Mike/Ria et al: The cost of attracting renewals is a cost of doing business for any membership association. We already been working towards reducing the use of the USPS for renewal notices/reminders, doing more via e-mail. But I can tell you with no uncertainty, that if we reduced the number of renewal notices to only one as Mike’s member suggested, the renewal rate would drop precipitously and the loss of dues revenues would likely more than offset the actual cost savings. As everyone knows, long gone are the days where it was almost a given that a radio amateur was a member of the ARRL. For a variety of reasons, we have to fight for every new and renewal transaction. As for using books and other items to incent people to renew, there are different schools of thought. I’m in the camp which believes that, by offering these incentives, we are devaluing the membership. We should be working towards creating value so that the members understand that $49 per year is an excellent value. On the Air magazine, offering NCJ and QEX digitally and the introduction of the ARRL Learning Center are all strategies intended to improve the value proposition for members. Unfortunately, we’ve been training our members for decades that the longer they wait to renew, the bigger the incentive. This will be difficult to reverse but we’ve begun the process. Maybe someday in the not too distant future, we can drop free books from our repertoire of membership recruitment. The way to build long term membership growth is to provide value, not free stuff. As for the use of the Field Organization in this process, I have to start by saying that the work of the SMs is vital to the overall reach of the ARRL in offering services, particularly emergency communications to their communities, as well as supporting clubs, etc. However, having said that, I must also point out that year after year, the recruitment and retention of members through the Field Organization is the least productive source we have. We have studied this over the years and the answer is the always the same. Despite what people may think, the data suggests that the operational and financial cost of supplying membership premiums at the Field Organization level doesn’t provide enough of a return to continue the effort. I understand, our volunteers like to give away free stuff. But just because the member walks away from the booth, it doesn’t mean that they don’t renew. It just means they will renew through another avenue when they get what they perceive are the proper incentives. And I wouldn’t be doing my job if I didn’t take this opportunity to point out to the Board how short sighted it might be to try and recoup what is possibly one year of financial loss with methods that will only deepen the loss longer term. Please understand, in looking at the 2020 Plan, over half of the projected loss is the result of Board/Committee mandated staffing additions plus the operational costs (including benefits) attached to those positions. In addition, the organization is investing in programs and services which are intended to provide increased revenues (primarily dues) in the future. Trust me, the staff is well aware of the projected bottom line and are all in full “expense management” mode. If they’re not, both Diane and I are there to remind them at every turn. But just like the Board, I don’t want them to sacrifice long term organizational benefits for short term expense reductions. We have substantial assets in the bank (admittedly of less value today than this past Monday) and it’s time the organization begins to use the power of those assets to try and grow the ARRL. You’ve begun that process with your approval of several projects in the past year and I hope this will continue in 2020 and beyond. I would be happy to discuss this further with anyone who would like to do so. 73, Barry, N1VXY From: arrl-odv <arrl-odv-bounces@reflector.arrl.org> On Behalf Of rjairam@gmail.com Sent: Friday, February 28, 2020 3:19 PM To: Ritz, Mike, W7VO, (Dir, NW) <w7vo@comcast.net> Cc: arrl-odv <arrl-odv@reflector.arrl.org> Subject: [arrl-odv:29757] Re: Fwd: Huge Cost-Cutting Suggestion for ARRL I agree on the endless reminders... I don’t agree on the books. Section managers have told me that people have flat out refused to renew unless they could walk away with a book. HQ made the decision to stop letting section managers give new and renewal incentives on the spot some years ago. Instead the incentives are shipped from the League. The current model of letting HQ ship the books seems like it would waste more money in shipping charges. If the SMs could get a smaller stock of books (maybe 3-5 each) and if they run out the incentives can then be shipped from HQ. There was concern raised that the books go out of date and that SMs don’t capture much renewals at events but consider that SMs are going to attend hamfests anyway and our cost for a small stock of books doesn’t seem that much since the sticker price is not the cost price. I would like us to at least investigate this. Ria N2RJ On Fri, Feb 28, 2020 at 2:36 PM Michael Ritz <w7vo@comcast.net<mailto:w7vo@comcast.net>> wrote: I went to a club meeting last night and gave an "ARRL Update" presentation to the group. Below is an interesting comment from a member that I thought I'd pass along to ODV. I guess this is for A&F members to think about, but is also food for thought for Barry and maybe others at HQ. We are looking at a huge deficit in revenue verses expenses this year and this is something to consider. It also may be an insignificant cost verses the benefit received, I don't know. Thanks for the bandwidth. 73; Mike W7VO
---------- Original Message ---------- From: Doug Foran <dforan@spiretech.com<mailto:dforan@spiretech.com>> To: w7vo@arrl.net<mailto:w7vo@arrl.net> Date: February 28, 2020 at 10:50 AM Subject: Huge Cost-Cutting Suggestion for ARRL
Hi, Mike,
Thanks for your excellent presentation at the DX meeting last night. I was the guy (visitor) who talked about measurable objectives, strategic planning, growth-share matrix, and cost-cutting.
You said I should contact the director, but I think it would have more impact if you reached out to him, plus I only have a dialup modem Internet connection with an obsolete browser. SEE MY SUGGESTION BELOW.
You mentioned that ARRL is running a $1.1 million deficit, so I "chimed in" with a significant cost-cutting suggestion for ARRL...Tell them to stop sending FOUR membership renewal reminders over a 6-month period prior to a member's expiration dates. It's a total waste of paper, four-color printing, scoring, perforating, folding, envelope stuffing, and postage. I always wait until the last day to phone them and renew over the phone. The ARRL could eliminate this expense by just e-mailing members ONCE, a month before expiration. Also, I don't think the ARRL needs to provide a free gift upon renewal of a membership. Huge expense for printing and shipping those books. Agreed?
Keep up the great work.
73 Doug WA7LET
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