User:Dreambsa/sandbox

File Last Updated: 26 Dec. 2020

CHAPTER 1: OBJECTIVE

OBJECTIVE: TO MAXIMIZE REVENUE BY FOCUSING ON RETAINING (OK) AND ACTIVATING (DEF) MEMBERS.

The objective is to maximize revenue by implementing strategies at different levels to focus on the core revenue generator of the company, i.e., Existing Members. Below break up provides the rationale for this focus.

IMPORTANT: We need to control that we only & only select and do those activities which are expected to result in meeting our objectives.

RATIONALE OF THE OBJECTIVE

The below graph shows that while the number of Total Members has significantly increased in the past 15 years, the number of Defaulter Members has also increased at a similar rate. The average number of Active Members has been around 8,400 throughout the years. It means that we have NOT been able to RETAIN our members over the years as we should have.

As a result, the percentage of Active Members has dropped from 84% in 2006 to 34.5% in 2020. Below table shows the decrease in percentage of active members over the past 15 years. NOTE: All values are year end values.

While the sales team has been working tirelessly to increase new members and the Recovery team has been working rigorously on bringing back inactive members, we have done no planned and coordinated efforts to retain the members who are already active. Retention work was being indirectly through the facilities added and events done to sell memberships and recover non paying members. That is why we need to work directly on Member Retention.

Below revenue source tables show why we need to work on Retention and Recovery of members. Close to 60% of the yearly revenue of the company is obtained through our members. This percentage will be much higher for the year 2020 when corporate sales was zero for about 4 and a half months of lockdown. Below table shows the breakup of revenue from members. It shows that only about 10% of member revenue is generated from new members. While about 90% of member revenue is generated from existing members. That is why we have reduced our focus on selling new memberships and will now focus on Recovery of Defaulter Members and Retention of OK Members.