The Membership Lifecycle:A Systematic Approach to Membership Marketing

Presented by Tony RossellSenior Vice PresidentMarketing General Inc. (MGI)

Presenter Background

Tony Rossell serves as the senior vice president of Marketing General, Inc., in Alexandria, Virginia. A frequent writer and speaker on marketing topics, Mr. Rossell is a contributor to publications including Associations Now magazine, Membership Developments, and the Chicago Forum, and he is a contributing author to two books, Membership Marketing (ASAE 2000) and Membership Essentials (ASAE 2008). He also launched the annual Membership Marketing Benchmarking Report.

Mr. Rossell developed the concept he calls the “Membership Lifecycle”. The lifecycle begins with awareness. Increased awareness facilitates new member recruitment. Engagement strengthens member ties and improves renewal. Finally, reinstatement seeks to restore relationships with members and completes the cycle.

“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

The Membership Lifecycle

We define five key membership life stages:

1. Awareness

2. Recruitment

3. Engagement

4. Renewal

5. Reinstatement

The Membership Lifecycle

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Definition:

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

Strategy:

1. Promote offers with “entry point” content.

2. Drive traffic to client’s web site, social media sites, blogs and microsites.

3. Generate measurable results and leads.

Awareness Strategy

Awareness Strategy

Online Behavior

Product SearchesInformation SearchesEventsSocial Media SearchesEducational SearchesProduct purchases

Special Offers

FREE WhitepaperFREE Trial MembershipE-NewsletterSign Up for Alerts

Online Media

Paid SearchCo-RegistrationAd NetworksOnline PR ReleasesArticle SubmissionsBlogs / Forum PostsSocial Media AdsSponsored LinksMember Referral

Leads Cultivated ThroughRecruitment Campaign

Awareness Strategy

Strategic Process Landing Pages

Web Site

Social Media

Blog

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 no offer to join. Thank you page with “hard sell”.

Building Awareness and Relationship

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 four emails is sent over 2 ½ weeks. Each email focuses on a different benefit of membership.

Awareness Microsite

Definition:

The process of proactively inviting new members to join your organization

Strategy:

1. High Intensity – Consistent campaigns to targeted core market opportunities2. Multi-Channel – Deploy mail, email, and phone using database records and

outside lists with tests of message, offer, list segments, media, and design3. Content Driven – Offer limited high value content on web microsites to

demonstrate relevance and attract potential members4. Analysis for Increased Efficiency – Use a testing and tracking strategy to

optimization results and define the best offer, message, lists, and media

Membership Recruitment Strategy

Personal Sales

Database Marketing

Telemarketing

Direct Mail Marketing

E-Mail Marketing

Social Media

Online Advertising

Search Engine Marketing

Multi-Channel Marketing

Membership Recruitment Strategy

Membership Recruitment Strategy

“For associations with over 5,000 members, direct mail is designated as the most effective channel for new member recruitment.”

(2010 Membership Marketing Benchmarking Report, p15).

Membership Recruitment Strategy

Membership Recruitment Strategy

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Definition:

The process of moving new members from observers into users of the resources made available by your organization.

Strategy:

1. Affirmation of Value – Welcome and benefit highlights should present valuable resources and services.

2. Interaction – Encourage member involvement and usage of member benefits.

3. Communicate Vision – Communicate actions on behalf of members that benefit the entire field or industry

Membership Engagement Strategy

Members “who are not involved lie perilously close to former members in the overarching assessment of ht 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).

Membership Engagement Strategy

Membership Engagement Strategy

ASAE 2010 Membership – Recruitment and Retention

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.

Membership Engagement Strategy

Month Audience Activity

0 New Membership Confirmation Email

1 New Mailed Welcome Kit

2 New Member Benefit Highlight #1

3 New Member Survey Email

4 New Member Benefit Highlight #2

5 New “Hot Issues” Briefing

6 New Member Benefit Highlight #3

8 New Renewal Advisory - Questions?

Membership Engagement Sample Schedule

Membership Engagement Sample

Tiered Membership – Growing Revenue and Engagement

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 Early and Often – Begin the renewal process in the eighth month of membership and continue renewal attempts through month fifteen

2. Multiple Channels – Push variable renewal messages to member segments with email, phone, and mail

3. Payment Options – Follow practices of for profits in breaking up payments

Membership Renewal Strategy

“Associations with overall increases in membership over the past year, as well as those with renewal rates higher than 80%, are more likely to attempt more renewal contacts. . . These increases in renewal rates appear after seven contacts.”

2010 Membership Marketing Benchmarking Report, page 22.

Membership Renewal Strategy

Month Media Message

8 Email “Save Time and Money”

9 Mail/Email “Renewal Notification”

10 Mail/Email “Now is Time to Renew”

11 Mail/Email “Time is Running Out”

12 Mail/Email “Expiration Notice”

13 Mail/Email “Did You Forget?”

14 Mail/Email/Phone “I am Concerned”

15 Mail/Email “Why are You Leaving?”

Membership Renewal Sample Schedule

Membership Renewal Strategy

“Associations with renewal rates of 80% or higher are significantly more likely to offer EFT renewals (14% vs. 3%) as well as installment payment plans (55% vs. 35%). Associations with renewal rates less than 80% are significantly more inclined to offer multiyear renewals (54% vs. 18%).”

2010 Membership Marketing Benchmarking Report, page 25.

Membership Renewal Strategy

Membership Renewal Sample

Multi-step, integrated channel, issue driven, digitally printed, renewal program.

Membership Renewal Sample

Definition:

The process of defining the where the breakdown occurred in the membership relationship and restoring former members to a paid status

Strategy:1. 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

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. Use Production Efficiency – Former members should be included as a separate segment in recruitment efforts to take advantage of production efficiencies

Membership Reinstatement Strategy

"Look not where you fell, look where you slipped.“ (African Proverb)

• Reinstatement programs test the effectiveness of your renewal program.

• Many organizations are sitting on thousands of members just waiting to return.

Membership Reinstatement Strategy

Awareness and Usage

*Used =subset of Aware Green = highest percentage Red = lowest percentage

• DL region has highest level of awareness of this product, but lowest level of usage. Why?

• What don’t they like about the product?

• DB region has lowest level of awareness, but highest level of usage!

• If more members were aware, usage would probably increase.

Board Member Superintendent DM JJC DB DL LD JC

(N=682) (N=409) (N=273) (N=121) (N=108) (N=122) (N=82) (N=136) (N=113)

Aware 83.0% 77.8% 90.8% 80.2% 83.3% 74.6% 84.1% 87.5% 88.5%

Used* 68.0% 67.3% 69.0% 71.1% 64.4% 64.8% 66.7% 68.9% 71.0%

Aware 74.2% 61.4% 93.4% 72.7% 70.4% 76.2% 80.5% 75.7% 70.8%

Used* 81.6% 72.1% 91.0% 81.8% 81.6% 89.2% 75.8% 77.7% 82.5%

Aware 70.5% 64.5% 79.5% 66.1% 65.7% 64.8% 72.0% 80.1% 73.5%

Used* 48.4% 47.3% 49.8% 51.3% 49.3% 49.4% 45.8% 50.5% 43.4%

Aware 55.6% 47.4% 67.8% 55.4% 47.2% 53.3% 58.5% 58.1% 61.1%

Used* 41.9% 38.6% 46.2% 39.5% 27.6% 31.8% 50.0% 52.0% 59.1%

Aware 48.4% 39.6% 61.5% 50.4% 43.5% 43.4% 47.6% 50.0% 54.9%

Used* 38.5% 34.0% 42.9% 37.7% 31.9% 45.3% 43.6% 36.8% 37.1%

Aware 42.4% 38.1% 48.7% 42.1% 39.8% 46.7% 36.6% 46.3% 39.8%

Used* 28.0% 32.1% 22.7% 44.4% 18.2% 60.0% 20.0% 14.3% 0.0%

Aware 37.7% 29.3% 50.2% 33.9% 26.9% 41.0% 34.1% 49.3% 37.2%

Used* 44.4% 38.3% 49.6% 43.9% 34.5% 42.0% 42.9% 52.2% 42.9%

Policy Reference Education Subscription

Service (PRESS)

PRESS Plus

Position Region

Policy Manual Customization

Policy Manual Update

E-tools for Boards and Districts

Service Total

Administrative Procedures Project

School Board Policies Online

• Fewer than half of the members even KNOW about these products.

Example of Awareness and Usage Chart

• Superintendents more aware of this product; more likely to use it.

Questions

Tony RossellSenior Vice Preident

Marketing General, Inc.Tony@Marketing General.com