If you know your R.O.M. you are already ahead of most Associations and other member driven associations. It’s a simple measurement (calculation) that once understood really can and should change the way you think about your current members and potential members.
R.O.M. is the lifeblood of any Associations yet is often overlooked or not “watched” on a regular basis.
R.O.M. stands for “Return On Member”. Once this concept is understood it is really easy to set goals, measure “performance” and put programs, processes and systems in place to increase not just revenue and sales but “member satisfaction” as well.
In reality, the only legitimate way to increase your R.O.M. is by increasing your “member satisfaction”.
The end of the year is a perfect time to do a quick calculation of R.O.M. and put plans in place to increase it.
Let’s say your Association has 500 members and the annual dues are $300.00. That means your annual revenue from dues is $150,000.00. In addition to dues income let’s assume that another $100,000.00 in revenue is generated from events, programs, classes and other non-dues sources. That’s an average of $200.00 in “other” revenue generated per member. For simplicities sake let’s say that you set a “conservative” goal for 2011 of increasing your “other revenue” average by just 10%. That would mean an additional $10,000.00 generated from “non-dues” revenue over the course of the year.
I know that the above math is pretty straightforward but the “getting it done” is a whole different matter. This is where R.O.M. and “member satisfaction” become really critical issues in your Association.
I don’t want to get too way “out there” with this R.O.M. concept but you ought to consider the following as you set your Association “business plan” in place for 2011.
The goal in getting a member is not to get a sale – it really is just the opposite! The real goal in “selling” a membership (new members or renewals) is to get or keep a member that you can put on a path of increasing “member satisfaction” for several years to come.
As you increase “member satisfaction” you will also increase “member trust”. As “member trust” increases the odds of your members increasing their investment of time, energy and money in your programs, events, classes and other “offers” will also go up.
Here is a quick and easy “action item”: Make a list of all of the member benefits you offer. Take a hard look at each one of them and make sure they really are designed to increase “member satisfaction” and “member trust”.
Then, get a group of members together (active members and “less involved” members) and ask them to help you make a list of current Association “activities” that give them “member satisfaction”. Take a hard look at the list and “brainstorm” with the group about ways you could make these “activities” even more valuable and then TAKE ACTION.
Increasing “member satisfaction” and “member trust” will absolutely increase your R.O.M. (Return On Member) and will ultimately lead to “member loyalty” not just “membership retention”.