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Retention What is a Retention Rate And

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Retention What is a Retention Rate And Powered By Docstoc
					 What is a Retention Rate?
And How can we Impact It?
                 1




             CAMMP 2011
       THE REALLY HOT DESERT
 Let’s Play a Game ( Yes, there are prizes)
                                  2

                        2010 Retention Rates
            90%
            85%
            80%
            75%
            70%
            65%
            60%
            55%
            50%




Questions
 Which line represents the best retention rate over the year?
 Which institution would you like to be?
 Do these lines represent 3 separate schools?
The game continues (more prizes too)……
                                     3

                             Retention Rates
                72.00%
                71.00%
                70.00%
                69.00%
                68.00%
                67.00%
                66.00%
                65.00%
                64.00%
                63.00%
                         1       2         3     4



Which school would you rather be?
The same data can be changed to show different things….
    These columns represent the same time period using different
     methods to calculate the same thing
    What if you introduce level of effort into the equation?
Why Try to Compare Retention Rates?
                                        4

 Board of Directors, Executive Directors request
  comparisons
     Search of “retention rate” on listserv archives returned over 100
      results since April 2011
       April listserv query lots of answers, lots of differences
       June detail listserv survey, even more differences
     But don’t fully understand the subtle differences
     Can misrepresent our respective performances

 Easy to compare numbers (also very dangerous)
 It is far more costly to acquire than retain (5:1)
 Most obvious reason – few of us are very creative, so
  we have to steal ideas
The April Inquiry
                         5


Needed to know, “is my retention rate above or
 below other schools?”
April Inquiry Results
                                                    6
               Institution         Retention Rate    Notes
  Iowa State                          76.15%         last year 70%
  Uconn                               69.00%         hoping to increase to 75%
  University of Iowa                  78.00%
  Sam Houston State University        74.28%
  Michigan State University           72.45%         last year 59.70%
  Colorado State University           68.00%
                                                     many renew online and no way to track them - rate could
  Washington State University         72.00%         easily be over 80%
                                                     last year 80.4%, active retention rate 88.8% (includes 3-yr
  University of Arkansas              84.30%         and life members), last year 86.02%
  Ohio State                          71.90%         number obtained is only paid memberships only
  University of Virginia              72.44%         only has 5000 annual members, 67000 total
                                                     number obtained is annual member; student member rate is
  University of Missouri              74.60%         38.9%
  University of Wisconsin             80.60%         previously mid to upper 70s
  University of Arizona               73.00%
  University of Central Arkansas      75.00%
  University of Pittsburgh            75.00%
  Purdue                              79.00%         Ended FY'10 at 77%
  University of Buffalo               62.00%
  Average                                      74%

Does this mean that the average national retention rate is 74%?
   Well, based on the 17 replies we received, it would appear so…
   But did you count life member conversions and what about..
   Deceased members? How is your grace period considered?
First Inquiry Results
                              7

                                  Sooo glad we don’t
                                  have a membership
               I’m not even       program!
               calculating
               retention!

                                                       Toga!!!
The Results - Outcomes
                                             8

    Calculated monthly, (63%) some quarterly (6%), some annually
     (25%)
    Retention calculations produced 9 variations on 16 responses
        # of records that have membership status (denominator - inactive
         memberships) / # of records with membership status from the beginning of the
         fiscal year. I figure this quarterly, but always figure from the beginning of the
         fiscal year, so it's a running total from the beginning of that fiscal year. Annual
         and life memberships are counted. Gift memberships are removed. Student
         memberships are not included in this count. This is somewhat hard to explain,
         so please let me know if you have questions
        A/B), B is the cohort of people who started the fiscal year with an Annual
         membership, A is the subset of B who bought another membership
        Nope. My computer guy set it up for me. He's on vacation.
        Don’t calculate it (25%)
    Life members are NOT included in most calculations (88%)
        But, 75% of us include annual members that upgrade to life members as
         retained
    No similarities on grace period either
The April Inquiry - Conclusions
                              9


Needed to know, “is my retention rate above or
 below other schools?”
    Just asking, “what’s your retention rate?” might not be
     an apples-to-apples comparison
Maybe We Better Look Closer
                                       10


 Survey sent to the list serv asking some more pointed
  questions
     Sent to the entire listserv, only 18 responses

                                             You better
                                             complete my
                                             survey!
The June Inquiry
                        11


Trying to determine if there was a way to
 compare retention rates across institutions
The Results - Outcomes
                                           12

    Retention rates are down 3.5% compared to Calendar 2010
        But is that change real or comparable?
    Renewal communication method evaluation
        Direct Mail -100%
        Email – 94%
        Phone Solicitations – 35%
    Renewal communication effectiveness evaluation
        Direct Mail – 82%
        Email - 12%
        Phone – 6%
The June Inquiry - Conclusions
                         13

We need a way to let CAMMP members compare
 like schools retention rates
It Would Be Great if We Had a Way to Compare!
                                            14
    Key Factors for comparison
        Number of renewal notices?
        Relative to expiration date, when does the billing cycle begin?
        What communication channels are being used?
        Length of grace period?
        Are life members included in your retention number?

    Propose keeping an available file containing the following
     information:
        Institution name
        How far in advance do you begin billing expiring members?
        Number of renewal notices
        Communication channels utilized
        Grace period length
        Are life members included in the retention rate?
        12 month average
        12 month high and low
        Reporting period (i.e., Jun-10 – Jul-11)
Now We Can Compare, But How Do We Improve It?
                                            15

    http://www.youtube.com/watch?v=PZp2NM1U9t0



    Process Improvements
        Use email at the front end of the billing cycle
        Replace the third direct mail with a phone call
        Alter renewal form to look fore like an “invoice” as opposed to an “ask”
    Risky Propositions
        Free gift with early renewal


    Ideas that are out of this world…..

				
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