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
From: Jim Weaver K8JE
[mailto:K8JE@ARRL.org]
Sent: Saturday, October 30, 2010 9:48 PM
To: Kramer, Harold, WJ1B; arrl-odv
Cc: Petrilli, Diane, KB1RNF; Inderbitzen, Bob, NQ1R
Subject: RE: [arrl-odv:19468] Telemarketing Trial
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
Jim Weaver, K8JE, Director
ARRL Great Lakes Division
5065 Bethany Rd.
Mason, OH 45040; Tel. 513-459-1661
ARRL, The national association for Amateur
Radio
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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