Create a Retention Plan that Really Works
Transcript of Create a Retention Plan that Really Works
Create a Retention Plan that Really Works
Create a Retention Plan that Really Works
Explore key elements of an effective retention plan
© 2017 Hight Performance Group
Cathi Hight • President of Hight Performance Group • SVP of Growth Strategy & Investor Relations
for the Greater Austin Chamber • Developer of the Member Retention Kit and
A New Approach to Tiered Membership • National instructor for the U.S. Chamber’s
Institute for Organization Management • Previous Career Highlights:
National FastTrac Entrepreneurship Program Manage – Kauffman Foundation
VP of Operations for Chamber of Commerce of Hawaii
Regional Sales & Marketing Manage – Dean Foods Regional Sales & Marketing Manager – Dole Foods
• Is a member of the: Association Chamber of Commerce Executives
(ACCE) American Society of Association Executives (ASAE) Society of Human Resource Management (SHRM)
2 Create a Retention Plan that Really Works © 2017 Hight Performance Group
Create a Retention Plan that Really Works
Session Objectives Identify what drives your retention outcomes Discover how to conduct a retention audit Explore the components of an effective retention
plan Discover strategies to recruit, engage and renew
more members
3 © 2017 Hight Performance Group
Create a Retention Plan that Really Works
Session Agenda Why Retention is a Challenge What a Retention Plan is Not What’s Wrong with the Old Retention Model Key Components of a Retention Plan
Situational Analysis: Conduct a Retention Audit Feedback: Collect Meaningful Feedback from
Members Alignment: Develop Retention Goals, Strategies,
Tactics and Budget Tracking: Measure and Manage the Retention Plan
4 © 2017 Hight Performance Group
Create a Retention Plan that Really Works
PARTNER ACTIVITY
What would you say is the primary reason why retention is a challenge for your organization?
© 2017 Hight Performance Group 5
Create a Retention Plan that Really Works
Why Retention is a Challenge
More competition than ever before for members Members don’t perceive value or ROI for investments Staff is too busy to focus on retention (it’s everyone’s job
and no one’s job) Focus is on recruitment than on retention High turnover with first-year members Increasingly diverse needs of members Retention initiatives are implemented reactively and/or
too late in the cycle
6 © 2017 Hight Performance Group
Create a Retention Plan that Really Works
This is Not a Retention Plan!
A list of what we offer to members (e.g., programs, benefits, discounts, other “features”)
Pleas from Board or other members to create guilt to renew
Creative, clever or threatening letters Collection notices for five months
7 © 2017 Hight Performance Group
Create a Retention Plan that Really Works
What’s Wrong with the Old Retention Model?
We make assumptions: Our members value what we do/offer Our members renew due to civil service or guilt Our members perceive us to be doing the right things (e.g.,
advocacy, events, training, saving them time and/or money) We believe they owe us next year’s dues
We invest most resources too late in the cycle We keep using our old retention approach
8 © 2017 Hight Performance Group
Create a Retention Plan that Really Works
We Need a Strategic Approach to Member Retention
Here’s What to Change
© 2017 Hight Performance Group 9
Create a Retention Plan that Really Works
The Ongoing Membership Cycle
10 © 2017 Hight Performance Group
Create a Retention Plan that Really Works
A Retention Plan is Strategic
Similar to a strategic plan Conduct Situational Analysis
Retention Audit (trends, patterns) Member Feedback
Set Retention Goals Develop strategies to achieve
goals Identify resources for success Implement tactics Monitor outcomes, make
course corrections
© 2017 Hight Performance Group 11
Create a Retention Plan that Really Works
SITUATIONAL ANALYSIS
What’s Driving Our Retention Outcomes?
© 2017 Hight Performance Group
Create a Retention Plan that Really Works 13
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2005 2006 2007
Rete
ntio
n Ra
te
Year
Overall Retention by Year
© 2017 Hight Performance Group
Overall Retention Rates Don’t Tell the Whole Story
Create a Retention Plan that Really Works
Conduct a Retention Audit Identify retention rates, strength and challenge
areas by running segmented reports, such as: Retention by industry sector (NAICS) Retention by size of organization (FTE) Retention by length of time as member Retention by date established (length of time in
business) Retention by Dues Amount Retention by other demographic variables to
understand specific trends
© 2017 Hight Performance Group 14
Create a Retention Plan that Really Works
Drops by NAICS Over last 3-5 Years
© 2017 Hight Performance Group 15
Create a Retention Plan that Really Works
Drops by FTEs
© 2017 Hight Performance Group 16
Create a Retention Plan that Really Works
Drops by Length of Time as Member
© 2017 Hight Performance Group 17
0%
5%
10%
15%
20%
25%
30%
35%
40%
1 year 2 years 3 years 4-5 years 6-10 years 11-25 years 26 - 50 years
More Than 50 years
Drop Rate by Membership Tenure
Drop Rate
Create a Retention Plan that Really Works
Drops by Years in Business
© 2017 Hight Performance Group 18
Create a Retention Plan that Really Works
Retention Trends 1st Year Members
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Rete
ntio
n Ra
te
1st Anniversary Year
Overall First-Year Retention Rates
2005 Retention
2006 Retention
2007 Retention
© 2017 Hight Performance Group 19
Create a Retention Plan that Really Works © 2017 Hight Performance Group
Retention Rates
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1 2 to 4 5 to 10 11 to 25 26-50 51-100 100+
Number of Employees
% R
etai
ned
@ 1
Yr
...
Retention Trends 1st Year Members (FTE)
20
Benchmark Comparisons With Other Peer Organizations
46.4%
• 82% of non-‐renewals had < 10 FTE with average dues of $765
• 75% of all new members recruited in 2015 have < 10 FTE with dues < $1,000
© 2017 Hight Performance Group Create a Retention Plan that Really Works 21
Create a Retention Plan that Really Works
PARTNER ACTIVITY Two Questions to Answer:
1. Who Do You Have the Best Retention with and What Do They Have in Common?
2. Who Do You Have the Worst Retention with and What Do They Have in Common?
© 2017 Hight Performance Group 22
Create a Retention Plan that Really Works
SET YOUR RETENTION GOALS
What Do You Want to Achieve?
© 2017 Hight Performance Group
Create a Retention Plan that Really Works
Retention Goals: What Are Our Desired Outcomes?
Which member segment should you focus on?
What specific results are you hoping to achieve?
What will you do differently?
Sample retention goals (SMART):
Increase our 2017 overall retention rate by 5%, from 82–87%
Increase the average retention rate of 1st-year members 15% by
12/30/18 from 50 – 65%
© 2017 Hight Performance Group
Create a Retention Plan that Really Works
IDENTIFY STRATEGIES TO ACHIEVE YOUR GOALS
Common Retention Strategies
© 2017 Hight Performance Group
Create a Retention Plan that Really Works
Strategy #1: Improve 1st-Year Retention
Recruit for retention and provide incentives
Create a 12-month onboarding plan that includes any of these activities (depending on resources): Welcome letter Membership Packet Member Orientation (in person, over phone,
webinar, or on web site) 1st Quarter Touch (visit, call by staff or volunteer) 2nd Quarter Touch (visit, call by staff or volunteer) 3rd Quarter Touch (visit, call by staff or
volunteer) Outreach, as needed, before receiving renewal Thank you for renewal
© 2017 Hight Performance Group 26
Create a Retention Plan that Really Works
Get New Members Off to a Great Start
© 2017 Hight Performance Group
Create a Retention Plan that Really Works
Strategy #2: Invest Resources for Retention
© 2017 Hight Performance Group 28
Create a Retention Plan that Really Works
Dedicated Staff to Serve as Member Relations Manager Manage volunteer retention resources Coordinate outreach contact to members Manage member recognition program Run Membership Reports to Monitor Retention
Retention audits (annually, semi-annually) Review retention/drop rates by FTE, industry, year joined,
year business established) New members—join date less than 90 days (monthly) Members who are 6 months from renewal (monthly) Engagement reports using the participation fields
(monthly)
© 2017 Hight Performance Group 29
Create a Retention Plan that Really Works
Ambassadors as Resources Outreach contact to members
(calls, visits, notes, e-mails) Meet & Greet at events Postings on virtual venues
(start interactions, respond to interactions)
Onboarding “buddies” Connecting members to other
members Providing testimonials on the “value of membership”
Collecting testimonials (calls, visits, capturing during events)
Recruiting new members
© 2017 Hight Performance Group 30
Create a Retention Plan that Really Works
Member Relations Council
Support for membership staff Conduct 6-month membership
audits Analyze engagement reports
and identify actions to take Outreach to dropped members Recognize members
Anniversary Blitzes Recruit new members Report at Board meetings
© 2017 Hight Performance Group 31
Create a Retention Plan that Really Works
Board Members for Strategic Purpose Contact top investors
Semi-Annual Outreach Talk about current business
issues and Association’s role Speak at events to share the
Association’s strategic direction, accomplishments, and ask for support
Facilitate leadership round tables
Post on virtual venues Recognize and reward
members at special events Send out welcome or “thank
you for renewing” letters
© 2017 Hight Performance Group 32
Create a Retention Plan that Really Works
Retention is Everyone’s Job Include retention activities in
everyone’s job description Decide how different team
members can help to execute your Touch Plan or support retention activities
Create incentives to achieve retention goals
Recognize and reward team members for their contributions and for going the ‘extra mile’
© 2017 Hight Performance Group 33
Create a Retention Plan that Really Works
Strategy #3: Increase Engagement
© 2017 Hight Performance Group 34
Consider multiple ways to increase engagement: Effective Communication
Engage in two-way communication with members during the year Create more awareness of what is offered, how to access benefits,
and share our goals and accomplishments Develop and use value propositions that matter to members
Proactive Engagement Activities Personally invite members to leverage benefits that align with them Use social media platforms to educate, engage and create
interactions amongst members Monitor engagement levels and identify members-at-risk
Increase the Value of Membership Share how value is about VOI (I=investment, influence,
involvement, information) Let members tout the benefits (e.g., interviews, testimonials) Realign programs and benefits to meet members’ evolving needs
Create a Retention Plan that Really Works © 2017 Hight Performance Group
Strategy #4: Monitor Retention Drivers Identify what you will measure and monitor:
How will you measure communication effectiveness? How will you measure engagement? How will you measure members’ perceived value on VOI?
Determine how often you will measure results: How long will it take to see initial results? How often will you check for changes?
Consider how you will manage outcomes: What will you do if the outcomes aren’t favorable? What options will you exercise, if needed?
Use dashboards to provide current and important information What do you want to know on a weekly, monthly or quarterly basis? What type of information is important for you to track on retention? Which reports do you need for your dashboards?
35
Create a Retention Plan that Really Works © 2017 Hight Performance Group
Sample Dashboards (TY Weblink)
36
Create a Retention Plan that Really Works
How Do We Improve the Cycle?
© 2017 Hight Performance Group 37
Acquisition Effective value-propositions focused on
benefits, not features Special promotions, incentives Recruit for retention
Integration o Get new members engaged quickly o Provide additional resources to onboard new
members successfully Engagement
Provide multiple and diverse opportunities for members to be part of sub-communities based on interests
Monitor engagement levels and target members with lower engagement levels
Renewal & Reinstatement Make it easy to renewal Make it automatic Offer renewal incentives Stop providing benefits with lapsed
memberships Focus on win-back campaigns Continue to market to past members
Create a Retention Plan that Really Works © 2017 Hight Performance Group
Session Summary A retention plan is strategic, proactive, long-term
and requires resources The overall retention rate is not enough, the
retention audit tells the real story about drivers Develop goals, strategies and resources that will
drive positive outcomes The Membership Cycle is an ongoing process What will you do to change your retention rate?
38
Create a Retention Plan that Really Works
Retention is the Key to Your Chamber’s Growth
“It never ceases to amaze me that companies spend millions to attract new customers (people they don’t know) and spend next to nothing to keep the ones they’ve got. Seems to me the budgets should be reversed.”
– Jeffrey Gitomer, Customer Service is Worthless, Customer Loyalty is Priceless
39 © 2017 Hight Performance Group
Create a Retention Plan that Really Works
Let Us Know How We Can Help
• Contact me at (512) 354-7219 or at [email protected]
40