The Membership Renewal Checklist for Uncertain Times

Reports from clients and our recent Membership Marketing Benchmarking Report check-in survey point to a growing concern—renewal rates are showing signs of softening for many professional and trade associations.

While you can’t control economic shifts or budget tightening among employers and individuals, you can control how prepared your renewal program is to retain as many members as possible.

Here’s a renewal readiness checklist to help you safeguard membership against the headwinds of change.

[ ]  Know Your Numbers – The most critical first step to improving your renewal efforts is to accurately track your renewal rates to identify and solve a decline. Here is the formula to calculate your renewal rate:

Calculation: Total Number of Members Today (minus 12 months of new members) / Total Number of Members in the Previous Year
Example: (105 – 15) / 100 = 90% Renewal Rate

[ ]  Understand the Problem – You cannot solve a problem that you do not understand. So, before making significant changes to your renewal program, talk to the members who have lapsed to find out why they left. Was it engagement, cost, or did they forget to renew? Insights from lapsed members will guide where to focus improvements.

[ ] Start Efforts Earlier – Budgets are being scrutinized more closely than ever by employers and individuals. This review period has extended the decision timeline. Initiating renewals sooner allows members to obtain approval and make adjustments to their personal budgets.  

[ ] Offer Payment Options – Most AMS systems now support a variety of payment methods, including installment payments and automatic credit card renewals. Members who use these options often have renewal rates up to ten points higher than those paying annually.

[ ] Increase Frequency and Channels – One of the main reasons members don't renew is because they say, “I forgot." Recent client research indicates that many lapsed members believed they were still active members. Increasing the number of touches will get attention for your renewal message. Using multiple touches, including email, print, phone, and digital ads, will make your message impossible to miss.

[ ] Conduct Renewal Tests – A changing environment requires a focus on continuous improvement and agility. Your renewal program serves as an ideal testing lab to determine which messages, timing, payment options, and offers will maximize response.

In the short term, prioritizing renewal efforts is more cost-effective than recruiting new members. Most studies show it costs five times more to acquire a new member than to keep an existing one. Future growth still depends on adding new members; however, focusing on your renewal strategy during uncertain times helps you maintain your current membership levels. 

Check out these additional resources: The Membership Renewal Guide provides more insights on renewal solutions, and the book, The Seven Deadly Sins of Membership Marketing, helps associations overcome membership growth barriers.