Membership renewals contribute to the longevity of an association. A high renewal rate indicates that members are more likely to stay in the long run as you work towards your goals and attain success together.
While some associations may have low retention rates due to relocation or budget cutting, the most ideal member retention rate is 75 percent or higher.
In the same way, recruiting new members can help you achieve your vision faster. It also signals that you can generate a stream of revenue for your association’s financial goals.
If you’re wondering how to ensure membership renewal, you’ve come to the right place.
In this article, we will show you the different strategies you can implement to prevent individuals from leaving the group and improve member retention.
Key Takeaways
- Regularly reassess and adapt the benefits offered to ensure they meet the evolving needs of your members. Conducting membership satisfaction surveys can provide valuable feedback to help improve and align your services with member expectations.
- Higher levels of engagement can lead to increased renewal rates. Use social media platforms to start conversations, share industry news, encourage interaction, and make members feel more connected to the association.
- Consistent and well-timed communication, especially with new members, is crucial for building strong relationships.
- Sending timely and well-crafted renewal reminder emails can significantly boost renewal rates. Identify the best times to send these emails for maximum engagement.
- Glue Up’s Association Management Software provides an all-in-one solution for automating membership renewals, tracking engagement, and managing member data. The platform helps associations streamline processes and improve retention rates by ensuring members are consistently engaged and reminded of renewal dates.
What Does Membership Renewal Mean?
Membership renewal refers to the process of members extending their affiliation with your association for another period. For example, if someone has subscribed to your service, their membership grants them access to benefits and resources, like discounts, exclusive events, services, or online tools.
However, memberships don't last forever, and renewals guarantee your members' continued enjoyment of these perks. Organizations typically send reminders before the membership expires, outlining renewal options and fees.
Once members pay the renewal fee, the organizations confirm their continued membership and its validity period, and members continue their benefits. Remember, renewing members on time is important for you as an organization, and membership renewal allows you to maintain the continuous flow of revenue and keep it thriving.
Why Do Healthy Membership Renewals Matter?
Healthy membership renewals are important for organizations because they represent a stable and engaged community. Here's why they matter:
- Financial Stability: Renewals provide a predictable revenue stream, allowing organizations to budget effectively and invest in resources that benefit members.
- Member Engagement: High retention rates indicate satisfied members who find value in the organization's offerings. This fuels a positive cycle where continued engagement leads to further value creation.
- Reduced Acquisition Costs: It's far more cost-effective to retain existing members than to acquire new ones. Renewals free up resources for improving existing programs or exploring new initiatives.
- Community Building: A consistent member base creates a sense of community and belonging, which can lead to increased collaboration, knowledge sharing, and overall member satisfaction.
- Credibility and Reputation: High renewal rates demonstrate an organization's effectiveness in meeting member needs. This attracts new members and strengthens the organization's reputation within its field.
Overall, healthy renewals are an essential indicator of an organization's health. Renewals confirm financial stability, member satisfaction, and a thriving community, which all must have the ingredients for long-term success.
1. Realign the benefits to your members’ needs
An association’s growth strategy has to be open to management innovation changes to provide value to members continuously.
It would be best to reevaluate the membership benefits you offer to convince people to join and stay with your association.
A membership satisfaction survey is a useful tool to use to collect meaningful feedback from your members.
With it, you can learn what your association has yet to improve and work on. It’s also one way of showing members that you genuinely care about their needs.
Keep in mind that the key is to make sure that you ask the right survey questions to determine the challenges they’re facing and offer the best solutions to solve them.
When done right, it can be a surefire way to increase member satisfaction and encourage regular renewals.
2. Use social media platforms to boost engagement
Higher levels of engagement can result in increased renewal rates. Having satisfied members doesn’t automatically mean that they truly feel the connection to your association.
According to a study, only 55 percent of respondents felt connected with their professional organization, despite the satisfaction rates at 84 percent.
Engagement is not solely focused on attending events. It includes email open rates, member feedback response, and social media interactions.
To fully engage your members, start conversations regularly on social media platforms. You can discuss industry stories, share trending topics, and post viral photos or videos while actively participating in the conversation thread.
While the general rule for posting is once per week, you can still post three times per week at a minimum.
However, you may find that some members do not interact much. While it’s normal that they opt to merely observe, be open to encouraging them to participate.
3. Have timely communication with members
Keeping in touch with members especially with those in their first year of the membership is vital when building strong relationships. A well-planned check-in once in a while can improve an association’s retention rates.
Demonstrating strong communication can strengthen association relationships, compliment management efforts, and increase member renewals.
Including this in your long-term plan is essential to ensure that you meet their needs and expectations. When you do this effectively, you are more likely to retain more members.
One of the most common ways to reach out to members is through email. Plan an email strategy and track its effectiveness. To maintain professional connections, contact members every three to six months.
Sharing relevant news, paying attention to timing, and giving feedback opportunities are just some of the ways to engage them with email campaigns.
Monitor the open rates and click rates of emails to understand if you’re using effective subject lines that motivate users to open them. Aim for an average open rate of between 15% and 25%.
You can also do check-in calls to connect with members and check if there are no problems. A conversation over the phone is a good idea since it's more personal and can make them feel more valued and appreciated.
4. Prepare a renewal reminder email
Renewal notices are some of the most important emails you need to send members. A thoughtful and well-written one can encourage them to continue their membership.
Timing plays a crucial role when reaching out and convincing them that it's time to renew. Be aware of the best time of the day to contact people for maximum engagement.
A study says that Thursday is the best day to send emails if you're aiming for high open rates. It's followed closely by Tuesday for increased click-through rates.
On the other hand, sending emails late in the afternoon has a chance of getting an open rate of 36.5%.
You are connecting to extraordinarily busy people. It's one reason why reminder emails are necessary to get their mind on the renewal.
If you want to test the effectiveness of every email you send, one renewal strategy you can perform is distributing multiple versions of it using different subject lines.
5. Fully automate membership renewal
Membership renewal messages are essential when guiding members on the process. There’s a higher chance of getting lapsed members simply because they forgot to renew.
The information can be sent via print, email, or even posted on social media. Members should easily access your association’s renewal form.
To address this issue, offering automatic membership renewals to members is the best thing to do.
Membership management software lets you do this, along with automated emails that update members about the status.
There’s a high demand for auto renewal plans from association members today. Therefore, you should take advantage of this option to increase new member renewal rates.
At Glue Up, the average retention rate of our clients is 82%. With our Association Management Software, you can streamline the membership process with an all-in-one engagement solution.
Moreover, it allows you to create programs to ensure you’re effectively delivering member value.
You can also determine the engagement rate and optimize as you will. Maximizing revenue is easy with its sponsorship and membership channels.
6. Thank members for renewing their memberships
Showing gratitude can foster meaningful and lasting relationships with your members. It’s a great way to make them feel welcome and appreciated.
It improves member experience and signals that you value them in the organization. When you express your appreciation for their contributions, you can build stronger relationships that motivate them to continue their participation and engagement.
A sincere thank you can increase member satisfaction. Writing a personalized message can create a meaningful connection between them and can be a key driver in building loyalty. When they feel that you are grateful to have them, they will value their membership more.
Membership Renewal Strategy: The Top 5 Reasons Your Members Don’t Renew
When members don't renew, it can be quite concerning for organizations. There are various reasons why members might choose not to renew, but we have identified the top six. Let's explore these reasons in detail.
Reason #1: Lack of Engagement with the Organization
Lack of engagement within the organization is a significant reason members choose not to renew their membership. When members do not feel connected or involved, they are less likely to see the value in staying. This disengagement can happen due to poor communication, few participation opportunities, or a sense that their contributions do not matter.
Statistics show that engaged members stay an average of four more years compared to non-engaged members, highlighting the importance of member engagement. Thus, keeping members involved and connected is key to retention and the organization's overall success.
Reason #2: Lack of Value or Unable to Justify Costs with Significant ROI
Lack of value or an inability to justify costs with a significant return on investment is a major reason members do not renew their membership. When members feel they are not getting enough benefits or cannot see a clear return on what they are paying, they are likely to reconsider their membership.
In fact, 26% of members stated that their organization provided too little value. This shows the importance of offering real benefits and clearly demonstrating the value of membership to retain members.
Reasons #3 Employer Stopped Paying
Another reason members do not renew their membership is that their employer stopped paying for it. Many members depend on their employers to cover the cost of their membership as part of professional development or benefits.
When this financial support is withdrawn, members often find it hard to justify the expense on their own, leading to a drop in renewals. Without employer backing, the perceived value of the membership might also decrease, further discouraging members from continuing.
Reason #4: Member Left the Field, Industry, or Profession
When a member leaves the field, industry, or profession, it is a significant reason for not renewing their membership. As their career path changes, the benefits and resources provided by the association become less relevant to their new role.
Consequently, they no longer see the value in maintaining a membership that no longer aligns with their professional needs and goals. This shift often leads to a natural decline in renewals from those who have transitioned to different industries or professions.
Reason #5: Forgot to Renew
One more reason members do not renew their membership is simply that they forgot to renew. This can happen due to busy schedules or a lack of reminders from the organization. 32% of members reported forgetting to renew, which highlights the importance of timely and effective communication to keep members engaged.
Conclusion
Membership renewal plays an essential aspect in developing and sustaining organizational growth.
In this article, you learned that it’s vital to communicate effectively with members, determine their needs, and improve the membership renewal process to continuously engage and retain them.
We hope you’re now ready to strengthen relationships with members, enhance member experience, and encourage them to stay using the renewal strategies we have provided.
Are you interested in leveraging digital tools to deliver an outstanding member experience? Book a demo with us now, and we'll show you how you can automate and personalize membership management with ease using the Glue Up platform.
