Relationship Marketing Strategy and implementation

(Nora) #1

●They have been members for the shortest time and support many other
charities.
4 RSPB Enthusiasts (26 per cent)
●Those interested in birds of all types.
●Twitchers or keen garden birdwatchers.
●Interested in green issues and outgoing – they tend to be middle-aged (or
older) women who enjoy socializing, visiting reserves and meeting others.
5 Distant Donors (2 per cent)
●Not really interested in birds.
●Low interest in environmental and green issues.
●Wealthy and active charity givers.


The membership research emphasized the severe limitations of the present
database technology, as no detailed analysis could be undertaken on these
segments until it was updated. Until this was possible, efforts were
directed towards developing a database strategy for the future.


Database development
The stated aim of ‘Towards 2000’ was to ensure overall growth of the mem-
bership base and to achieve increased revenue. To this end, a database
management model (adapted from database management seminars
attended by staff) was adopted and is outlined in Figure 2.6.5. Whilst in the
RSPB’s case ‘customer’ refers to member, the objectives closely mirror
those of the Society.
Hurst and Rothwell identified two priority strategies. Their overriding
concern was not recruitment but to grow the membership base by retain-
ing new and present members (shown as Strategies 2 and 3 in Figure 2.6.5).
The value of prioritizing these was underlined by further analysis of the
present membership database.


Retention
Previous research had shown that members who join and pay by direct
debit have a much higher retention rate: 99 per cent of members renew their
membership at the end of the first year compared to only 42 per cent for
those who initially subscribe by cash or cheque. The large difference in
retention rate meant that the marketing department must concentrate on
trying to switch new members to direct debit after they have joined. If a
member is subscribing by direct debit at the end of the first year, the Society
is much more likely to build a profitable long-term relationship with them.
At present, the incentive to move to direct debit is three months’ free
membership. Other promotional items in the past have included bird
tables, books and videos but the gifts are always positioned to reinforce the


The customer market domain: Managing relationships with buyers 153

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