers to update their contact information (eliminating data entry delays and errors). • Daily production of new member packets and renewal letters (eliminating 6-week waits). Daily email confirmations. • CRM system to track inquiries, requests, and complaints (prevent lost issues). • Membership contact information campaign (maintain/improve customer contacts). • Telemarketing win-back campaign (reinstate lost members). • Survey dropped members.

10. How Can We Improve Retention? • Chapters: • Expedite membership applications and renewals to NCMA, particularly when concurrent with NES. • Call each new member within 30 days of joining. • Communicate with members regularly throughout the year. Follow up on bad contact information. • Forward contact information updates to NCMA. • Invite members to volunteer, and include them when they do. • Understand what your members want and need, and strive to provide it (content, location, schedule). • Contact members in their dues month, when they are in their grace period, and again once they are dropped. • Periodically contact long-lost members to remind them you’re still there for them.

11. A Special Note About Group Memberships • NCMA sells memberships at discounted rates to groups of 25 or more. • Organizations may pay for their employees’ individual memberships. Members then expect renewal to be automatically handled by the organization. However, • The points of contact, executive leaders, and funding situations at organizations frequently change. • This all leads to situations where large groups of members are suddenly and unexpectedly dropped.

12. A Special Note About Group Memberships What can chapters do? • Be aware of which members are under organizational memberships. • Watch monthly membership reports to see which members are due to renew, are in their grace period, or are dropped. • Stay in contact with the members. • Work with the National Office to facilitate member renewals and reinstatements.

13. Develop a plan. Step 1: Set goals • Results oriented. • Fewer than ___ dropped members each month • ___ reinstates each month • Activity oriented. • ___ % members due contacted • ___ % members in grace period contacted • ___ % members dropped contacted • ___ emails sent • ___ phone calls made • ___ letters sent

14. Develop a plan. Step 2. Review value propositions – why should members remain in NCMA and your chapter? • Consider your customer service – does it encourage membership retention? • Consider your brand – what do you represent? Does it need to change? • Consider how you promote the chapter, and how you market your services? Do they need to change? • Consider your product mix – what do you provide? Does it need to change? • Consider your place – where do you meet? Does it need to change? • Consider your prices. Do they need to change?

15. Develop a plan. Step 3. Develop action alternatives. • Survey members to identify problems or opportunities. • Improve customer service. Develop procedures. • Change the chapter’s programs or services, how they are promoted, where they are provided, or how they are priced. • Develop communication plans (campaigns) for retention and reinstatement. Use a variety of communication methods, including phone calls, emails, faxes, letters, and visits (if possible). What other alternatives can you think of?

16. Develop a plan. Step 4. Review resources. • What volunteer labor is available? What skills do they have? • How much money does the chapter have? Can incentives be provided? • What technology does the chapter have access to? Survey software? Broadcast emails? Broadcast faxes? • What information is available?

17. Develop a plan. Step 5. Prioritize and decide. • Pick the strategies that best serve to retain and win-back the target prospects. • Consider risk: what is being wagered against what could be gained. • Do less, but do it better (versus do more things poorly). Focus!

18. Develop a plan. Step 6. Prepare the program plan. • Time: when will work be done? What are milestones? • Resources: who will do what? What money will be needed? What tools, information, and skills will be needed? • Tasks: what actions will be taken? Incorporate your plan into the chapter’s Annual Operating Plan for submission to NCMA by September 1.

19. Now go do it! • Implement the program plan. • Monitor the schedule, resources, and work to ensure progress against plan. • Measure progress against plan and goals. • Adjust the plan when necessary: extend schedules, change resources, revise tasks. Do not allow a bad plan to continue!

20. NCMA can provide: • Membership data and some analysis. • Lists of past members or customers from your area. • Web-based survey tool. • Marketing collateral (brochures). • Group/organizational information. • Website. • Broadcast email and fax assistance. • Marketing consultation.