recruit for retention 8 13-09

©2015 Hight Performance Group Recruit for Retention 1

Recruit for Retention

Explore the keys to recruit members right from the start!


Session Objectives

Explore the right reasons for recruiting new members

Recognize why recruiting approaches fail

Maximize the Member Acquisition and Retention Cycle effectively

Discover strategies to recruit for retention


Recruiting Pros and Cons

Consider your current recruiting practices


Common Reasons to Recruit New Members

Great reasons to recruitProspects are referred by very satisfied or loyal membersProspects see value in the organization, its brand and wants to invest in the organization and/or communityProvides long-term growth for the organization and communityProspects fit ‘Ideal Member’ profilesMakes a difference for members and the community

Poor reasons to recruitMake new member sales quotasTemporary cash flow infusionSupport commission-based behavior


Popular Ways to Recruit New Members

CEO/Staff sell membershipsPro – They know the brand and its benefits the bestCon – Takes time away from top priorities and serving members

Commissioned sales staffPro – Core function, focus, and better selling skillsCon – May focus on easy sales, recruiting to meet quotas

Board members sellPro – Leaders support the organization and provide credibility to their peersCon – Approaches may be inconsistent

Volunteer sales clubs (Ambassadors, Diplomats)

Pro – Year-round effort, and time to train and applyCon – Approaches may be inconsistent

Short-term membership drivesPro –Intense focus over short duration, organized campaigns, cash flow infusionCon –Rush to meet goals, poorest retention rates, sellers compete for prizes

Community awareness programsPro –Organized campaigns, training on sales messages, educating targeted recruiting, educating the community and prospects about the organization, staff training and support on retention


Why New Members Don’t Renew

They don’t really understand the organization’s goals, mission or benefits (or buy into it)They were recruited for incentives or aggressively encouraged to join (favor to a friend)They don’t use the benefits offeredThey are not engaged (e.g., read/respond to e-mails, surveys, polls, events, networking, advocacy initiatives, interact with other members)


Fundraising vs. Long-term Membership Growth

FundraisingShort-term focus for immediate needs

Anyone-will-do mentality

Sales feel pushy

Long-Term Membership Growth

Strategic, long-term focus

Recruit for retention

Based on building and selling the Chamber’s brand

Sale is aligned with prospects’ needs/interests


Impact of Attrition on Your Bottom Line (courtesy of Keybrick Information Systems)

600

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635

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

FY 2006 FY 2007

540

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570

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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

FY 2006 FY 2007


The Real Impact of Attrition

Attrition means you have fewer of the original members from three or more years agoNew members take the place of lost members = no real membership growthAttrition results in lost total revenue (dues and non-dues)Unsatisfied lost members hurt the Chamber’s brand and reputation


Keys for Recruiting for Retention

Best Practices from the Field


The Member Acquisition and Retention Cycle


#1 Improve the Member Acquisition and Retention Cycle

Recognize the cycle is ongoing

Realize that a communication plan impacts recruiting new members and retaining current members

Acknowledge that renewals are earned each and every year (the cycle starts all over again)

Retention starts with recruiting effectively

Recognize that engagement is linked to retention


#2 Create Ideal Member Profiles

Create 3-4 ‘Ideal Member’ ProfilesRecruit Ideal Members (target those that match up)Use value propositions that align with prospects’ needs and interests (not what you want to sell)

Ideal Member Profile #2• 10>FTE• Been in biz 3> years• Franchise owner, multiple locations• Involved and invested in the

community• Sees the value in being members of

associations

Ideal Member Profile #1• 5-9 FTE• Been in biz 3> years• Locally based enterprise• Realizes that getting

involved = getting results• Long-time resident


#3 Identify Your Recruiting Objectives

Recruit 50 new members in 5 days (no qualification)

Collect $40K in new member sales in 5 days (no qualification)

Recruit 250 new members in 2009 (or $200K in revenue) who value who we are and what we do

Target the top 100 prospects that match our Ideal Member profiles for membership in 2009


#4 Align the Sale to the Prospect

Learn about the prospect’s challenges and goals

Explore what they are already doing without you

Stop selling and help prospects buy!


#5 Understand the Purpose of Membership Development

Recruiting prospects who want to invest in your organization and benefit from what you offer

Retaining members by delivering on your brand—its promises with the best customer experiences possible


Three Components of Membership Development

Planning“Proper planning prevents poor performance”

ToolsDevelop effective marketing collateral and sales tools

TrainingTrain staff and volunteers on how you want them to sell memberships


Factors to Consider for Recruiting

These factors may dictate how you recruit successfully: Number of paid staffMembership sizeCost of saleLevel of volunteer commitmentSize of market served (e.g., town, county, state, region, nationwide)Resources for recruiting (e.g., budget, time, staff)Campaign frequency (e.g., 1/year, 2/year, ongoing, bi-annual)Number of walk-ins and self-joinersEffectiveness of other recruiting campaigns (e.g., direct mail, e-mail marketing, advertising, partnerships and alliances)


Six Steps to Effective Membership Development

Identify your market for recruitingDefine your product (membership) clearly:

Benefits vs. features (what it is/what it does, tangible & intangible)Three simple benefit categories (make money, save money, make things happen)

Price your product correctly (fair share vs. tiered dues)Deliver the product with clearly set expectations of valueTeach members how to use what you offerProvide exceptional customer service and deliver on the promise/expectations


Session Summary

Recruit right from the start

Stay true to your recruiting objectives

Develop a long-term strategy for membership development and membership growth

Choose the ‘right way to recruit’ for your organization

recruit for retention 8 13-09

Government & Nonprofit