Four Challenges to Effective Content Marketing for Membership Recruitment

Over the years, I have done a number of posts related to trading content for contact. This technique is called a content marketing strategy where free samples of your membership content are made available -- typically online -- and those interested in using it connect with your organization.

But what if you have tried this approach after reading some of these posts and it is not working for you?  What might be the problem?  Joe Pulizzi shared some good insights on why content marketing may not work in the May issue of COO: Chief Content Officer.  

Here are some of his points. 

1.     Make sure that your content is not all about you.  Prospects are looking to solve their problems.  So be sure your content provides a solution. 

2.     Your content does not include calls to action.  Remember the real reason that you share content for free is to initiate and ultimately sell a membership. You need to communicate that buying a membership will ensure an ongoing flow of content.  

3.     Your shared content is too broad.  Your shared content needs to prove that your organization is the leading expert in your membership category.  If it is too general, you will attract unqualified prospects that do not need the specific solutions that you offer to members. 

4.     Your testing is too slow.  Pulizzi notes that “speed beats perfection”.  The web allows for rapid prototyping.  Offer up the content and if it does not work, try something else – fast.

For some additional ideas on how to implement a content marketing program, you may want to take a look at my post titled, Using Online Lead Generation to Drive Membership Recruitment. 

Confusion in Calculating Membership Renewal Rates


Probably the most frequent question I get asked from clients and inquirers is how to calculate renewal rates.  I think the confusion stems from getting lost in the trees instead of starting out looking at the forest.

Let me explain.  In very simple terms, an organization’s renewal rate calculates how many members remained with the organization from twelve months earlier.  To get these numbers, you first need to know how many members you had at the beginning of the period.  Next you need to know how many members you have now.  Then to determine how many continued  their membership over the past year, you subtract the total number of new members from your current membership (new members were not eligible to renew).  This gives you the count for how many members your organization retained.

Here is an example.  Let’s say you had 10,000 members on May 1, 2012.  And twelve months later you also have 10,000 members.  But of the current 10,000 members, 2,500 were added as new members over the course of the year.  That means your net continuing members were 7,500.  And if 7,500 of your original 10,000 members continued with you, you have a 75% renewal rate.

So that is looking at the big picture – the forest.  But what happens if your computer report gives you a different number?  This discrepancy typically comes because of the business rules that were used to set up the database report.

Here are a couple of common problems.  One is how reinstated members (those who renew late) are counted.  If they are included in your new member count, they will lower your renewal calculation.  With the example above, if 500 reinstated members were now counted as new members, the new member count would be 3,000, pushing your renewal rate down to 70%.  The other common problem is where Life Members or multi-year members are counted.  They continued their membership, so in the example above, they would be counted as renewing members even though there was not a separate financial transaction.

My personal opinion is that reinstated members who pay after the grace period ends should be counted as new and Life and multi-year members should be counted as continuing or retained members.  But wherever you choose to count them, you need to build this into your calculation.

The bottom line is when you are attempting to calculate your renewal rate, start out with the big picture.  Do the simple math first then if reports come out of your database that do not corroborate the simple math, look into what business rules have been factored into your report.

The goal is to get an accurate renewal calculation where your math and the database report sync.  Ultimately, the economics of members and calculating lifetime value, maximum acquisition cost, and steady state calculations depend on an accurate renewal rate.