Active Club Forum: Retention - 2nd Year Increase in Discounts

Retention - Adding Increased Discounts for Year #2

As more companies offer auto-delivery programs (clubs) the need to focus attention on retaining your existing members increases. Companies will offer a variety of benefits and people will be enticed to join new clubs. Inevitably, club members will choose which clubs to quit.

Don’t Be the Club They Quit –

Increasing membership loyalty can be accomplished in a variety of way. You must find the method(s) that best meet the needs of your business and customers. One idea that is being leveraged by several clubs is to increased the discount rate after the first year.

Example
- During the first year of your club membership you will receive a 10% discount
- After completion of the first year the club member receives a 12% discount.
- In the 3rd year (plus) you may offer a 15% discount

The timing and discounts can vary to your specific needs. The discount may be applied to the club purchases, in-store sales, events, one or all of these mentioned.

This is a hot topic to discuss. Opinions fall on both sides of the idea – some agreeing with the idea and other club managers saying that if you have to increase the discount then you are doing something wrong.

Other ideas for increasing membership retention”
• Increase the average length of membership could be positively impacted by a personal thank you letter to recognize a member’s participating and support of the club.
• A “thank you” phone call to loyal members can also make a significant impact.
• Send a small “thank you” gift with one of the loyal member’s shipment.
• If you have events you may want to take the time to recognize the loyal members at such events
• Make sure your team embers know the names of the top members to they can be recognized when the customers shop.

There simply is not one single solution that will fit the needs and demands of all businesses. This is an area where you may need to try different ideas to see which one(s) best help you achieve your goals.

Best of Luck to You!
Theresa
Active Club Management
925-447-CLUB (2582)

www.activeclubmanagement.com
www.acmwineclubsoftware.com
www.wineclubsoftware.net

Edited by Theresa (Sat Aug 18 2007 11:06 AM)