Tips to Increase Membership Renewals

Most organizations focus a majority of their budget and energy on member recruitment; however, while valuable, membership renewals are the primary contributors to the longevity of any association. Without high retention rates, monthly cashflow can be unpredictable, and the club’s culture and reputation can come into question.

For organizations that utilize a calendar-based membership term, November to January can be anxiety-inducing. However, these are critical moments for any organization to recognize its strengths and weaknesses and plan around its renewal rate.

While expanding your club to new faces is undoubtedly essential, even the most successful organizations see an annual churn rate of 5%, with some clocking in at a whopping 10%. Additionally, according to the 2021 Membership Marketing Benchmark Report, 45% of associations saw a decline in member renewal — almost two times 2020’s rate of 24%.

Securing new members and maintaining existing ones are complementary aspects of a business and require different but equal techniques. The renewal period of any organization is a crucial time of the year. This guide will give you our favorite tips to combat a drop in subscription renewals and how to keep your rates high.

Renewal Rate vs. Recruitment Rate

No amount of recruitment can curb a cracked membership base.

From a purely financial point of view, it costs nearly six times more to recruit new customers than to retain your existing ones. With this data alone, organizations should focus on ensuring renewal rates remain at an all-time high. 

Metric-wise, renewal rates are crucial data and should be analyzed regularly to address any issues in real-time. These metrics demonstrate how many members opt to renew your organization's access and will directly reveal predictable profit or loss. 

Renewal rates also provide attrition rates, the percentage of members who choose not to continue, a metric determining your member’s average club lifespan. Increased renewal rates should be a club’s priority as it accurately indicates member lifespan, revenue gain, and quality insights into your services.

Generate Personalized Renewal Reminders 

Keeping track of each member’s renewal period is essential to target those individuals weeks before they decide to renew. Unless your organization utilizes a calendar-based term, each member should receive a personalized renewal reminder email or package 4-6 weeks before the end of their membership. 

If you opt to use email reminders, they should be well-written and sent at the best time of the day for maximum engagement. For high-value members, consider a renewal reminder package which can include: 

• Branded merch as a token of appreciation 

• A list of their most utilized services/products over the year

• A reminder of the club’s benefits and perks

• A sneak peek of what the following year will bring to the organization

• A handwritten thank you note for the number of years they’ve been a member

Automate Renewal Process

One of the best things leadership can do for any club is to automate the renewal process, making it as easy and quick as possible for members. Automated credit card renewals are one of many crucial reasons to invest in high-quality membership management software. 

Between streaming services, yoga classes, gyms, and wine clubs, this is the generation of subscriptions. Consider incentivizing members who opt for automatic renewal with discounted services or renewal fees. 

If automation isn’t suitable, make the process simple, so it doesn’t seem like a chore. For example, the link for renewal should be easily accessible in emails, social media platforms, and the club’s website — ensure members don't need to dig for the renewal link. In addition, the renewal form should be populated with member information to the fullest extent.  

Incentivize Early Renewals 

Incentivizing members who renew before their membership ends is a great way to entice them to commit early. It’ll create a sense of excitement and urgency for the upcoming year with the organization. 

Your association management software can implement an “early bird” discount on renewal fees. In addition, you can offer complimentary services or products, conference or convention discounts, or discounted/free months of membership for those who are punctual in renewing. 

Besides early renewals, consider offering discounted multi-year memberships for those who have been a member for over a year. They can ‘lock in’ their rate for up to three years, and the club can rely on their membership renewal for however many years they choose. 

Conclusion

The renewal period is a critical time in the lifespan of any membership and should be handled with intricate care. Investing your time and energy in nurturing your existing member base is just as, if not more, vital to the overall success of your organization. 

For more tips and tricks to increase retention rates, click here for our guide on Member Retention for Organizations & Private Clubs.