The Member Engagement Gap - Why They Leave (and How to Stop It)

When a customer signs up or becomes a member, most businesses celebrate the “win.” But here’s the uncomfortable truth: acquisition is only half the battle. The real challenge is keeping them engaged.

According to Gallup, fully engaged customers represent a 23% premium in terms of share of wallet, profitability, revenue, and relationship growth. Yet many Australian organisations are still losing members because they fail to sustain meaningful engagement after onboarding.

The Member Engagement Gap happens when expectations don’t match reality:

• Onboarding fatigue – 63% of customers say onboarding is the deciding factor in whether they continue with a product or service (Wyzowl). A confusing or lackluster start sets the wrong tone.

• Irrelevant communication – 41% of consumers have switched companies due to poor personalisation. Blanket emails and generic offers don’t make members feel valued.

• Lack of ongoing value – Customers ask: “What’s in it for me?” If they don’t see evolving benefits, loyalty fades fast.

Australian membership organisations have seen this firsthand. Rotary research in Australia found the top reasons members leave include unmet expectations, cost, and poor club experience. Clubs have battled declining relevance with younger generations, while CPA Australia faced backlash when members lost confidence in how fees were spent.

Closing the Gap with Smart Tech

Technology is shifting engagement from reactive to predictive. Here’s how forward-thinking Australian businesses are addressing the problem:

• AI-powered personalisation – McKinsey reports that companies excelling at personalisation generate 40% more revenue than their average peers. For example, RACV has been transforming its systems to anticipate member needs and deliver a tailored experience to its 2.2 million members.

• Proactive support – Instead of waiting for members to disengage, data signals (like decreased logins or reduced usage) can trigger timely outreach. NRMA has invested heavily in self-service tools and personalised communication, helping drive record member growth past 3.4 million.

• Community-building platforms – Gartner predicts that by 2026, 60% of large enterprises will use digital community platforms. Engineers Australia has already moved beyond passive retention, using digital communities and programs to actively connect and engage its 120,000+ members.

Why This Matters

The cost of disengagement is high. In subscription-based models alone, the average churn rate is 5.6% per month. That may sound small - but compounded annually, it can erode nearly half your base.

The solution? Engagement that goes beyond transactions. Engagement that feels personal, proactive, and participatory.

The Bottom Line

Australian organisations that are winning in member engagement - like NRMA and RACV - are doing it by embracing technology. They’re moving away from blanket communications and one-off perks, and towards predictive, personalised, and digital-first experiences that make members feel recognised and valued every single day.

At Solentive, we help organisations harness technology to transform the way they engage with their members and customers. From AI-driven personalisation to digital platforms that build community, we design solutions that close the engagement gap and drive loyalty for the long term.

Ready to rethink how you engage your members? Get in touch with us today.