It’s Cheaper than Acquiring New Ones: Retaining Members to Your Service

The benefits of retention are well known: it’s cheaper and easier to retain existing customers than it is to try to acquire new ones. Secondly, retained customers play a vital role in the acquisition of new customers through word-of-mouth. Thirdly, retained customers have a higher monetary value, due to being more susceptible to cross-selling initiatives. So, retention is important. But, it’s difficult to achieve, especially for membership organisations. Numerous organisations work on a membership-based business model, such as health clubs, trade unions, charities and even professional associations. Often, recruiting and retaining members is fundamental to the success of these enterprises which rely on membership fees as their primary revenue stream.