Tuesday, December 28, 2010

What is a Good Annual Retention Plus Growth Rate?

What is a good annual retention plus growth rate?  My response to that question is anything above 93.4%.  

Why?  Rotary International’s Strategic Plan calls for an 80% three year retention rate, which calculates out to be a 93.4% annual retention rate.  Anything over that percentage would be achieving the strategic plan objective.  

But it is possible to achieve or better that rate and not grow.  That’s not all bad, but it does not represent growth.  As a reminder, Districts 7020 and 7030, for the years 2005-2009, achieved retention plus growth rates of 102.38% and 95.3% respectively, the highest in Zone 34.

RC Jim Henry, Zone 34

Friday, December 17, 2010

The Problem with Net Gain Membership Awards...a Further Explanation

RC Jim Henry: Master of
Rotary Retention Statistics
In a previous email, I introduced a potential problem with net gain membership awards. In light of some questions raised, this is a more detailed explanation. You will be Governor next year. At the bottom are some questions you might consider discussing with your District leadership team.

In this example, all rates are annual and based on semi annual reports, not interim reports.
  • Club A, which has seventy members, brings in twenty new members but loses seventeen (net gain of three.) Their annual retention rate of 75.7%.Club A has a retention rate of 75.7%. Its growth rate of (3/70)*100 = 4.3%. Its retention plus growth rate is 75.7% + 4.3% = 80%.
  • Club B has twenty members. They bring in five new members but lose four. Their retention rate is 80%. The growth rate is 5%. Club B has a retention plus growth rate of 80% + 5% = 85%.
  • Club C has twenty members. It brings in one new member and loses one member. It has an annual retention rate of 95%. Club C has a retention plus growth rate of 95% + 0% = 95%.
Assume all three clubs are in your district. Consider discussing with your leadership team the following:
  1. Which club(s) do you believe should receive the highest recognition? Why?
  2. What types of recognition would you consider giving, if any? Why?
  3. Which do you believe is the healthiest club(s)? Why?
  4. Which do you believe to be the most problematic club(s)? Why?

Monday, December 13, 2010

The Whirlpool Paradox

The Whirlpool Paradox for Rotary Club Members: Clubs become so intent on recruiting new members that they neglect membership qualifications and the purposes for having members causing existing members to leave and clubs to continue to recruit new members until the pool of qualified members runs dry.

The Whirlpool Paradox for Clubs: Districts become so intent on starting new clubs that they neglect helping all clubs advance the Object of Rotary which causes existing clubs to get older and smaller while new clubs struggle to recruit and keep new members until the pool of qualified members runs dry.

“Never forget the huge value of your current customers. Companies that continually target new consumers, while neglecting existing customers are sometimes referred to as having a “Death-Wish [ne' Whirlpool] Paradox.” They wish they had more sales, so they target new customers and spend a lot to try to get those new customers, but it only leads to financial “death.” Diversifying marketing efforts between past customers, current clients and new potentials will encourage buyers to return and can expand your customer base, while spending much less. You’ll have a bigger return on your investment.” March 3, 2009 White Paper
Questions: (1) How can districts or clubs recognize that they may be caught in a Whirlpool Paradox? (2) If either is caught in a Whirlpool Paradox, what do they have to do to escape?

Sunday, December 12, 2010

Thoughts on Membership Awards

A problem with a net gain membership award is that it could be recognizing a club for a job well done even though that club is in trouble.

How could that be? Read more from the mind of RC Jim Henry.  

Saturday, December 11, 2010

Anarchy & Misalignment

Want to avoid anarchy and mayhem in your club, district and our big Rotary organization, then you better pay attention to your alignment!

Brand alignment is more than designing and synchronizing the Rotary logos, annual themes, mottos, and creeds. Brand alignment means harmonizing the organization’s core essence with its brand promise (the thoughts, feelings, and images the organization’s brand delivers to its target audience.) This alignment is vital in ALL interconnecting relationships, but especially when interconnecting with target audiences...

Read more from the latest installment from the mind of Rotary Membership Guru, Jim Henry.   

Friday, December 10, 2010

SC Rotarian Leads off Rotary Retention Article

Diana Wood Howard, president of the Rotary Club of Spring Valley (Columbia), South Carolina, is featured in a recent Rotary News article about membership retention.

Click here to see Pres. Diana's comments, other Rotarians' ideas, or add your own.

From Rotary News.