5 ways automated payments increase member retention
Acquiring new members is one thing – but keeping them happy and retaining them as members is another altogether.
And it’s something many member-based organisations struggle with, with only
32% of organisations improving their member retention rates in 2024.
Member retention is a complex web of factors – some of which you have control over (for example, member engagement tactics, the value you’re offering), and others you don’t (think personal circumstances and the cost-of-living crisis).
One area that does impact member retention – but is often overlooked – is how easy (or otherwise!) you make the transactional side of membership.
When something is smooth, straightforward, and easy, it reinforces a positive impression.
When you experience a difficult, cumbersome or inconvenient process, it can create doubt – doubt about the professionalism of an organisation, and doubt about the value you’re actually getting.
How you take and process payments falls into that transactional side of things. In a finely balanced equation, a smooth, seamless and automated payments process can make all the difference.
Here’s why.
Automated payments make membership convenient
Convenience is a huge driver for most things in our lives – and payments are no different. A huge
78% of UK consumers said the convenience of payment was the most influential factor in their payment choices, while Direct Debit is still the preferred method for regular payments. By enabling members to automate their payments, it reduces the likelihood of missed payments, and makes adding extras – such as events and learning – easy, which in turn helps increase participation and reinforces brand value.
Meeting the need for security
The majority of us are incredibly aware of payment security – with
54% of people in the UK considering payment security as a significant influence when choosing their methods of payment. By offering secure, regular payments, you’re not only meeting people’s payment needs, but you’re also reinforcing strong brand values. Good businesses and brands will take every opportunity to keep their customers’ transactions secure – and in turn, it increases brand perception.
Offering flexible and personalised payments
One person’s cash flow isn’t going to be the same as someone else’s. Whether you’re paid monthly or fortnightly, have weekly outgoings or big quarterly bills, disposable income isn’t always smooth. Automated payments can help member organisations offer payment terms that suit the individual. Whether it’s an annual payment or monthly, automated payments can be taken on a collection date that suits the individual, meaning that your regular debit doesn’t cause a shock, or create a problem.
Proactive approach to membership
Some member-based organisations offer only annual memberships. However, our consumer habits are changing. For many services we now use regularly – think gyms, streaming platforms, food delivery services – we pay monthly. There might be an initial term, but once that’s expired, our memberships will roll over every month. For member-based organisations, using automated payments enables you to remove the risk of unintentional membership lapses while also making it incredibly easy to allow membership to continue without forcing another significant annual commitment.
Reduced admin burden means more time to invest in member experience
While automated payments can help increase member retention, it’s the overall member experience that will truly determine whether members want to remain in your world. The good news is that by introducing automated payments, you can save some pretty significant admin time, which creates more time for you to redeploy and help enhance the member experience to even greater heights!
If you have any questions or need further support, please do not hesitate to contact us. We are here to help you navigate the technicalities of Direct Debit management.
