Recruit, Retain and Reward Your Members

2. Cathi Hight, The Retention Specialist © 2012 Hight Performance Group© 2015 Hight Performance Group, Inc. 2Recruit, Retain and Reward Members • President of Hight Performance Group • The nation’s member retention specialist • Developer of the Member Retention Kit • National instructor for the U.S. Chamber’s Institute for Organization Management • Previously was Vice President of Operations for the Chamber of Commerce of Hawaii • Served on the Boulder Chamber of Commerce board and was the Member Council Chair, (focuses on building a sustainable membership base) • President of the Boulder Area Human Resources Association (BAHRA) • Is a member of the: – Society for Human Resource Management (SHRM) – American Chamber of Commerce Executives (ACCE) – American Society of Association Executives (ASAE)

3. Session Agenda • Strategies to Recruit for Retention • The Best Kept Secrets for Member Retention • How to Keep Them Coming Back to You! • Session Summary 3Recruit, Retain and Reward Members

4. Recruitment Strategies

5. Strategy: Recruit Ideal Members • Not every prospect should be a member • Understand who your “best” members are and what they have in common • Identify common criteria for “ideal members” based on: – Demographic variables (FTE, industry, category, length of time in business, generation) – Psychographic/behavioral variables (values, beliefs, preferences, buying patterns) – Strategic initiatives, organizational needs or potential appeal to your benefits © 2015 Hight Performance Group Recruit, Retain and Reward Your Members 5

6. 6 How Would We Describe Our Ideal Members? • Determine common factors of your “best” members • Create 3-4 ‘Ideal Member’ Profiles based on common variables • Target those that match up to profiles Ideal Member Profile #2 • 10 – 30 FTE • Been in biz 3> years • Multiple locations • Involved and invested in the community • Sees the value in being members of associations Ideal Member Profile #1 • <10 FTE • Been in biz 3> years • Locally based enterprise • Realizes that getting involved = getting results • Long-time resident © 2015 Hight Performance Group Recruit, Retain and Reward Your Members

7. Strategy: Help Prospects Buy, Don’t “Sell” Memberships • Leverage the Discovery Stage • Build common ground with prospects • Confirm what you know about prospects, learn what you don’t know • Prospects are already doing something without you, learn what it is before making the sales pitch • Probe for needs and opportunities by asking questions • Use value propositions that align with prospects’ needs and interests (people never argue with their own data) – Remember, people buy benefits, not features (Focus on WIIFM— solutions they want/need) • Listen more than you speak (10% / 90% rule) © 2015 Hight Performance Group, Inc. 7Recruit, Retain and Reward Members

8. • Instant gratification tendencies (lack of patience for results, “me” focused) • Failure to connect with targeted audiences • Haven’t plugged into or found their “community” • Lack of information or knowledge to access available resources • Lack of perceived value • Members’ own business practices, capability of being successful • Loyalty has yet to be developed New Members Usually Have the Worst Retention Rates © 2015 Hight Performance Group, Inc. 8Recruit, Retain and Reward Members

9. Strategy: Integrate 1st Year Members • Record reasons for joining in the database • Encourage engagement in the first 6 months • Help them get what they want from the membership (Member Value Plan) • Create a 12-month onboarding plan and contact them 6-8 times: – Welcome letter – Membership Packet – Member Orientation (in person, over phone, webinar, or on web site) – 1st Quarter Touch (visit, call by staff or volunteer) • Welcome, how to access benefits, possible connections – 2nd Quarter Touch (visit, call by staff or volunteer) • Conduct 6 month audit (feedback on experiences, perceived value, list of actions) • Provide any stats on marketing, advocacy; association updates – 3rd Quarter Touch (visit, call by staff or volunteer) • Follow up to mid-year audit – Outreach, as needed, before receiving renewal – Thank you for renewal © 2015 Hight Performance Group, Inc. 9Recruit, Retain and Reward Members

10. The Best Kept Secrets to Retention

11. Strategy: Know Your Real Retention Rates—Overall Retention Rates Aren’t Enough © 2012 Hight Performance Group 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2005 2006 2007 RetentionRate Year Overall Retention by Year © 2015 Hight Performance Group, Inc. 11Recruit, Retain and Reward Members

12. Analyze Retention Rates by Segment • Calculate the retention rate of each segment over the last 3 years, such as: – Retention by category or industry sector (NAICS) – Retention by size of organization (FTE) – Retention by Length of Time as a Member – Retention by other demographic variables to understand specific trends • Identify which members are-most-at-risk, have the highest attrition rates, and what they have in common © 2015 Hight Performance Group, Inc. 12Recruit, Retain and Reward Members

14. Retention by Membership Tenure 0% 5% 10% 15% 20% 25% 30% 35% 40% 1 year 2 years 3 years 4-5 years 6-10 years 11-25 years 26 - 50 years More Than 50 years Drop Rate by Membership Tenure Drop Rate © 2015 Hight Performance Group Recruit, Retain and Reward Your Members 14

15. Retention Trends 1st Year Members 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% RetentionRate 1st Anniversary Year Overall First-Year Retention Rates 2005 Retention 2006 Retention 2007 Retention 15© 2015 Hight Performance Group Recruit, Retain and Reward Your Members 15

16. Retention Rates 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1 2 to 4 5 to 10 11 to 25 26-50 51-100 100+ Number of Employees %Retained@1Yr... Retention Trends 1st Year Members (FTE) 16© 2015 Hight Performance Group Recruit, Retain and Reward Your Members 16

18. Strategy: Allocate Resources for Retention • Identify specific responsibilities for team members • Recruit volunteer resources to conduct member outreach • Leverage Board members to contact top investors, speak publicly, and facilitate leadership roundtables © 2015 Hight Performance Group, Inc. 18Recruit, Retain and Reward Members

19. Types of Retention Activities • Outreach to members (calls, visits, e-mails, posting on social media, making notes in the database) • Member feedback (surveys, polls, focus groups, phone interviews) • Member rewards and recognition • Targeted marketing opportunities • Running and acting on membership reports – Retention audits (annually, semi-annually) • Review retention/drop rates by FTE, industry, year joined, year business established) – New members—join date less than 90 days (monthly) – Members who are 6 months from renewal (monthly) – Engagement reports using the participation fields (monthly) • Manage volunteer retention resources © 2015 Hight Performance Group, Inc. 19Recruit, Retain and Reward Members

20. Retention Roles for Ambassadors • Outreach contact to members (calls, visits, notes, e-mails) • Meet & Greet at events • Postings on virtual venues (start interactions, respond to interactions) • Onboarding “buddies” • Connecting members to other members • Providing testimonials on the “value of membership” • Collecting testimonials (calls, visits, capturing during events) • Recruiting new members © 2012 Hight Performance Group © 2015 Hight Performance Group, Inc. 20Recruit, Retain and Reward Members

21. Retention Roles for Membership Council • Support for membership staff • Conduct 6-month membership audits • Analyze engagement reports and identify actions to take • Outreach to dropped or at-risk members • Recognizing and rewarding members – Anniversary Blitzes – Postings on virtual venues (start interactions, respond to interactions) – Getting nominations for awards • Recruiting new members • Reports at Board meetings © 2015 Hight Performance Group, Inc. 21Recruit, Retain and Reward Members

22. Retention Roles for Board Members • Contact top investors – To touch base – Talk about current business issues and Association’s role • Speak at community events to share the Association’s strategic direction, accomplishments, and ask for support • Facilitate leadership round tables • Post on virtual venues • Recognize and reward members at special events • Send out welcome or “thank you for renewing” letters © 2015 Hight Performance Group, Inc. 22Recruit, Retain and Reward Members

23. Strategy: Influence Engagement • Create circles of engagement (in- person or virtually through social media) • Connect members to one another via mutual interests and initiatives o Task forces, councils o Special Interest Groups (SIGS) o Birds-of-a-feather (Women, YP groups) o Calls to Action • Allow members to share best practices, solve common problems o Forums, panels, experts o Blogs, online resources • Collect feedback from members o Surveys, polls, interviews, list serves • Track engagement • Provide outreach to low-engagers © 2015 Hight Performance Group, Inc. 23Recruit, Retain and Reward Members

25. How to Keep Them Coming Back! Using Recognition and Rewards

26. Ways to Recognize Members Recognize for Accomplishments or “Just because…” Recognize for Loyalty • Send cards for personal achievements (e.g., birthday, promotion, new job) • Send cards for professional achievements (e.g., business anniversary, promotions, new contracts, awards) • Write and send out press releases for chair, committee or Board positions • Create a ‘Good News’ section of the newsletter and celebrate members’ business accomplishments • Send a thank you note to volunteers’ employers sharing the impact and contribution they have made • Recognize employers of volunteers publicly • Write letters of recommendation and tout their skills & accomplishments • Post on members’ social media pages and give kudos for their product/service or something they’ve done for you • Publicize their events, promos • Celebrate their implementation of “green” or social responsibility initiatives • Conduct an “Anniversary Blitz” to acknowledge members with for 3, 5,10, 20 years+ anniversaries • Acknowledge their loyalty publicly on the web site, directory, newsletter, or at a large event • Send a thank you note for their years of investment • Drop by to present a plaque or certificate that can be displayed in their business • Send anniversary cards to members to celebrate their renewals • Celebrate your most loyal members with special recognition (e.g., pancake breakfast, special luncheon) • Provide special perks (e.g., free admission to events, free parking, best seats at events) • Invite them to lunch • Stage publicity events, invite the media, publish stories & photos • Send them Valentine’s or Thanksgiving cards • Provide special name tags for events © 2015 Hight Performance Group, Inc. 26Recruit, Retain and Reward Members

27. Ways to Reward Members Reward for Accomplishments or “Just because…” Reward for Loyalty • Reward members for recruiting new members (e.g., $25 ‘referral ‘bucks’ to use for event or service, gift card for a retail store or restaurant) • Enter members into special drawings who bring guests or refer potential members • Hold a Volunteer Recognition event and invite those who have served on councils, committees, task forces, Board or other volunteer roles • Solicit gifts from other members to use as rewards for other members (2-way win) • Reward members who help you to save on costs (event or operational cost savings • Allow members to submit articles for newsletters for “expert” areas on web site • Provide special perks to increase engagement (e.g., special programs, task force or committee meetings) • Drop by with doughnuts or other gift to share • Appoint members for key roles (e.g., council, committee, Board position) • Send members who have attended events frequently a complimentary pass for one and thank them for their loyalty • Nominate members for local, regional and national awards • Offer an extra benefit without charge to thank members for their loyalty (e.g., extra listing in the directory, online ads, expanded or highlighted directory or web site description) • Give gifts and opportunities that one usually can’t buy (e.g., exclusive events, book signings, invites to special guest receptions) • Offer discounts when they reach specified spending levels (e.g., 2 free lunch coupons after attending10 in a year) • Give away items for reaching specific milestones for volunteer work • Offer priority services for loyal members • Send them offers for business opportunities, provide more referrals to build their business • Provide seats in a reserved section for events • Give an additional discount on specific benefits © 2015 Hight Performance Group, Inc. 27Recruit, Retain and Reward Members

28. • Retention starts with smart recruiting • Benefits are in the eyes of prospects and members • Retention requires resources • First year retention rates impact the overall rate • The secret to retention is in segmentation • Engagement influences retention • Retention requires proactive behaviors— long before renewal notices • Loyalty is a two-way street • Recognize and reward members—it is all about them! Hight’s Rules and Insights © 2015 Hight Performance Group, Inc. 28Recruit, Retain and Reward Members