1.Tony Rossell Tony Karrer PresenterModeratorDiagnosing and Solving Your Membership MarketingChallengesProudly Sponsored By:

2. Applying Systems Thinking to Membership Marketing We tend to focus onsnapshots of isolated parts ofthe system, and wonder whyour deepest problems neverseem to get solved. Systemthinking is a conceptualframework to make the fullpatterns clearer, and to helpus see how to change themeffectively.Peter Senge, The Fifth Discipline 3. Finding Long-Term Solutions by Removing ImpedimentsSystems thinking shows that small, well-focusedactions can sometimes produce significant, enduringimprovements, if theyre in the right place. Systemsthinkers refer to this principle as leverage. Tackling adifficult problem is often a matter of seeing where thehigh leverage lies, a change which with a minimumof effort would lead to lasting and significantimprovement. The only problem is that high-leveragechanges are usually highly nonobvious to mostparticipants in the system.(Senge, page 63-64) 4. A Membership Marketing SystemThe Membership Lifecycle Awareness Recruitment Engagement Renewal Reinstatement 5. Diagnosing Your MembershipMarketing Challenges 6. Membership Marketing Vital Signs Membership Growth Renewal Rate New Members Conversion Rate Product and Service Usage Market Penetration 7. What are the Vital Signs for Associations Today? 2012 Membership MarketingBenchmarking Report Over 691 Participating Associations Up Front Disclaimer What not Why Correlation not Causation Every Association is Unique Fourth Year Produced by MGI 8. Is your membership growing?CHANGE IN MEMBERSHIP OVER PAST ONE YEARCOMPRESSED 2012201120102009 (N = 689) (N = 642) (N = 405) (N = 331)Percentage Increased Overall 52% 49% 36% 45%Percentage Unchanged Overall 16% 16% 14% 16%Percentage Declined Overall29% 34% 48% 35%Percentage Unsure3%2%3%5% 9. What is your overall membership renewal rate?3%Under 3% 2012 (N=685)50% 3% 2%2011 (N=643)4% 2010 (N=403)50% to 6% 59%4% 2009 (N=337)4% 7%60% to 10% 69%11% 7% 22%70% to23% 79%21%16% 38%80% to34% 89% 40%37%22%90% or 23%higher 18%29%3%Not2%sure3% 4% 10. What is your retention rate for first yearmembers?Under 50%10% 50% to 59% 13% 60% to 69%12% 70% to 79% 19% 80% to 89% 17%90% or higher12% Not sure 18% (N=682) 11. What proportion of your members engage inthe following areas EACH YEAR? AREAS OF ENGAGEMENT 11% 16% 21% 31% 41% Ove1%- 6%- N 0% - - - - - rN/A5% 10% 15% 20% 30% 40% 50% 50%Attend your annual conference/trade show 644 1% 12% 13% 11% 12% 11% 11% 6% 10% 12%Attend at least one of your professional development 663 1% 12% 13% 10% 9% 10% 9% 6% 9% 23%meetingsAcquire or maintain a certification with your organization 666 2% 9%6% 6% 5% 4%3% 2% 8% 57%Attend at least one of your webinars 658 2% 15% 14%9% 8% 6%2% 4% 4% 36%Purchase a non-dues product (other than previously 655 2% 18% 11%9% 8% 8%3% 3% 6% 33%checked)Purchase a non-dues service (other than previously 658 3% 17% 11%9% 7% 6%3% 4% 6% 36%checked)Purchase or maintain insurance through your 658 2% 14% 5% 3% 3% 2%2% 1% 3% 64%organizationPurchase a book or directory 653 2% 19% 10%6% 5% 5%3% 2% 3% 46%Participate in your public social network666 3% 25% 21% 13% 10%8%5% 3% 3% 10%Participate in your private social network 660 3% 20% 13%7% 6% 5%4% 3% 2% 38%Upgrade their membership 658 2% 16% 8% 6% 3% 1%1% 2% 3% 58%Volunteer within your organization 664 2% 32% 21% 14% 11%7%4% 2% 2% 7%Donate to your association foundation or PAC 662 3% 23% 13%6% 5% 2%2% 1% 2% 42%Participate in your young professional program 656 2% 16% 8% 4% 2% 2%1% 1% 1% 67%Participate in your mentoring program661 4% 18% 5% 3% 2% 2%1% 1% 1% 66% 12. What is the market penetration of your membership? The average individual membershipassociation has a 36% market penetration The average trade association has amarket penetration of 41%. 13. Membership Dashboard to Track VitalSigns 14. Which Part of the Lifecycle is Your Biggest Membership MarketingChallenge?The Membership Lifecycle Awareness Recruitment Engagement Renewal Reinstatement 15. Solving Your MembershipMarketing Challenges 16. Awareness StrategyDefinition: The process of establishing your brand in the minds of prospective members and building your knowledge base of who they are and how to contact them. 17. Awareness Strategy 18. Awareness Strategy Strategic Process LandingPagesOnline BehaviorSpecial OffersOnline Media Product Searches FREE Whitepaper Paid Search Web InformationFREE Trial Co-Registration SiteSearches Membership Ad Networks Events E-Newsletter Online PR Social Media Sign Up for Alerts ReleasesSearches ArticleSocial EducationalSubmissionsMediaSearches Blogs / Forum ProductPostspurchases Social Media Ads Sponsored LinksLeads Cultivated ThroughOngoing Interaction 19. Example of Google Online LeadGeneration Process Designed a PPC & Content Network Ads collection of WEF published articlesGoogle gives you the into cohesive freeability to display your adscontent. based on geography andtime of day.Landing page with offer.Thank you page with more options. 20. Components of the Campaign If the prospect has not joinedThe Fulfillment Emailfrom any of the previouscontains a link to components, a series of sent.download the free contentEach email focuses on a differentand contains a benefit of membership.membership offer. 21. Example of Facebook Online LeadGeneration1 Targeted Ad Placement. 2 Data Capture on Microsite. 3 Cultivation e-mail campaign with enrollment offers. 22. Example of Targeting through LinkedInLinkedIn allows you to deliver advertisingonly to people with certain qualifications ortitles, people with specific jobfunctions, and/or people specifying a Title/Qualificationsparticular skill set. Job FunctionThis makes the advertising spending verySkillsefficient, and fast movers can also takeGroupsadvantage of the current low prices on theplatform.LinkedIn Groups draw users back for longersessions, and this can be a great way toreach targeted individuals while they areconsidering business issues and topics inthe group setting. 23. Recruitment StrategyDefinition:The process of proactively inviting potential members to become a part ofyour organization in order to establish a long term relationship.Strategy: 1. The Target Market who you want to reach this includes determiningwhat are your primary markets and acquiring or building lists of theseprospects. 2. The Promotional Tactics how a member will be reached this includesselecting the best marketing channels like personal sales, direct mail,email, telemarketing, etc. and the frequency and timing of promotions. 3. The Membership Offer what a member will receive this includes howyou package your membership product and what special offers you willmake in your promotions to attract new members. 4. The Marketing Message why a member should join this includesproving your value proposition and presenting solutions and benefits tomembers that are compelling. 5. The Testing and Tracking where to take future efforts this includestrying variations of the four points listed above and recording which lists,offers, messages, and channels produce the best ROI and number of newmembers. 24. Recruitment Strategy 25. Recruitment Channels Personal SalesE-MailDatabase MarketingMarketingGoogle Re- Multi-Channel Direct Mail Marketing MarketingMarketingSearch Engine TelemarketingOptimization(SEO) Social Media 26. Recruitment OffersSpecial Offers A first year dues discount. A "no-risk" or no-obligation offer with a bill-me. A product voucher offering new members $75 to$100 in savings on any future product purchase. Premiums (free gifts). Offering more of the product (e.g., 15 months ofmembership for the price of 12). A free trial offer membership. Installment billing turns a $239 membership into aneasy monthly payment of $19.91. 27. Recruitment Testing 35% BoostIdentifying a control Rate Package TypeResponseGreen Card 1.12%Invitation .83% 28. Recruitment Testing 111% Boost35%Boost Improving the Control List Segment $75 Voucher Subscription Response BoostYoung3.46%2.57%35% BoostPhysicians 29. Recruitment Testing37%BoostBeating the controlPackage TypeResponse RateGreen Card1.35%Membership Card 1.85% 30. Engagement StrategyDefinition: The process of moving members from observers into users of the products and services made available by your organization and strengthening their emotional, psychological or physical investment.Strategy:1.Interaction Member involvement and usage are the best levers forengagement.2.Communicate Relevance Providing lots of communications thatare not targeted are relevant to a member can cause disengagement.Let behavior drive your communications strategy.3.Score Engagement Define the measurable behaviors that indicateengagement (i.e. transactions, website usage, email behavior,volunteering). 31. Engagement ResearchVery Little Difference BetweenNon-Engaged Members and Lapsed MembersMembers who are not involved lie perilously close toformer members in the overarching assessment of thevalue they derive from associations. If former membersare thought to be dead, the uninvolved are close tocomatose(The Decision to Join, p 4). 32. Engagement StrategyData Analytics for one association on engagement. Members who attended an association meeting in the past yearwere 19% more likely to renew than those who did not attend ameeting. Members who attended four or more meetings were 30% morelikely to renew than members who never attended a meeting. Members who placed a product order in the past year were 28%more likely to renew than those who had not placed an order. Members who upgraded their membership in the past year to ahigher level of service were 12% more likely to renew. 33. Engagement CommunicationTargeted Monthly e-Newsletters Deliver timely updates Reinforce membership value and vision Customize content by segment Promote increased interaction Certification Publications Events Webinars Track and respond 34. Engagement CommunicationTracking and RespondingIm interested incertificationinformation! Triggered Certification Email 35. Renewal StrategyDefinition:The process of confirming the value that has been delivered to themember over the past year and requesting the continuance of therelationship.Strategy:1. Renew Frequency and Timing Like it or not, people forget to renew.2. Channels Use all of the tools that are available to you for retention3. Conversion Typically, first year members are the least likely to renew.4. Budget Most organizations under-spend on renewals.5. Payment Offering automatic credit card or EFT renewal, turns renewals from an opt-in decision to an opt-out action.6. Offers This is highly debated, but some organizations have great success with giving incentives for early renewals.7. Personalization Adding personalized messages to renewal efforts like, because of your membership, you saved $50.00 on your product purchases this year. Or, we had some success on the legislative issue you were most concerned about. 36. Renewal TimingRENEWAL RATES BY NUMBER OF RENEWAL CONTACTSINDIVIDUAL MEMBERSHIP ASSOCIATIONS (N=356) 7 or more 1-6 renewalRenewal Raterenewalcontacts contacts Less than 80%49%44% 80% or higher51%56% 37. Renewal Timing RENEWAL RATES BY START OF RENEWAL EFFORT INDIVIDUAL MEMBERSHIP ASSOCIATIONS (N=354)Three More thanmonths or three Renewal Rate less prior to months priorexpiration to expiration Less than 80%51% 40% 80% or higher49% 60% 38. Renewal Timing RENEWAL RATES BY END OF RENEWAL EFFORTINDIVIDUAL MEMBERSHIP ASSOCIATIONS (N=354) More than1-3 months threeRenewal Rateafter monthsexpiration after expiration Less than 80% 51%43% 80% or higher 49%57% 39. Renewal BudgetCase StudyAverage dues rate of $95.Nine part mail renewal program with supporting emails.The incremental cost to service a member is approximately $24 per member.Amount spent to renew each member from each renewal effort. Effort #1 -- $ 2.31 Effort #2 -- $ 4.05 Effort #3 -- $ 8.75 Effort #4 -- $10.24 Effort #5 -- $15.96 Effort #6 -- $10.15 Effort #7 -- $ 9.36 Effort #8 -- $ 20.54 Effort #9 -- $ 37.61 40. Renewal BudgetAnalysis The last effort, they are spending over $37 to get amember to renew. Is that too much? Here is the math: (($37.61 + $24.00) ($95)) =$33.84). 41. Do you offer any of the following renewal options? 46%Installment renewal payments46%(monthly, quarterly)46%32%Multi-year renewals 32% 33% 26% Renewal bill-me 28% 28%24% Automatic annual credit card renewal 24%22%22%Lifetime membership 25%Not asked in 2010 2012 (N=445) 22% Early renewal discounts21%2011 (N=440)19% 2010 (N=246) Automatic Electronic Funds Transfer15%15% (EFT) renewals10% 42. Renewal PersonalizationMulti-step, integratedchannel, issuedriven, digitallyprinted, renewalprogram. 43. Reinstatement StrategyDefinition:The process of defining the where the breakdown occurred in themembership relationship and restoring former participants to a paidstatus. A winback or reinstatement strategy helps to reconnect formerparticipants.Strategy:1. Never Give Up on Lapsed Members Lapsed members are almost always the most economical members reach out to for membership.2. Develop Messaging For many groups, former members are very likely to rejoin an organization, but messaging should be different than what is communicated to never members3. Conduct Lapsed Member Research When members leave they highlight a breakdown in the membership system. Conducting research to understand why members do not continue with an organization will impact all parts of the membership lifecycle 44. Reinstatement Strategy10%We dont contact lapsed11%members 10% 8%22% 1 year after expiration22% 24%25%13% 2 years after expiration14%15%13% 10% 3 years after expiration 9%6%2012 (N=686)6% 5% 2011 (N=641) 4 to 5 years after expiration4%6%2010 (N=403) 5%2009 (N=333) 1%6 to 10 years after expiration 1% 1% 1%We continue indefinitely to31%30%contact lapsed members24%30%5%Not sure5% 7% 7% 4%Other 3% 7%6% 45. Reinstatement Strategy Reinstatement programs test the effectiveness of yourrenewal program. Many organizations are sitting on thousands ofprospects just waiting to return. Employ research and analytics to determine what wentwrong for your lapsing members. Under served market segments Product and service gap analysis Value proposition update 46. Reinstatement Systems Thinking "Look not where you fell, look where you slipped.(African Proverb) 47. Diagnosing and Solving YourMembership Marketing ChallengesQuestions? Tony Rossell Tony@MarketingGeneral.com