Member retention is five to seven times more cost-effective than member acquisition.
In light of the remarkable membership growth of 2021, it's essential to highlight the significance of member retention strategies for the year ahead. Research by Harvard underscores the potential for substantial profit increases, ranging from 25% to 95%, with just a five percent boost in retention rate. These strategies not only foster brand awareness and reputation through word-of-mouth endorsements from devoted members but also offer opportunities to cultivate constructive relationships, gather valuable feedback, and address flaws based on members' needs. Loyal members, as studies indicate, are six times more inclined to explore new programs, services, and products. Furthermore, fostering member loyalty reduces the occurrence of discontented members, creating a more harmonious atmosphere. To harness the momentum from 2021 and capitalize on the recent surge of interest among new members, consider collaborating with Private Club Marketing. We can help streamline your marketing and member communication efforts, allowing you to focus on referrals and, most importantly, member retention.
Key Date
- Member retention is more cost-effective than member acquisition. It costs five to seven times more to acquire a new member than to retain an existing one. (Bain & Company)
- Repeat customers spend more money. Loyal members spend an average of 67% more than new customers. (Frederick Reichheld)
- Member retention leads to higher profits. A 5% increase in customer retention can lead to a 25%-95% increase in profits. (Bain & Company)
- Member retention is good for brand reputation. Happy and satisfied members are more likely to recommend your brand to others.
- Member retention can help you identify and address problems. By gathering feedback from members, you can identify and address problems before they cause members to churn.
In addition to the financial benefits, member retention is also good for your Club's reputation. Happy and satisfied members are more likely to recommend your Club to others. According to a study by Bain & Company, 91% of customers are more likely to purchase from brands that provide them with meaningful and relevant offers.
By gathering feedback from members, you can identify and address problems before they cause members to churn. For example, if you start to see a decline in member satisfaction ratings, you can survey members to find out what's wrong and take steps to fix it.
Member retention is essential for any business that wants to grow and succeed. By focusing on member retention, you can increase your profits, improve your brand reputation, and create a more harmonious atmosphere for your members.
