In the contemporary age marked by an explosion of consumer options and digital connections, loyalty has become an elusive trait. The rise of online interaction, particularly amid the global pandemic, has caused a noticeable decline in customer retention across various industries, and alumni associations have not been immune. With around 60% of these associations report a stagnation or increase in member departure rates, the issue of sustaining member loyalty is urgent. After all, retention is vital for both financial growth and enduring success.
As the saying goes, "Retaining a customer is five times less costly than acquiring a new one," and the the data backs that up. Although reaching fresh faces is essential, the investment in the satisfaction of your current members actually promises better returns and fosters a path to engaged and loyal advocates for your alumni association. Nevertheless, associations seem to channel 11 times more resources into recruitment than retention!
So, what strategies can alumni associations employ to ensure lasting relationships with their members? Let's explore together!
Listen and communicate
With consumer satisfaction dwindling, and digital demands growing, active listening has never been more vital. McKinsey's recent three-year study pinpointed the decline in satisfaction during the pandemic, highlighting a general failure to adapt to the digital shift.
In a world now defined by online existence, understanding your alumni's evolving preferences can lead to impactful connections and strong relationships. The Alumni Relations Benchmarking Study states that 54% of members don't renew due to dissatisfaction with benefits. Therefore, success lies in listening to your alumni and adapting to their needs.
Alongside listening, effective communication is crucial. Constant engagement reassures members of your commitment and reliability. A Deloitte study underlines trustworthiness as the primary motivator of loyalty, with trustworthy institutions outperforming others by a factor of 2.5!
Maintaining transparent dialogues about renewals, benefits, and access will keep members engaged. With 75% of alumni preferring mobile-friendly information, leveraging tools like SMS text messaging (with its 99% open rate) can be a game-changer in enhancing loyalty.
→ Pro Tip: Implement mechanisms like surveys or feedback forms on your website to allow members to share their thoughts effortlessly.
Personalize the Experience
Personalization is the backbone of modern marketing, and alumni relations is no exception. Already, 80% of U.S. consumers are more likely to purchase from a brand that offers personalized experiences. But, in Cuseum’s recent survey of over 150 alumni relations professionals, 77% believed that they need to offer more personalized engagement to their constituents. Personalization provides mutual benefit in that it not only improves member satisfaction and loyalty, but also helps you continue to improve your understanding of your constituents and better serve their needs.
By leveraging member data to offer more personalized outreach and content to your alumni you can:
Reduce your “unsubscribe” rate (As of 2020, the typical alumni organization’s unsubscribe rate is 0.5%, which is 150% higher than the average industry wide.)
Establish relationships of substance
Offer real value to your constituents
Boost alumni engagement
Show alumni you care
Improve your donor pipeline
According to Marketo, top marketing automation brand, “personalized marketing gives customers a sense of identity. They cease to be one of the masses, and instead become an individual with unique wants and needs.” As leading businesses like Amazon, Spotify, Snapchat, and Target take personalization to the next level, consumer expectations will continue to rise across the board. Alumni no longer want transactions, but instead appreciate personalized interactions they have come to know and enjoy as consumers.
Personalized communication is a crucial way of demonstrating to members that they are valued and important, ultimately providing an enriching member experience and laying the groundwork for an engaged and loyal alumni community in the long term.
innovate to Stimulate
Loyalty rewards programs are skyrocketing in popularity – from points-based systems to tiered membership benefit offerings, the private sector has tapped into consumer desire for concrete incentives and gamified design and leveraged it into an industry unto its own.
Yet as it stands, alumni organizations too often struggle to provide the ease and efficiency their audiences expect: slow or overcomplicated, outdated tech can lead to a disjointed user experience, confusion around benefits and access, and declines in member loyalty. Counteracting that means providing a top-notch user experience that caters to your constituents, offers clear value and streamlined engagement processes.
According to the 2022 Commerce Innovation Report, Constituent loyalty drops when brands don’t innovate. The report found that more than half of consumers display a strong desire for brands that adapt to meet evolving customer preferences, payment options, and digital devices. Nearly three-quarters of consumers will take their business elsewhere if they feel their expectations are not met – with millennials most likely to abandon a brand if dissatisfied. Given the $2.5 trillion in spending power millennials represent, organizations looking to boost loyalty and prevent attrition would do well to be attentive to the generation’s needs and preferences.
What’s the upshot? Even with attractive incentives and an engaging user experience, providing innovative and diverse channels for engagement is essential to maintaining an active and loyal member base.
Plus, with 58% of dues-paying alumni associations reporting a “lack of engagement” as the primary reason members don’t renew, by fostering engagement you’ll help reduce churn and drive renewals – key requirements in the path to member retention and long-term loyalty.
Utilize the Strength of Data
In this data-driven age, analytics are essential to crafting effective retention strategies. Surprisingly, as of 2020, less than 49% of alumni associations were conducting any kind of data analysis.
Basic data analytics can help define the preferences and needs of these newly-targeted audience segments, and meet them where they are; It can facilitate a more robust understanding of your different types of members, where they find value in your institution – and how valuable they are to you. With that foundational, holistic understanding of your membership, developing a targeted, data-based retention strategy will be a piece of cake.
Building loyalty requires an in-depth understanding of members' expectations and values. Armed with insights, alumni associations can foster enduring relationships, turning transient members into lifelong champions, and consistently offering value to every generation of alumni.
For a comprehensive look at alumni engagement, don't miss our eBook, The Ultimate Guide to Navigating the New Landscape of Alumni Engagement, filled with insights from over 150 professionals in the field!