If you offer annual memberships, chances are you’re aware that people often indicate cost as a barrier to joining. In fact, around a quarter of individuals surveyed* indicate upfront cost as a significant hurdle.
Statistics also show that 15-20% of annual memberships are cancelled after 12 months, with two thirds of survey participants stating they would purchase an annual membership if there was more flexibility around payments.
So what makes a successful payment plan? Firstly, a simple and easy sign up process is key for all involved. This should outline the relevant terms and conditions and include details specific to that particular plan for that individual.
Customers today demand the flexibility of being able to pay on the day most convenient for them. Given this, a payment play should feature any day any frequency payment options to suit all members – whether it be weekly, fortnightly or monthly.
A flexible payment approach helps improve the chances of successful collection and provides consistent cash flow; important for any business. In addition, it supports the automatic renewal of memberships and is shown to increase customer retention.
It goes without saying that there will inevitably be some failed payments – and administration required to address these can take up precious business time. As billing specialists, we employ methods including emails, letters, phone calls, interactive voice response, website payments, catch-up payments and double debits. These responses are all tailored to follow our clients’ instructions.
With our award winning customer service team, we’re well placed to offer a complete payment plan solution that supports businesses and their current and prospective members.
*Increasing Nationwide Golf Club Membership & Participation, March 2008 Survey, NZ Golf