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Proudly Sponsored By:
Tony RossellPresenter
Tony KarrerModerator
Diagnosing and Solving Your Membership Marketing Challenges
“We tend to focus on snapshots of isolated parts of the system, and wonder why our deepest problems never seem to get solved. System thinking is a conceptual framework … to make the full patterns clearer, and to help us see how to change them effectively.”
Peter Senge, The Fifth Discipline
Applying Systems Thinking to Membership Marketing
Finding Long-Term Solutions by Removing Impediments
“Systems thinking shows that small, well-focused actions can sometimes produce significant, enduring improvements, if they’re in the right place. Systems thinkers refer to this principle as ‘leverage’. Tackling a difficult problem is often a matter of seeing where the high leverage lies, a change which – with a minimum of effort – would lead to lasting and significant improvement. The only problem is that high-leverage changes are usually highly nonobvious to most participants in the system.” (Senge, page 63-64)
A Membership Marketing System
The Membership Lifecycle– Awareness– Recruitment– Engagement– Renewal– Reinstatement
Diagnosing Your Membership Marketing Challenges
Membership Marketing Vital Signs
• Membership Growth • Renewal Rate• New Members Conversion Rate• Product and Service Usage• Market Penetration
What are the Vital Signs for Associations Today?
2012 Membership Marketing Benchmarking Report
• Over 691 Participating Associations• Up Front Disclaimer
What not Why Correlation not Causation Every Association is Unique
• Fourth Year Produced by MGI
CHANGE IN MEMBERSHIP OVER PAST ONE YEAR—COMPRESSED
2012
(N = 689)
2011 (N =
642)
2010 (N = 405)
2009 (N
= 331)
Percentage Increased Overall 52% 49% 36% 45%
Percentage Unchanged Overall 16% 16% 14% 16%
Percentage Declined Overall 29% 34% 48% 35%
Percentage Unsure 3% 2% 3% 5%
Is your membership growing?
Under 50%
50% to 59%
60% to 69%
70% to 79%
80% to 89%
90% or higher
Not sure
3%
4%
7%
22%
38%
22%
3%
3%
6%
10%
23%
34%
23%
2%
3%
4%
11%
21%
40%
18%
3%
2%
4%
7%
16%
37%
29%
4%
2009 (N=337)
2010 (N=403)
2011 (N=643)
2012 (N=685)
What is your overall membership renewal rate?
What is your retention rate for first year members?
Under 50%
50% to 59%
60% to 69%
70% to 79%
80% to 89%
90% or higher
Not sure
10%
13%
12%
19%
17%
12%
18%
(N=682)
What proportion of your members engage in the following areas EACH YEAR?
AREAS OF ENGAGEMENT
N 0% 1%-5%
6%-10%
11%-15%
16%-20%
21%-30%
31%-40%
41%-50%
Over 50% N/A
Attend your annual conference/trade show 644 1% 12% 13% 11% 12% 11% 11% 6% 10% 12%
Attend at least one of your professional development meetings 663 1% 12% 13% 10% 9% 10% 9% 6% 9% 23%
Acquire or maintain a certification with your organization 666 2% 9% 6% 6% 5% 4% 3% 2% 8% 57%
Attend at least one of your webinars 658 2% 15% 14% 9% 8% 6% 2% 4% 4% 36%
Purchase a non-dues product (other than previously checked) 655 2% 18% 11% 9% 8% 8% 3% 3% 6% 33%
Purchase a non-dues service (other than previously checked) 658 3% 17% 11% 9% 7% 6% 3% 4% 6% 36%
Purchase or maintain insurance through your organization 658 2% 14% 5% 3% 3% 2% 2% 1% 3% 64%
Purchase a book or directory 653 2% 19% 10% 6% 5% 5% 3% 2% 3% 46%
Participate in your public social network 666 3% 25% 21% 13% 10% 8% 5% 3% 3% 10%
Participate in your private social network 660 3% 20% 13% 7% 6% 5% 4% 3% 2% 38%
Upgrade their membership 658 2% 16% 8% 6% 3% 1% 1% 2% 3% 58%
Volunteer within your organization 664 2% 32% 21% 14% 11% 7% 4% 2% 2% 7%
Donate to your association foundation or PAC 662 3% 23% 13% 6% 5% 2% 2% 1% 2% 42%
Participate in your young professional program 656 2% 16% 8% 4% 2% 2% 1% 1% 1% 67%
Participate in your mentoring program 661 4% 18% 5% 3% 2% 2% 1% 1% 1% 66%
• The average individual membership association has a 36% market penetration
• The average trade association has a market penetration of 41%.
What is the market penetration of your membership?
Membership Dashboard to Track Vital Signs
Which Part of the Lifecycle is Your Biggest Membership Marketing Challenge?
The Membership Lifecycle– Awareness– Recruitment– Engagement– Renewal– Reinstatement
Solving Your Membership Marketing Challenges
Awareness StrategyDefinition:
The process of establishing your brand in the minds of prospective members and building your knowledge base of who they are and how to contact them.
Awareness Strategy
Online Behavior
Product Searches Information
Searches Events Social Media
Searches Educational
Searches Product purchases
Special Offers
FREE Whitepaper FREE Trial
Membership E-Newsletter Sign Up for Alerts
Online Media
Paid Search Co-Registration Ad Networks Online PR Releases Article Submissions Blogs / Forum Posts Social Media Ads Sponsored Links
Leads Cultivated ThroughOngoing Interaction
Awareness Strategy
Strategic Process Landing Pages
Web Site
Social Media
Designed a collection of WEF published articles into cohesive free
content.
PPC & Content Network Ads
Google gives you the ability to display your ads based on geography and
time of day.
Landing page with offer. Thank you page with more options.
Example of Google Online Lead Generation Process
Components of the Campaign
The Fulfillment Email contains a link to download the free content and contains a membership offer.
If the prospect has not joined from any of the previous components, a series of sent. Each email focuses on a different benefit of membership.
1 2Targeted Ad Placement. Data Capture on Microsite.
3 Cultivation e-mail campaign with enrollment offers.
Example of Facebook Online Lead Generation
Example of Targeting through LinkedIn
LinkedIn allows you to deliver advertising only to people with certain qualifications or titles, people with specific job functions, and/or people specifying a particular skill set.
This makes the advertising spending very efficient, and fast movers can also take advantage of the current low prices on the platform.
LinkedIn Groups draw users back for longer sessions, and this can be a great way to reach targeted individuals while they are considering business issues and topics in the group setting.
• Title/Qualifications• Job Function• Skills• Groups
Definition:
The process of proactively inviting potential members to become a part of your organization in order to establish a long term relationship.
Strategy:
1. The Target Market – who you want to reach – this includes determining what are your primary markets and acquiring or building lists of these prospects.
2. The Promotional Tactics – how a member will be reached – this includes selecting the best marketing channels like personal sales, direct mail, email, telemarketing, etc. and the frequency and timing of promotions.
3. The Membership Offer – what a member will receive – this includes how you package your membership product and what special offers you will make in your promotions to attract new members.
4. The Marketing Message – why a member should join – this includes proving your value proposition and presenting solutions and benefits to members that are compelling.
5. The Testing and Tracking – where to take future efforts – this includes trying variations of the four points listed above and recording which lists, offers, messages, and channels produce the best ROI and number of new members.
Recruitment Strategy
Recruitment Strategy
Telemarketing
Personal Sales
Database Marketing
Direct Mail Marketing
E-Mail Marketing
Social Media
Search Engine Optimization
(SEO)
Google Re-Marketing
Multi-Channel Marketing
Recruitment Channels
Recruitment Offers
Special Offers• A first year dues discount. • A "no-risk" or “no-obligation” offer with a “bill-me”.• A product voucher offering new members $75 to $100 in
savings on any future product purchase. • Premiums (free gifts).• Offering more of the product (e.g., 15 months of
membership for the price of 12). • A free trial offer membership. • Installment billing turns a $239 membership into an easy
monthly payment of $19.91.
Package Type Response Rate
Green Card 1.12%
Invitation .83%
35% Boost
Which package did better?
Identifying a control
Recruitment Testing
List Segment $75 Voucher Subscription Response Boost
Young Physicians
3.46% 2.57% 35% Boost
35% Boost
111% Boost
Which offer worked better?Improving the Control
Recruitment Testing
Package Type Response Rate
Green Card 1.35%
Membership Card 1.85%
37% Boost
Can you beat your control?
Beating the control
Recruitment Testing
Definition:
The process of moving members from observers into users of the products and services made available by your organization and strengthening their emotional, psychological or physical investment.
Strategy:
1. Interaction – Member involvement and usage are the best levers for engagement.
2. Communicate Relevance – Providing lots of communications that are not targeted are relevant to a member can cause disengagement. Let behavior drive your communications strategy.
3. Score Engagement – Define the measurable behaviors that indicate engagement (i.e. transactions, website usage, email behavior, volunteering).
Engagement Strategy
Very Little Difference Between Non-Engaged Members and Lapsed Members
Members “who are not involved lie perilously close to former members in the overarching assessment of the value they derive from associations. If former members are thought to be dead, the uninvolved are close to comatose”
(The Decision to Join, p 4).
Engagement Research
Data Analytics for one association on engagement.
• Members who attended an association meeting in the past year were 19% more likely to renew than those who did not attend a meeting.
• Members who attended four or more meetings were 30% more likely to renew than members who never attended a meeting.
• Members who placed a product order in the past year were 28% more likely to renew than those who had not placed an order.
• Members who upgraded their membership in the past year to a higher level of service were 12% more likely to renew.
Engagement Strategy
Engagement Communication
Targeted Monthly e-Newsletters• Deliver timely updates• Reinforce membership value and vision• Customize content by segment• Promote increased interaction
• Certification• Publications• Events• Webinars
• Track and respond
Engagement Communication
Tracking and Responding
I’m interested in certification information!
Triggered Certification Email
Definition:
The process of confirming the value that has been delivered to the member over the past year and requesting the continuance of the relationship.
Strategy:
1. Renew Frequency and Timing – Like it or not, people forget to renew. 2. Channels – Use all of the tools that are available to you for retention3. Conversion – Typically, first year members are the least likely to renew.4. Budget – Most organizations under-spend on renewals. 5. Payment – Offering automatic credit card or EFT renewal, turns renewals
from an opt-in decision to an opt-out action.6. Offers – This is highly debated, but some organizations have great success
with giving incentives for early renewals. 7. Personalization – Adding personalized messages to renewal efforts like,
“because of your membership, you saved $50.00 on your product purchases this year.” Or, “we had some success on the legislative issue you were most concerned about.”
Renewal Strategy
RENEWAL RATES BY NUMBER OF RENEWAL CONTACTSINDIVIDUAL MEMBERSHIP ASSOCIATIONS (N=356)
Renewal Rate1-6 renewal
contacts
7 or more renewal contacts
Less than 80% 49% 44%
80% or higher 51% 56%
Renewal Timing
RENEWAL RATES BY START OF RENEWAL EFFORTINDIVIDUAL MEMBERSHIP ASSOCIATIONS (N=354)
Renewal RateThree months or less prior to
expiration
More than three months
prior to expiration
Less than 80% 51% 40%
80% or higher 49% 60%
Renewal Timing
RENEWAL RATES BY END OF RENEWAL EFFORTINDIVIDUAL MEMBERSHIP ASSOCIATIONS (N=354)
Renewal Rate1-3 months
after expiration
More than three months
after expiration
Less than 80% 51% 43%
80% or higher 49% 57%
Renewal Timing
Renewal Budget
Case Study
• Average dues rate of $95. • Nine part mail renewal program with supporting emails.• The incremental cost to service a member is approximately $24 per
member. • Amount spent to renew each member from each renewal effort.
Effort #1 -- $ 2.31Effort #2 -- $ 4.05Effort #3 -- $ 8.75Effort #4 -- $10.24Effort #5 -- $15.96Effort #6 -- $10.15Effort #7 -- $ 9.36Effort #8 -- $ 20.54Effort #9 -- $ 37.61
Renewal Budget
Analysis
• The last effort, they are spending over $37 to get a member to renew.
• Is that too much? • Here is the math: (($37.61 + $24.00) – ($95)) = $33.84).
Do you offer any of the following renewal options?Installment renewal payments (monthly,
quarterly)
Multi-year renewals
Renewal bill-me
Automatic annual credit card renewal
Lifetime membership
Early renewal discounts
Automatic Electronic Funds Transfer (EFT) renewals
46%
32%
26%
24%
22%
22%
15%
46%
32%
28%
24%
25%
21%
15%
46%
33%
28%
22%
19%
10%
2010 (N=246)
2011 (N=440)
2012 (N=445)
Not asked in 2010
Renewal Personalization
Multi-step, integrated channel, issue driven, digitally printed, renewal program.
Definition:
The process of defining the where the breakdown occurred in the membership relationship and restoring former participants to a paid status. A “winback” or reinstatement strategy helps to reconnect former participants.
Strategy:1. Never Give Up on Lapsed Members – Lapsed members are almost always the
most economical members reach out to for membership. 2. Develop Messaging – For many groups, former members are very likely to
rejoin an organization, but messaging should be different than what is communicated to “never members”
3. Conduct Lapsed Member Research – When members leave they highlight a breakdown in the membership system. Conducting research to understand why members do not continue with an organization will impact all parts of the membership lifecycle
Reinstatement Strategy
Reinstatement Strategy
We don't contact lapsed members
1 year after expiration
2 years after expiration
3 years after expiration
4 to 5 years after expiration
6 to 10 years after expiration
We continue indefinitely to contact lapsed members
Not sure
Other
10%
22%
13%
10%
5%
1%
31%
5%
4%
11%
22%
14%
9%
4%
1%
30%
5%
3%
10%
24%
15%
6%
6%
1%
24%
7%
7%
8%
25%
13%
6%
5%
1%
30%
7%
6%
2009 (N=333)
2010 (N=403)
2011 (N=641)
2012 (N=686)
• Reinstatement programs test the effectiveness of your renewal program.
• Many organizations are sitting on thousands of prospects just waiting to return.
• Employ research and analytics to determine what went wrong for your lapsing members.
– Under served market segments– Product and service gap analysis– Value proposition update
Reinstatement Strategy
"Look not where you fell, look where you slipped.“
(African Proverb)
Reinstatement Systems Thinking
