There promises to be many great speakers and sessions at the upcoming ASAE Marketing, Membership and Communications Conference held May 23 and 24 in Washington, DC. It is a conference that I can highly recommend and it often sells out, so you may want to register early.
Rick Whelan, the president of Marketing General Incorporated, will be speaking at the conference on my favorite topic, “The Economics of Membership Marketing Programs”.
Rick is a 30-year marketing professional and a Certified Direct Marketer. He serves on the Direct Marketing Association of Washington, DC, Educational Foundation Board of Directors. He is a past DMAW Board Chair and former Chair of the American Society for Association Executives Membership Section.
But in addition to his credential, I believe that this topic is lays the foundation for all membership marketing activities. The economics of membership includes important toics like:
• Steady State Analysis – Determining the future membership size of your organization.
• Membership Tenure – Projecting how long a member will remain with your organization.
• Retention Calculations – Measuring the continuity of your membership.
• Life Time Value (LTV) – Understanding the long-term revenue stream a members will produce.
• Maximum Acquisition Cost – Calculating the margin or potential profit that a member will produce for your organization and therefore how much can be spent to obtain a member.
If you plan to attend the conference, please let me know. I enjoy meeting and getting feedback from those who read this blog.
Fundraising with Social Media
In the March edition of Associations Now, Andrew Lang highlights a social media success story titled Tweeting for Dollars.
He writes, “Most of us know or have heard of associations that use tools like Facebook or Twitter to promote conferences or other products and services, thereby increasing their sales. But reports of associations creating net income directly from these tools have largely proven illusory. Finally, I am pleased to report that I have found just such an association—and it turns out it has been succeeding at it for three years already.”
The program he highlights is run by Nonprofit Technology Network (NTEN) using Twitter, Facebook, and LinkedIn posts to request donations to fund scholarships for their annual conference. For each donation made, the responder got a vote on what video would be produced for the conference.
“The resulting campaigns have raised an average of approximately $10,000 each of the last three years.” Lang reports, and “because NTEN has a corporate sponsor that provides matching funds, the total raised comes to $20,000 a year. While this is only a small percentage of the organization's overall budget, it is nevertheless a useful sum for the purpose intended.”
Social media is still in its infancy compared to other more mature marketing channels, but over time we will see innovative approaches that will help it become part of a predictable and projectable marketing tool. Keep watching.
He writes, “Most of us know or have heard of associations that use tools like Facebook or Twitter to promote conferences or other products and services, thereby increasing their sales. But reports of associations creating net income directly from these tools have largely proven illusory. Finally, I am pleased to report that I have found just such an association—and it turns out it has been succeeding at it for three years already.”
The program he highlights is run by Nonprofit Technology Network (NTEN) using Twitter, Facebook, and LinkedIn posts to request donations to fund scholarships for their annual conference. For each donation made, the responder got a vote on what video would be produced for the conference.
“The resulting campaigns have raised an average of approximately $10,000 each of the last three years.” Lang reports, and “because NTEN has a corporate sponsor that provides matching funds, the total raised comes to $20,000 a year. While this is only a small percentage of the organization's overall budget, it is nevertheless a useful sum for the purpose intended.”
Social media is still in its infancy compared to other more mature marketing channels, but over time we will see innovative approaches that will help it become part of a predictable and projectable marketing tool. Keep watching.
Three Membership Renewal Tips you can Use
When you are hunting for a way to improve results, testing is a great way to optimize your marketing efforts. And this is particularly the case with membership renewals.
As I have reviewed testing data from several membership organizations, I have spotted some outcomes that you may want to consider if you are looking for better renewal rates.
1. Test Where the Notice is Sent: If you have not had a response from your pre-expire renewal efforts, consider sending renewal notices to both the bill-to and ship-to address in your database. If you normally send renewals to the bill-to address, you may find that the notice needs the push or approval of the ship-to user to get through the system. If you normally send the notice to the ship-to address, you may find there is a new staff person in the organization that the bill paying department can identify. Either way, with one organization we have seen a 20 percent lift in post expire response rates for the notice going to both addresses.
2. Track Renewals by Member Segments: We often look at the aggregate renewal rate for our organizations and think all is well when we see a number of 80 or 90 percent. But a renewals rate is the cumulative effect of many separate renewals from each segment of a membership. By tracking these segments independently, you can determine where an intervention or improvement might be needed. For example, when tracking renewal rates by each state, we see variations in renewals by up to 50 points (90 percent for the top state compared to 40 percent for the bottom state). Membership category renewal rates can vary by 40 points. And continuing members compared to first year members can vary by 30 points or more. Tracking these variations shows where additional resources and efforts may be needed.
3. Evaluate the Timing of Renewals: When you start and when you end your renewal efforts will also impact your final numbers. If you offer an automatic credit card renewal or electronic funds transfer option, these options can be presented before your renewal series begins. Groups that offer these payment options find that they may have a 10 point increase (85 percent renewal rate compared to a 75 percent renewal rate) from members who participate in these programs compared to non-participating members. Early renewals that come in the form of a “Thank You” instead of a request for payment have produced increased renewals. And our 2011 Benchmarking Report highlighted that over 50 percent of responding membership organizations continue renewals for four or more months past expiration. In fact, “associations with an increase in membership over the past five years are significantly more likely than associations with a five-year decline in membership to report that they do not stop contact for renewals (25% to 16%).”
Because renewals generate a high overall response rate, testing can produce very solid statistical outcomes and those outcomes can have a big impact on your organization.
Please share in the comments section below any tips that you have that might help organizations improve renewal efforts.
Participation Grows for the 2012 Membership Marketing Benchmarking Report
We have closed the questionnaire for the 2012 Membership Marketing Benchmarking Report and I am happy to report that we had the highest level of participation ever.
Last year over 650 membership organizations took part in this research. And this year we had over 750 organizations submit their data. The increased level of participation this year will allow for even finer segmentation by organization type, size, and budget.
Thank you so much for each of you who took part in this research. For those who completed the survey, we will send a free printed copy of the final, full report.
I also look forward to sharing with you the outcomes from this year’s research here on this blog. If you have not done so, you may want to use the “Subscribe through Email” button on the top right of the blog home page to stay in contact for releases of information.
Last year over 650 membership organizations took part in this research. And this year we had over 750 organizations submit their data. The increased level of participation this year will allow for even finer segmentation by organization type, size, and budget.
I also look forward to sharing with you the outcomes from this year’s research here on this blog. If you have not done so, you may want to use the “Subscribe through Email” button on the top right of the blog home page to stay in contact for releases of information.
Your Membership Value Equation
Value = Benefits / Costs = (Functional benefits + Emotional benefits) / (Monetary costs + Time costs + Energy costs + Psychic costs)1.
1. Philip Kotler, Marketing Management, Prentice Hall; 11 edition (May 2002)
A “Good” Response Rate in Membership Marketing
Many times I am asked what a good response rate in direct mail is. So I found it interesting when a client shared some data from the DMA Response Rate Trend Report. The report found that “Response rates for Direct Mail have held steady over the past four years. Letter-sized envelopes, for instance, had a response rate this year of 3.42 percent for a house list and 1.38 percent for a prospect list.”
Benchmarking data from other organizations is a good starting point for any analysis. However, real data collected from actual market tests is always the best. That’s because response rates are a comparative measuring tool, not an actual definition of value.
For example, is 72 degrees Fahrenheit a good temperature? It is great if you want to go for a walk, but bad if you are cooking a steak.
Before you determine if a response rate is good or bad, you need to understand the costs and the revenue associated with your membership (what cooking temperature is required). Then you can employ the response rate to define which list, offer, or package meets you minimum response requirements.
In the example below, the response rate varied on 16 different lists from 3.46% to 0.33%. If the revenue associated with the response is very high, then even the lowest responding list might be economically productive. But if the allowable marketing cost is $30, then responses below a 1.79% response rate on list “D” would be unacceptable.
What’s the bottom line on response rates? Do the economic analysis first to understand the costs and revenue associated with your marketing effort. This will tell you what the minimum response rate you need to achieve your outcomes. Then use your response rate as a decision tool to define what is good and what is bad from your marketing efforts.
Benchmarking data from other organizations is a good starting point for any analysis. However, real data collected from actual market tests is always the best. That’s because response rates are a comparative measuring tool, not an actual definition of value.
For example, is 72 degrees Fahrenheit a good temperature? It is great if you want to go for a walk, but bad if you are cooking a steak.
Before you determine if a response rate is good or bad, you need to understand the costs and the revenue associated with your membership (what cooking temperature is required). Then you can employ the response rate to define which list, offer, or package meets you minimum response requirements.
In the example below, the response rate varied on 16 different lists from 3.46% to 0.33%. If the revenue associated with the response is very high, then even the lowest responding list might be economically productive. But if the allowable marketing cost is $30, then responses below a 1.79% response rate on list “D” would be unacceptable.
Must-Have Membership Marketing Tools
As we start a new year, I get a number of requests from clients for membership evaluation and reporting tools. So I thought that I would share some links that may be of help in reporting on and analyzing your membership program. I hope you find them of help.
• Free download of the 2011 Membership Marketing Benchmarking Report
• Membership “Steady State” Calculation to determine where your membership is headed
• Recommended Annual Membership Tracking Dashboard
• Formulas to determine membership renewal rates, average tenure of a member, lifetime value, and maximum acquisition cost
Thanks for reading the Membership Marketing Blog this past year and best wishes for a happy, peaceful, and successful New Year.
• Free download of the 2011 Membership Marketing Benchmarking Report
• Membership “Steady State” Calculation to determine where your membership is headed
• Recommended Annual Membership Tracking Dashboard
• Formulas to determine membership renewal rates, average tenure of a member, lifetime value, and maximum acquisition cost
Thanks for reading the Membership Marketing Blog this past year and best wishes for a happy, peaceful, and successful New Year.
How to Recognize a Good Strategy?
That’s why I enjoyed an article I just read by Richard Rumelt titled, “The Perils of Bad Strategy”. He lays out the characteristics that point to a bad strategy and also what the ingredients are of a good strategy.
In sports, we see the impact of strategy played out in game situatons right before our eyes. “Like a quarterback whose only advice to his teammates is ‘let’s win,’” Rumelt writes “bad strategy covers up its failure to guide by embracing the language of broad goals, ambition, vision, and values.” All of these items have their place, but they should not be mistaken for a strategy.
On the other hand, a good strategy is when “a talented leader has identified the one or two critical issues in a situation—the pivot points that can multiply the effectiveness of effort—and then focused and concentrated action and resources on them. A good strategy does more than urge us forward toward a goal or vision; it honestly acknowledges the challenges we face and provides an approach to overcoming them.”
Rumelt gives three steps that are important to developing a real strategy that can make a difference.
“1. A diagnosis: an explanation of the nature of the challenge. A good diagnosis simplifies the often overwhelming complexity of reality by identifying certain aspects of the situation as being the critical ones.
2. A guiding policy: an overall approach chosen to cope with or overcome the obstacles identified in the diagnosis.
3. Coherent actions: steps that are coordinated with one another to support the accomplishment of the guiding policy.”1.
As we start the New Year, take a look at the strategies that you have in place. Do they address the real problem or challenge your organization is facing? Is the strategy actionable? Does it provide a road map so each member of the team knows how they can achieve the strategy? If not, now may be a good time to step back and re-evaluate what your strategy should be.
1. Richard Rumelt, The Perils of Bad Strategy, McKinsey Quarterly, the business journal of McKinsey & Company, June 2011.
Non Dues Revenue and Affinity Programs for Members
Lists can be helpful to get brainstorming going on what additional products and services can be provided to members. My research shows that with each additional purchase from an organization the loyalty and tenure of a member increases.
So here is a quick list of possible non-dues revenue and affinity products that I have put together to get your thinking going. Please feel free to add any that I have missed in the comments section below.
1. Advertising
a. Ad Sales
b. Directory Sales
c. Exhibits
d. List Management
e. Sponsorship
2. Association Products and Services
a. Books, directories, periodicals
b. Continuing education – seminars, webinars, meetings
c. Conventions
3. Credit Card
4. Hotel Discounts
5. Insurance
a. Auto Insurance
b. Dental Insurance
c. Disability Insurance
d. Home Owners or Rental Insurance
e. Hospital Insurance
f. Identity Theft Insurance
g. Life and AD&D Insurance
h. Pet Insurance
i. Professional Liability Insurance
j. Travel Insurance
k. Vision Insurance
6. Investments and Banking
7. Job Bank
8. Legal Services
9. Logo and Insignia Items
10. Medical Alert
11. Overnight Shipping Discounts
12. Prescription Program
13. Rental Car Discounts
14. Shopping Discounts
a. Dining
b. Flowers
c. Fuel
d. Office supplies
e. Technology
So here is a quick list of possible non-dues revenue and affinity products that I have put together to get your thinking going. Please feel free to add any that I have missed in the comments section below.
1. Advertising
a. Ad Sales
b. Directory Sales
c. Exhibits
d. List Management
e. Sponsorship
2. Association Products and Services
a. Books, directories, periodicals
b. Continuing education – seminars, webinars, meetings
c. Conventions
3. Credit Card
4. Hotel Discounts
5. Insurance
a. Auto Insurance
b. Dental Insurance
c. Disability Insurance
d. Home Owners or Rental Insurance
e. Hospital Insurance
f. Identity Theft Insurance
g. Life and AD&D Insurance
h. Pet Insurance
i. Professional Liability Insurance
j. Travel Insurance
k. Vision Insurance
6. Investments and Banking
7. Job Bank
8. Legal Services
9. Logo and Insignia Items
10. Medical Alert
11. Overnight Shipping Discounts
12. Prescription Program
13. Rental Car Discounts
14. Shopping Discounts
a. Dining
b. Flowers
c. Fuel
d. Office supplies
e. Technology
Membership Marketing News You can Use
Here are a couple of news items that you may find of help.
First, the USPS will be increasing postal rates effective January 22.
• First Class Letter rate is increasing to $0.45 (up from $0.44)
• First Class Postcard rate is increasing to $0.32 (up from $0.29)
• Standard A Letter rate is increasing to $0.281 (up from $0.276)
• Non-Profit Letter rate is decreasing to $0.172 (down from $0.174)
Also, here are links to some job opportunities with membership marketing organizations that you may want to explore.
• Director of Membership at a leading education association
• Director of Membership and Marketing at national membership organization
• Account Managers at leading direct marketing agency
• Director of Marketing at a top membership association
First, the USPS will be increasing postal rates effective January 22.
• First Class Letter rate is increasing to $0.45 (up from $0.44)
• First Class Postcard rate is increasing to $0.32 (up from $0.29)
• Standard A Letter rate is increasing to $0.281 (up from $0.276)
• Non-Profit Letter rate is decreasing to $0.172 (down from $0.174)
Also, here are links to some job opportunities with membership marketing organizations that you may want to explore.
• Director of Membership at a leading education association
• Director of Membership and Marketing at national membership organization
• Account Managers at leading direct marketing agency
• Director of Marketing at a top membership association
Customers Love ‘Em or Lose ‘Em
Here is an example of one tip from the book.
“Tip No. 13
Communicate! Communicate!Don’t keep ‘em guessing. No one likes to be in the dark. When customers don’t know what’s happening, they imagine the worst, causing them anxiety and worry. While this is human nature, you don’t want to be the source of their worries. It won’t serve you. Keep your customers updated on your progress on their assignments and requests. Communicating regularly demonstrates your accountability, conveys your customer satisfaction emphasis, and that you’re dedicated to serving them. Along similar lines, if something isn’t going quiet as planned, customers do understand, provided you inform with them within a reasonable time frame rather than surprising them with bad news at the last minute. Therefore, when you do have to convey some “bad” news, at the same time, be sure to also let them know what you are doing to make it right, get it back on track. Your customers will appreciate it. Finally, when in doubt, it’s better to over communicate then under.”
You can download an inexpensive copy of the book from Scribd. You may find it helpful to share with your membership staff or customer facing colleagues.
Five Steps to Building a Membership Recruitment Strategy
I just responded to a question on how an organization should put together a membership recruitment strategy. The question reminded me that sometimes it is a good idea to step back and look at the fundamentals of what we are doing.
So here are five basic elements that I think are important to consider in putting together a membership recruitment program.
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 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.
3. The Marketing Message – why a member should join – this includes defining your value proposition and presenting solutions and benefits to members that are compelling.
4. 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.
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.
Even if you are an experienced marketing pro, take a moment now to look at your membership program. Chances are one of these five points is underdeveloped in what you are doing and could have big results with some additional focus.
Case Study: A Thriving Membership Organization
Costco has enjoyed exceptional membership growth over the years. The chart below from their 2010 annual report shows membership at the end of their fiscal year in August 2010. They reported 22.5 million Gold Star Members and 5.7 million Business Members.
As of the end of August 2011, Costco reported 25.0 million Gold Star Members and 6.3 million Business Members. That means Gold Star Membership has seen a five year growth rate of 44 percent and Business Members have grown by almost 21 percent.
A piece by Forbes about Costco that came out yesterday reports, “The renewal rates are approximately at the 89-plus percent range in the U.S. and Canada and 86% worldwide. Costco is also experiencing increasing penetration in the executive membership.” Forbes added that “in Q4 2011, the new member sign-ups witnessed an increase of 22% as compared to a year ago.”
Interestingly, Costco is upping membership fees by 10 percent on November 1. Prices will go from $50 to $55 for Gold Star members and $100 to $110 for Executive Members. We will have to see if this impacts their membership numbers going forward.
Obviously, every membership organization cannot be like Costco. However, it is a good reminder that when you deliver good value and market effectively, there are many millions of individuals who are ready and willing to sign up as members to participate in an organization.
The Impact of a Membership Dues Increase on Renewal Rates
It has been my observation that the demand for membership renewals is fairly inelastic of price. In other words, a percentage increase in dues rates generally does not translate into an equal or greater percentage drop in renewals rates. The demand for the membership holds. At least up to a point.
Some data from our recent Membership Marketing Benchmarking Report supports this premise. For example, 82% of organizations that raised dues by between 1% and 10% reported renewal rates of 70% or better after the increase. Similarly, 83% of organizations that raised dues by between 11% and 20% also report renewal rates of 70% or better after the increase.
However, this pattern falls apart with dues increases over 21%. In this case, only 68% of organizations that raised dues by more than 21% reported renewal rates of 70% or better.
The chart below provides the data on percent of dues increase and renewal rates.
The bottom line -- based on the the aggregate data -- it appears if an organization can keep a dues increase to under 20% there will not be a drop in overall renewal rates. But going over a 20% dues increase may errode renewal numbers.
Some data from our recent Membership Marketing Benchmarking Report supports this premise. For example, 82% of organizations that raised dues by between 1% and 10% reported renewal rates of 70% or better after the increase. Similarly, 83% of organizations that raised dues by between 11% and 20% also report renewal rates of 70% or better after the increase.
However, this pattern falls apart with dues increases over 21%. In this case, only 68% of organizations that raised dues by more than 21% reported renewal rates of 70% or better.
The chart below provides the data on percent of dues increase and renewal rates.
The bottom line -- based on the the aggregate data -- it appears if an organization can keep a dues increase to under 20% there will not be a drop in overall renewal rates. But going over a 20% dues increase may errode renewal numbers.
The 25 Most Important Lessons in Membership Marketing
One of the sections that I find most interesting in our benchmarking research is the responses to our open ended question about lessons learned. We asked:
In your own words, what are the most important lessons you have learned in the area of membership marketing?
This year, we had over three hundred and eighty participants take the time to share their thoughts on lessons learned. I went through them and pulled out a representative sample of 25 responses.
Here are the insights that your fellow membership marketing professionals shared.
1. Recruitment and retention efforts require more "touches" than ever, and certainly more than, say, ten years ago. Associations must work to break through their members' "clutter."
2. Focus on the numbers. Construct and regularly monitor membership metrics to guide decision making and expenditures.
3. You can't grow without an acquisition program. A retention program simply maintains the membership or perhaps has a decline as people leave the profession or die.
4. The profession we support is going through a period of redefinition. The membership structure that has served us well for many years is now obsolete. What I have learned is the biggest barrier is that in volunteer run association, business decisions take too long and there we are not nimble as an organization in our ability to respond to the changes in our market with changes to our own business model.
5. You have to keep in there pitching every day. There is no "silver bullet" - direct mail, email, social media, events, member get a member. They all have their place.
6. The current economy has made everyone take a serious look at value for member dues. The abstract notion of "affiliation" is no longer enough. The surge of technology has caused a social media explosion that is difficult to keep up with and challenging to imitate. The bar has been raised in the areas of networking and providing up-to-date and exclusive information. We can no longer be a vague "something for everyone"; we need to develop a well-defined value proposition that resonates in today’s environment.
7. Surveying the membership base on a regular basis and always requesting and listening to feedback is extremely important to the association. Never assume the membership base wants or needs the benefits you feel they need/want.
8. In a down economy, it's more important than ever to stay in the marketplace and keep brand awareness strong. Do whatever it takes to maintain budget levels and continue solicitation efforts. That's key in ensuring you'll be well positioned once the economy begins to turn...and always continue to test - new efforts, offers, ideas, messaging, lists, etc.
9. That there is an actual discipline to it that needs to be followed, studied, and consistently applied.
10. Integrated marketing is key - no one channel is guaranteed for recruitment or renewal. I need to use direct mail, email, telemarketing and social media for each campaign.
11. Keep testing, even after you think you have found the magic bullet. Know your market and your competition. Understand your organization's business objectives and tie them to your membership marketing programs.
12. Reaching out to new members about 3 months after they've joined has won us good will. We talk about free member services and make sure they know how to take advantage of them and ask if they have any questions about their membership. They really seem to appreciate the check in.
13. Old programs such as branch/chapter, member get a member worked in the 80's and 90's. Need to sunset those, and fulfill needs of younger generation: quick turnaround, fewer hierarchies, ease of renewals, instant information, and willingness to engage.
14. Value is key to membership retention. Marketing is key to membership growth.
15. Having a clear message from leadership regarding the vision and purpose of the organization. It is key that all members understand and be able to share with others the purpose and value of the organization
16. Successful membership means instituting and implementing consistent processes and procedures for renewals, testing new membership techniques and messages, and always pursuing lapsed members.
17. You need to continue to try new things and track what works and what doesn't.
18. Clearly define goals, test the offer and meticulously record the results.
19. Investments in marketing pay off.
20. Multiple contacts are very important.
21. Membership should work with marketing to actually create a campaign.
22. Success depends on building relationships with our member companies, "drilling down" and developing relationships with multiple contacts at the member company and regularly communicating the value that the association provides to each member in multiple ways
23. Be persistent, circumstances can change regarding interest in membership. Every prospect has a "sweet" spot; you just have to find it.
24. We are not competing with other associations; we are competing for member dollars with for profit service providers and personal expenditures.
25. Times have changed - Members are looking at Association memberships much more carefully than they used to. The VALUE has to be there for the member to renew.
Feel free to add your own thoughts on lessons learned in the comments section below. Which insights listed here do you agree with and with which do you disagree?
In your own words, what are the most important lessons you have learned in the area of membership marketing?
This year, we had over three hundred and eighty participants take the time to share their thoughts on lessons learned. I went through them and pulled out a representative sample of 25 responses.
Here are the insights that your fellow membership marketing professionals shared.
1. Recruitment and retention efforts require more "touches" than ever, and certainly more than, say, ten years ago. Associations must work to break through their members' "clutter."
2. Focus on the numbers. Construct and regularly monitor membership metrics to guide decision making and expenditures.
3. You can't grow without an acquisition program. A retention program simply maintains the membership or perhaps has a decline as people leave the profession or die.
4. The profession we support is going through a period of redefinition. The membership structure that has served us well for many years is now obsolete. What I have learned is the biggest barrier is that in volunteer run association, business decisions take too long and there we are not nimble as an organization in our ability to respond to the changes in our market with changes to our own business model.
5. You have to keep in there pitching every day. There is no "silver bullet" - direct mail, email, social media, events, member get a member. They all have their place.
6. The current economy has made everyone take a serious look at value for member dues. The abstract notion of "affiliation" is no longer enough. The surge of technology has caused a social media explosion that is difficult to keep up with and challenging to imitate. The bar has been raised in the areas of networking and providing up-to-date and exclusive information. We can no longer be a vague "something for everyone"; we need to develop a well-defined value proposition that resonates in today’s environment.
7. Surveying the membership base on a regular basis and always requesting and listening to feedback is extremely important to the association. Never assume the membership base wants or needs the benefits you feel they need/want.
8. In a down economy, it's more important than ever to stay in the marketplace and keep brand awareness strong. Do whatever it takes to maintain budget levels and continue solicitation efforts. That's key in ensuring you'll be well positioned once the economy begins to turn...and always continue to test - new efforts, offers, ideas, messaging, lists, etc.
9. That there is an actual discipline to it that needs to be followed, studied, and consistently applied.
10. Integrated marketing is key - no one channel is guaranteed for recruitment or renewal. I need to use direct mail, email, telemarketing and social media for each campaign.
11. Keep testing, even after you think you have found the magic bullet. Know your market and your competition. Understand your organization's business objectives and tie them to your membership marketing programs.
12. Reaching out to new members about 3 months after they've joined has won us good will. We talk about free member services and make sure they know how to take advantage of them and ask if they have any questions about their membership. They really seem to appreciate the check in.
13. Old programs such as branch/chapter, member get a member worked in the 80's and 90's. Need to sunset those, and fulfill needs of younger generation: quick turnaround, fewer hierarchies, ease of renewals, instant information, and willingness to engage.
14. Value is key to membership retention. Marketing is key to membership growth.
15. Having a clear message from leadership regarding the vision and purpose of the organization. It is key that all members understand and be able to share with others the purpose and value of the organization
16. Successful membership means instituting and implementing consistent processes and procedures for renewals, testing new membership techniques and messages, and always pursuing lapsed members.
17. You need to continue to try new things and track what works and what doesn't.
18. Clearly define goals, test the offer and meticulously record the results.
19. Investments in marketing pay off.
20. Multiple contacts are very important.
21. Membership should work with marketing to actually create a campaign.
22. Success depends on building relationships with our member companies, "drilling down" and developing relationships with multiple contacts at the member company and regularly communicating the value that the association provides to each member in multiple ways
23. Be persistent, circumstances can change regarding interest in membership. Every prospect has a "sweet" spot; you just have to find it.
24. We are not competing with other associations; we are competing for member dollars with for profit service providers and personal expenditures.
25. Times have changed - Members are looking at Association memberships much more carefully than they used to. The VALUE has to be there for the member to renew.
Feel free to add your own thoughts on lessons learned in the comments section below. Which insights listed here do you agree with and with which do you disagree?
ASAE’s Associations Now Interactive Extra Focuses on Membership Matters
1. What Membership Means Around the World
2. Retaining Members, From Year One to Retirement
3. 7 Tips for Dealing with Angry Members
4. Recruitment, Retention, and Engagement Trends
5. Build a Better Member Survey
It is a very well done supplement. Here is the link if you would like to take a look at it.
The End of Membership as We Know It
In her book, The End of Membership as We Know It, Sarah Sladek, makes important points – based on best practices in membership marketing -- that membership professionals should take to heart in order to grow a successful program.
Her fundamental thesis is that “three key shifts in our society have caused a decline in membership: economic rescission, demographic shifts, and rapidly changing technology. [And] while the economy is likely to rebound sooner or later, the other two influences are here to stay.” 1.
Sladek proposes a number of solutions to help in meeting these membership challenges.
The first is to focus on offering members’ better benefits. She maintains that “your association’s success hinges on one thing: member benefits. . . Members join your association because they believe in your ability to solve a problem for them. They renew their membership when you are successful at solving the problem.”2.
In order to identify and develop better benefits, she advises that you “survey members or host focus groups regularly to keep your finger on the pulse of any changing needs among your membership. Nothing can replace the open, honest feedback you receive from members.”3.
Another key opportunity to improve membership Sladek says “comes down to marketing.” The four aspects of marketing that are highlighted include differentiating your association from its competitors, providing a guarantee to members, identifying your core benefits, and determining your target market.
Sladek also recommends building online communities as a key to solving the threats to membership. “Throughout history, she writes,” community has been defined as a social group of any size whose members reside in a specific locality, share government, and often have a common culture and history. That definition has changed in recent years, partly because of demographic shifts and economic dips but largely because of technology. Technology has given us access to the world and the opportunity to network with anyone, anywhere, anytime.” 4.
Another important solution that Sladek recommends is examining your membership model. She notes that “For hundreds of years association memberships have been cut from the same cloth. With few exceptions, people paid dues once a year for access to a full year’s worth of membership. Today, membership associations are introducing a variety of operational models and revenue streams. Innovation is a must:”5. I call this tendency of offering only one membership option the “black Ford” syndrome. As Henry Ford famously stated, “you can have any car color you want as long as it is black”.
Some of these membership models that you might want to consider include what I call tiered membership, Freemium membership, online membership, and group membership.
Here is why I believe The End of Membership as We Know It is an important contribution to the literature on membership marketing. Complacency in membership marketing is the contagion that is most likely to hold back a membership program. This book serves as a wakeup call to remind marketers of the need to continue to research, innovate, test, and improve and to give those who do not see the need for change a warning of what could happen without action.
1. Sarah L. Sladek, The End of Membership as We Know it, ASAE, page 94.
2. Ibid. page 45.
3. Ibid. page 56.
4. Ibid. page 92.
5. Ibid. page 95.
Is There a Membership Gene?
The future of membership is often debated in associations, non-profits and local communities. Is membership a concept that’s time has passed and we are looking to a societal future of “bowling alone”? Or is membership and association with others something that is at our core as humans?
I tend to think that although how we associate will certainly change, there seems to be a consistent recognition across the ages of this human characteristic of coming together around common interests. From Aristotle to Alexis de Tocqueville to Dr. Suess, there seems to be recognition that we need each other.
The Greek philosopher Aristotle (384 BC – 322 BC) wrote, “For men journey together with a view to some particular advantage, and to provide something that they need for the purposes of life; and it is for the sake of advantage that the political community too seems both to have come together originally and to endure.”1.
In addition, Alexis de Tocqueville saw the particular expression of this membership tendency in America. He wrote, “In no country in the world has the principle of association been more successfully used, or more unsparingly applied to a multitude of different objects, than in America. Besides the permanent associations which are established by law under the names of townships, cities, and counties, a vast number of others are formed and maintained by the agency of private individuals . . . in the United States associations are established to promote public order, commerce, industry, morality, and religion; for there is no end which the human will, seconded by the collective exertions of individuals, despairs of attaining.”2.
Finally, in a lesson that Simon Sinek draws from no one less than Dr. Suess, he writes, “Dr. Suess explained it best. [There is a] very basic human need – the need to belong. Our need to belong is not rational, but it is a constant that exists across all people in all cultures. It is a feeling we get when those around us share our values and beliefs. When we feel like we belong we feel connected and we feel safe. As humans we crave the feeling and we seek it out.”3.
As membership professionals, our key to success is better understanding how to meet this “need to belong” and harness this desire for “collective exertions” for some “particular advantage”.
1. Nicomachean Ethics by Aristotle book viii 9
2. Democracy in America, Volume 1 by Alexis de Tocqueville, chapter 6 “Political Associations in the United States”
3. Start with Why: How Great Leaders Inspire Everyone to Take Action, Simon Sinek,Penguin Group, 2009, page 53.
I tend to think that although how we associate will certainly change, there seems to be a consistent recognition across the ages of this human characteristic of coming together around common interests. From Aristotle to Alexis de Tocqueville to Dr. Suess, there seems to be recognition that we need each other.
The Greek philosopher Aristotle (384 BC – 322 BC) wrote, “For men journey together with a view to some particular advantage, and to provide something that they need for the purposes of life; and it is for the sake of advantage that the political community too seems both to have come together originally and to endure.”1.
In addition, Alexis de Tocqueville saw the particular expression of this membership tendency in America. He wrote, “In no country in the world has the principle of association been more successfully used, or more unsparingly applied to a multitude of different objects, than in America. Besides the permanent associations which are established by law under the names of townships, cities, and counties, a vast number of others are formed and maintained by the agency of private individuals . . . in the United States associations are established to promote public order, commerce, industry, morality, and religion; for there is no end which the human will, seconded by the collective exertions of individuals, despairs of attaining.”2.
Finally, in a lesson that Simon Sinek draws from no one less than Dr. Suess, he writes, “Dr. Suess explained it best. [There is a] very basic human need – the need to belong. Our need to belong is not rational, but it is a constant that exists across all people in all cultures. It is a feeling we get when those around us share our values and beliefs. When we feel like we belong we feel connected and we feel safe. As humans we crave the feeling and we seek it out.”3.
As membership professionals, our key to success is better understanding how to meet this “need to belong” and harness this desire for “collective exertions” for some “particular advantage”.
1. Nicomachean Ethics by Aristotle book viii 9
2. Democracy in America, Volume 1 by Alexis de Tocqueville, chapter 6 “Political Associations in the United States”
3. Start with Why: How Great Leaders Inspire Everyone to Take Action, Simon Sinek,Penguin Group, 2009, page 53.
The 2011 Membership Marketing Benchmarking Report Now Available as a Free Download
As readers of this blog know, this marks the third year that we have surveyed membership organizations to better understand the strategies and tactics used to recruit members, engage new members, renew existing members, and reinstate former members.
And each year we add questions to explore new areas of membership marketing. This year the report features new data on the practices around increasing membership dues, engaging members with products and services, membership chapters, and the key impediments that hold back membership growth.
Beyond cataloging membership practices, the Benchmarking Report also takes these practices and cross-tabulates them with the membership results membership groups are experiencing. The comparison of practices and outcomes in membership provides strong directional information on what strategies might be added or dropped to help improve an organization’s membership program.
I hope that you find the 2011 Report of help as you seek to maximize the membership results for your organization.
Six Components to Building Your Membership Model
Membership models are a hot topic these days. I am speaking with a number of clients about options on how to build new memberships or adapt current categories.
Instead of trying to build an exhaustive list of the different membership models now being deployed, I thought that it might be of more value to outline the components that go into and can be changed to form a new membership.
I have identified six levers that an organization can adjust in a membership product. By thinking through and making decisions in each of these areas you can define the membership model that best fits your organization and the needs in the market.
Here are the six elements that go into building a membership model.
1. Participants – Who do you want as participants in the membership? This can be defined as specific markets or market segments. It can also be defined as whether the membership is for individuals or groups of people in organizations or companies.
2. Value – What products and services are desired by your market that you are able to deliver to the membership? Providing value involves both understanding the need for content, community, savings, etc. and also your knowledge and ability to deliver what is needed.
3. Term – When do you want the membership to start and to end? For many organizations the standard term of membership is a year. But many memberships – like health clubs – offer a monthly membership term. Others require multiple years of membership tied to an event like certification
4. Fulfillment – Where do you want to deliver membership benefits? There is a growing shift from providing a paper based or in localized in-person membership to an electronic only membership.
5. Price – How much, if anything, do you want to charge for the membership? Memberships can range from tens of thousands of dollars to just a few dollars a year. And increasingly, the concept of ‘Freemium” membership is being tried by organizations where membership is used to build community or engagement as part of a larger economic strategy.
6. Purpose – Why do you want to create the membership? The ability to create a membership model and an economic plan to sustain it are very important in planning, but Tom Collins also points to doing what you are deeply passionate about as a foundation for success.
To build your new membership model, I suggest that you look at each of these membership components and list all of the options under each that are available to you. How you mix and match each of these options will form the outline for the membership model that best fits your organization and the needs in the marketplace.
Please feel free to post a comment here if you think that I have missed any important membership components here.
Instead of trying to build an exhaustive list of the different membership models now being deployed, I thought that it might be of more value to outline the components that go into and can be changed to form a new membership.
I have identified six levers that an organization can adjust in a membership product. By thinking through and making decisions in each of these areas you can define the membership model that best fits your organization and the needs in the market.
Here are the six elements that go into building a membership model.
1. Participants – Who do you want as participants in the membership? This can be defined as specific markets or market segments. It can also be defined as whether the membership is for individuals or groups of people in organizations or companies.
2. Value – What products and services are desired by your market that you are able to deliver to the membership? Providing value involves both understanding the need for content, community, savings, etc. and also your knowledge and ability to deliver what is needed.
3. Term – When do you want the membership to start and to end? For many organizations the standard term of membership is a year. But many memberships – like health clubs – offer a monthly membership term. Others require multiple years of membership tied to an event like certification
4. Fulfillment – Where do you want to deliver membership benefits? There is a growing shift from providing a paper based or in localized in-person membership to an electronic only membership.
5. Price – How much, if anything, do you want to charge for the membership? Memberships can range from tens of thousands of dollars to just a few dollars a year. And increasingly, the concept of ‘Freemium” membership is being tried by organizations where membership is used to build community or engagement as part of a larger economic strategy.
6. Purpose – Why do you want to create the membership? The ability to create a membership model and an economic plan to sustain it are very important in planning, but Tom Collins also points to doing what you are deeply passionate about as a foundation for success.
To build your new membership model, I suggest that you look at each of these membership components and list all of the options under each that are available to you. How you mix and match each of these options will form the outline for the membership model that best fits your organization and the needs in the marketplace.
Please feel free to post a comment here if you think that I have missed any important membership components here.
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