Over coffee with Vinay Kumar today, he reminded me of an issue I’ve mentioned on the ASAE listserves a couple times but I don’t think I’ve posted about it here.
The question that usually comes up is, “Should we send a letter out with our membership invoices (renewal statements or whatever you want to call them) that explain the benefits that the member gets?”
This is another thing that many associations do. (It’s almost as if we are embarrassed to be asking for money.) We used to do it in my organization as well and it still comes up occasionally. When we stopped doing it several years ago, the rate at which we received renewals increased rapidly. We send membership statements that look like bills, including nothing but the return envelope, and get the renewals back very quickly. This year our retention for our December 31 renewals hit 60% — in September. (They ended up over 90%.)
My theory for this is: “Invoices go in the ‘to be paid’ pile, letters go in the ‘to be read’ pile.” As usual I have no scientific data to support this other than my own experience.
Personally, when I get a bill it goes right into our check request process for my later review and signature. If there’s a letter with it, I usually just throw it away.
Sometimes, however, it seems like a really interesting letter, so it (along with the enclosed bill) goes into the pile of things “to be read” on my desk. Then, once a month or so, I get irritated at the amount of paper on my desk and throw it all away, assuming that if there’s anything important, I’ve probably given a copy of it to someone else.
The moral of the story: If you must send a letter with your renewal statement, don’t make it very interesting.
(And as always — TEST to discover what works best for your organization.)
4 Responses to “Bills Get Paid, Letters Get “Filed””
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April 21st, 2008 at 10:26 pm
Kevin,
We have found the same to be true. Because we are an association of companies versus that of individuals, we try to educate as many people within our member companies as we can on the benefits of Membership. However, we have found that sending brochures and letters with the dues invoices has only shown an increase in annoying paper accumulation on the part of the member and not necessarily an increase in renewal rates.
On another note, not to go into to much detail, as this is the subject of many various blog entries in an of itself, but we too call them dues invoices. It seems that they get paid quicker when people perceive them as an invoice rather than a renewal request with no real second thought given.
Chris
April 22nd, 2008 at 9:46 am
I stopped sending letters with membership invoices when a long-time member scolded me for it. He felt that letters offered members a chance to rethink their commitment. An invoice merely tells them it’s time to pay for the commitment they’ve already made.
We stopped sending letters and our retention rate increased.
April 22nd, 2008 at 2:31 pm
Good points. But be sure not to use the word “invoice” on your renewal notice. It is not an invoice unless a member has agreed to pay by requesting a bill. Tony
May 5th, 2008 at 7:29 pm
How about a one-two punch?:
1. An especially sizzling issue of the newsletter/magazine and/or a special gift to members - mailed/emailed just prior to ….
2. The bill for membership renewal, offering a special deal:
free ebook by a popular speaker at that last conference
plus ticket to an extra/exclusive session at next annual conference
plus reduction in renewal price for 2-year renewal
That, of course of a 3-part offering because (per Paradox of Choice book theme) more options than that confuse and disquiet the very people we want to buy/renew