For my article "Make More Money from Members" to appear in Main Street News next month, I created a short case study about Libertyville's membership renewal issues to illustrate how downtown organizations should approach retention of one of their most important assets, their members.
Case study--MainStreet Libertyville
Renewing 1200 new members
In September 2007 MainStreet Libertyville in suburban
Realizing that the very future of the organization was at stake, the board devised an appeal to the community to step up and assure that the highly regarded 65 days of downtown programming could continue in 2008. A prominent real estate broker and former board chair offered to match all new contributions up to $10,000, which generated a considerable outpouring of support. All told, $97,000 was raised from more than 1200 members over four months.
But now, nine months later, the organization must begin to renew these community members. Member revenue has become the very lifeblood of their organization, and represents close to 50% of their annual budget. While it is a true that it is cheaper to renew than get a new member, renewal rates are unpredictable. An 80% renewal rate goal might be optimistic given that so many of
An analysis of the MSL membership tells the story. Eighty seven (87) donors give $250 and above but this group accounts for close to 40% of revenue. Three hundred and ninety six (396) $100 members make up almost 40% of revenue. Finally smaller donors (those giving under $100) make up only 20% of the revenue, despite the huge number (562) number of members in these categories.
Revise the dues structure
I worked with the organization this summer to outline a renewal plan. First, we reviewed the current giving levels and suggested some new categories and revisions, to permit small, incremental increases for those that wished to upgrade their membership. We also added the ability to pledge or give automatically on a monthly or quarterly basis. Finally, we encouraged the organization to accept American Express cards to round out the options available.
Renewal process
For renewal purposes, we segmented their members into larger categories based on the gift chart. Those giving above $250 should be renewed in person as most are already known to the organization as board members, volunteers or longstanding friends. Board members should make the pitch to these donors in the tenth (10th) month of their membership year.
A Renewal Task Force of the Organization Committee was suggested to make telephone calls after the first renewal letter goes out to all 396 $100 members. Using various methods, including email, letters and phone calls, to renew these critical donors over the traditional three month renewal period (months 10, 11 and 12 of the membership year) will help the organization get through the clutter. During phone calls, we suggested asking members to consider upgrading their membership or offering the ability to pledge either monthly or weekly. Task Force members will call those they know on the list, as a call from a friend will be a potent reminder to renew. For members giving below $100, we suggested that renewals by letter or email over the last three months of their membership year made the most sense.
Planning and tracking
Preparing for this important renewal season requires good cooperation from the Organization Committee, as a Renewal Task Force is needed to make phone calls to follow up on the $100 gifts and help with planning and tracking. Form letters, envelopes, business reply envelopes and bulk mail will be needed to accomplish the massive renewal effort. Volunteers are needed to hand sign, check and personalize letters to 1200 members.
The organization uses the Main Streets Data Base Template which allows for good reports to show the results of the effort to renew these members. Perseverance is essential during the key renewal weeks, so that various contact methods can be tested to see what works best.
Contact me if you wish to get a copy of the entire article once published by the National Trust Main Street Center's Main Street News in September.
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