Deep, fundamental shifts in the membership world, like the Internet, Competition, and Generation Attitudes, are causing membership models to change.

1. Insurance + The Changing Face
of Membership Associations
Sequence Consulting
1

2. THE CHANGING FACE OF MEMBERSHIP
2
Deep, fundamental shifts in the membership world:
The Internet
Competition
Generational
Attitudes
As a result, membership models are changing:
• Membership as an ecosystem – membership drives products, advertising, fundraising,
everything
• Value exchange – what do you get for what you give?
• Organizations struggling to find/deliver new value

3. THE CHANGING FACE OF MEMBERSHIP
3
ESTIMATED US POPULATION, BY AGE
Millennials
Gen X Baby Boomers
Over the next 10 years, the
Millennials will supplant Baby
Boomers and Generation X as the
driving force within industries,
professions and associations.
Image Source: NPR

4. THE CHANGING FACE OF MEMBERSHIP
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Members
committing less
time and money,
prioritizing
engagement.
81% 79%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Less Time Less Financial Engagement
Association Leaders are “Very” or “Somewhat”
Concerned about Members Providing…
Source: Association Laboratory, Inc.

5. I need to differentiate my
association more effectively and find
new revenue streams.
5
If my members are prioritizing engagement, time,
and money…

6. THE NEW WORLD IS ALL ABOUT ENGAGEMENT
6
In membership organizations we define it as:
• Doing something
• Buying something
• Asking for something
What goes into making it work?
• Deeply understanding your target audience (and there may be more than one)
• Messaging and communications that reinforce and infuse your value proposition in all channels
• Products, offers and experiences that pay off on your unique assets

7. WAY TO PLAY: WHAT MOST ASSOCIATIONS ARE MISSING
7
A winning vision and strategy aligns the unmet needs of a specific segment with what you can offer that
cannot be easily duplicated.
Your “Way to Play” is a succinct statement of how you will bring your assets to bear on the opportunity
Compelling
Market
Opportunity
Unique
Assets and
Capabilities
+
“Way to
Play”=
How You Earn the “Right to Win"
Confidence that you should expect to prevail over others is your “Right to Win.”

8. WAY TO PLAY: EXAMPLES
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Unmet
Market
Needs
Unique
Assets and
Capabilities
+ “Way to
Play”=“Way to Play”
Framework
• Easy access to products
• Rich product information
/ user reviews
• Frictionless delivery
• Elegant retail interface
• Back end supply chain
• Merchandising
• Customer relationship
management
• Technology innovation
“Super Aggregator”
• AMAZON offers convenient, one-stop product
delivery
• BY providing a seamless retail interface and
delivery system
• LEVERAGING their technology, CRM, and
merchandising expertise
• A strong, respected voice
for a large, but often
ignored, population
• Health, financial services,
and lifestyle resources as
we age
• Brand equity
• Scale
• Intellectual Property
“Resource Aggregator”
• AARP helps the 50+ enhance their quality of
life
• BY providing valuable resources
• LEVERAGING their brand power, scale, and
intellectual property

9. MEMBER VALUE PROPOSITION AND STRATEGY
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A strong member value proposition contains the one to two elements that set the you apart from the
competition.
It must be compelling, believable, and relevant to your audience.

10. PUTTING THE BRAND IN ACTION
How we relate to our audience. Bring the brand attributes to life through our communications and offers.
• Example: Faster delivery of Welcome Kit to show we’re responsive, more dialog to demonstrate our
alliance with them.
What we could offer. We want to meet their needs and deliver on our promises.
• Example: More tailored and focused versions of our transition guides; full life management
program that includes information and relevant discounts.
Mode and style of
delivery
Offers
Commercial or for-fee tangible benefits
Information
Intellectual capital provided free to members
What How
Experience
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11. INFLUENCING THE RENEWAL DECISION
Along the Member Journey, “Tipping Points” – or prime areas to solidify the
Association/Member relationship – occur.
Here are some examples.
1. ENACT A “NO FLY ZONE” PRIOR TO THE RENEWAL DRIVE
2. BEGIN BUILDING THE RELATIONSHIP EARLY ON
3. IDENITY WHAT DRIVES RENEWAL, AND FOCUS ON THAT DURING THE
WELCOME STREAM
4. PRSENT THE “NEXT BEST OFFER”
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12. INSURANCE AND THE MEMBER EQUATION
Insurance is one of the top reasons to join (usually around #5).
BUT…
It is also one of the strongest predictors of renewal.
65%
83%
90%
50%
55%
60%
65%
70%
75%
80%
85%
90%
95%
100%
Non-Buyers 1 Product 2+ Products
Illustrative Renewal Percentages, by Purchaser Group
12

13. INSURANCE AND THE MEMBER EQUATION
13
This is especially true for first time members, where renewal rates can be as low 40%
(or worse) but 70% with a product.
WHY?
Primary reasons include…
• Tangible value
• Recurring transaction (top of mind)
• Unique value (especially if tailored, e.g., professional liability)
• “Delighted” members more likely to renew. 18% of new members report delight with an insurance
experience.

14. INSURANCE AND THE MEMBER EQUATION
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Retained Dues
Revenues
3-5X cheaper
to renew a member
than attract
a new one
And it compounds
every year
A 2-3% change in renewal rate could mean thousands of members (your prospects!)
and millions of dollars in revenue and savings.
HOW?
IDEAL SCENARIO:
Member joins and buys two insurance products on day one.
They would be a member for life.

15. INSURANCE AND THE MEMBER EQUATION
15
People say they do not want insurance offers
BUT…
The more they get,
the more they buy (and
renew)
There is a pattern
to it: right after join
and right after
renewal

16. WHAT DOES THAT HAVE TO DO WITH YOU?
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We are all membership marketers now:
There is A LOT you can do about membership:
• Help them offer more relevant / valuable products for their audience
• Help them market them more effectively to prospects and current members
• And you will directly impact membership and revenue (yours and theirs)
More
Prospects
More Sales
More
Members

17. WHAT DOES THAT HAVE TO DO WITH YOU?
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The most enlightened organizations know this now and are
working with their providers and membership team to create
better products.
The unenlightened can see the light if someone shows them.

18. OUR OBSERVATIONS OF MOST MEMBERSHIP ORGANIZATIONS
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Membership Organizations…
• Do not always know what to ask for
• Are not marketers by trade
• And are especially weak on data and digital
• Have limited resources to invest (but will if there’s a strong case)
• Are way more conservative than they need to be
• “Rules” about what they can do and how they can do it are often outdated and sometimes just plain wrong
• May or may not know all of the above about themselves
• Not educated about how or why to offer members insurance
YOU can help them.

19. REAL WORLD EXAMPLES
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Non-Member Marketing
• Provider markets to non-members and enrolls them on orgs behalf.
• Provider renews members on orgs behalf when they renew policy.
• Member pays the dues.
• The organization pays Provider a bounty, which is their less own cost to acquire.
• Everyone wins.
Co-Operative Marketing
• Organization and group of providers pool resources to market the portfolio as a whole.
• Data shows it drives unique, qualified leads who do not respond otherwise.
• Shared cost makes more expensive channels affordable.
• Rising tide lifts all boats.

20. REAL WORLD EXAMPLES
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Products as Member Value
• Org promotes products as a member value, at their own cost.
• ROI comes from life in member acquisition and renewal.
• Stick issue in lot of orgs, but the more enlightened are loosening their rules.
• It works.
Cross-Sell Marketing
• Marketing one type of product to previous buyers of another.
• Limits on what is possible, of course, but highly effective especially when timed well.
• Drives revenue and long-term loyalty. Everyone wins.

21. REAL WORLD EXAMPLES
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Data Sharing / Analysis
• Example: Shared marketing data warehouse for multiple providers.
• Combining data / analytics resources for smarter targeting.
• Doubled the response rate in one recent test.
Creative Revenue Models
• Straight royalty model is not the only game in town anymore.
• Revenue share, pay per lead, and other models are in play now.
• Significant upside for all players if done right.

22. REAL WORLD EXAMPLES
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Optimizing the Experience
• First 90 days after join / renew are critical.
• Earlier Provider access to member data improved response by 28% and conversions by 46%
• The quieter the channel, the more effective the message.
• Preferred access to members at specific times showed almost 10% lift.