How to Maximize Membership Retention With Auto-Renewals?

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How to Maximize Membership Retention With Auto-Renewals?

Content Strategist
6 minutes read
Published:

Retaining members is critical for any membership-based organization.

High turnover can be costly - from reduced revenue to increased administrative costs of constantly acquiring new members. This is why maximizing member retention should be your key priority.

One highly effective strategy to boost retention is to offer auto-renewals. Auto-renewals allow members to effortlessly continue their membership without needing to manually renew each term. This convenience incentivizes your members to stick around longer.

Read on to explore how you can implement auto-renewals to significantly move the needle on your retention metrics and maximize your impact with this simple yet effective strategy.

Understanding the Importance of Auto-Renewals

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Glue Up auto-renewal dashboard

 

Members often forget to renew their memberships, leading to lapses (2023 Membership Marketing Benchmarking Report).

The primary benefit of auto-renewals is that they take the effort out of renewing for your members. Instead of needing to manually renew when their term is ending, their credit card is simply billed automatically so their membership continues uninterrupted.

This convenience motivates members to stick with your organization longer. It saves your administrative time as well as provides a predictable revenue stream.

Best Practices for Implementing Auto-Renewals

implement auto-renewal

Make sure to follow these four practices while offering auto-renewals to your members:

Choose the Software With Auto-Renewal Feature

Having your AMS set up to support auto-renewals is crucial for a smooth rollout. Opt for a robust software like Glue Up that can:
 

  • Automatically charge member credit cards when their membership is up for renewal
  • Send customized email receipts and reminders about upcoming charges
  • Allow members to easily update their payment information


Provide training and documentation to your team on using the AMS tools for renewals. Also, make sure to automate as many steps as possible for maximum efficiency.

Plan and Communicate

Don't activate auto-renew on all members at once. Devise a plan that takes into account your membership cycles and capacity to handle support queries.
 

  • Proactively communicate about this shift through various channels such as emails, newsletters, website updates, and community forums.
  • Highlight the advantages like uninterrupted membership, convenience, and avoiding missed payments.
  • Offer a comprehensive FAQ section to address common concerns.
  • Align your communications with renewal notices, leveraging the period when members are already considering their membership dues.

Update Your Website

Establish a dedicated webpage to detail your auto-renewal process. This should include:

  • The timing and process of automatic payments.
  • Procedures for handling declined cards.
  • Straightforward instructions for opting out of auto-renewals.


Ensure the content is user-friendly, with bullet points highlighting the critical aspects for easy scanning.

Reassure Your Members

reassure members

Reassure your members about security and control.

Make them aware that THEY are in charge. Emphasize that their credit details will be safely kept, ensuring PCI compliance on your part.

Assure them they will receive prior notification before any charges are made to their card. Highlight your satisfaction guarantee, offering peace of mind if they decide to cancel this feature later.

Why Use Glue Up's Auto-Renewal Feature for Enhanced Member Retention?

Glue Up membership dashboard

Glue Up is an all-in-one engagement management software for organizations. It streamlines all your membership workflows, from managing registrations and collecting payments to facilitating successful events and community engagement.

One of its powerful functionalities is its auto-renewal feature, which offers increased benefits for member retention. With the auto-renewal feature activated, it automatically processes membership payments, saving time for both your staff and members.

Let’s explore the additional benefits offered by this feature:

Easy Options to Auto Renew

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auto-renewal for members

Glue Up’s auto-renewal functionality enables both your organization and members to easily activate this feature. Your members can also opt for auto-renewal via their mobile apps for added convenience.

This self-serve option not only reduces manual work for staff but also enhances convenience for members. They no longer need to worry about filling out forms at the end of each term, as they can securely pay dues online and receive instant confirmation

Flexible Customization Options for Every Tier

auto renewal for membership tiers

The software allows you to tailor the auto-renewal settings for different membership types from the platform. There are three options for each membership type: recurring payments, recurring payments as the only payment method, and skipping approval/confirmation steps.

This flexibility allows you to cater to diverse member preferences and requirements.

Management and Oversight

In addition to the customization, you can also monitor and manage your recurring payments.

You can check your members' profiles to see whether the auto-renewal has been applied as well as interrupt auto-renewals if needed.

Additionally, the system allows for filtering and creating targeted campaigns for members who have enabled auto-renewal, providing valuable insights for tailored member engagement strategies.

Flexible Payment Management for Members

flexible payment

Your members have the flexibility to manage their auto-renewal settings. They can choose to stop auto-renewal and revert to manual payment methods or update their credit card details at any time.

This level of control enhances the member experience by accommodating their changing preferences or financial circumstances.

Effective Communication

Glue Up has implemented specific system email notifications regarding auto-renewal. These notifications include alerts about upcoming renewals and confirmations of payment method updates.

This functionality keeps your members well-informed about their membership status and any automatic transactions, ensuring transparency and building trust.
 

The Impact of Auto-Renewals on Member Retention: Real-World Examples

Case Study 1: Kenya Green Building Society (KGBS)

The Kenya Green Building Society (KGBS) struggled with poor retention rates due to manual management processes and members forgetting to renew. They overcame this by implementing Glue Up’s automated email communications for membership renewals, which included options for auto-renewal.

Once implemented, their members received automated emails confirming their membership, including their receipt of payment. This strategy led to an improved retention rate and streamlined operations, as KGBS members could automatically renew their memberships with ease, enhancing member engagement and satisfaction.
 

We realized from past experiences that our poor member retention was due to members simply forgetting to renew their membership or our staff forgetting to send them their invoices. One of the best ways Glue Up has addressed this is by offering an option to renew membership automatically. The membership fee is charged to the member with corresponding automated emails that notify members when their membership has been renewed.

Francis Kimani, Executive Coordinator at Kenya Green Building Society
 

Case Study 2: FKCCI (Federation of Karnataka Chambers of Commerce & Industry)

FKCCI faced a challenge in expanding their membership network and streamlining membership management.

They addressed this by implementing Glue Up's automated renewal reminders and payment gateway for renewals. The solution proved effective, resulting in a significant increase in membership growth, with 700 new members added since adopting Glue Up.

The impact of this change was substantial, with the automation of renewals through Glue Up facilitating ease in finance tracking and payments, contributing to FKCCI's impressive growth in membership.


Finance tracking has been much easier now that Glue Up automatic renewal notices are sent to all members. This also means payment can be done through the payment gateway which will help their finance team by making it so simple that a mere export reports an entire business cycle for FKCCI. The payment gateway also leaves more avenues for purchasing options in the future should FKCCI expand their payment options for members and event registrations.

Team members, FKCCI

In conclusion, sustaining membership retention requires a strategic, long-term approach, and leveraging Glue Up's auto-renewal feature can markedly boost your retention rates.

If you haven’t explored the benefits of recurring payment options, now is the perfect time to schedule a demo. With a more efficient and member-friendly renewal process, this step could be key to elevating your membership retention strategy.

Discover the potential to not only retain but also enhance member engagement and satisfaction through streamlined and automated renewal systems.

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