2011 benchmarkingrprt

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2011 benchmarkingrprt

  1. 1. 2 0 1 1MEMBERSHIP M ARKETING BENCHMARKING REPORT SURVEY CONDUCTED BY: Marketing General Incorporated UNDER THE SUPERVISION OF: Tony Rossell, Senior Vice President Adina Wasserman, PhD, Director of Research, and Erik Schonher, Vice President
  2. 2. 2 0 1 1 MEMBERSHIP M ARKETING BENCHMARKING REPORT EXECUTIVE SUMMARY Membership organizations reported and membership renewals—all showed a triple play in membership growth substantial improvements from the based on survey results gathered for previous year’s benchmarking report. the 2011 Membership Marketing Benchmarking Report. A total of 49% of respondents said that they had recorded an overall increase in From this year’s survey, which included members over the previous 12 months. 650 participating associations, the major This is a substantial jump over the 36%2 indicators of membership health—total who reported membership growth the membership, new members acquired, previous year. Percentage Change in Entire Membership Over Past ONE Year 2011 2010 2009 Percentage Increased Overall 49% 36% 45% Percentage Unchanged Overall 16% 14% 16% Percentage Declined Overall 34% 48% 35% Not Sure 2% 3% 5% www.marketinggeneral.com
  3. 3. Growth in new member recruitment Finally, the survey results show thatappears to be the big driver in membership renewals had a moremembership growth. Of responding positive outcome this past year, with 32%association executives, 57% report the of respondents saying that they have hadacquisition of new members increased an increase in overall renewal rates.over the past year. These results aresignificantly better compared to both2010 and 2009. Percentage Change in NEW-Member Acquisition Over Past Year 2011 2010 2009 Percentage Increased Overall 57% 42% 49% Percentage Unchanged Overall 21% 20% 22% Percentage Declined Overall 16% 26% 21% Not Sure 8% 12% 10% Percentage Change in Member RENEWALS Over Past Year 2011 2010 2009 3 Percentage Increased Overall 32% 21% 22% Percentage Unchanged Overall 37% 27% 39% Percentage Declined Overall 24% 44% 31% Not Sure 7% 8% 9% www.marketinggeneral.com
  4. 4. THE BIGGEST CHALLENGES TO The data indicates that if an organization MEMBERSHIP GROWTH reported weak product and service offerings, insufficient budget, or a lack of But even with improving numbers, marketing expertise as their biggest challenges still exist for many groups challenge, then membership growth was in growing their membership. To gain less likely to have been achieved. a better understanding of these challenges, this year we asked association On the other hand, if an organization said executives to tell us what they perceived that its biggest challenge was the lack of as the biggest impediments to growth. a strategy or plan, then membership was more likely to have remained static. We then took their answers and cross- tabulated them with the reported However, there may be hope for membership performance for their membership growth even if an organizations over the past five years. organization is faced with insufficient staff, market saturation, an inadequate What we wanted to discover was which association management database, or challenges hurt membership growth the inadequate research to understand the most and which were painful, but tended market they serve. Organizations not to impede growth. Here is what we reporting these problems were more found: likely to have seen membership growth4 over the past five years. Challenges Faced by Five Year Membership Growth Five Year Five Year Five Year Challenge Membership Membership Membership Increased Unchanged Decreased Insufficient staff Weak product or service offering Insufficient budget Lack of strategy or plan Market saturation Inadequate association management database Lack of marketing expertise Inadequate research www.marketinggeneral.com
  5. 5. ENGAGING MEMBERS WITH in an activity, the higher the likelihood ofPRODUCTS AND SERVICES increased renewals for that organization.Engaging members is also a critical Specifically, organizations with members incomponent of building a strong the following activities were more likely tomembership. So our research this year have renewal rates over 80% compared toincluded a question to try and gauge the organizations that did not offer theseparticipation level that organizations have programs: attendance at an annualachieved in a variety of programs and convention, attendance at a professionalservices that are commonly provided by development meeting, attendance at amembership organizations. webinar, volunteering, participation in the private social network, participation in aBeyond just the proportion of young professionals program, purchase of amembership using an association’s book or directory, certification, purchasingproducts and services, the data insurance, and purchase of a miscellaneoushighlighted that organizations that had at non-dues product or service.least some members involved in almostall of these activities were more likely to Participation in a public social networkenjoy higher renewal rates than those and upgrading a membership were theorganizations not offering a specific only activities that did not correlate withprogram. And in general, the higher the renewal rates over 80%. 5proportion of members who participated Percentage of Members Engaged With Each Type of Activity 1% - 6% - 11% 16% 21% 31% 41% Over N 0% 5% 10% -15% -20% -30% -40% -50% 50% Mean Attend your annual convention 592 7% 15% 14% 10% 13% 14% 8% 8% 12% 22% Attend at least one of your professional 19% 540 10% 18% 12% 9% 14% 13% 9% 7% 8% development meetings Acquire or maintain a certification with 480 47% 14% 9% 6% 7% 4% 2% 3% 8% 11% your organization Attend at least one of your webinars 519 25% 27% 14% 10% 7% 7% 6% 3% 3% 11% Participate in your public social network 539 12% 35% 23% 9% 7% 7% 3% 2% 2% 10% Purchase a non-dues product (other than previously checked) 494 29% 25% 16% 10% 5% 5% 4% 1% 4% 10% Volunteer with your organization 581 8% 39% 25% 10% 9% 5% 2% 1% 1% 9% Purchase a book or directory 505 34% 24% 16% 8% 6% 5% 3% 2% 4% 9% Participate in your private social network 511 34% 24% 16% 8% 5% 4% 4% 2% 3% 9% Purchase a non-dues service 473 36% 27% 13% 8% 5% 3% 2% 2% 4% 9% (other than previously checked) Purchase or maintain insurance 479 52% 22% 8% 7% 3% 3% 2% 1% 4% 7% through your organization Upgrade their membership 472 48% 24% 12% 4% 3% 4% 2% 1% 2% 6% Participate in your young professional program 447 57% 25% 9% 4% 3% 1% 0% 0% 0% 3% www.marketinggeneral.com
  6. 6. RAISING DUES LEVELS Another new area that we added to our What we found is that 30% of research this year was the practices organizations report that they have or around raising membership dues. will raise their membership dues in 2011 and 71% will increase dues rates between We asked: “How often does your 1% and 10%. The majority of associations association raise membership dues?”, raise dues on an as-needed basis and “When was the last time your association do not have a regular dues increase raised membership dues?”, and “What schedule. was the average percentage of your last membership dues increase across all membership categories?” How often does your asso o ociation raise membership due e es? How often does your association raise membership dues? 12% 17% 9% 4% Annually A6 Every other yea E ar As A needed 58% Never N Other O 201 (N=644) 11 * The dues increase questions in the 2011 Benchmarking Research mirror questions from the 2007 Marketing General Incorporated study titled, Membership Dues Increase Study: Best Practices in the Why, How, and Outcomes of Raising Membership Dues. Despite the dramatic economic events of recent years, the frequency and amount of dues increases vary only slightly from the findings of our 2007 report. www.marketinggeneral.com
  7. 7. REPORT BACKGROUND declining membership or better renewal rates, we are not claiming that any oneThe 2011 Membership Marketing behavior in and of itself causes this outcome.Benchmarking Report marks the third year There are literally thousands of variables thatthat Marketing General Incorporated (MGI) impact membership results.has surveyed associations to betterunderstand the strategies and tactics they Nevertheless, if as a marketer one sees thatuse to recruit members, engage new organizations with certain behaviors ormembers, renew existing members, and practices tend to be doing better, one atreinstate former members. least will want to explore the issue and see if there is something that can be applied to hisHowever, beyond cataloging membership or her organization.practices, this Benchmarking Report alsotakes these practices and cross-tabulates The report includes dozens of key findingsthem with the membership results that can provide insights and direction forassociations are experiencing. membership marketing programs. We hope that you find it of help as you seek toThe comparison of practices and outcomes in maximize the membership results for yourmembership provides strong directional organization.information on what tactics and strategiesmight be added or dropped to help improve If you have questions or need assistancea membership program. with your membership marketing, the team at Marketing General Incorporated isThere is an important disclaimer that readers 7 pleased to be of help. Our website is:should be aware of as they evaluate this www.MarketingGeneral.com. Please findreport. Because an activity or practice has a our individual contact information on thestatistical correlation with a growing or back panel of this report. www.marketinggeneral.com
  8. 8. INTRODUCTION SURVEY OBJECTIVE What is the margin of error? The margin of error is a statistical measurement used to assess the The 2011 Membership Marketing Benchmarking accuracy of the data compared to the universe of Report is the third installment of our annual respondents. Since it is impossible to survey all tracking study. Our tracking research continues to association executives, statisticians rely on a provide perspective on the tactics and strategies random sample of individuals from the “universe” that organizations use to recruit new members, of association executives to estimate what the engage and renew existing members, and results of the entire population would be. In reinstate former members. Additionally, we essence, a randomly-generated sample provides compare the effectiveness of different tactics and a statistical “snapshot” of the universe. The strategies from year to year and assess changes in margin of error, therefore, measures the random association membership levels. While some fluctuations or changes inherent in any sample. questions from the 2010 study were removed, The smaller the margin of error means the more new questions were added to the study as various accurate the measurement of the universe. other issues and queries were brought to light. This study’s significant level of .05 carries with it a 95% confidence interval, meaning that if this METHODOLOGY study was conducted 100 times, the same results, plus or minus the margin of error (3.8%, in this The 2011 Membership Marketing Benchmarking case) would occur 95 out of 100 times. The Study was conducted online and was launched on confidence interval is established as the February 14, 2011, and was accessible to likelihood that the same results would be respondents through March 7, 2011. Email replicated, and that differences are not due to invitations were sent to approximately 5,719 chance or random fluctuations.8 association professionals. In addition, respondents had access to the survey through our company blog site, if they did not receive a RESPONSE RATE formal invitation. Close to 700 association professionals responded to this year’s survey Email invitations were sent to 5,719 association providing data and information about their professionals. There were 196 email addresses membership marketing efforts and experiences. that “bounced,” resulting in a total of 5,523 delivered emails. 663 individual association To ensure that only one response per association executives responded to the online survey was included, “duplicate” association responses invitation, and another 29 completed the survey were removed. For example, if more than one via the survey link on the blog post, resulting in person from the same association completed the 692 completed surveys. The survey produced a survey, the responses of the individual most 13% response rate overall, the same as the 2010 closely associated with the membership study. After removing the duplicate associations, marketing responsibilities were used. Forty-two findings from a net of 650 respondents are duplicate association responses were removed included in this report. from the final results of this study, resulting in a total of 650 respondents for this study, with a margin of error of +/- 3.8%. www.marketinggeneral.com
  9. 9. Which social media does your organization officially use?(Please check all that apply.) Faceboo ok 91% 75% TwiƩe er 71% 66% 2011 (N=641) LinkedIn (Public c) 53% 2010 (N=405) 59% YouTub be % 45% 35% LinkedIn (AssociaƟon Members Only n y) 28% Not asked in 201 10 27% AssociaƟon Blo A og 30% 24% Asso ociaƟon Listser rv 31% Private AssociaƟon Social Networ rk 18 8% 7% 17 Flick kr 15% % Not asked in 2010 Wikis 9% 13% % te Ning/Groupsit 4% 6% Second Lif fe 2% 3% MySpac ce 1% 9 4% None 6% 8% 2011 (N=641) er Othe 4% 6% 2010 (N=405) Similar to the previous study, Social media declines are seen Associations showing an the top social media platforms with the use of Association increase in membership overall officially used by associations Blogs and Listservs, and the and an increase in renewals include Facebook (91%), use of Wikis. over the past year are Twitter (71%), and LinkedIn significantly more likely to use Only 4% of individual (53%), although there has been an association blog and a membership associations and a slight drop in the percentage private association social 9% of organizational/trade of LinkedIn use by network, compared to associations report that they associations, compared to an associations showing no do not officially use social increase in the use of change or declines in media platforms. Facebook and Twitter. membership and renewals. Interestingly, associations with There has also been an an 80% or higher renewal rate increase in associations’ use of are significantly more likely to use YouTube over the past year a Members-Only LinkedIn site. (45% in 2011 vs. 35% in 2010). www.marketinggeneral.com
  10. 10. Of the social media your association uses, which has been the most effective in achieving your membership goals? Most EffecƟve Social Media Outlets in Reaching Membership Goals? N % Rank 1 % Rank 2 2011 2010 2011 2010 2011 2010 Facebook 329 307 29% 30% 22% 28% LinkedIn (Public) 161 242 15% 33% 10% 23% AssociaƟon Listserv 91 125 11% 59% 3% 14% LinkedIn (AssociaƟon Members Only) 89 NA 8% NA 6% NA TwiƩer 175 267 7% 10% 20% 26% Private AssociaƟon Social Network 58 70 5% 39% 4% 27% AssociaƟon Blog 57 123 5% 19% 4% 16% YouTube 55 141 3% 6% 6% 16% Ning/Groupsite 13* 23* 1% 13% 1% 9% Wikis 6* 55 -- 9% 1% 13% Flickr 6* NA -- NA 1% NA Second Life 1* 10* -- -- -- -- MySpace 0 15* -- -- -- --10 Other 10* 25* 1% 24% -- 4% * Small cell sizes can result in inflated percentages. Facebook is now considered LinkedIn (public access) is also rated as an effective outlet by the most effective media rated one of the top two most a higher percentage of outlet for reaching specified effective social media outlets, association professionals in the membership goals. While the but by far fewer respondents, last study (20% vs. 26% in percentage of respondents compared to the previous 2010). Private association rating it first has not changed study (15% vs. 33% in 2010). social networks are not much from the previous study This may be because we considered as effective as they (29% vs. 30% in 2010), other added a second LinkedIn were in the prior research (4% outlets that were previously option in the 2011 survey. vs. 27% in 2010). considered most effective Facebook is also rated as the Associations with renewal rates (association listserv and private second most effective media less than 80%, and those with association social network) are outlet, but at a slightly lower individual memberships, are perceived as significantly less percentage than in the 2010 significantly more likely to effective than reported in the study (22% vs. 28% in 2010). consider Facebook their most previous study. effective social network outlet. Twitter is considered one of the top two most effective social media outlets. It was www.marketinggeneral.com
  11. 11. How do prospective new members learn about orbecome aware of your organization? How ProspecƟve Members Learn or Become Aware of Your OrganizaƟon 2011 2010 2009 (N=638) (N=405) (N=599) Member word-of-mouth recommendaƟons 90% 91% 77% AssociaƟon website 87% 88% 85% Email to prospects 71% 67% 61% PromoƟon to/at your own conference/convenƟon 65% 66% 65% Co-worker or colleague recommendaƟons 64% 67% 54% Direct mail to prospects 62% 66% 76% AssociaƟon-sponsored events 57% 56% 37% Cross-sell to non-members who buy your products or aƩend 56% 59% 52% your conferences Local events/meeƟngs 53% NA NA AssociaƟon-sponsored social networking websites 51% 56% 35% (e.g., Facebook, LinkedIn) ExhibiƟng at other conferences 50% 51% 53% AdverƟsing in your own publicaƟons 48% 56% 51% RecommendaƟons from/connecƟons with other associaƟons 47% 50% 40% Search engines (organic) 45% 47% 34% Public relaƟons 40% 39% 29% Chapters 38% 46% 39% Employer recommendaƟons 33% 37% 30% AdverƟsing in outside publicaƟons 31% 31% 28% Faculty recommendaƟons 28% 32% 35% Personal sales calls 25% 22% 24% Job board 24% 23% 23% AccreditaƟon promoƟon 18% 20% 14% TelemarkeƟng to prospects 16% 18% 18% 11 Search engine ads (paid or pay-per-click) 14% 20% 8% Upward Paid banners on other websites 12% 13% 12% Trend Radio or TV 7% 5% 7% Other 4% 3% 3% Downward Do not know 0% 0% 1% Trend Continuing the trend from the previous two studies, • Chapters (38% in 2011 vs. 46% in 2010) member word-of-mouth recommendations (90%), an • Employer recommendation (33% in 2011 vs. association website (87%), and email to prospects 37% in 2010) are the three most common means by which • Association-sponsored social networking prospective members learn of an organization. websites (51% in 2011 vs. 56% in 2010) However, email to prospects is the only method of • Advertising in own publications (48% in 2011 the top three that has shown a continued increasing vs. 56% in 2010) trend over the three studies. • Search engines (paid or pay-per-click) (14% in More than 60% of association professionals indicate 2011 vs. 20% in 2010) that prospects learn of their organization through promotion to/at their conferences (65%), through a co- Associations with an 80% renewal rate or higher worker or colleague (64%), or through direct mail (62%). are more likely to rely on member word-of- However, direct mail is the only method of these three mouth recommendations or personal sales calls, showing a continuous decline from year to year. compared to those with a lower renewal rate. Recommendations through faculty members have also Those associations that rely on email to showed a declining trend over the past three years. prospects, local meetings or events, and/or association-sponsored networking sites to Other methods that show a decrease in generating increase association awareness are significantly association awareness from the 2010 study include: more likely to show increases in renewal rates over the previous year. www.marketinggeneral.com
  12. 12. What are the two most effective membership recruitment marketing channels you have used? Most EffecƟve Membership Recruitment Channels N % Rank 1 % Rank 2 2011 2010 2011 2010 2011 2010 Member word-of-mouth recommendaƟons 222 371 22% 27% 13% 19% Direct mail to prospects 171 268 15% 27% 11% 17% Email to prospects 125 272 10% 10% 9% 14% PromoƟon to/at your own conference/convenƟon 84 266 8% 11% 5% 8% Co-worker or colleague recommendaƟons 92 270 7% 13% 7% 13% Personal sales calls 70 90 7% 23% 4% 16% AssociaƟon website 94 359 5% 8% 9% 11% Cross-sell to non-members who buy your products or 85 238 5% 6% 8% 12% aƩend your conferences AssociaƟon-sponsored events 94 226 3% 2% 5% 8% Employer recommendaƟons 29 150 3% 8% 2% 5% Faculty recommendaƟons 27 128 2% 6% 2% 7% Chapters 34 188 2% 10% 3% 9% ExhibiƟng at other conferences 32 208 1% 3% 4% 5% AdverƟsing in your own publicaƟons 7 226 1% 0% 1% 1% RecommendaƟons from/connecƟons with other 16 202 1% 2% 2% 5% associaƟons Search engines (organic) 19 192 1% 1% 2% 5% Public relaƟons 9 158 1% 3% 1% 3% AssociaƟon-sponsored social networking websites12 (e.g., Facebook, LinkedIn) 16 226 1% 0% 2% 0% Local events/meeƟngs 29 NA 1% NA 4% NA AccreditaƟon promoƟon 9 82 1% 6% 1% 4% TelemarkeƟng to prospects 18 73 1% 7% 2% 7% AdverƟsing in outside publicaƟons 7 128 -- 2% 1% 3% Radio or TV 4 19 -- -- 1% -- Job board 2 94 -- -- -- -- Search engine ads (paid or pay-per-click) 4 80 -- -- -- -- Paid banners on other websites 0 51 -- -- -- -- Other 15 13 2% 15% 1% -- While the percentages have A significantly higher A significantly higher fallen somewhat, the top two proportion of individual percentage of larger most effective recruitment member associations rank associations (5,000 or more channels are still considered direct mail to prospects as the members) consider direct mail member word-of-mouth most effective membership to be the most effective recommendations and direct recruitment channel, recruitment channel, mail to prospects. compared to trade compared to smaller associations (19% vs. 12%), associations. Small while association executives from associations (up to 1,000 trade associations are significantly members) are significantly more likely to rate personal sales more likely to rate personal calls as most effective for sales calls as the most effective recruitment (16% vs. 2%). recruitment channel. www.marketinggeneral.com
  13. 13. What do you believe is the ONE TOP reason membersJOIN your organization? 25% Networking wit others in the field N th 24% 22% Ac alized and/or current ccess to specia 14% 4 13% info ormaƟon 23% 2011 (N=641) ) 10% vocacy Adv 11% 2010 (N=400) ) Not asked in 2009 2009 (N=303) ) 7% ConƟnuing educaƟon C 11% 5% 7% Learning best pracƟce in their profession es 9% 8% 8 Discounts on products or me eeƟng 5% 6% urchases pu 9% 5% Prest of belongin to the assoc tige ng ciaƟon Not asked in 2009/2010 5% erences/trade shows Confe Not asked in 2009/2010 4% aƟon or cerƟficaƟon Accredita 4% 2% 3% ociaƟon publicaƟons Asso 6% 3% 2% Adva ancing their po osiƟon 2% 4% 1% % Access to career reso s ources 3% 1% % 1% % Acc to industry benchmark studies cess y 1% % Not asked in 2009 Insurance (Affinity prog e grams) 1% % 13 Not asked in 2009/2010 1% % Access to industry thought le A eaders Not ask in 2009/2010 ked 1% % No sure ot 2% 2011 (N=641) ) Not aske in 2009 ed 2010 (N=400) ) 8% 8 Other 9% 2009 (N=303) ) 10% One-quarter of respondents the main reason members join vs. 10% showing no change, indicate that the top reason their association. This and 6% showing declines). they joined was to network percentage did not shift much There is a downward trend in with others in the field (25%). from the 2010 study (up from the percentage of respondents This represents a continued 13%), but still represents a who believe that discounts on trend upward, suggesting that substantial decline from the products and meeting networking events and result in 2009 (23%). purchases are a strong opportunities are becoming Advocacy is considered a membership driver. increasingly more important strong membership driver by Respondents are also less for members. This is about 10% of association likely to believe that specifically evident for smaller professionals, on par with the continuing education, best associations, those with fewer 2010 findings. This is especially practices, association than 5,000 paid members. true for associations with publications, and career Fourteen percent of renewal rates at or above 80% resources are strong association professionals (14% vs. 5%) and those with an membership motivators. believe access to specialized increase in membership counts and/or current information is over the past five years (13% www.marketinggeneral.com
  14. 14. Who is most likely to pay the dues for your membership? 8% 4% Employyer/Company Employyer/Company 51% % Member Member 37% 7 Both (p parƟal reimburrsement) Both (p parƟal reimburrsement) Not sure Not sure 2011 (N N=643) 2011 (N N=643) About half of the respondents associations with renewal rates Looking at industry, indicate that dues are most below 80% are significantly associations more likely to likely paid by a member’s more likely to report dues are have employer/company employer or company (51%), paid by the member, partially financial backing include: and 37% report that the or in full. • Finance/Accounting (68%) member pays the dues However, associations where themselves. Only 8% of • Professional Services (63%)14 the member pays his or her association professionals • Building/Construction (90%) own dues are more likely to indicate that members have seen membership growth • Manufacturing (68%) typically receive a partial in the past year (53% vs. 46%) reimbursement for their • Travel/Hospitality (74%) and are more likely to have membership. seen membership growth Associations, by industry, most Associations that indicate that in the past five years likely to have members paying an employer/company are (53% vs. 47%). their own dues include: most likely to pay membership Organizational/trade • Philanthropic (52%) dues realized a greater associations are more likely to decrease in renewal rates than • Healthcare (52%) have employer/company associations that indicate that financial support for • Scientific/Engineering (47%) the individual member pays membership dues (80% vs. the dues for themselves (50% 32% for individual membership vs. 38%). associations). Conversely, Associations with renewal rates individual membership at or above 80% are organizations are significantly significantly more likely to more likely to have members report that the who pay their own dues, employer/company pays compared to trade membership dues, while associations (52% vs. 16%). www.marketinggeneral.com
  15. 15. Which of the following communication methods do you useto help onboard or engage new members in the association? 71% Email welco ome 72% 62% 67% Mailed welcome kit e 68% 2011 (N N=643) 83% 2010 (N N=402) 51% Membership card or cerƟfic c cate 599% 2009 (N N=337) 58% 30% Volunt elcome phone call teer or staff we 32% % 26% 25% ember introductory email series New-me 27% 14% In-pe erson new-mem mber recepƟon or n 23% 20% orienta aƟon 19% 23% Special discou on purcha unts ases 23% 17% 18% Invite to chapter meet o ting 25% 23% 17% New w-member sur rvey 18% 20% Ne ew-member ne ewsleƩer (Mai or il 15% 20% elect tronic) 1 11% 12% Tele elcome phone call emarkeƟng we 10% 4% New-member giŌ (i.e., giŌ ca N ard, 1 11% 0% calendar, or notepad) 0% 10% Custo new-memb renewal series om ber 1 11% 7% 5% Early or "at birth" renewal " 4% 2% 15 2% 2011 (N N=643) No specia communicat al tion 2% 2% 2010 (N N=402) 5% Ot ther 5% 2009 (N N=337) 8%% The most commonly used from the previous years (59% in those with less than 80% methods for onboarding or 2010 and 58% in 2009). renewal rates are significantly engaging new members are an more likely to use membership The use of in-person new- email welcome (71%) and a cards/certificates (57% vs. 47%) member reception or mailed welcome kit (67%). and/or new-member gifts (15% orientation has increased Neither shows shifts in vs. 9%). slightly from the previous percentage of usage from the studies (23% vs. 20% in 2010 Furthermore, associations 2010 study, but the percentage and 19% in 2009). showing an overall increase in of associations that use an membership over the past five email welcome continues to However, the popularity of years are significantly more remain above the initial 2009 invitations to chapter meetings likely to include a custom new- benchmark (62%), while the and new-member newsletters member renewal series as an percentage of associations has shown a decline from the onboarding tool (12% vs. 6%). using a mailed welcome kit previous findings. remains below the 2009 Associations reporting benchmark (83%). Associations with 80% renewal increases in renewal rates are or higher are significantly more significantly more likely to About half of association likely to include a volunteer or incorporate an email welcome professionals provide a staff welcome phone call as into their engagement tool kit membership card or certificate part of their onboarding (80% vs. 71%). to members (51%), a decline methods (34% vs. 24%), while www.marketinggeneral.com
  16. 16. What proportion of your members do you estimate engage with your organization in the following areas EACH YEAR? Percentage of Members Engaged With Each Type of AcƟvity 1% - 6% - 11% - 16% - 21% - 31% - 41% - Over N 0% Mean 5% 10% 15% 20% 30% 40% 50% 50% AƩend your annual 592 7% 15% 14% 10% 13% 14% 8% 8% 12% 22% convenƟon AƩend at least one of your professional development 540 10% 18% 12% 9% 14% 13% 9% 7% 8% 19% meeƟngs Acquire or maintain a cerƟficaƟon with your 480 47% 14% 9% 6% 7% 4% 2% 3% 8% 11% organizaƟon AƩend at least one of your 519 25% 27% 14% 10% 7% 7% 6% 3% 3% 11% webinars ParƟcipate in your public 539 12% 35% 23% 9% 7% 7% 3% 2% 2% 10% social network Purchase a non-dues product (other than 494 29% 25% 16% 10% 5% 5% 4% 1% 4% 10% previously checked) Volunteer with your 581 8% 39% 25% 10% 9% 5% 2% 1% 1% 9% organizaƟon16 Purchase a book or 505 34% 24% 16% 8% 6% 5% 3% 2% 4% 9% directory ParƟcipate in your private 511 34% 24% 16% 8% 5% 4% 4% 2% 3% 9% social network Purchase a non-dues service (other than 473 36% 27% 13% 8% 5% 3% 2% 2% 4% 9% previously checked) Purchase or maintain insurance through your 479 52% 22% 8% 7% 3% 3% 2% 1% 4% 7% organizaƟon Upgrade their 472 48% 24% 12% 4% 3% 4% 2% 1% 2% 6% membership ParƟcipate in your young 447 57% 25% 9% 4% 3% 1% 0% 0% 0% 3% professional program www.marketinggeneral.com
  17. 17. The two most engaging activities (by mean) are Greater than one-third of associations report thatthe annual conventions (22%) and the up to 5% of their members either volunteerprofessional development meetings (19%). within the organization (39%) and/or participate in the association’s public social network (35%).20% of association professionals indicate thatmore than 40% of their members attend their Findings indicate that associations with moreannual convention. than 80% in renewals and those with increases in membership over the past year are significantlyGreater than 10% of respondents report that more likely to have over 50% of their membersmore than 40% of their members attend at least attend the annual conference.one of their association’s professionaldevelopment meetings and/or acquire or Associations with renewal rates at 80% or highermaintain a certification with the organization. are significantly more likely to have about 11% to 15% of their members volunteer within theMore than half of the associations report that organization, compared to associations withnone of their members engage with their lower renewals (12% vs. 7%).association through a young professionalsprogram (57%) and/or purchase insurancethrough the association (52%). 17 www.marketinggeneral.com
  18. 18. What is your overall membership renewal rate? 3% 3 Unde 50% er 3% 3 2% % 2011 (N=643) 2010 (N=403) 6% 50% t 59% to 4% 2009 (N=337) 4% 10% 60% t 69% to % 11% 7% 23 3% 70% t 79% to 21% 16% 4% 34 80% t 89% to 40% 37%18 23 3% 90% or h higher 18% 29% 2% % No sure ot 3% 3 4% www.marketinggeneral.com
  19. 19. In the current study, there is an Small associations with up to Association industries mostincrease in the percentage of 1,000 members are likely to show renewal rates atassociations reporting overall significantly more likely to 90% or higher include:renewal rates of 90% or higher. report renewal rates aboveThis percentage shows a 90%, while associations with • Finance/Accounting (41%)substantial rebound from the more than 1,000 paid • Manufacturing (43%)precipitous drop between the members are significantly • Education (23%)2009 and 2010 study. more likely to indicate renewal rates between 70% to 79%.There is a decrease in the Association industries mostpercentage of associations Organizational/trade likely to show renewal ratesreporting renewal rates associations are significantly between 80% and 89%between 80% to 89%, more likely to report renewal include:suggesting that some of the rates above 90% compared to • Building/Construction (45%)associations reporting an 80%- individual member • Scientific/Engineering (44%)89% renewal rate in the 2010 associations or those with bothresearch may have been able types of members (36%: trade • Healthcare (37%)to increase their renewal rates vs. 16%: individual; 14%: both). • Professional Services (31%)past 90%. • Philanthropic (30%)There is an increasing trend inthe number of associationsreporting renewal ratesbetween 70%-79%. 19 www.marketinggeneral.com
  20. 20. Renewal Rates by AssociaƟon Member Size Under 50% to 60% to 70% to 80% to 90% or N 50% 59% 69% 79% 89% higher Up to 1,000 190 4% 5% 6% 15% 34% 33% 1,001 to 5,000 179 2% 6% 10% 27% 34% 20% 5,001 to 20,000 159 3% 6% 11% 26% 33% 19% Over 20,000 109 1% 6% 12% 28% 38% 15% Associations with more than 1,000 members are trade/organizational associations are significantly significantly more likely to report renewal rates more likely to show renewal rates above 90%, it between 70% to 79%, compared to the small- is highly probable that the small-sized sized associations. Considering that associations are trade associations. Renewal Rates by Percentage of Last Dues Increase Under 50% to 60% to 70% to 80% to 90% or N 50% 59% 69% 79% 89% higher 1% to 10% 423 2% 6% 9% 23% 34% 25% 11% to 20% 112 2% 5% 10% 29% 34% 20% 21% or more 59 9% 5% 15% 20% 36% 12%20 Associations whose last dues increase was higher, compared to associations whose dues between 1% and 10% are also significantly increase was more than 10%. more likely to show renewal rates at 90% or www.marketinggeneral.com
  21. 21. How many membership renewal CONTACTS (such as mailings,emails, phone calls) do you make before a membership expireswith your organization? 2% None 2% 1% 23% 1 to 3 t 22% 21% 44% 4 to 6 t 44% 46% 18% 7 to 9 t 20% 19% 7% 10 to 12 o 6% 7% 1% 13 to 15 o 2% 2% 1% 16 to 18 o 1% 21 1% 2% More than 18 n 2% 1% 2011 ( ( (N=642) 2011 (N=642) 2010 ( ( (N=404) 2010 (N=404) 1% Not sure s 2% 2009 ( ( (N=337) 2009 (N=337) % 3% Overall, there is very little Fewer than 10% of associations Associations with more than change from the previous make 10 or more membership 1,000 members are studies in the number of renewal contacts before a significantly more likely to renewal contacts made before membership expires. make from four to six renewal a membership expires. More contacts compared to those Organizations with 10 or more than 40% of associations make with 1,000 members or fewer. renewal contacts are slightly four to six contacts before a more likely to have renewal membership expires (44%). rates over 80% (11% to 9%). About one-quarter of Organizations with nine or associations only make one to fewer renewal contacts are three contact attempts, while slightly more likely to have close to 20% make seven to renewal rates less than 80% nine contact attempts. (87% to 84%). www.marketinggeneral.com
  22. 22. When do you start the renewal effort? 8% Im mmediately aft welcoming ter 6% 10% 2011 (N=6 641) 6% 2010 (N=4 405) Prior to 6 months befo expiraƟon ore 8% 8% 2009 (N=3 336) 7% At 6 months prior to expiraƟon r 5% % 7% 4% 5 months prior to expiraƟon r 3% % 5% 12% 4 months prior to expiraƟon r 14% % 13% 33% 3 3 months prior to expiraƟon r 35% 33% 3 16% 2 months prior to expiraƟon r 15% 13%22 8% 1 month prior to expiraƟon r 7% 5% % 3% The month of expiraƟon h 3% 4% 2011 (N=6 641) 3% 2010 (N=4 405) Not sure 3% 2009 (N=3 336) 5% % Compared to the two previous studies, there are Associations with renewal rates below 80% are basically no changes with regard to when significantly more likely to begin renewal efforts at associations begin their renewal effort. About one- three months prior to membership expiration (39% third of associations begin their renewal effort three vs. 29%). months prior to membership expiration. Associations with renewal rates at 80% or higher are Just over 10 percent of associations either begin more likely to begin renewal efforts from their renewal effort at four months prior to expiration “immediately after welcoming a member” to the (12%) or two months prior to expiration (16%). six months prior to expiration (24% to 19%). There is a slight upward trend to start renewal Organizational/trade associations are significantly efforts closer to the date of membership expiration more likely to start renewal efforts at two months, (one or two months prior to expiration). compared to individual membership associations (22% vs. 13%: individual), and as noted earlier, trade associations have higher renewal rates compared to individual membership associations. www.marketinggeneral.com
  23. 23. When do you end renewal efforts(stop renewal contacts to the member)? 2% At the mon of expiraƟo nth on 1% 2% 2011 (N=639) 1 8% 2010 (N=404) 0 1 month aŌer expiraƟo on 9% 9% 2009 (N=336) 9 13% 2 months aŌer expiraƟo on 14% 13% 24% 3 months aŌer expiraƟo on 23% 21% 7% 4 months aŌer expiraƟo on 7% 13% 3%% 5 months aŌer expiraƟo on 2% Not asked in 2 2009 8% 6 months aŌer expiraƟo on 8% 23 Not asked in 2 2009 11 1% More t than 6 months aŌer expiraƟo on 14% Not asked in 2 2009 22% We do stop contact ont 19% 21% 3% 2011 (N=639) 1 Not sur re 3% % 4% 4 2010 (N=404) 0 2009 (N=336) 9 About one-quarter of association professionals after membership expiration (23% vs. 20%). indicate they end renewal efforts three months Additionally, associations with an increase in after membership expiration (24%). This membership over the past five years are represents a continued upward trend. significantly more likely than associations with five- year declines in membership to report that they 22% of associations indicate they do not stop do not stop contact for renewals (25% vs. 16%). contact for renewal efforts, a slight increase over the previous year’s decline. Associations with dues increases up to 20% are significantly more likely to indicate they do not Directionally, associations with renewal rates at stop contacting lapsed members compared to 80% or higher are more likely to report they do those with dues increases above 20%. not stop contacting members for renewal even www.marketinggeneral.com

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