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NSA Membership MarketingNSA Membership Marketing• Membership Counts and Profiles• Recruitment• Retention• Lifetime Value• Value Proposition & Member Benefits• Ideas and Tactics
NSA Membership NSA Membership 9/30/089/30/08
Active Members: 9,453Associate Members: 747Retired Members: 501Student Members: 225Educator Members: 96International Members: 31Life Members: 29Firm Members: 11 Vendor Members: 6
Total Membership:Total Membership: 11,09911,099
NSA Member Profile:NSA Member Profile:
Gender: MaleAverage Age: 57Education: At least a 4 Year
DegreeType of Practice: Sole ProprietorshipCredentials: Enrolled AgentAnnual Gross Income: $237,019 (in 2006)Annual Net Income: $81,100 (in 2006)
NSA Member Profile:NSA Member Profile:
• Processes More Than 500 1040s Annually
• More Than ½ Gross Income is Derived From Tax Preparation; 20% from write-up work
• Has Been in Practice for 23 Years
• Has 3 Full-Time and 2 Part-Time Employees
Membership RecruitmentMembership Recruitment
• Direct Mail Marketing• Exhibits• Go Getters• State Directors• Dual ASO Members• Word of Mouth (Viral Marketing)• Website• ACAT & Scholarships
On average, 1,300 new members join NSA each year
Membership RecruitmentMembership RecruitmentFY 07-08 Results FY 07-08 Results
Joined NSA between 9/1/07 and 8/31/08:• Active Members: 1056• Associate Members: 176• Student Members: 43• Educator Members: 8• International Members: 10• Vendor Members: 5
New Member Total:New Member Total: 1,2981,298
FY 07- 08FY 07- 08New Members by DistrictNew Members by District
• District I: 49
• District 2: 212• District 3: 73• District 4: 230• District 5: 157• District 6: 57
• District 7: 89• District 8: 122• District 9: 95• District 10: 201• District 11: 3• International: 10
Membership RetentionMembership Retention
• To grow, it takes 2 new members to replace 1 dropped member
• It costs 3-6x more to recruit a member than to retain one
Factors that Influence Factors that Influence Membership RetentionMembership Retention
Associations that offer individualMembership as opposed to
associations with institutional or company
memberships typically will seelower renewal rates.
Factors that Influence Factors that Influence Membership RetentionMembership Retention
Associations that serve a market where dues are reimbursed or paid for by an employer will see better renewal rates than dues paid out
of pocket by individuals.
Factors that Influence Factors that Influence Membership RetentionMembership Retention
• Associations with a rapidly growing membership tend to have lower retention rates than groups with a steady or declining membership.
• This occurs because growing associations have a larger proportion of first year members and first year members typically renew at a much lower rate than longer term members.
Factors that Influence Factors that Influence Membership RetentionMembership Retention
The stronger the incentive used to getmembers to join an association, the
lowerthe renewal rate will be when
comparedto members who joined with no
incentive.
Membership RetentionMembership Retention
• Active Members: 88%• Associate Members: 72%• Retired Members: 98%• Student Members: 59%• Educator Members: 81%• International Members: 69%
*First year member renewal rate averages between
55%-60%.
Retention Rates: FY 07-08
Membership RetentionMembership Retention
ASAE & The Center reports that the mean
renewal rate is 83% for an individualmembership association and 91% for
atrade association.
Calculating Membership Calculating Membership RetentionRetention
• # of members who renewed/# of members up for renewal.125 renewed/150 up for renewal = 83%
• Total # of members today minus 12 months of new members/total # of members at this time last year.3000 members – 500 new members= 2500/2800 members now = 89%
NSA Membership RetentionNSA Membership Retention• Multi-part renewal campaign: letters, e-mails,
faxes, last issue newsletters/magazine wraps, telemarketing, incentivize early renewals
• New member welcomes & renewal campaigns• Different messaging for different member
types• Exit surveys• Continually communicate NSA benefits• Engage members• Customer Service & Use of Database• Member Needs Assessment
Lifetime Value (LTV)Lifetime Value (LTV)The Lifetime Value (LTV) of a memberestimates the member’s financialcontributions to the association over thelife of membership. It is critical for
planning& budgeting marketing expenses.
• Average Member Tenure • Average Yearly Membership Dues• Total Nondues Revenue• Cost of Serving Members
Lifetime Value (LTV)Lifetime Value (LTV)
• Average Member Tenure: 1/Inverse of the Retention Rate 80% Retention Rate: Inverse = 20%1/20@ = 5 Years Average Tenure
• Average Yearly Dues x Tenure = Lifetime Dues Value of a Member
Lifetime Value (LTV)Lifetime Value (LTV)
• Total Nondues Revenue/# of Members = Annual Nondues Revenue per Member
• Annual Nondues Revenue per member x Tenure = Lifetime Nondues Value of a Member
Lifetime Value (LTV)Lifetime Value (LTV)
• Lifetime Dues Value + Lifetime Nondues Value = Gross Lifetime Value per Member
• Gross Lifetime Value – Lifetime Cost to Serve a Member = Net Lifetime Value of a Member
*Lifetime cost to serve a member = total yearly
expenses/# of members x average tenure
What is Your Value What is Your Value Proposition?Proposition?
• Who are you to members and who do you want to be? This vital assessment should drive your benefit & services package.
• Which benefits & services support the mission, vision & strategic plan of the association?
• Understand your members and have a keen awareness of what your are capable of doing and what you should or should not be doing.
New Definitions of ValueNew Definitions of Value
Years ago, belonging to one’s professionalassociation was routine and dues werepaid without questioning the benefit.Membership was viewed as a way tosupport the profession or defend the
industry and that was seen as valuableenough to justify a lifetime of membership.
New Definitions of ValueNew Definitions of Value
Consumers have come to develop higher expectations from
membership organizations.
Today’s members expect a quantifiable return on their
investment of dues dollars in addition to the association’s delivering on the mission.
New Definitions of ValueNew Definitions of Value
For every dollar they spend in dues, they demand at least a dollar’s
worth of value in return.
To respond to this trend, associations must continually demonstrate the
value they return to their members and communicate that value
consistently.
Value Proposition = Unique Value Proposition = Unique Selling PropositionSelling Proposition
The association’s value proposition is composedof all the programs that are given to memberswhen they join. It answers “Why Should I JoinYour Association?:
From a value standpoint, association programs fit
into two categories:1. Does the program provide a tangible or
intangible benefit to the member?2. Is the program related to the mission of the
organization or unrelated to the mission?
Benefits Sweet SpotBenefits Sweet SpotUnrelated to Mission
Related to Mission
Tang
ible
Inta
ngib
le
Credit Card Program
Networking
Publications
AdvocacyDiscounts on
EducationAwards
Discounted Insurance
Knowledge Sharing
Help Desks & Libraries
Understanding & Articulating Understanding & Articulating the Value Proposition: Turning the Value Proposition: Turning
Features into BenefitsFeatures into Benefits
• A feature is a product or service the association offers.
• When describing the benefits of membership, it’s crucial to put yourself in the shoes of the prospect or member.
• The benefit is more powerful than the feature because it defines actual value or outcome for the member
Turning Features into BenefitsTurning Features into Benefits
Feature: program
Benefit: which means you’ll:
Membership Directory
Locate peers in your profession, discuss issues, or capitalize on opportunities
Networking Develop & strengthen contacts to help you in your practice.
Fee Survey Make informed decisions about your fees based on the latest research & even increase revenue.
Reasons for Joining NSAReasons for Joining NSATop reasons members join NSA:
1. Information2. Education and CPE3. Tie: Credibility, Ethics/membership
certificate and publications4. Advocacy5. Networking
Least important reasons for joining:1. Annual meeting 2. Leadership opportunities
75% of members say NSA membership meets to
strongly meets expectations
Member Benefits: Member Benefits: NSA Member Survey ResultsNSA Member Survey Results
1. Keeping up with tax law2. Marketing/business development3. Employee issues: hiring & retaining
staff, etc.4. Technology5. Time management6. Competition
Top 6 challenges facing members:
Member Benefits: Member Benefits: NSA Member Survey ResultsNSA Member Survey Results
1. Customer service and relations: timeliness of service, getting info. from clients, keeping clients honest
2. Education3. Expenses4. Cash flow5. Information overload 6. Pricing of services
Other top challenges:
Membership Marketing TacticsMembership Marketing Tactics
• Use Active Voice • Use Benefits Over Features• Use the word YOU• Keep it Simple and Direct• Use Call Outs, Bullets, Charts, Bold,
Italics, Testimonials, Boxes, Color, etc.
• Use Personalization if Possible
Membership Marketing TacticsMembership Marketing Tactics
• Letter Packages Outperform Self-Mailers• Letters: Use Johnson Box, PS and PPS;
Put the Appeal and Offer Upfront• Letters: Longer Letters Out Pull Shorter
Letters; should have more emotional appeal than brochures
• Envelopes: Plain or Teaser, Return Address, Live Stamp, Label, Handwritten Font, Color…Plain White & Boring Works
Membership Marketing TacticsMembership Marketing Tactics
• Speak to your audience’s pain points first and then offer a solution. But only in bite size chunks.
• Don’t give away all of your information. Create a desire to learn more and make it easy for them to find out more.
• Use every response technique you can - email, toll free telephone, fax, business reply card…repeat and make it easy to find.
Membership Marketing TacticsMembership Marketing TacticsWriting the OfferWriting the Offer
• Link Benefits to Two Primary Motivators: Greed and Fear: · What’s in it for me?· What happens if I don’t respond?
• Offers with Deadlines Outperform Offers Without Them (90 Days)
Membership Marketing TacticsMembership Marketing Tactics
• Offer Incentives & Discounts: Should be 15-35%
• Price Points: #s Ending in a 7 or 9 Get Higher Response Rates
• Use Real Examples, Numbers Product Data, Testimonials
• Repeat & Repeat the Offer & Take Action Response Mechanisms—Make them Easy to Find
Membership Marketing TacticsMembership Marketing TacticsNew MembersNew Members
• Break Down the Welcome Membership Kit/Materials Into Smaller Pieces to Increase Communication & Encourage Engagement
• Welcome Call • Six Month Check In, Thank You,
“How Are We Doing?” Survey• Communicate BEFORE the Renewal
Cycle Begins