Membership Retention

[bobdapoet]

Steve-

   I'll put forth that you are correct, however, I will also put forth, at least in regards to your first point, that by allowing some of the income to be moved, you have an important additional benefit- a relationship.

   A relationship that can be leveraged later when the DVD comes out to offer it to them.
   A relationship that can be leveraged to ask for volunteers at upcoming events
   A relationship that can be motivated to participate in other activities such as the boot camp

  You're right, it doesn't change your financial well being THAT DAY. But as an investment in the future of the organization to leverage 10,000 or 20,000 (or more) person contact lists to promote events, purchase additional products, see a poet on tour, etc.

   The net cost, which basically moves some zeroes from one column to another, is low, compared to the potential benefit, is endless... how many mp3's could we sell if we posted an MP3 of the week by email? Video of the week?


The challenge, and as much as I love you, I'm gonna call you on the carpet a little on this one,

Is that PSI has not had the most success with building relationships with it's constituants. Because it is manditory to be a member to participate in events, and because nobody has ever invested the time energy, or (yeah) money in real relationship building efforts, membership, and it's opportunites have always been basically been prioritized behind other areas deemed more immediate.

Kudo's to Abbey's recent work, in reminding people of their status proactively and reaching out.

I believe, as you well know that my pro-membership position extends back many years, that PSI should consider a stipend for a qualified individual to be a membership chair, with the goal of growing new membership, and leveraging relationships within existing membership to grow PSI.

Just to put my money where my mouth is-

I will be happy to serve on a committee that discusses membership, it's opportunities and perhaps outlines some recomendations to the New ED about how to proceed.

Amy, for the record, getting more members and losing revenue from tickets and store sales is kind of taking cash from one pocket and putting it in the other. Doesn't change your financial well-being.

And your membership is completely deductible already. You get a receipt (actually you get two) and you can write this off your federal taxes each year. If you are the person who is a member at a level higher than $250, you need a special receipt, but that too happens automatically at that level.

We tried a member rate at the last one. Only two people took us up on it. It was not a big discount.

I love the idea of a members-only reading at NPS that is free.

[Steve]

Bob, if I accepted your numbers I'd have to agree with you when you say:

You're right, it doesn't change your financial well being THAT DAY. But as an investment in the future of the organization to leverage 10,000 or 20,000 (or more) person contact lists to promote events, purchase additional products, see a poet on tour, etc.

But in fact PSi has had only about 2500 members in its history and we have never had more than about 900 active at any one time.

As far as your other point, about outreach, you are right, the title of Exec Director has always been "do-it-all" and so decisions and priorities had to be established. Only now, by moving the financial and store responsibilities off the Exec Director (and splitting the old salary between two people) are we able to get in a position where ED can actually do some more "directing" and less "managing."

We aren't arguing. Mostly we are agreeing, but the bottom line is a real line. All the committee work in the world won't make two salaries out of 1. That will come out of "management." And now that I'm not doing the "directing," I hope to do a better job promoting items in our income stream.

But, that doesn't mean I'd turn down a check for a thousand dollar membership. I'd cash it.

[AmyD]

Amy, for the record, getting more members and losing revenue from tickets and store sales is kind of taking cash from one pocket and putting it in the other. Doesn't change your financial well-being.

And your membership is completely deductible already. You get a receipt (actually you get two) and you can write this off your federal taxes each year. If you are the person who is a member at a level higher than $250, you need a special receipt, but that too happens automatically at that level.

We tried a member rate at the last one. Only two people took us up on it. It was not a big discount.

I love the idea of a members-only reading at NPS that is free.

Yeah, I am just trying to look at other orgs and what they offer.  Free coat check? 

[bobdapoet]

The financial industry geek in me comes out:

Steve,

   When you say PSI has only had 2500 members in it's lifetime, those are under the behaviors that we have exhibited up to now, so we have to be careful to not use that as a benchmark- I mean, How many members MIGHT WE HAVE HAD if we had place a comprehensive relationship program in place years ago. The membership program became centered around event participation because it was, for lack of a better term, easy.

   And when it is put out there that PSI has only had at peak 900 active at one time, it says there are a number of people, that for whatever reason, didn't feel they were getting value from their membership. That's an opportunity to look at that relationship and say, "hey, what's important to you? Even if you aren't going to the big tournaments any longer, what can we offer to make your membership worthwhile?"


Let me put this forth-

Let's say we have a "fairly" comprehensive membership management program- so, let's say we communicate a "single of the week" to the membership in the same way that Apple iTunes does, and offer them an mp3 of someone somewhere at a reduces rate. Let's say we tag onto that email a message about the upcoming tourney, and a breif profile about one of the certified venues. When a new DVD comes out, let's say we throw a promotional tag into the email for it.

Let's also assume that we are promoting the $35 membership level, and offering some additional benefits as outlined below.

   Membership is a source of income, just like event registration- think of it it's own reoccurring event, I mean:

900 paid Members at $35/per is $31,500

If you keep the "costs" associated with a $35 member to $15, that's an additional $18,000 to the bottom line (with 900 members).

So, with 900 members, you can offer $13,500 in benefits.

Now, say:
    2% (or 18 people) of those members an all access pass to NPS at (retail $50)  say $40 because they got a discount for being a member, that adds an additional $720. You've spent $180.
    2% (or 18 people) of those members purchase all access pass to iwps at $40 (again, let's say they got a 20% discount from $50), then there is another $720
    WOWps? OK, lets assume the same, plus $720. You've spent $180.

     And the Merch store, let's say that we send out a regular MP3 of the week for sale for $.89 (exclusive to members), and 1%, or 9 people, from the membership list purchase that MP3 each week- that's  $8.01 per week or an additional $416.52 per year. You've spent $46.80

     And the year two thousand whatever DVD that results from the show? Again, let's say they get a discount (20%), and 1% of membership, or 9 people buy one (retail $19.99, disc $15.99), so we have spent $40, and acquired an additional $143.92

So far, you have "Spent" $550 of your $13,500, and added $2000, or in the neighborhood of generating $4 for every $1 you spend.

Now, let's assume you would liek to add to your membership rolls, beyond the 900. So, let's say we go to one of our most popular poets, a different one every year, and we ask them to donate the use of 5-10 recordings to use in an exclusive membership. I think it's both fair and I think alot of poets would be willing to help. Or, even turn it into a contest, or something similar.

So, we make a Special CD each year, and if someone refers someone to be a member (that had not been a member in the previous 3 years), then, each of them receive a copy of the special edition disc (cost at $6.50- shipping). Let's assume 2% (18 people) of the existing population each year actually refers someone and get credit,  so now, we have "spent" $234 additional dollars, and added $630 more dollars in income. This creates an upward cycle, creating a larger membership base and growing the other numbers organically.

These are all fast and furious numbers, but numbers I don't believe are unrealistic- IF there is a dedicated person working on the program on a regular basis.

So, let me summarize this a little better...

Assumes 900 members at the $35 level.

Category                         Generated Income       Expense
Membership Renewal         $31,500                    $5,000*
NPS Discount                    $720                         $180
iWPS Discount                  $720                         $180
WOWps Discount              $720                         $180
Store Sales
   MP3                               $416.52                    $46.80
   DVD                        $143.92                    $40
Referral Drive                      $630      $234

Totals                                 $34,850.44              $5,860.90 

Let's just assume that misc costs associated with emails, reminders, and time are placed here.   

[bobdapoet]

I love the idea of a members-only reading at NPS that is free.

That should be at the Booster Level or above...

[Detroitphoenix]

Bob,

I appreciate your feedback.  I'll be taking these ideas to the EC for further discussion.  I'm passionate about maintaining our membership and am excited about the input we've been receiving.  I'm sure one or more of these ideas will be tested out.

Thanks.

~phoenix

[Steve]

Almost all members come in at $20 level. Only about half of slammasters come in at the associate level. Some good donors come in at $35, a couple at $50 and one member renews at $100 every year. That $35 assumption is just about 35% too high. Show me how to get to that $31,500 membership level first, then we'll have the rest of the discussion.

[senji]

Mostly we are agreeing, but the bottom line is a real line.  All the committee work in the world won't make two salaries out of 1.

[inktea]

Yeah, I am just trying to look at other orgs and what they offer.   Free coat check? 

I just started working a new job that bases a lot of its tenets on the Rochdale Principals, some of which might be really interesting ways to provide benefits to members.   Most specifically the "education, training, and information" section.   I would be willing to invest at a higher level if that meant I could get documents that trained me better in "how to increase attendance at your slam", sample forms and checklists we could download, and was really a navigable site.   (I know that a lot of the information that I'm looking for as a slammaster is buried in here somewhere, but right now- it's so little signal in so much noise. )  If it offered poets at a local level who really didn't intend to go to national events just yet, some sort of training, I'm certain that would entice them as well.

I think a lot of folks re-up just before national events they know they'd attend, because there's no tangible benefits they'd miss if they have a gap in membership.

[Detroitphoenix]

Really great idea!