Years ago when I first became a sales rep I was presented with this statistic - 'By retaining 5% of your customers you can double your income.' I didn't understand the math behind this, or that acquiring a new customer is anywhere from five to 25 times more expensive and time-consuming than retaining an existing one. Now, many years later, it makes sense: you don't have to spend time and resources going out and finding a new client - you just have to keep the ones you have happy. And by increasing customer retention rates by 5% increases profits by 25% to 95%. Another important factor to these numbers is, if we create raving fans of the customers we keep, they will not only keep doing business with us but will refer new business to us.
So in thinking about these statistics, doesn't it also apply to BNI members? If we want to grow, we must retain and keep the members we have. Chapters spend a lot of time inviting, growing the chapter, getting new members, training new members, etc. What if we spent an equal amount of time on retaining the members we have and make them raving fans of BNI.
I just completed reading the book, Retention Point, which by the way, is available on BNI University. I recommend every member concerned with growing their chapter, especially Presidents, Community Builders, Mentor Coordinators, Mentors, Growth Coordinators, etc. to read this book. It's a short quick read but packed with 'food for thought' in regards to retaining customers/members.Every chapter typically has a goal to increase its chapter size. Why? Because we continuously provide statistics that show that more members equal more referrals. Typically when a chapter doubles in size, the referrals triple.
Also, we have discussed that creating more balanced Contact Spheres will help with retention because most members receive 75% of their referrals from their Contact Spheres.
Do you know what your Chapter's current retention percentage is? It is part of your monthly Traffic Light score. You can look it up on BNIConnect or you can ask for VP. Of the chapters that I support, the average retention is 60% while the average retention for the NW region is 65%. My BHAG for my chapters is 85% retention BTW.
So if your chapter has a goal to increase the number of members in the chapter, why not also add increasing the chapter's retention rate. When you set the chapter's next six month's goals and mechanisms, I would like to challenge you to also add increasing the chapter's retention rate.
What are some things a chapter can do to retain its members?
One of the things that were mentioned in the book 'Retention Point,' is the author says that you're not successful with a new membership until the member renews. If that's the case, then the first year is critical to member retention. Statistics show that if a BNI member renews after the first year, they will stay a BNI member on average for 5 years. So, wouldn't you agree that a crucial element for member retention is the on-boarding of new members?
Key Elements of On-boarding -
- New Member Orientation with the Chapter President
- Assignment of a Mentor
- New Member Webinar
- Ribbon Cutting
- Member Success Program
- Passport Program
Other Key Factors to Retaining members:
Mentor - Teach members how to be successful. Never assume they know what and how to be a good BNI member. Assign them a mentor that will 'hold their hand' and teach them how and what to do to be successful. Each new member is different. Each learns in a different way and at a different pace. Take this into consideration when assigning them a mentor.
- Recognition - One of the Core Values of BNI. Celebrating the success of members. This is key in the beginning for a new member. Recognize them for completing MSP and the Passport Program. Celebrate the first time they achieve Green on the Power of One report, etc.
- Balance - Work to balance the Chapter's Contact Spheres which will help members give and receive more referrals therefore increase their revenue and give them the value of their membership.
- Engagement - Have the current members reach out to the new members for One to Ones, especially the Passport Member Mentors. Also, get new members involved. One of the best practices of chapters is that everyone is responsible for a job within their chapter. Many hands make light work, but also it gives members a sense of belonging and being part of the Team.
- Accountability - Most people become part of BNI because they want to be part of a successful system. Part of what makes BNI successful is accountability. New members need to understand expectations and how certain recommended activities will help them be successful. This starts when the President meets with the new member for their New Member Orientation and continues as they meet regularly with their Mentor.
Hopefully, this article helps in understanding why retaining members is equally as important as bringing in new members. In order to grow, Chapters must retain existing members. If you need help with Growth and Retention or any other area, contact your Support Director. They would be happy to help. That's their job, to help and support you and help your chapter grow and be successful.
Other Resources for this article -
Here are some additional resources:
First Year Member Retention - Tim Roberts
Growth is NOT the Goal - Tim Roberts
The Networking Mentor - Dr. Misner
Breaking the set Point - Dr. Misner
Bigger is Better - Dr. Misner
Let me know if you have any questions and how I can be of help.
To Your Success,
Annette Mason
Area Director Consultant
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