Improving Association Membership Renewals and Payments
Members are the lifeblood of any organization, and while you may want to bring in new members, one of the most common issues associations face is low membership renewals and payments.
Mostly, users are busy and forgetful, and paying for an annual membership can become a hassle for them.
The 2023 Membership Marketing Benchmark Report showed a 24% decline in member renewal. Our main aim in this blog is to help you increase your membership renewal rates and get out of the slump, whether your rates are declining or staying the same.
Having an engaged and growing membership is key to running a healthy and impactful nonprofit, club, or association. After all, always being on the go to replace members with the new ones is a bit harder than retaining existing ones.
What is membership renewal?
Membership renewals, at their core, are about keeping the members you have worked extremely hard to get on board with your association.
If your members don’t stick around, no matter how much effort you put into getting new members, it won’t fill the gap.
Having established users/members to provide your association with a steady stream of income is crucial, as it also creates a diverse member base. New customers can also learn from the wisdom and institutional knowledge of seasoned veterans, who have built a community that matters to them.
Importance of healthy membership renewals
We have said it before, and we will say it again: “No amount of acquiring new members can plug the leaky membership base.”
Getting users to stick around goes a long way in making good business sense, because getting new members costs five times more than it does to keep the current ones.
Alternatively, the longer a customer stays with your organization, the higher their LTV (lifetime value) will be. For instance, if your business is spending millions to recruit new members, but you don’t offer anything of value, your new members will surely leave you for greener pastures.
Keeping your current members not only pays you in the long run, but also helps you spot bigger trends or challenges within your association. Maybe your users don’t know the value they are getting out of your product, or you’re reaching out too much or too little.
There can be many reasons why you may miss out on membership renewals. Monitoring renewals can give valuable insights into what works and what doesn’t.
Also, when you take the right steps to nurture the renewal process, it can translate into big advantages for your association. A few of them are: spending lesser time to do admin work and more time welcoming and interacting with customers, consistently keeping happy members, and meeting users’ needs at every point of their journeys.
Sounds pretty good, right? Let’s dive into the practical steps you can take today to start enjoying the benefits of higher membership renewals!
Where to start?
Before diving in, first, let’s dig into the prep work needed for a smooth pathway to an efficient renewal process for your users. As a result, you’ll be able to troubleshoot issues within your current membership renewal process.
If you’re wondering where to start, we have put together three easy tips to help you out:
Assess your historical renewal data
Begin with your numbers, as they reveal the clearest picture of your renewal process. Moreover, use your membership management tool (if you don’t have one, use SubscriptionFlow) to identify trends, spikes, or gaps and answer important questions like:
- What’s your baseline renewal rate? For this, you can compare last year with previous years to set a benchmark.
- When do members usually renew? Do they respond right after email reminders, or only after a personal phone call?
- Which communication works best? Do emails drive action, or are phone calls and mailers more effective?
Do an online survey
There are times when data can be limited or incomplete, not giving you a fuller picture. This is exactly where direct input from members comes in through online surveys. It can assist you in learning about their needs and expectations, where you are meeting them or missing the mark, and how well they know the value of your association.
Here are quick ways to use surveys:
- Email them a quick SurveyMonkey link.
- Maybe run a poll on your social media channels.
- Or post a few questions on your website for discussion.
- Then, use the collected feedback to improve the renewal strategy to better meet members’ needs.
Look at the bigger picture
Think back on your past membership renewal efforts. Were they one-off campaigns to get a quick boost in membership renewals? If so, it might be the time to shift to a year-round strategy.
To achieve this, map out your calendar in advance, marking key renewal dates and deadlines, and building a workback schedule to start earlier. For example:
- You can send a first reminder 6 weeks before expiry.
- The second one can go out before 4 weeks.
- For a final reminder, use direct mailer 2 weeks out.
However, keep in mind these timelines can vary for you, but this proactive approach will aid you in beating ad-hoc campaigns and ensure you reach users when renewals are top of mind.
5 Ways to enhance your membership renewal process
Membership renewals are a lot more than keeping numbers steady. They’re about building lasting relationships with your customers. Here are five actionable strategies to improve retention and keep your members engaged year after year.
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Appreciate & automate your membership renewal process
Never fail to show your appreciation for your members. A little goes a long way. So, you can either send a quick email, a note, or set up a dedicated “thank you” page to reinforce loyalty.
Show them how their renewals directly support community-building, events, and overall industry impact.
It doesn’t just end here. Don’t forget to automate your renewal processes. Automation could mean:
- You can send out automated reminders to your members.
- Collect payments from them by offering flexible options.
- Gather your members’ latest contact information, along with their renewal requests.
This frees up your employees to actually engage with members to build lasting relationships.
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Communication is key!
When it comes to member communication, depending on a single channel won’t cut it. Whether you use a phone call, mail, email, or social media, a singular strategy won’t resonate with every member on your list.
Rather than focusing on one channel, send out renewal reminders through multiple methods. Moreover, build a process with a combination of channels most effective for your members.
Although there is no one mix to get it right, you can focus on two things:
- Your renewal cycle: Identify whether your members renew on the same annual date or on rolling anniversaries. If it’s an annual cycle, it requires a broad, simultaneous reach. Meanwhile, rolling renewals usually work best with a staggered series of messages like sending an email first, then mail, and ultimately a phone call as the deadline for renewal comes closer.
- Members’ preferences: Every member wants to be communicated with differently. Some might like email reminders, while others may want a phone call. Therefore, find out your members’ preferences using surveys, so you can personalize your message and communication channel to each user.
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Dunning
Dunning is one of the most crucial aspects of ensuring membership renewals and payments. SubscriptionFlow can make this process quicker and easier for you. Here’s how it helps:
- Set payment reminders: You can set pre-renewal alerts (via emails, mail, or app notifications), so your members can renew subscriptions before expiry.
- Offer smart retries: If your members experience any glitches while making payments or renewals, provide them with auto-try failed payments at set intervals. Another way to do it is by offering one-click retry links.
- Real-time notifications: Offer your members instant access with a quick “Pay Now” option on failures.
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Provide incentives and flexible options
Sometimes, all it takes is a nudge to make your members decide on renewals. Here’s what you can do:
- Offer special discounts for early or multi-year renewals.
- Give flexible dues options to your members (they can be monthly or quarterly)
- In addition, give free trials to new members, bonus months, or exclusive gifts to show you care.
- You can also offer referral rewards or contest entries.
Such incentives and offers will surely encourage renewals as well as show members that you are interested in rewarding their long-term commitment to your association.
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Members portal
It’s high time you give your members their own portals. Such portals streamline renewals, lessen admin work, and enhance retention by making renewals and payments automated, transparent, and easier. Here are a few ways to do (or you can simply use SubscriptionFlow to do the heavy lifting for you):
- Self-service access: A member portal makes payments and renewals easier if you give customers full self-service access. It allows members to log in anytime to renew their memberships, view pending due dates, and download invoices. This removes the need for manual follow-ups.
- Enriches payment management: Moreover, a member portal improves payment management by helping your users choose preferred payment modes, update renewals, and enable auto-renewals.
Final thoughts!
In conclusion, SubscriptionFlow can make membership renewals and payments smooth sailing by automating reminders, simplifying billing, and providing flexible payment options. Additionally, our powerful analytics can help you track renewal trends, engagement in real time, and member preferences. Consequently, you will have higher retention rates, stronger member relationships, and more chances for scalability.