Tag Archives: Membership Renewal

  • Direct Mail is the Foundation for Effective Membership Marketing

    As we deploy new and exciting marketing channels, it is often good to step back to be sure that we are not forgetting about the tried and true performers.  That’s why I found an article by Kevin Mills, the Director of Membership for the National Legal Defense Association, a good reminder. In the April issue […]

  • A Membership Marketing Diagnostic Tool

    Last month was really busy. I met with many organizations that have cut budgets over the last couple of years.  They are now realizing that there is very little else to cut and they need to grow membership.

    And it is sad to say that some of them do not realize just how much trouble they may be in going forward.

    When I meet with groups, I use a simple method to calculate where their membership is headed given their current metrics. It is called a Steady State Analysis.

    Using your current data, you can also do this analysis to see what the ultimate equilibrium of your association membership count will be. You can also use the analysis to model where it might be if you add more new members or have higher renewals.

    To do the calculation, you only need two numbers; your renewal rate and your total new member input from the past year. Here is how it works. You take your new member input from the past year and divide it by your lapse rate presented as a decimal. So if your renewal rate is 80%, then your lapse rate is 20% or .20.

    For example, 20,000 New Member Input / .25 Lapse Rate = 80,000 Steady State Total Membership.

    Here is the formula: Annual New Member Input / Reciprocal of Renewal Rate (or Lapse Rate) Shown as a Decimal = Total Membership Steady State.

    Here are three examples of how you can project your future membership.