Jim and ODV,

 

I asked Bob Inderbitzen and Diane Petrilli about your question and they were able to supply me with this information.  The retention rate of members signed during the small November 2008 telemarketing trial was 42%. This is a modest retention rate, even with an effort that we admit had numerous shortcomings.  We learned a lot from that experiment and that is why we are trying it again. We’ll keep a sharp eye on the retention rates from this experiment as well.

 

As is typical with most renewing members, the retention rate in subsequent years increases (approaches 72%), and is influenced by many factors, not just the sales channel. For instance, someone who has upgraded their license from Technician to General is more likely to renew their ARRL membership than someone who has not upgraded.

 

What’s we find most exciting about telemarketing is that it produces results from folks that haven’t responded to other appeals, particularly direct (postal)  mail and email. While the upfront cost per reacquired member may be high, the payoff is the long-term value of a member to the organization. Each newly signed member ultimately has other interactions with us including product sales, donations, award applications, volunteering for a ARRL appointment etc.  As an example, over 85% of our direct product sales are to ARRL members—folks who buy license manuals, Handbooks, operating publications, etc. So each time we sign a new member, we increase the pool of prospective publication buyers.

 

 

73,

 

Harold

 

 

Harold,

 

I suppose this question has been asked previously, but I don't recall the answer if it has.  Of the 91 (8.7%) former members Telereach was able to reacquire as members, do we know how long they maintained their resumed memberships?

 

My question is based on a $28 cost/reacquired member which comes from using GAD's low figure of 125 or ca 7% reacquired members and their low estimate of making only 1,800 calls).  I am not debating the potential value obtainable from this maximum estimated cost/reacquired member.  Instead, I am curious if we have records that give us a decent idea of how long we can expect these reacquired members to stay around as members to amortize this cost?

 

Tnx,

 

Jim

 

 

 

From: Kramer, Harold, WJ1B [mailto:wj1b@arrl.org]
Sent: Friday, October 29, 2010 11:34 AM
To: arrl-odv
Cc: Petrilli, Diane, KB1RNF; Inderbitzen, Bob, NQ1R
Subject: [arrl-odv:19468] Telemarketing Trial

In late August of this year, we proposed to engage the firm of Graven, Austin & Drake (GAD), a telemarketing company in Colorado to undertake a telemarketing test for us.  Some Board members had some concerns about this experiment and we believe that we have now addressed them so that we can proceed ahead.  Here are some additional details:

Contract:

1.       Chris has approved the final contract after his modifications were accepted by GAD.  Thanks, Chris, for your help with this one.

2.       Chris asked Maria Somma, our privacy compliance expert, to review the agreement to make sure that it meets our privacy regulations here in Connecticut.  Maria agrees that it meets the State of Connecticut privacy regulations.

The Firm:

1.       Graven, Austin & Drake (GAD) specializes in telemarketing for member associations.  Here is a link to their page on member associations.

2.        GAD has been responsive and proactive in working with us to get the best results from the outset of the campaign.  Our previous telemarketing firm in the 2008 experiment did not play a similar consultative role.

3.       Some of GAD’s clients include:

·   Federation of American Consumers and Travelers

·   American Quarterhorse Association

·   National Cattlemen’s Beef Association

·   Mercedes Benz Club of America

·   BASS Fishing Club & Bassmaster Magazine

·   Classic Chevy Car Clubs

·   Christian Booksellers Association

·   Sports Car Club of America

 

4.       At GAD’s suggestion, Diane Petrilli and I have spoken with some these associations and they give GAD high marks.

 

The Business Arrangements:

5.       GAD will be calling lapsed ARRL members only and only those who are within 18 months of not renewing their membership.  The 18 month requirement complies with telemarketing regulations.

6.       The total cost is $3,500, which includes 100 hours of calling.  Diane checked with a number of telemarketing companies and this is their standard arrangement.

7.       We are able to listen in to all the calls that are being made by GAD and we can adjust the script and/or premium as necessary. These calls are recorded ( without credit card information) so that we can review any disputed conversation.  Diane intends to do this.

 

 

Anticipated and Historic Results:

8.       GAD estimates that they will be able to reach between 1,800 and 2,000 members in 100 hours and estimate a close rate of around 7% -- for at total of 140 renewed memberships.

 

9.       For your reference, in November 2008 we used a local telemarketing company, Telereach, to solicit lapsed members.  While we, ultimately, did not like working with them, Telereach contacted 1,047 lapsed members, converting 91 of them to members (8.7% acquisition rate).    

 

10.   Finally,  Diane, and others on the Sales and Marketing team, believe there are some lapsed members who would respond to telemarketing but not to direct mail.  We need to take a broader approach to reaching our prospects.  At the least, we need to give this another try.  If this works well, this type of program could produce some substantial membership gains.

I hope that this answers your questions.  Now that Chris has approved the contract, we plan to sign the agreement and proceed with this experiment.

 

73,

Harold

 

 

Harold Kramer, WJ1B

Chief Operating Officer

ARRL -the national association for Amateur Radio

225 Main Street

Newington, CT 06111

(860) 594 -0220

 

 

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