5 Psychological Drivers Behind Higher Member Retention

Retaining engaged and loyal members remains a persistent challenge for many membership organisations. While tangible benefits play a crucial role, understanding the psychology behind member retention is the true game-changer. In this blog, we’ll explore five powerful psychological drivers behind member retention and keeping them committed to your organisation. 

1. The Peak-End Rule 

The peak-end rule suggests that people remember experiences based on their most intense positive moments – known as peaks – and how they conclude (ends). Therefore, we’d recommend: 

• Creating standout moments that members will fondly recall at annual conferences or events.
• Offering unexpected perks or recognition that generate positive peaks throughout the membership journey.
• Paying special attention to final interactions before renewal periods, ensuring they leave a lasting positive impression.

For example, for members approaching their renewal date,  you could consider sending personalised thank-you videos from leadership highlighting the contributions and value that members bring to your organisation.

2. The Ikea Effect 

The Ikea effect demonstrates the cognitive bias of people placing higher value on things they’ve helped create. You can apply this to your membership strategy by:

• Involving members in co-creation through committees or member-led initiatives.
• Encouraging members to contribute content, such as articles, webinars, or case studies.
• Offering personalisation options within your member portal or communication preferences.
• Seeking member input on key organisational decisions, making them feel like valued stakeholders.

Giving members an opportunity to contribute and help shape your organisation creates an ecosystem of ‘partners’ invested in its success. Just like Ikea itself says, the effect is the culmination of when labour leads to love.

3. The Reciprocity Principle 

Reciprocity is a powerful social dynamic where people feel compelled to return favours or kind gestures. Some ways to harness this principle include:

• Providing unexpected benefits or resources, such as exclusive industry reports or learning opportunities from educational content. 
• Adding personal touches, like birthday recognitions or milestone celebrations.
• Ensuring a balance between what you give and what you ask of members to maintain perceived fairness.

Remember, timing is key. When you’ve recently provided value, members are more likely to respond positively to requests for feedback, renewals, or increased engagement. 

4. Social Proof

As naturally social creatures we are inherently influenced by the actions and thoughts of others because our status depends on it. Usually, when something of interest to us is enjoyed by others, that validates our opinions and decisions. That’s precisely why social proof is a compelling psychological driver for members; it reinforces the value they place in their memberships. 

• Share diverse member testimonials and success stories across your communication channels.
• Highlight tangible outcomes of membership, such as career advancements or business growth as a result of your organisation’s resources or network.
• Regularly update members on organisational achievements, emphasising how their participation contributes to these successes.

Consider creating a “Member Spotlight” series or an annual impact report that shows the collective achievements of your membership base.

5. The Endowment Effect

The endowment effect describes how people tend to value things more highly once they own them. You could enhance this perception of memberships within your organisation by:

• Offering exclusive benefits or access that are unavailable to non-members.
• Developing a customised member portal that serves as a personal hub for resources and interactions.
• Implementing a tiered membership system where benefits accumulate over time, increasing the perceived value of long-term membership.

Aim for making memberships within your organisation feel like a valuable asset. That way, you create a psychological barrier in your members for letting something valuable go.

Loyalty-Inspiring Experiences for Your Members

Incorporating these five psychological principles into your member retention strategy, creates a more engaging and satisfying experience for members. Take a moment to assess your current practices against these principles. Just small changes informed by these psychological insights will lead to significant improvements in member loyalty and long-term engagement and relationships that stand the test of time.

Propello offers a range of tools to help drive new member acquisition, increase brand loyalty, boost member retention and improve the experience for your members.

Contact us to learn more.