Aptify

The Financial Times published a very interesting article today regarding the growing use of "predictive analysis" tools capable of detecting when customers are growing unhappy with a company. With most companies still facing tough conditions despite recent signs of improvement, many managers have shifted their focus from attracting new business toward keeping customers that they already have relationships with. This concept has important implications for member based organizations as well.

Capturing Relevant Data

While the specific tools and technologies used by companies vary widely, no solution can work at all without relevant, timely, and accurate data. Attempts to predict outcomes based on incorrect or partial sets of data can lead to wasted resources and can even backfire. Member based organizations need to ensure that all data relevant to members are stored in a central repository rather than data silos restricted to individual departments. Any attempt to build an analytical framework prior to being satisfied that all relevant data are accurate and timely can be an exercise in futility.

Selecting Criteria to Measure

Once an organization is satisfied that sufficient data has been captured, it is necessary to come up with specific criteria that can help identify members that may be at risk of not renewing their dues in the future. The criteria will be different for each organization but there are some common themes that nearly all organizations can measure. For example, most associations find that members who are engaged with the community in various ways are most likely to renew their dues.

With a comprehensive information system, a manager can identify members who have never engaged with the organization except for paying their dues. A member who never logs into the organization's website, does not attend meetings or conferences, and has not made additional purchases during the year may be at high risk for not renewing in the future. By analyzing past data for non-renewals, such patterns can become apparent and then incorporated into your member retention strategy.

Of course, each organization will need to select additional criteria and this will be an iterative process that can be refined over time.

Taking Action

Action can be taken to engage with such members prior to the renewal cycle assuming that relevant the data capture has taken place and appropriate criteria have been identified. Members who have not participated at all during the year can be contacted through written communications or by phone. Special offers can be targeted to those who may be specifically at risk rather than providing such offers to all members including those who are almost certain to renew anyway. The methods used to reach out to members will vary for each organization, but the idea of spending time to save members is universal. It invariably costs much less to retain a current member than it does to attract a new one.

Many Other Possibilities

Member retention only scratches the surface of what is possible through effective analysis of member behavior. For example, it is possible to track member activity on your website in a way that can reveal the types of content they are looking at and to target products or services specifically to those who may be interested. There are some privacy issues to be aware of when monitoring website usage but it is now quite common for privacy policies to permit this type of data collection.

Of course, the key to all of these exciting possibilities is to have accurate and timely data to begin with. Regardless of the member management system you are using, it is wise to invest the time to ensure the quality and accuracy of your data in a manner that can help with member retention. Type your content here...