Step 5: Act on the data
The task below will be automatically checked off once you complete watching the video.
We’ve been acting on data that is known. Now, grab the same metrics but only for people who are active members today. Use the segments of metrics that we found are predictive and apply what you learned to the current data.
Find the most effective cohorts within the predictive metrics and target them with specific messaging. Using our example from Step 4, if someone has attained a low number of CEUs, you can send a targeted message offering available CEUs to re-engage members who aren’t fully using that aspect of your membership.
Calculate Member Lifetime Value
You can also calculate the member lifetime value to understand the maximum amount of discount you can offer for dues and non-dues products while still funding the organization's efforts.
You need to know the following information:
- Average member tenure
- Expected revenue from member
- Expected cost to serve a member
Remember social return on investment (SROI)
Not everything an association does needs to be revenue- or profit-based. You can justify going above the breakeven point if you can find that it furthers the mission of your organization in strategic ways. Think of non-revenue reasons it would make sense to give discounts.
Open or download the Predicting Member Churn Spreadsheet to see the Member Lifetime Value calculation.
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