Compiling the best practices key takeaways to use in your membership organizations.

1. Retention Best Practices
Study Findings
Presented by:
1

2. METHODOLOGY
2
Industry Benchmarks *
• To find industry benchmarks, we compiled, synthesized, and distilled the leading secondary research
on renewal practices of membership associations.
Survey Target Organizations
• Target Organizations were selected and filtered based on how well they met 10 criteria, to ensure they
were a good fit for the study. Participants completed a 17-question online survey and a 50-minute
phone interview.
*Industry Benchmarks come from a much larger sample size of 394 individual membership associations.
National
Scope
Large
Base
Periodic Active
Renewal Ask
(annual)
Targets
Individual
Consumers
(not B-to-B,
not for their
trade)
Targets
Mostly 50+
Consumers
Ask for
Affirmation
/money
Rely
Heavily on
Direct Mail
Selling the
Power of
Membership
in a Group
Direct
Marketing
Assoc.
Member
Top 50
Mailer of
2015*
TOTAL Potentially Clinching Details
Membership Service Groups
Individual Member Associ. x x x x x x x x x x 10
Motor Club A x x x x x x x x x 9 Similar target, annual renewal opt-
in
Motor Club B x x x x x x x x x 9 high match
Professional Ogranizations
Professional Society A x x x x x x x 7 Direct connection, New to the Top
mailer list
Professional Society B x x x x x 5 Direct connection

3. COMPARABLE ORGANIZATION ANALYSIS
3
# Organization Category Retention Rate
1 Nat. Mem. Assoc. Advocacy / Lobby 78%
2 Professional Society A Advocacy / Lobby 78%
3 Professional Society B Advocacy / Lobby 80%
4 Leading Insurance Co. Insurance 88%
5 Motor Club Insurance 76%
6 Magazine A Special Interest 74%
7 Magazine B Special Interest 70%
8 Fundraiser A Special Interest 32%
9 Fundraiser B Special Interest 69%
10 Alumni Assoc. Alumni Association 67%

4. KEY
TAKEAWAYS
4

5. KEY TAKEAWAYS
5
 Lack of perceived value is always the biggest obstacle to renewal.
• All of our interviews and all of the research underlines this point. Tactics are secondary to
value.
• The first year is key. If the value is not there the first year, renewal is far less likely across the
board.
 Auto-Renew is the number one factor in increasing renewal rates.
• Most organizations are doing it and have seen rapid growth in the program since launch
• Renewal rates are much higher for those who enroll, which these organizations credit for
much of their improved results.
 Direct mail is the workhorse, but email is important.
• Most large organizations rely predominantly on direct mail. The most prevalent and
successful style is a minimalist invoice that “assumes the renewal”.
• Renewal emails are important, even when they do not directly result in conversions, because
they improve response in conjunction with DM.

6. 6
 Renewal emails is not “opt-in”.
• Most organizations surveyed treat renewal notices as transactional, not opt-in required. They
generally use “invoice-style” messaging.
 There is a retention window sweet-spot.
• Most high-performance focus on soliciting just three months pre-expire.
 Renewal does not stop expiration.
• For the majority of organizations surveyed, renewal efforts continue for several months post-
expiration. For many, up to 50% of renewals take place after expire.
• The top-performing organizations continue to pursue lapsed members indefinitely. For most,
email is the most productive channel for lapsers.
 Grace periods help renewals.
• A grace period of 2-3 months post-expire before benefits stop is correlated with higher
renewal rates in surveys.
• Our primary research bore this out.
KEY TAKEAWAYS

7. SUMMARY
FINDINGS
7

8. MEMBERSHIP POPULATIONS ARE SIMILAR
8
The majority of organizations surveyed have member populations of a very similar age. As such, they can
reasonably be expected to be a strong point of comparison for best practices in this demographic.
0% 0% 0% 0% 0% 4%
20% 10%
0% 0% 5% 5% 5% 17%
30%
40%
100% 100% 95% 95% 95% 61%
50% 50%
0%
20%
40%
60%
80%
100%
Fundraiser A Magazine A Nat. Mem.
Assoc.
Motor Club Fundraiser B Magazine B Prof. Society B Alumni Assoc.
AGE OF MEMBERSHIP
Millenials (18-34) Generation X (35-50) Baby Boomer (50+)
5% 5% 15% 20% 15% 16%
30%20% 20%
40% 40%
30% 21%
25%35% 35%
30% 30%
25%
14%
20%
40% 40%
15% 10%
5%
9%
25%
0%
20%
40%
60%
80%
100%
Fundraiser A Magazine A Nat. Mem. Assoc. Motor Club Fundraiser B Magazine B Pro. Society B
AGE OF 50+ MEMBERSHIP 50-59 60-69 70-79 80+

9. THE VALUE PROPOSITION DRIVES RENEWAL
9
Both Industry Benchmarks and our survey findings conclude that the value is the most common reason
not to renew.1
• The most common complaint after “not seeing the value” is that too much effort is required to engage in
meaningful benefits.
1 2016 Membership Marketing Report, Marketing General, Inc.
28%
Lack of
engagement with
the organization
26%
Could not justify
membership costs
/ lack of ROI
24%
Forgot to renew
22%
Too expensive
19%
Lack of value
VALUE PROPOSITION
Top Reasons for Not Renewing
37%
Left the field,
industry or
profession

10. NEW MEMBERS NEED TO CLEARLY UNDERSTAND MEMBER BENEFITS
10
If an organization can clearly communicate the value of membership early in a member’s tenure, they can
create lifelong members, as member retention grows significantly after the first year of membership.
• Prof. Society B, Fundraiser A and Magazine B message their first-year members differently to highlight the benefits and
value of membership
88%
80% 80% 78% 78% 76% 74% 70% 69% 67%
32%
0%
20%
40%
60%
80%
100%
Insurance Co. Industry Avg. Prof. Society B Nat. Mem.
Assoc.
Prof. Society A Motor Club Magazine A Magazine B Fundraiser B Alumni Assoc. Fundraiser A
Overall Retention Rate
62% 60%
53% 53%
40%
35% 34%
25%
20%
0%
10%
20%
30%
40%
50%
60%
70%
Industry Avg. Motor Club Fundraiser B Nat. Mem.
Assoc.
Prof. Society B Magazine B Alumni Assoc. Magazine A Prof. Society A Insurance Co. Fundraiser A
1st Year Retention Rate

11. FIRST-YEAR MEMBER RENEWAL IS A UNIVERSAL CHALLENGE
11
All organizations surveyed struggle retaining first year members.
• Clearly communicating the value of membership early in a member’s tenure can create lifelong members, as
member retention grows significantly after the first year of membership.
• Prof. Society A, Magazine A, and Magazine B message their first-year members differently to highlight the
benefits and value of membership.
The longer the
membership history,
the higher the
retention rate
becomes. If we can
keep them past 3 years
– we retain better. 40%
at first year vs. 80-90%
later.
Prof. Society B
New people take
more work – new-
to-file subscribers
don’t renew as
quickly or as
strongly as long-
term subscribers.
Magazine B
1st yr RR 53%
2nd yr RR 61%
3-4 yr RR 71%
5+ yr RR 82%
Fundraiser BPaid members
transitioning from a free
student membership
renew at higher rate
than normal first year
members: 27% (vs. 19-
20%)
Prof. Society A
Renewal jumps from 1st
year at 60% to 2nd year+
at 80%. The hardest
person to renew is a
first-year cash payer.
Motor Club

12. AUTO-RENEW IS QUICKLY GAINING TRACTION
12
• 60% of organizations surveyed offer auto-renew.
• Of those with an established auto-renew program, on average, 26% of their entire membership base
is enrolled.
• Organizations starting an auto-renew program have grown their enrollment by 37% annually on
average.
Yes, 6
No, 4
Do you offer auto-renew?
35%
33%
22%
12%
10%
1%
0%
10%
20%
30%
40%
Motor Club Prof. Society B Magazine B Magazine A Alumni Assoc. Nat. Mem. Assoc.
% on Auto Renew
58%
33%
21%
0%
10%
20%
30%
40%
50%
60%
70%
Motor Club Magazine B Prof. Society B
Annualized Auto-Renew Enrollment Growth (4+ years)
* Magazine A also offers “Auto-Billing”, which sends enrolled members a renewal invoice each year.

13. AUTO-RENEW – BIGGEST IMPACT ON RENEWALS
13
Improving our auto-
renewal effort by using
every opportunity to
ask/incent members to
sign up for auto-renew.
Prof. Society B
Driving customers
to automatic
renewal
(monthly/annual
basis, linked to
bank account).
Insurance Co.
Focusing on “Continuous
Service” (auto-renew) by
making a mandatory
requirement for online channel.
Still looking to expand it.
Magazine B
Shift to auto-
billing
Magazine A
Moving
customer to
auto-renewal.
Motor Club
Auto-renew is new
and already showing
strong numbers.
Alumni Assoc.
Focused on new creative
after hiring new staff – New
card design, new letter.
Doing better job with the
levers we always had. Called
“Continuous service”.
Fundraiser A
Getting more
aggressive in our
asking strategy.
Looking at historical
highest contribution
and asking for 2 levels
above.
Fundraiser B

14. DIRECT MAIL IS KING
14
Direct mail still drives renewal and commands the lion’s share of budget allocation, but several
organizations rely on a synchronized campaign of Direct Mail, Email, and Telemarketing to keep
awareness high throughout the renewal cycle.
0%
20%
40%
60%
80%
100%
Magazine B Magazine A Nat. Mem. Assoc. Fundraiser A Fundraiser B Motor Club Prof. Society B
Renewal Budget Allocation
Direct Mail E-mail Telemarketing Online (paid search, campaigns)
100% 100% 100%
85% 85% 80% 76% 75% 70%
0% 0% 0%
10%
0% 1%
15%
4% 8%
0% 0% 0% 5% 0%
20%
9%
20% 22%
0%
20%
40%
60%
80%
100%
Insurance Co. Motor Club Fundraiser A Alumni Assoc. Fundraiser B Magazine B Prof. Society B Nat. Mem. Assoc. Magazine A
Renewals by Channel
Direct Mail E-mail Other

15. EMAILS PLAY THEIR PART
15
Emails are utilized in-between Direct Mail drops as reminders. Prof. Society B and the Alumni Assoc. both
gain over 10% of their renewals through email.
5
9
7
3
1
4 4 3
1 2
10
4 8
7
4
2
4
4
3
3
1
1
1
3 2
1
2
0
5
10
15
20
Nat. Mem. Assoc. Prof. Society B Fundraiser A Magazine B Motor Club Prof. Society A Fundraiser B Magazine A Insurance Co. Alumni Assoc.
Pre-Expire Contacts by Channel
Emails Direct Mails Phone Other
17
6 5
1 2 1 1
9
3 5
5 4
5 2 2
1
2
1
2
2
1
0
5
10
15
20
25
30
Prof. Society B Prof. Society A Fundraiser B Nat. Mem. Assoc. Magazine A Magazine B Motor Club Alumni Assoc. Insurance Co. Fundraiser A
Post-Expire Contacts by Channel
Emails Direct Mails Phone Other

16. RENEWAL EMAILS ARE TRANSACTIONAL
16
The majority of organizations surveyed consider renewal emails to be transactional and do not require a member
to “opt in” to receive renewal communications. The average email database can reach 61.4% of the membership.
90%
81% 80%
60% 60% 60%
50% 50%
43%
40%
0%
20%
40%
60%
80%
100%
Alumni
Assoc.
Prof.
Society B
Prof.
Society A
Insurance
Co.
Fundraiser
A
Magazine
A
Nat.
Mem.
Assoc.
Motor
Club
Fundraiser
B
Magazine
B
Member Email Coverage
Global Opt-In
Required
10%
Transactional
60%
N/A
30%
Renewal Email Classification

17. RENEWAL STREAM DURATION & EFFORTS
17
Renewal stream averages: Begins 3.9 months pre-expire with 7.1 contacts and continues 12+ months
post-expire with an additional 5.8 contact. Total average contacts: 12.9
7
4 4 3
6
4 5
3 2 2
12
12 12
12
4
6 4
6
3 3
70%
80%
32%
69%
78% 78% 74% 76%
88%
67%
0%
20%
40%
60%
80%
100%
0
5
10
15
20
Magazine B Prof. Society B Fundraiser A Fundraiser B Nat. Mem. Assoc. Prof. Society A Magazine A Motor Club Insurance Co. Alumni Assoc.
Renewal Stream Duration (Months)
Pre-Expire Contact Duration Post-Expire Contact Duration Retention Rate
+ + +
+
16 16
8 8 11 15
7 8 5 5
29
6
11 10 5 0
6 4
4 2
80% 78% 78%
69% 70%
32%
74% 76%
67%
88%
0%
20%
40%
60%
80%
100%
0
10
20
30
40
50
Prof. Society B Nat. Mem. Assoc. Prof. Society A Fundraiser B Magazine B Fundraiser A Magazine A Motor Club Alumni Assoc. Insurance Co.
Renewal Stream # of Contacts
Pre-Expire # of Contacts Post-Expire # of Contacts Retention Rate

18. MEMBER RENEWAL TIMING
18
When averaged, the majority of renewals are captured pre-expire. However, several organizations renew a
large portion of their membership post-expire.
45%
30%
5% 5% 5%
0% 0% 0%
45%
55%
45%
40% 40%
90%
51%
40%
10%
15%
50%
55% 55%
10%
49%
30%
78% 78%
80%
74%
32%
76%
69%
67%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Nat. Mem. Assoc. Magazine B Prof. Society B Magazine A Fundraiser A Motor Club Fundraiser B Alumni Assoc.
Member Renewal Timing
% Renewing 5+ Months Before Expire % Renewing 0-4 Months Before Expire % Renewing Post-Expire Retention Rate

19. GRACE PERIODS HELP RENEWAL – INDUSTRY BENCHMARKS
19
Grace periods help member renewal – Associations that do not offer a grace period generally see lower
retention rates than those that do. On average, grace periods last 3 months.
18%
25%
46%
9%
2% 1%
We don't offer a grace
period
One month 2 to 3 months 6 months One year More than a year
FIGURE 20 – Length of grace period
• Individual member organizations with renew rates under 80% typically do not offer a grace period beyond three months; only 1%
offer a six-month grace period.1
• Individual member organizations with an 80% or higher renewal rate offer a wider range of grace periods: 17% offer a one-month
grace period; 52% offer a two-to-three-month grace period; and 11% offer a six-month grace period. 1
1 2016 Membership Marketing Benchmarking Report, Marketing General, Inc.