Subscription management can be streamlined with software, such as LoveAdmin, which makes the renewal process easier. The aim of this post, however, is to highlight why choosing the right renewal cycle should not just be about finances and resources. Instead, it should take into account your desired membership growth and retention rates too.
Let’s look at the two most commonly used renewal cycles by organisations:
Calendar Cycle
Renewals take place on a fixed date each month or indonesia rcs data annually, regardless of when someone has joined. Typically, this is the preferred method of most organisations as it requires less resources.
Anniversary Cycle
With this cycle, people renew on the anniversary that they first joined the organisation. For larger organisations, whose numbers run into the ‘000s, this type of cycle helps spread the workload over the year and can be automated with subscription management software, like LoveAdmin.
Each renewal cycle has its pros and cons, and much will depend on the size and financial stability of your organisation when it comes to choosing the right one. But, financials aside – let’s talk about how renewal cycles can impact your growth and retention rates.
How Your Choice of Cycle Could Impact Growth
It may come as a surprise to learn that your renewal cycle can affect a person’s decision to join your organisation. It may also affect an existing person’s decision to renew. Perhaps their circumstances have changed and paying annually no longer works for them?
Surveys of organisations in America have shown that there is a link between renewal cycles and retention and growth rates. A survey conducted by Marketing General Incorporated (MGI) and published in their Membership Marketing Benchmarking Report, showed that organisations using anniversary cycles experienced a growth in numbers, whilst those using calendar cycles had a higher retention rate.