The non-negotiables of membership retention

We’re often told to think about what member value we’re delivering, and although it may feel like an overused phrase, it’s imperative when it comes to member retention.

The question is, then, do you really know what your members value about you? Why do they join initially and do they feel like they’re gaining as a result of membership early and often???

Optimising your retention efforts might be simpler than you think, but it needs dedicated and consistent attention across some critical behaviours, data and timings.?

So, if you feel like you’re letting members slip through the cracks - and, by extension - your revenue, it’s time to discover how to turn it all around for the better:?

The cost of member churn

Quite simply, it’s your revenue.?

It’s cheaper to keep an existing customer than it is to get a new one. As it's estimated to cost around 5 times more to win a new member than to retain one.

More so, the likelihood of selling to an existing member is between 60-70%, whereas the chance of selling to a new prospect is often only around 5-20%.

Are you missing what members value?

So then, why might your members leave? And why did they join in the first place?

It all comes down to what they value. And how well you’re connected to their needs, desired outcomes, and jobs or tasks they need to achieve.?

You might spend a lot of time focusing membership team efforts on reactive communication, such as customer service type issues, rather than proactively adding value to what attracted them in the first place.?

However, in not staying on top of member needs, you run the risk of retention rates dropping off before you even knew they wanted something different. When you’re left with an outdated offering that hasn’t evolved in line with changing member needs, it’s much harder to address in a confident and timely way to minimise the loss of revenue.

The non-negotiables of delivering membership value

Here are our non-negotiables to embed in your day-to-day to deliver member value.

1. Identify what initially attracted members

Keeping your member proposition clear and up to date with needs is key, as it will steer what you offer, proactive and reactive comms, and how you upsell - all of which are vital for retention.

So think, what’s one of the fastest ways to lose a member? By not delivering what attracted them to you in the first place.?

Specifically, what was it about your offering and flex of services that drew them in? Without this foundational knowledge, the onboarding and first experiences of membership can fall flat.?

You’ll struggle to deliver early value if you’re not clear on what is expected on arrival. Consider a tailored or personalised approach to onboarding if you don’t already.?

2. Monitor early signs of disengagement

Members don’t often just leave overnight. There will likely be signs that their engagement is dropping off.?

So, you need to look out for signals of decline in value or engagement amongst your members. This may be as simple as stopping opening emails, or no longer attending webinars, for example.

Catching member dissatisfaction before they leave gives you the chance to act. That could look like automatically triggered communication, or someone in your membership team picking up the phone to proactively support them.

3. Maintain a continuous feedback loop of perceived value

From technology, sector disruptors and individual circumstances - the make-up of your member needs are constantly evolving. As such, you’ve got to keep a close eye and ear on why they come back to you and where their pains and gains lie.?

If your offering becomes outdated or less salient to changing member needs, a big drop in retention is sure to follow.?

4. Ask people why they are leaving

Knowing why members chose to leave is imperative to inform your retention efforts - so you can avoid stagnating value in the future. But that’s not to say it’s always the end of the road for them - you may still be able to win them back.?

You never know - maybe their role or context has changed, and an alternative set of services in your offering would be more valuable. Or perhaps someone else in their team would now benefit more from the membership.?

Maybe they are missing time-sensitive services and upcoming events and would benefit from a different method of communication. Whatever it is, find out and try to resolve the situation for this member before they leave.?

As you can see, the way to ensure you’re in the best position to retain members is by staying on top of what they need from you? - why they initially come to you, what they engage with and why they value your offering.

The insight you gain from maintaining a feedback loop, catching disengagements and asking why they want to leave will inform the actions you need to take.?

Not only will this position you well, it will also put you one step ahead in spotting opportunities to expand or pivot your membership offering.?

Tools to manage your membership retention

There are a number of free member research tools and templates that will make your life easier in capturing and sharing member insight for improved retention. Our top three are:

1. “Jobs to be done” framework: Fantastic for understanding the broader needs and granular tasks that your members come to you for.?
2. Assumption map: Helps bring awareness to assumptions being made and the risks of operating on them versus first validating if they are true.
3. Value proposition canvas: A great way to consolidate how your offering meets the needs, gains and pains of members. But it can also be useful in highlighting when you might not be.?

Stay ahead of retention risks by being proactive, not reactive

Ultimately, being ahead of membership retention requires proactivity. Having said this, all of the approaches discussed can be used to troubleshoot why retention is dropping off.?

But taking a proactive stance is definitely the best way forward, so you’re not left on the back foot with your technology, digital experiences or service offering being behind expectations.