A CEO was pleased her associations’ member retention of just over 90% overall. When asked which segments were performing well and which needed some work she didn’t know. She had assumed a 90%+ growth rate meant that all segments were performing well. When the retention rates by segment were calculated she found that some segments were performing exceptionally well with 95% growth rates, several were performing relatively well in the high 80%s and one segment had an appalling retention rate of 62%.
The CEO immediately implemented emergency retention initiatives in the 62% segment and recruitment programs in the other segments. This targeted approach led to an impressive increase in membership with both member retention and growth rates soaring.
Maximum membership growth can be achieved when both your recruitment and retention processes are operating effectively. To make this more challenging, at any one time different segments of your membership will be at different stages of the member recruitment and retention cycle.
Some segments will have a high retention rate – indicating there may be opportunities to recruit. While segments experience low retention may need less emphasis on recruitment and more on retention initiatives.
Associations who are able to recognise where each membership segment is on the recruitment and retention cycle, and target their resources appropriately, are the ones who are able to maximise their membership growth most powerfully.Comment on this resource