AENC - Keynote Presentation: The Business of Membership Marketing - Benchmarking Report (MGI) September 11, 2015

1. THE BUSINESS OF MEMBERSHIP MARKETING
September 11, 2015
Erik D. Schonher
MARKETING GENERAL INCORPORATED
VICE PRESIDENT, ACCOUNT SERVICES & RESEARCH
Membership and Finance Conference & Luncheon

2. OUR OBJECTIVE TODAY –
THE BUSINESS OF MEMBERSHIP MARKETING
Retain New
Members!
Any Questions?
Non-Dues Revenue
ROI
Lifetime Value
Member Tenure
Trade
Individual Member
Hybrid

3. How Many
Do We Need?

4. Goal = 11,000 Members
Current Membership = 10,000
Estimated Non renewals = (2,000)
Organic New Members = 1,000
Need
2,000 New Members

5. How are we going
to do it?

6. It IS a Sales Model
The Membership Lifecycle
Based on 37 years of experience in working with
membership organizations, we have come to
see five key membership life stages:
A) Member Acquisition
1. Awareness
2. Recruitment
B) Member Retention
3. Engagement
4. Renewal
5. Reinstatement

7. “YOU CAN’T MANAGE WHAT YOU
DON’T MEASURE.”
- Peter Drucker
7
Key Membership
Marketing Metrics
•Response Rate
•Cost to Obtain a Member
•Renewal Rate
•Average Tenure
•Lifetime Value
•Maximum Acquisition Cost
•Steady State Analysis

8. 2015 Membership
Marketing
Benchmarking
Report
Context to assist
YOU in managing
the membership
marketing of your
association.
8

9. 9
Individual
(n = 403)
Trade
(n = 232)
Combination
(n = 263)
Increased 47% 49% 43%
Decreased 26% 22% 22%
Remained the same 25% 27% 33%
Not sure 2% 2% 1%
MEMBERSHIP CHANGE IN PAST YEAR

10. 10
Individual
(n = 387)
Trade
(n = 223)
Combination
(n = 251)
Increased 44% 45% 44%
Decreased 14% 16% 14%
Remained the same 34% 31% 35%
Not sure 7% 8% 6%
CHANGE IN NEW MEMBER ACQUISITION OVER THE PAST YEAR

11. 11
Individual
(n = 384)
Trade
(n = 221)
Combinatio
n (n
= 242)
Increased 21% 23% 23%
Decreased 24% 27% 22%
Remained the same 45% 42% 47%
Not sure 10% 8% 8%
CHANGE IN MEMBER RENEWAL RATE OVER THE PAST YEAR

12. 12
Individual
(n = 325)
Trade
(n = 197)
Combination
(n = 199)
Mean 79% 87% 77%
Median 82% 90% 81%
MEMBERSHIP RENEWAL RATES
Individual
(n = 195)
Trade
(n = 144)
Combination
(n = 133)
Mean 64% 79% 66%
Median 65% 84% 68%
OVERALL
FIRST YEAR

13. 13
Individual
(n = 335)
Trade
(n = 195)
Combination
(n = 208)
Difficulty in communicating value 28% 32% 40%
Difficulty attracting and/or maintaining
younger members
24% 7% 18%
Competitive association(s) or sources of
information
18% 18% 13%
Declining member/employer budgets 17% 15% 23%
Insufficient staff 16% 23% 24%
TOP THREE BIGGEST CHALLENGES FOR GROWING MEMBERSHIP

14. “For a functioning group to attempt to add
new members in a casual way is a certain
prescription for failure, loss of efficiency,
or disorganization.” – Wikipedia.org/wiki/Social_group
MEMBER ACQUISITION

15. MEMBER ACQUISITION
Why Join any organization?
“Members join organizations for a variety of reasons, and
not everyone values the same things. For that reason, there
is no single solution for increasing member acquisition and
member retention that will resonate with every single
individual.”
ASAE – The Decision to Join

16. 16
Individual
(n = 360)
Trade
(n = 210)
Combinati
on (n =
222)
Networking with others in the field 18% 30% 25%
Continuing education 15% 2% 6%
Access to specialized and/or current information 11% 12% 14%
Advocacy 8% 15% 7%
Prestige of belonging to the association 7% 2% 3%
Discounts on product or meeting purchases 6% 5% 7%
Accreditation or certification 5% 2% 2%
Learning best practices in their profession 4% 4% 10%
Conferences/trade shows 4% 7% 4%
REASONS FOR JOINING
MEMBER ACQUISITION

17. 17
Individual
(n = 340)
Trade
(n = 201)
Combinatio
n (n = 214)
Changes to website 60% 64% 71%
Digital publications 25% 18% 25%
Public social media (Facebook, LinkedIn, Twitter,
etc.)
23% 21% 25%
Mobile apps 23% 19% 20%
Online communities 19% 14% 18%
Member research 14% 25% 21%
Private social media (Facebook, LinkedIn,
Twitter, etc.)
11% 6% 11%
QR codes 5% 4% 7%
RSS feeds 2% 1% 4%
None 17% 13% 15%
Other 15% 18% 12%
NEW PROGRAMS, BENEFITS, AND SERVICES ADDED
MEMBER ACQUISITION

18. 18
Individual
(n = 362)
Trade
(n = 211)
Combinatio
n (n = 220)
Word-of-mouth recommendations 48% 55% 46%
Email 36% 22% 34%
Direct mail 28% 14% 16%
Association website 23% 21% 26%
Cross-sell to non-members who buy your products or
attend your conferences
17% 21% 20%
Chapters 16% 5% 9%
Local events/meetings 13% 14% 15%
Promotion to/at your own conferences/trade shows 11% 16% 18%
Association-sponsored events 11% 17% 15%
Association-sponsored social networking websites
(e.g., Facebook, LinkedIn)
9% 3% 7%
Promotional incentives 9% 5% 5%
Exhibiting at other conferences 8% 12% 9%
Free membership offered with a non-member meeting
registration
8% 3% 10%
Content marketing 6% 3% 4%
Search engines (organic) 4% 3% 5%
Accreditation promotion 4% 2% 4%
Personal sales calls 4% 34% 16%
RECRUITMENT MARKETING CHANNELS
MEMBER ACQUISITION

19. Feature vs. Benefit:

20. Feature vs. Benefit:
1.Newsletter
2.Annual Meeting
3.Local Meeting
4.Formal Dinner
5.Award Ceremony
6.Networking
7.Lifelong Learning
1. I stay up to date.
2. I gain new perspectives
from peers
3. I meet new friends with
common interests
4. I get fed and get to talk
with others
5. I get recognized
6. I might find a new job
or new connection
7. I grow intellectually

21. Five Foundations of Any Recruitment Effort:
1. The targets/prospects – who you want to reach.
2. The membership offer – what a member will
receive.
3. The WIIFM message – why a member should join.
4. The promotional tactics – how
a member will be attracted.
5. The testing and tracking –
where to take future efforts.
MEMBER ACQUISITION

22. Always tie recruitment efforts to a specific membership
benefit that they can access for free immediately…so they can
experience a great benefit that will compel them to join.
22
You can't be all things to everyone, so determine what people
find most valuable and your key areas of strength and put your
biggest efforts into these things.
If you have a question Tweet mktgeneral or email info@marketinggeneral.com
Our prospective members are most
likely to join when they receive an
offer that provides a discount...as
small as 10% off membership dues.
We have also...found that our
prospective members will also join
if they perceive that they are going
to loose a benefit.
MEMBER ACQUISITION

23. MEMBER RECRUITMENT FACTS
Value Proposition:
• Indispensability is one of the most powerful
messages to convince prospects that there is no
other place to go to get what they need.
• Find your value proposition. Then, offer solutions
and benefits to members that are compelling.
• Craft your message to tell prospects not what they
will receive but how they will gain with what they
receive.
• Emphasize benefits first, then features, value &
emotional drivers.

24. Member referral continues to be our top recruitment
tool… We have added an annual “free membership offer” where
members can give a six-month trial membership to a colleague.
We gain about 2,000 new members…18% convert after 6
months and 75% of those renew after their first paid year.
24
If you have a question Tweet mktgeneral or email info@marketinggeneral.com
You've got to spend money to recruit
new members…. You cannot
expect to come out ahead the
first or second year.
In fact, it may take two to three
years or more before you reap the
benefits of your efforts.
MEMBER ACQUISITION

25. 25
Individual
(n = 357)
Trade
(n = 206)
Combination
(n = 221)
Email welcome 74% 77% 76%
Membership card or certificate 54% 35% 41%
Mailed welcome kit 50% 60% 49%
Invite to use members-only website sections 34% 47% 39%
New-member introductory email series 30% 23% 27%
Invitation to join the online community 28% 30% 28%
Invite to follow/like association’s social media (public or
private) page(s)
27% 25% 27%
Invitation to volunteer 27% 20% 22%
Invite to chapter meeting 21% 16% 16%
Volunteer or staff welcome phone call 19% 48% 27%
New-member survey 19% 14% 10%
In-person new-member reception or orientation 17% 31% 23%
New-member newsletter (mail or electronic) 14% 10% 13%
New-member gift (e.g., gift card, calendar, or notepad) 11% 11% 9%
Custom new-member renewal series 11% 10% 7%
New-member webinars 10% 17% 9%
Special new-member discounts on purchases 9% 15% 10%
COMMUNICATION METHODS TO ONBOARD NEW MEMBERS
MEMBER RETENTION

26. 26
68%
27%
5%
n = 791
Yes No Not sure
DO YOU HAVE A SEPARATE STRATEGIC INITATIVE OR
TACTICAL PLAN TO INCREASE ENGAGEMENT?
MEMBER RETENTION

27. 27
INDIVIDUAL
Participation in your public social network
Participation in your young professional program
Participation in your private social network
Attendance of webinars
Number of members who acquire or maintain a
certification with your organization
Attendance at your professional development meetings
Number of visits to members-only section of website
50%+ MEMBERSHIP ENGAGEMENT
TRADE
Participation in your young professional program
Participation in your public social network
Participation in your private social network
Number of visits to members-only section of website
Attendance at your annual conference/trade show
Attendance at your professional development meetings
Attendance of webinars
Number of members who acquire or maintain a
certification with your org
Number of membership upgrades
COMBINATION
Participation in your public social network
Attendance of webinars
Participation in your young professional program
Participation in your private social network
Number of visits to members-only section of website
Attendance at your annual conference/trade show
Donations to your association foundation or PAC
MEMBER RETENTION

28. OPEN ENDED
QUESTION
DESCRIBE AN
ENGAGEMENT OR
RETENTION
STRATEGY THAT
YOUR
ASSOCIATION
HAS EMPLOYED
THAT HAS BEEN
VERY
SUCCESSFUL.
28
22%
21%
15%
15%
14%
14%
10%
10%
9%
8%
6%
5%
5%
5%
5%
5%
3%
3%
3%
13%
8%
Contact/keep in contact with lapsed members
Reminding them of benefits
Offering Members Only renewal benefits/incentives/event invitations
Sending e-mail/personal e-mail
Offering discounts/incentives for renewal/early renewal
Sending out direct mailing/online newsletter
Offering discussion groups/monthly meetings/round table events
Maintain regular communication
Contact from peers/volunteers/member-to-member
Personalized communication tailored to the individual member
Providing member training/orientation/mentoring programs
Offering ambassador/leadership programs/events
Using a third party to contact lapsed members
Sending surveys
Via social media/online networking
Sent out/e-mailed renewal reminder invoice/bill/statement
Forgiveness program/allowing renewal without penalty
Offering organizational memberships to replace individual memberships
Collecting/listening to feedback from members
Other engagement/strategy comments
Other contact/communication comments
(n=111)
MEMBER RETENTION

29. 29
We are now issuing a outreach
strategy where we "Touch" our
new members up to 4 times after
joining. The series of email
communications combined with
short phone call from volunteers
will be implemented this
upcoming year.
Set up an automated email campaign to send weekly then monthly
introducing new member benefits and engagement opportunities depending
on how they entered the org and/or topics relevant to their job titles.
Early engagement is especially critical for retaining first-year members. Need to reinforce
the value of joining in the first year.
MEMBER RETENTION

30. 30
RENEWAL SERIES
Individua
l
(n = 342)
Trade
(n =
197)
Combinatio
n (n
= 212)
At the month of
expiration
4% 2% 3%
1 month after
expiration
9% 4% 13%
2 months after
expiration
13% 13% 11%
3 months after
expiration
22% 19% 26%
4 months after
expiration
6% 8% 5%
5 months after
expiration
1% 3% 3%
6 months after
expiration
9% 15% 11%
More than 6 mos
after expiration
10% 8% 8%
We don’t stop
contact
21% 21% 16%
Not sure 4% 7% 2%
Individual
(n = 344)
Trade
(n = 197)
Combination
(n = 212)
Immediately
after welcome
6% 10% 5%
Before 6 mos
prior
expiration
4% 5% 2%
At 6 months
prior
expiration
4% 6% 3%
5 months prior
to expiration
3% 2% 1%
4 months prior
to expiration
10% 10% 9%
3 months prior
to expiration
40% 30% 46%
2 months prior
to expiration
18% 18% 17%
1 month prior
to expiration
7% 9% 9%
The month of
expiration
3% 4% 4%
Not sure 4% 6% 2%
START END
MEMBER RETENTION

31. 31
Individual
(n = 342)
Trade
(n = 196)
Combinatio
n (n = 212)
We don’t contact lapsed members 11% 8% 12
1 year after expiration 20% 14% 20%
2 years after expiration 13% 7% 14%
3 years after expiration 10% 4% 9%
4 to 5 years after expiration 6% 3% 2%
6 or more years after expiration 3% 3% 1%
We continue indefinitely to contact lapsed
members
23% 46% 32%
Not sure 6% 9% 4%
Other 7% 7% 6%
REINSTATEMENT
MEMBER RETENTION

32. Going back further than
would be expected on
previous members. We've
had respectable success
going back more than 5
years on expired members
to try to reacquire them.
32
Our most successful direct mail campaigns are reinstatements.
We send our very highly-regarded magazine with a wrap that says "We
want you back". Response rates are often 4-6%, and we recently did
an A/B split where we offered a 1-hour DVD of one of our CLE
sessions, to half of the recipients. Response was 50% higher among
prospects who were offered the DVD.”
MEMBER RETENTION

33. IN CLOSING…

34. QUESTIONS & OBSERVATIONS

35. PART 1: MEMBERSHIP
Exercise 1:
With your group, write a persuasive statement, combining your
assigned benefit with services to a win a new recruit. Choose a
leader to present.