No, segments are not just something you get from oranges and grapefruit. Hopefully, you're able to segment your membership in your member management software or reports. Why is segmenting your membership important? By grouping your members into segments you can see how they relate to each other and even how valuable they are to your organization.
How should you segement your members? Any way that can help you gain insight into how a group is valuable to your organization. Some examples are:
- Number of employees
- Length of time as a member
- Dues amount
- Business category
- NAICS code
- City
- Zip code
For example, let's say you segment your members by their number of employees in ranges of 1-4, 5-10, 11-25, 26-49 and 50+. Plus, you also include the amount of dues each member segment is paying. You might find that one segment of members represents a low percentage of the total membership, but a high percentage of your dues. Or vice versa.
By segmenting your members several ways and seeing how their dues and non-dues revenue compares can give you valuable member intelligence and make better decisions? What groups of members are most valuable? Which are least valuable?
Can your member database easily produce these types of segments for you to review and act on? Knowing how one group of members performs currently can help you predict how prospective members may perform, allowing you to adjust your new member sales strategies. Or make changes to your member retention plan as you provide benefits to your members.
Powered by Compendium