All organizations have a natural membership flow: new members sign up, while other members cancel their subscription. How come certain organizations (associations / companies / clubs) are much better in keeping members than others ? In this article we show you how your organization will be much more successfull in keeping members, by using the method of passive renewal.
Organizations take different measures to make it attractive for members to become a member and in the next period renew the membership. Organizing events, public profiles for professionals, discounts on renewal. But there is not much as effective to keep members as the method for renewal. 3 times less cancellations each year sounds excellent, but how to achieve this. It can be done by using the automatic renewal method, opposed to the manual method.
In countries like Germany, Holland, Norway, Denmark, which have a strong association culture, the main method for subscription is passive (implicit) renewal. In contrast to the anglosaxon countries, where there is more explicit renewal for associations.
A solution for organizations that follow the active renewal method, is price reductions on the subscription fee for the renewal.
Collecting subscription fees
It’s a choice for the organization what their method is for collecting of the subscription fees.
Wouldn’t it be logical to use the automatic renewal method ? Compare this to the company and employee relation: why don’t companies ask of their employees to actively lengthen their contract each year. Instead, the contract gets automatically renewed.
Are there no drawbacks to this method ?
It would be nice to say “No there is none”. But there is one drawback: that is the extra work for the organization to collect the subscription fees. Luckily, this can be automated for a large extend or even outsourced to a party whose business it is to collect subscription fees.
Also this implicit method can be mixed with the explicit method to add a webshop where members can order extra memberships / services, on top of their base membership that gets automatically renewed.
Advantages implicit renewal
Less cancellations of memberships
Lower cost for discounts on renewal
Possibility to have a member check before promoting to member
Advantages explicit renewal
The new memberships and renewing process can be fully automated
MMS explicit renewal plugin
For MMS, the base method is to facilitate implicit renewal. Combined with a webshop and a separate MMS plugin, we can offer you MMS + explicit renewal and have the subscription fully automated.