Reactive member retention strategies are focused on members that have passed their renewal period and chosen not to renew.
These types of strategies are often more common than those aiming to proactively increase reactive retention and unfortunately can often be very transactional in nature.
In a typical example, an automated system could contact the ex-member three times after their renewal date and categorise them as lapsed if no response was received. This is often a function of the membership department and enacted via mass communication methods so there is significant scope for improvement.
Again, segmentation is an essential first step to making reactive retention strategies more effective. By filtering members through simple conditions, we can identify the different approaches that might improve the retention rate.
This means tailoring communication methods to individual member preferences and planning the strategy for follow-ups across a mix of automated channels. For example, if no reply is received to two email messages, it might be appropriate to then trigger a final attempt via text message.
Selecting an Approach
Some proactive work is always needed but much can be automated with a modern CRM system. Data hygiene checks can ensure all fields are accurately completed when logging members’ preferred communication methods and analysis of previous response rates can give clues on which approach might yield the best results.
We can for example, define four segments to select a communication channel based upon member behaviour:
- Are they a regular website user? – Communicating via the website might be effective
- Do they exhibit a high email click-through rate? – An email notice might work best
- Have they made regular calls to the service desk? – These people might prefer a phone call
- Did we record little or no interaction? – Send a renewal notice by post
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