Cultivating the Lifetime Member Presented by Cathleen Hight 2006 ACCE Convention © 2006 Hight Performance Group

© 2006 Hight Performance Group Session Objectives Explore factors that foster loyalty Recognize how lifetime value impacts your bottom line Determine how to measure what members are really worth Discover which benefits and levels of investment are attractive to members Identify ways to communicate value to members Explore ways to compel members to take advantage of their ‘slice of the pie’ 2006 ACCE Convention © 2006 Hight Performance Group

© 2006 Hight Performance Group Session Agenda What makes members loyal? What are members worth? What attracts members to join and renew? How do we communicate value to members? How do we compel members to use their ‘slice of the pie?’ 2006 ACCE Convention © 2006 Hight Performance Group

Who Are You Loyal to and Why? Who do you give your business to and you wouldn’t think about switching—even if someone else in town is cheaper? Why are you so loyal to this person or business? 2006 ACCE Convention © 2006 Hight Performance Group

What Makes Members Loyal? Factors may mean more to specific members Targeted Communication Unique Benefits Met Needs Involvement Consistency Personal Recognition Address Challenges Experiences Responsiveness 2006 ACCE Convention © 2006 Hight Performance Group

The Member Loyalty Ladder The Top Rung HIGHLY LOYAL Lifetime valued member Top Rung Understudy Somewhat Loyal Lifetime potential member Top Rung Candidate Very Satisfied Stable, consistent member Status Quo Rung Satisfied The Underground Level of Satisfaction Slipped Rung Disappointed Rechargeable member Noisy Rung Pissed Off Soon-to-discharge member Absent Rung Apathetic Lost member 2006 ACCE Convention © 2006 Hight Performance Group

What’s a Member Really Worth? The Lifetime Value of Member = Member dues revenue for each year Member non-dues revenue for each year Referral values for each year Member dues revenue for each referral Member non-dues revenue for each referral 2006 ACCE Convention © 2006 Hight Performance Group

“Lifetime” Value of a Member If a new member is A, then: A = New Member = (First year dues + first year non-dues revenue) + ((no. of annual renewals) x (dues + annual non-dues revenue)) +   B = Referred New Member (no. of referrals x A) Example: A = (300 + 300) + ((4 x 300) + (4 x 300)) = (1st yr dues + 1st yr non-dues $) + (4 yrs renewal dues x amt. of non-dues $) 3000 + (5 x 3000) = $18,000 (Total A $) + (5 renewals x value of a new member for 5 years) 2006 ACCE Convention © 2006 Hight Performance Group

Lifetime Value of Members and the Bottom Line The Lifetime Value of a Member Is more than one transaction It’s all the transactions he/she will do with the Chamber as long as he/she is a member It’s all the referrals he/she will ever bring to the Chamber All members have worth and some members are worth more than gold! 2006 ACCE Convention © 2006 Hight Performance Group

What Attracts Members to Renew Year After Year? Which benefits and programs attract members? What’s important What’s new and upcoming? How do you find out what members want? How do investor levels create value for members? Why tiered dues are popular How do you create investor level value? 2006 ACCE Convention © 2006 Hight Performance Group

How Do We Engage Members? The Member Value Worksheet Ways to communicate value The Membership Audit Other best practice engagement ideas 2006 ACCE Convention © 2006 Hight Performance Group

Why Take Time to Make it Personal? Value is in the eye of the beholder—namely the member Assumptions are dangerous Lack of communication can yield surprises Invoicing for renewals is too late to know An audit mid-year provides time for course corrections 2006 ACCE Convention © 2006 Hight Performance Group

© 2006 Hight Performance Group Summary Loyalty takes time to develop Your members are a lot like you Lifetime Value of Members is tied to your bottom line Quality of members is as important as quantity, maybe even more important Learn what’s important to members and stay on top of evolving changes Value is in the eye of the beholder Engagement requires proactive, personal communication 2006 ACCE Convention © 2006 Hight Performance Group

Where to Get More Information Talk to other Chamber professionals Read books, articles, electronic sources on: customer loyalty, customer experience management, and lifetime value Contact us: (720) 304-0747 or info@hightperformance.com 2006 ACCE Convention © 2006 Hight Performance Group