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

2. © 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

3. © 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

4. 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

5. 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

6. 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

7. 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

8. “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 = ( ) + ((4 x 300) + (4 x 300)) =
(1st yr dues + 1st yr non-dues $) + (4 yrs renewal dues x amt. of non-dues $)
(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

9. 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

10. 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

11. 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

12. 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

13. © 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

14. 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) or
2006 ACCE Convention
© 2006 Hight Performance Group