Skip to main content

The Nudge

Dan and Chip Heath write a great article in the May issue of Fast Company. It is about changing people's opinions with just a small nudge, or change in the way things are normally done. One example they give is that in Austria, you are automatically an organ donor unless you opt out. Therefore, 99% of residents are donors. When you have to opt in, only 12% of residents of Germany are donors.

Could you make renewals automatic? Once you sign up, we will automatically charge your credit card each year unless you opt out? Are there laws against that? Would you get a big backlash? I know credit card companies try to do that with their "insurance" plans in you lose your job, etc.

Comments

Anonymous said…
Yes, you need to check the legalities of that.

By the way, I don't select automatic renewals when I sign up for anything. When the term is up I want to be asked again.

I think opt-out is presumtuous and takes advantage of people who are either uninformed or inattentive.

You don't have to persuade people to renew when their membership expires, simply inform them it is time to renew.
Matt Baehr said…
Actually, I am with you David. I just wanted to throw it out there.

However, even though it may take advantage of the uninformed, those may become informed by being automatically renewed.
Anonymous said…
Matt,

When I was working in the publishing world for a number of years credit card automatic renewal was the panacea. Every publisher in the world thought people would flock to it and it would make the world a better place. As we all tested it no one was real successful. There were numerous issues including lower response, bad credit cards, etc, etc. Bottom line was I don't think that people wanted you to sit on their credit card info and just zap them over and over again.

What many companies went to was what we call automatic billing. It is really semantics but what publishers were doing was getting subscribers to sign up for an auto bill program. What this meant is that you were giving written consent (not legally enforceable of course)that you were going to renew for the foreseeable future and that the publisher could invoice you and expect payment. Instead of sending a "renewal" to you they would send a "bill" to you stating that you had signed up for this program and your payment was now due. It did work in some cases and their are several publishers that are now using it as part of their regular process.

Personally I think that associations are different than publishers. Associations need to show their members the value of membership on a consistent basis so that renewal is a no-brainer. If all were able to do that we wouldn't have to worry about hoping that some folks gave us credit card numbers that we could just hit regularly and hope that even some of those that wanted to drop their membership were just too lazy to figure out how to get us to stop charging their cards.

Popular posts from this blog

10 Thoughts on #ASAE10

Ok, so I could have spelled out the title, but chose the hashtag - #asae10. Supposedly there were over 8,000 tweets with the hashtag, but probably countless more direct messages of messages that left out the hashtag but were conference related. Two years ago, we were using twitter as a backchannel to talk about speakers. Now, over 800 people sent conference related tweets. If you aren't on Twitter, you are already late to the party. Anyway, on with the post... In no particular order, my thoughts on this years ASAE Annual Conference: 1. LA was a good venue. Lots to do. Hotels close by. Only downside was the rooms were a bit of a hike. 2. I missed Sunday because of family obligations. That really put me behind the 8 ball. Since I led a session, that meant I only got to go to 3 true sessions. Sorry, I don't count Joy Behar and the closing session. Although Marshall Goldsmith was good, I probably wouldn't have gone to see that speech as a Learning Lab. 3. Based on #...

Sunk Costs, Marginal Costs and Economics

When I was in college, I hated Economics. Then, several years later, I found myself teaching undergrad Econ and learned an appreciation for it. Now today, I have an even bigger appreciation for it. I have also noticed that not enough people have a solid grasp of some basic econ concepts that can be applied to everyday life. Two of these are cost related. Here are some basic definitions from The Economist website : Sunk Costs - When what is done cannot be undone. Sunk costs are costs that have been incurred and cannot be reversed, for example, spending on ADVERTISING or researching a product idea. They can be a barrier to entry. If potential entrants would have to incur similar costs, which would not be recoverable if the entry failed, they may be scared off. Marginal Costs - The difference made by one extra unit of something. Marginal revenue is the extra revenue earned by selling one more unit of something. The marginal cost (or whatever) can be very different from the AVERAGE c...

Do you want your association to be Walmart?

Earlier this week, I had a small Twitter discussion with Kevin Holland ( @associationinc ) regarding aggregation as a value proposition. @associationinc - Deciding your role is to aggregate other people's value is like George Costanza wearing sweatpants. "You're telling the world, 'I give up.'" @cardcat - Interesting comment about aggregating. Don't you think it is a viable option for a small association who can't afford it? @associationinc - Nothng wrong with aggregating content as long as you don't perceive it to be your value proposition. There's no real future in it. @cardcat - Don't think it is THE value proposition, but I think it could be A value to members, a big value. @associationinc - A big value is something you offer that nobody else can or that u can do better. Aggregating content is easy, there4 unsustainable. @cardcat - True, it isn't sustainable. But I almost think if you don't act as an aggregator, you risk folks...