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Understanding the Membership Lifecycle to improve
               membership growth




               Queirra Rankin
Membership Marketing
is just like being in a relationship

        Awareness      Get dressed up to go out


       Recruitment     Have a great pick up line


       Engagement        Plan amazing dates


         Renewal       Celebrate anniversaries


       Reinstatement    Know how to say sorry
It’s Friday night and you have plans to go to a local cocktail lounge with a
Scenario
                 few of your other single friends. How do you prepare?



                                                                         Shave
Pick out a nice outfit




                                  Brush your teeth
                                                                            Go to the ATM
Scenario
 You also have to practice
 your pick up lines.

 What will you say to
 spark your prospect’s
 interest?
Awareness                  … when you prepare to help your prospects discover you.



  Before organizations can                 Who is my target audience?
 begin recruiting members,
they must have clearly stated
                                          How does my offer help them?
     value propositions.


  Value Propositions are                         Can I prove it?
   statements that clearly
 illustrate what you have to
                                               Value Proposition
offer from the prospects point
           of view.
It’s Friday night and you have plans to go to a local cocktail lounge with a
 Scenario         few of your other single friends. You’re getting dressed and trying to think
                  of a good conversation starter.

          Target Audience
Attractive woman who likes to travel




           Useful Offer
You have years of travel tips & advice




           Proof of Value
     Travel photos in your wallet



 The perfect conversation starter
Awareness                … when you prepare to help your prospects discover you.


     Top 3 Questions                                   Who are you?

   Your Organization                         What do you have to offer?

           Must Answer                               Why should I care?



A strong Awareness Campaign proactively answers these
questions with through multiple prospect channels.

      Website “content for contact” tools
      Social media channels
      Online press releases
When you get to the local cocktail lounge, you’re immediately noticed by all
Scenario
           your prospects near the bar. Now you need a plan of action!




              1. Who will you approach?
              2. What will you offer?
              3. What will you say?
Recruitment                   … when your prospect decides to take you for a test drive.


     Target Market
     • Start with the prospects, meeting attendees and nonmember product
       buyers in your internal record database.

     Offers
     • Think of creative offers that will match the prospect’s potential objections

     Messaging
     • Use language that very practically answers the question:
       • Why should I join your organization?

     Marketing Channels
     • How will you send your message to your prospects?
       • Email is cost effective but direct mail can break through the clutter.

     Testing & Tracking
     • Effective testing and tracking will tell you how to optimize the methods,
       messages and channels you’re using.
Scenario       You’re at the cocktail lounge and execute your plan of action



                                 Target Market
                                 • You target the most attractive woman

                                 Offers
                                 • You offer her a drink

                                 Messaging
                                 • She tells you her favorite vacation spot
                                   was to Morocco and you share your
                                   attractive knowledge about the world

                                 Marketing Channels
                                 • You two exchange phone numbers

                                 Testing & Tracking
                                 • And talk on the phone 3 nights a week
                                   for the past month


           You have successfully recruited
               your next relationship!
Scenario       Now it’s time to plan those amazing dates!



                       How will you begin to
                        reveal all the other
                      qualities that make you
                     a great person to be in a
                         relationship with?




            How frequent and
           extravagant does the
            date need to be to
            achieve success?
Engagement                        … when members want to do things with you.




      • A welcome letter or phone call
      • Mailing them a coupon for dollars off their next purchase
      • Emailing a use of benefits survey
      • Courtesy call to answer member questions
Engagement                           … when members want do things with you.




Give special attention to
your first-year members.

They are taking your organization
for a test drive so show them the
membership value that justifies
the dues they paid.

The more frequent and more
positive the interactions are with
the first-year members, the higher
the renewal rate.
Scenario   It’s a year later and you have successfully developed a romantic relationship!

                                                     HAPPY ANNIVERSARY!
                                                If you have done everything right,
                                                    when you ask her to continue
                                                     on your life journey together,
                                                               she should say yes.


                                                        That all depends on if you
                                                              ask her the right way.
Renewal                                       … when members decide to keep you.


This is the moment when your member evaluates the value of your organization
and if it’s worth continuing the relationship.


The most effective renewal processes are
based around multi-media channels:

 An early bird reminder email – offering an
  early bird discount

 A direct mail notice during timed intervals
  before the member expires

 Reminder phone calls during the month the
  member expires
Renewal                                     … when members decide to keep you.




Consider more convenient payment options:

 Automatic credit card renewal

 Automatic electronic funds transfer (EFT)

 Monthly or quarterly credit card
  installment billing
Scenario           What happens if you completely blew the anniversary date?




She never wants
to hear from you
again and all you                                       Then ask for it!
want is another
chance?
Reinstatement               … when former members decide to give you another chance.




This is the perfect opportunity for members
to reconsider their decision to end the                             Email
relationship.

The most likely member to return, is the
one who most recently left – so early
                                                           Direct
reminders are key!
                                                            Mail
Try win-back campaigns!
Since you already had an established
relationship with former members, you
have all the information necessary to                             Phone
communicate with them.
Do you have a great membership marketing idea?
       Ask yourself which membership lifecycle stage it matches


                                    … when you prepare to help your
                 Awareness
                                        prospects discover you
                                  … when your prospect decides to take
                 Recruitment
                                          you for a test drive

                                      … when members want to do
                 Engagement
                                           things with you

                   Renewal        … when members decide to keep you

                                 … when former members decide to give
                Reinstatement
                                         you another chance
Questions?


Resources

Marketing General, Inc., The Five Step MGI Membership Lifecycle Marketing Model,
MGI Tipster Vol. 9-10 Issue 1-12, retrieved January 4, 2011,
http://www.marketinggeneral.com/blog/category/tipster/
Membership Marketing 101

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Membership Marketing 101

  • 1. Understanding the Membership Lifecycle to improve membership growth Queirra Rankin
  • 2. Membership Marketing is just like being in a relationship Awareness Get dressed up to go out Recruitment Have a great pick up line Engagement Plan amazing dates Renewal Celebrate anniversaries Reinstatement Know how to say sorry
  • 3. It’s Friday night and you have plans to go to a local cocktail lounge with a Scenario few of your other single friends. How do you prepare? Shave Pick out a nice outfit Brush your teeth Go to the ATM
  • 4. Scenario You also have to practice your pick up lines. What will you say to spark your prospect’s interest?
  • 5. Awareness … when you prepare to help your prospects discover you. Before organizations can Who is my target audience? begin recruiting members, they must have clearly stated How does my offer help them? value propositions. Value Propositions are Can I prove it? statements that clearly illustrate what you have to Value Proposition offer from the prospects point of view.
  • 6. It’s Friday night and you have plans to go to a local cocktail lounge with a Scenario few of your other single friends. You’re getting dressed and trying to think of a good conversation starter. Target Audience Attractive woman who likes to travel Useful Offer You have years of travel tips & advice Proof of Value Travel photos in your wallet The perfect conversation starter
  • 7. Awareness … when you prepare to help your prospects discover you. Top 3 Questions Who are you? Your Organization What do you have to offer? Must Answer Why should I care? A strong Awareness Campaign proactively answers these questions with through multiple prospect channels.  Website “content for contact” tools  Social media channels  Online press releases
  • 8. When you get to the local cocktail lounge, you’re immediately noticed by all Scenario your prospects near the bar. Now you need a plan of action! 1. Who will you approach? 2. What will you offer? 3. What will you say?
  • 9. Recruitment … when your prospect decides to take you for a test drive. Target Market • Start with the prospects, meeting attendees and nonmember product buyers in your internal record database. Offers • Think of creative offers that will match the prospect’s potential objections Messaging • Use language that very practically answers the question: • Why should I join your organization? Marketing Channels • How will you send your message to your prospects? • Email is cost effective but direct mail can break through the clutter. Testing & Tracking • Effective testing and tracking will tell you how to optimize the methods, messages and channels you’re using.
  • 10. Scenario You’re at the cocktail lounge and execute your plan of action Target Market • You target the most attractive woman Offers • You offer her a drink Messaging • She tells you her favorite vacation spot was to Morocco and you share your attractive knowledge about the world Marketing Channels • You two exchange phone numbers Testing & Tracking • And talk on the phone 3 nights a week for the past month You have successfully recruited your next relationship!
  • 11. Scenario Now it’s time to plan those amazing dates! How will you begin to reveal all the other qualities that make you a great person to be in a relationship with? How frequent and extravagant does the date need to be to achieve success?
  • 12. Engagement … when members want to do things with you. • A welcome letter or phone call • Mailing them a coupon for dollars off their next purchase • Emailing a use of benefits survey • Courtesy call to answer member questions
  • 13. Engagement … when members want do things with you. Give special attention to your first-year members. They are taking your organization for a test drive so show them the membership value that justifies the dues they paid. The more frequent and more positive the interactions are with the first-year members, the higher the renewal rate.
  • 14. Scenario It’s a year later and you have successfully developed a romantic relationship! HAPPY ANNIVERSARY! If you have done everything right, when you ask her to continue on your life journey together, she should say yes. That all depends on if you ask her the right way.
  • 15. Renewal … when members decide to keep you. This is the moment when your member evaluates the value of your organization and if it’s worth continuing the relationship. The most effective renewal processes are based around multi-media channels:  An early bird reminder email – offering an early bird discount  A direct mail notice during timed intervals before the member expires  Reminder phone calls during the month the member expires
  • 16. Renewal … when members decide to keep you. Consider more convenient payment options:  Automatic credit card renewal  Automatic electronic funds transfer (EFT)  Monthly or quarterly credit card installment billing
  • 17. Scenario What happens if you completely blew the anniversary date? She never wants to hear from you again and all you Then ask for it! want is another chance?
  • 18. Reinstatement … when former members decide to give you another chance. This is the perfect opportunity for members to reconsider their decision to end the Email relationship. The most likely member to return, is the one who most recently left – so early Direct reminders are key! Mail Try win-back campaigns! Since you already had an established relationship with former members, you have all the information necessary to Phone communicate with them.
  • 19. Do you have a great membership marketing idea? Ask yourself which membership lifecycle stage it matches … when you prepare to help your Awareness prospects discover you … when your prospect decides to take Recruitment you for a test drive … when members want to do Engagement things with you Renewal … when members decide to keep you … when former members decide to give Reinstatement you another chance
  • 20. Questions? Resources Marketing General, Inc., The Five Step MGI Membership Lifecycle Marketing Model, MGI Tipster Vol. 9-10 Issue 1-12, retrieved January 4, 2011, http://www.marketinggeneral.com/blog/category/tipster/