One of the biggest indicators of the overall “health” of a pet licensing program is renewal rate. This metric is key to evaluating the efficacy of your operation and it is a great measure of whether pet owners in your community are finding value in purchasing your pet licenses.
Maximizing your renewal rate is the best first step to increasing your overall license sales as keeping a pet owner is much easier and cost effective than generating new users year after year.
What is your renewal rate?
Simply put, your pet licensing renewal rate is the percentage of license records that are renewed at the end of a license’s full purchase term. Pet owners occasionally move out of your jurisdiction or lose their pets so these instances would not be included in the calculation of your overall renewal rate.
Why does your renewal rate matter?
The best philanthropies know that when someone donates $10, there is an immediate opportunity to cultivate that donor into a sustaining member of their organization meaning they donate on a recurring basis. To a philanthropist, that original $10 donation is worth potentially $100 or more over the span of years and the organization counts on it. In pet licensing, your renewal rate is a direct measure of your future revenue potential.
Put another way, a license purchased today is only as valuable as your program’s renewal rate. With a renewal rate of 85% or higher, which is standard for DocuPet partners, you can safely evaluate that a $25 license today has a real value of $250 over the course of 10 years.
A maximized renewal rate also makes it easier to find new licensees and grow compliance. Think of a hot new startup business. Would that business be able to grow more rapidly if they already have a committed user base? Certainly. By retaining pet owners year in and out, you are creating an opportunity for referrals to be generated while gaining actionable feedback from people who know your brand.
Interested in maximizing your renewal rates?
Contact us by clicking the button below and our team will reach out to schedule a customized demonstration of how the DocuPet service can positively impact your program and maximize your renewal rates with the minimal possible time and cost.