Never Let Them Go: Improving Member Retention

Filed under: Fundraising, Membership, Retention, Segmentation — Carl Bloom at 5:24 pm on Saturday, August 9, 2008

Public broadcast organizations are struggling mightily with drop-off in their membership. They’re not the only ones, but they have begun to focus on the problem as an industry priority.

So it’s surprising that more organizations aren’t trying new ways to use their member data. Specifically, the tried-and-true concept of direct-response segmentation can yield big jumps in renewals. It just takes a little work. Okay, maybe a lot of work. But it’s worth it.

CBA routinely uses segmentation to improve retention rates. In direct-mail, telemarketing, and even email communications, we invoke recent member behavior in the renewal package, such as:

  • What type of appeal did the member respond to when they first joined?
  • Were they watching a particular program as part of a fund drive?
  • Were they contacted by telephone?
  • Did they call up because of a direct mail solicitation?
  • We reference their source in our copy.
  • What programming was of interest to them? We like to remind them of the programming that may have prompted their membership decision.
  • What level did they give at? Be sure to remind them in the gift ladder, and add a percentage increase with it.

Segmentation can go further, and target different appeals by age demographic. Since all nonprofits are struggling to expand their support base to include younger generations, they need to get creative in using their database to determine how to retain GenX and GenY members and keep them on board with appeals that are most meaningful to their age group. It’s also worth testing the degree to which younger members prefer e-communications over other media.

I personally would love to hear from other organizations that have improved retention through segmentation. What’s working for you?

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