For those readers located in the Baltimore/Washington metropolitan area, I wanted to invite you to attend an interactive session that I am leading for the Maryland Society of Association Executives discussing the results from our Membership Marketing Benchmarking Report.
The meeting is on Wednesday, January 12th. If you have read the report and have comments or questions or simply want to learn more about the research, you can sign up using this link.
Showing posts with label 2010 Benchmarking Survey. Show all posts
Showing posts with label 2010 Benchmarking Survey. Show all posts
How Long does the Average Member Stay with an Association?
There is actually a formula to calculate how long members on average continue their membership. It is called calculating the Average Tenure of a member.
Here is how you can calculate this for your membership. Take the lapse rate of the membership (the opposite of the renewal rate) in a decimal form and divide it into the number 1. So a membership organization with an 80% renewal rate would have a lapse rate of 20% and an average tenure of five years (1/.20= 5).
Another way of looking at this calculation is if you have a 20% lapse rate, your membership will turn over every five years.
So what would be the “average”, Average Tenure for membership organizations?
In our 2010 Membership Marketing Benchmarking Report with over 400 participating associations, our average renewal rate was 83%. So this would put the Average Tenure of a member at 5.88 years for the participating organizations.
Please be aware that this is an average for the participating organizations. Some reported renewal rates less than 50% and others more than 90%.
Knowing the Average Tenure of your membership is a crucial data point to use in marketing planning and making long term budget projections.
Here is how you can calculate this for your membership. Take the lapse rate of the membership (the opposite of the renewal rate) in a decimal form and divide it into the number 1. So a membership organization with an 80% renewal rate would have a lapse rate of 20% and an average tenure of five years (1/.20= 5).
Another way of looking at this calculation is if you have a 20% lapse rate, your membership will turn over every five years.
So what would be the “average”, Average Tenure for membership organizations?
In our 2010 Membership Marketing Benchmarking Report with over 400 participating associations, our average renewal rate was 83%. So this would put the Average Tenure of a member at 5.88 years for the participating organizations.
Please be aware that this is an average for the participating organizations. Some reported renewal rates less than 50% and others more than 90%.
Knowing the Average Tenure of your membership is a crucial data point to use in marketing planning and making long term budget projections.
The Top 25 Lessons Learned in Membership Marketing: 200 Marketing Pro’s Share their Wisdom
If you would like to see all 200 responses, please email me and I can forward them to you.
1. A multi-channel approach is best. There isn't any silver bullet. A variety of techniques, well executed elicits success.
2. You can't spend too much time or money on marketing.
3. When you actually do a recruitment campaign, they join. When you engage with your members, they stay. When you analyze the data, you find a nugget of information that can change all of your preconceived ideas.
4. There is no such thing as a Non-Member....only potential members. You must keep trying and promoting; they will never buy - if you do not (personally) believe in what you are trying to sell; this includes the Association itself...not just the 'goods' of the Association offers.
5. Members need to be reminded multiple times about their membership dues. It always amazes me that you can contact a member 7 times and then 1 year later, they are "surprised" they are no longer a member of our Association.
6. Personal contact with people. Connecting with individuals at conferences, meetings, in their workplace, or on the phone has been the most successful for us. Staying connected through e-mail was second in our marketing plan.
7. Market early, market often!
8. Like the economy, membership marketing goes through cycles. You need to make sure your message speaks to what is motivating people in tough times and be prepared for when the changes come.
9. Focus on what makes your association unique. What niche do you fill that no one else can - market that to potential members?
10. Positive word-of-mouth is worth its weight in gold. If you can get your existing members to recruit new folks then you can just sit back and count the cash.
11. That the membership model is rapidly changing as a result of increased access to free information.
12. 80/20/10. Staying motivated even when you see low membership involvement. Remembering that 80% will not be active members, 20% will be active participants and 10% will take on leadership roles.
13. It's not easy.
14. It is incumbent upon any association to first provide value to its membership and then to communicate that value to the members on an ongoing basis. Building community and member engagement is the key to successful membership marketing.
15. Membership marketing is not a silo unto the membership department alone. It requires coordination across multiple departments, lest it appear that the right hand does not know what the left hand is doing. This remains an ongoing challenge in my association.
16. This survey has reminded me of what I have learned, and ashamed to say not implementing half of it. I'm the only full-time staff, but I know better.
17. That there are very few "new" ideas and listening to what others are doing is the best way to improve your business.
18. The most important lesson I've learned is test EVERYTHING! Also, agility is paramount. You have to be agile enough to change your strategy, approach or messaging quickly.
19. Never stop doing it. We are seeing results today of marketing we continued to do through 09 even though there was a downturn.
20. Direct mail works for our association. And it works especially well if you continue to test your campaign ideas. The process to change is constant and important. We've learned what works well with young members, what works well with older members, whether advocacy is important to certain contingencies, and more.
21. I have learned to apply the same discipline in marketing as we do in software/standards development.
22. You must continually examine your marketing mix to ensure that you are maximizing ROI, utilizing the most cost-effective channels for different audience segments, and placing retention and acquisition efforts and expenditures in the most appropriate balance to meet organizational goals.
23. Without accurate and comprehensive performance data and statistics on membership activities (financial, marketing, costs, lifetime value, recruitment, retention, on boarding, etc.) it is virtually impossible to determine the health and success of the membership program.
24. 1. Test new things and track everything--it's the only way you'll know what works and doesn't work. 2. Recruiting new members by direct mail trumps e-mail marketing 100 times over. 3. Many of those in management do not understand the value of marketing--or the difference between good and bad marketing efforts/techniques. So, it's important to educate them and toot your own horn to help them understand. But don't get your feelings hurt if they do not! 4. Member testimonials add considerable value and spark to all.
25. The right list and the right offers are key to prospecting. Retaining members is the work of the organization. Delivering the value promised through marketing is key to renewals.
Okay, here is a 26th bonus comment.
26. Most important lesson is how critical membership marketing is to our success (and how frustrating it is that we don't have enough staff to do it well.
Email Usage Up, but Effectiveness Rated Lower for Membership Recruitment
One of the benefits of publishing research is that people read it and provide feedback. Your ideas plus my ideas equals better insight.
One of my colleagues just pointed out to me that there is some important data in our Membership Marketing Benchmarking Report on how associations are using email and how effective it is for them.
What is your organizations experience?
One of my colleagues just pointed out to me that there is some important data in our Membership Marketing Benchmarking Report on how associations are using email and how effective it is for them. When we look at several key membership marketing functions, our statistics show that email usage has grown from 2009 to 2010. The following chart shows the percentage of associations using email for building awareness with prospective members, getting new members engaged with the organization, and renewing members all increased.
Interestingly, when asked to rate the effectiveness of using email to recruit new members, those who said that email was the “most” effective channel, dropped from 24 percent in 2009 to 10 percent in 2010.
Bottom line, associations are using email more, but there may be a drop off in productivity.
Ten Top Tips from the Membership Marketing Benchmarking Report
Today, I wanted to share ten top tips from the hundreds of findings appearing in the report.
1. Out of a list of 10 options, association executives are most likely to rank growth in member counts (22%), revenue growth (21%), and net revenue growth (21%) as the primary definition of success for their organization.
2. Findings indicate a more marked difference in membership growth of over 11% for those organizations focused on acquisition rather than those focused on retention or on a balanced strategy (18%: acquisition vs. 4%: retention and 9%: both), the five year change in membership (38%: acquisition vs. 27%: retention and 34%: both), and the change in new members (24%: acquisition vs. 7%: retention and 16%: both).
3. For associations with over 5,000 members, direct mail is considered the most effective channel for new member recruitment.
4. While Facebook, Twitter and LinkedIn are the most commonly used social media tools, they are not necessarily considered the most effective in reaching membership goals by association executives. In fact, the most effective social networking tools are considered to be those that are basically housed within the association itself, namely the association listserv (50%) and/or a private association social network (39%).
5. Approximately two-thirds of respondents report using mailed welcome kits, a decrease from the 2009 study of 15 percentage points (68% in 2010 vs. 83% in 2009). However, findings indicate that associations with greater than 80% renewal are significantly more likely to use the mailed welcome kits (75% vs. 58%).
6. Directionally, findings demonstrate that 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 before a membership expires. These increases in renewal rates appear after seven contacts.
7. 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 multi-year renewals (54% vs. 18%).
8. Associations showing an increase in renewals over the past year are significantly more likely to offer automatic credit card renewals, compared to associations with declines in renewals (29% vs. 17%).
9. Unlike in the 2009 study, price is not the top driver responsible for non-renewals; in fact, one-third of the association executives indicate that they believe members do not renew because they perceive a lack of value in the organization. This is an increase of about 80%.
10. Associations did not experience radical changes in membership numbers over the past year. The largest percentage of increases or declines in membership ranged from 1% to 5% of the previous year’s total.
If you would like, you can download a copy of the 2010 Membership Marketing Benchmarking Report here to see the data and charts associated with these tips. Web site registration is required for the download.
ASAE 2010 Marketing & Membership Conference
If you are planning on attending this year’s Marketing and Membership Conference, I would enjoy meeting you. My company, Marketing General, Inc. will be hosting a reception from 5:15 to 6:30 on Monday, June 14th after the first day of sessions. Please stop by the reception so we can meet. At the reception, we will also be distributing the executive summary of the 2010 Membership Marketing Benchmarking Report. I would like to share a copy with you. The report in its entirety will be going out next week to the 407 organizations who participated in the research.
The Growing Concern over Membership Value
Our 2010 Membership Marketing Benchmarking Survey confirms the heightened concern around this issue. For a second year, we asked association executives what was the top reason that their members did not renew. Last year the answers focused on cost with the top two reasons given as “the employer would not pay for membership” or the membership was “too expensive”.
However, for 2010, the top reason given for non-renewal was a “lack of value”. A total of 36 percent of respondents sited value as the key issue an 80% leap over last year.
Asking how we can deliver more value to our members is a very productive question when we put actions behind it to discover the answer.
What Strategy Leads to Membership Growth?
In our Membership Marketing Benchmarking Study this year, we asked participants to tell us their membership growth strategy. We offered three options:
1. A greater priority on acquisition than retention
2. A greater priority on retention than acquisition
3. An equal priority on acquisition and retention
Then we cross tabulated these answers with reported membership growth rates over one year and five years.
Which one do you think correlated with increased membership growth?
It was interesting to me to see that putting a priority on membership acquisition compared to a retention strategy or a balanced strategy directionally linked to growth in membership. The following chart shows the proportion of those who reported following one of these strategies who experienced at least one percent growth this past year or over eleven percent growth over five years.
How do I explain this outcome?
Here is my theory. There is only so much you can do to keep members. After awhile you reach the point of diminishing returns by trying to renew retired members or those who have left the field. But there is always more that you can do to get new members. So moving additional investments to acquisition is more likely to pay off for a membership program. What do you think?
1. A greater priority on acquisition than retention
2. A greater priority on retention than acquisition
3. An equal priority on acquisition and retention
Then we cross tabulated these answers with reported membership growth rates over one year and five years.
Which one do you think correlated with increased membership growth?
It was interesting to me to see that putting a priority on membership acquisition compared to a retention strategy or a balanced strategy directionally linked to growth in membership. The following chart shows the proportion of those who reported following one of these strategies who experienced at least one percent growth this past year or over eleven percent growth over five years.
Here is my theory. There is only so much you can do to keep members. After awhile you reach the point of diminishing returns by trying to renew retired members or those who have left the field. But there is always more that you can do to get new members. So moving additional investments to acquisition is more likely to pay off for a membership program. What do you think?
Comparing Growth Rates of Trade Associations to Individual Membership Associations
Trade associations have had a much tougher membership year than have individual membership associations.
In our 2010 Membership Marketing Benchmarking study, we asked respondents to identify their association by what membership structure they operated under: trade or organizational, individual, or both.
When we cross tabulated structure with our membership growth question, we found that 42 percent of individual membership associations had experienced membership growth in the past year, but only 25 percent of trade associations saw growth.
Here is a chart of the results.
In our 2010 Membership Marketing Benchmarking study, we asked respondents to identify their association by what membership structure they operated under: trade or organizational, individual, or both.
When we cross tabulated structure with our membership growth question, we found that 42 percent of individual membership associations had experienced membership growth in the past year, but only 25 percent of trade associations saw growth.
Here is a chart of the results.
The Correlation of Social Media Usage and Membership Growth
As I dive into the data from our 2010 Membership Benchmarking Survey, I am discovering some very interesting outcomes. I will be sharing some of them on this blog, but of course the full report will go to the 405 associations who participated in the research.
The power of any survey data is not in the answers themselves, but in the cross tabulations. Looking at one answer compared to another. Today I took a look at official usage of social media by associations cross tabulated with associations reporting either membership growth or decline.
The crosstabs highlight patterns or correlations that can aide an organization in making decisions. However, please remember that a correlation is not a prediction. Because organizations doing one activity display higher growth rates than those that do another does not mean that replicating that one behavior will result in growth.
There is a lot to discuss in today’s data. Here are a few comments. First of all, there has been an explosion of the use of social media in associations. Only 8% of associations participating in the survey said that they do not officially use any social media tools.
The most popular social media application used by associations is Facebook with over 75% of associations reporting that they officially use it as an organization.
On the other hand, only 17% of associations reported that they have a “private association social network”. And those organizations who have a private social network are 28% more likely to report growth in membership compared to the average association. While groups that use LinkedIn are 13% more likely to report a decline in membership numbers.
Here is a chart that takes a look at the top responses from the survey.
I would appreciate your theories on what this data may be saying about social media and how it can impact an association. Feel free to post your thoughts.
The power of any survey data is not in the answers themselves, but in the cross tabulations. Looking at one answer compared to another. Today I took a look at official usage of social media by associations cross tabulated with associations reporting either membership growth or decline.
The crosstabs highlight patterns or correlations that can aide an organization in making decisions. However, please remember that a correlation is not a prediction. Because organizations doing one activity display higher growth rates than those that do another does not mean that replicating that one behavior will result in growth.
There is a lot to discuss in today’s data. Here are a few comments. First of all, there has been an explosion of the use of social media in associations. Only 8% of associations participating in the survey said that they do not officially use any social media tools.
The most popular social media application used by associations is Facebook with over 75% of associations reporting that they officially use it as an organization.
On the other hand, only 17% of associations reported that they have a “private association social network”. And those organizations who have a private social network are 28% more likely to report growth in membership compared to the average association. While groups that use LinkedIn are 13% more likely to report a decline in membership numbers.
Here is a chart that takes a look at the top responses from the survey.
The Push and Pull of Membership Recruitment
Marketers sometimes categorize products as either "push" or "pull." In a pull system the consumer requests the product and 'pulls' it through the delivery channel. On the other hand, in a push marketing system the sales efforts are initiated by the producer and information is 'pushed' toward the buyer.
Membership has traditionally been defined as a "push" product. Most people do not wake up in the morning and say, "hey, I really need to join something today." Instead, they need to be actively sold.
However, we live in a time of exciting change and the paradigm for membership recruitment is changing with it.
Today, effective membership recruitment often includes a pull strategy as part of the marketing mix by taking advantage of online opportunities and social networking tools.
In fact, in our most recent Membership Marketing Benchmarking Report, 56 percent of association executives reported that one way prospective members learned about their association was through association-sponsored social networking sites like Facebook and LinkedIn and another 33 percent report the use of search engine advertising or online ads helped make prospects aware of membership. These channels still fall below the top awareness builders for membership, but they reflect signgrowth over the previous year.
Here is what survey respondents highlighted as the top means by which prospects became aware of membership.
So how can this pull strategy be deployed?
We are effectively implementing a pull strategy through what we call trading content for contact. Instead of initiating a relationship by selling a membership, we allow potential members who are seeking specific information to find us through the very content they seek.
With this pull strategy, the relationship is started by presenting valuable information and resources that only a qualified or prospective member would find of value. This concept takes portions of the membership content and offers it for free through a host of online tools. These include:
• Co-Registration Submissions
• Ad Networks including LinkedIn and Facebook
• Online PR Releases
• Article Submissions
• Blogs
• Social Media Ads
• Affinity Media
• Search Engine and Content Advertising
As prospective members access the valuable content, they also are asked to opt-in to receiving additional communications from the organization. These prospective members who have raised their hand to a relationship are cultivated and given the opportunity to join the association and take advantage of all the products and services available.
In a very real sense, by using this pull strategy, the membership organization opens a very large funnel to allow potential members to pull themselves into a relationship at their own pace and as their needs dictate.
And because of the traceability of each stage of the relationship through web and database records, the system can continually be monitored and optimized to make the movement into a full membership relationship as simple and easy as possible.
Is it time to put a little PULL into your membership recruitment efforts? Please share any experiences you are having with these methods.
Membership has traditionally been defined as a "push" product. Most people do not wake up in the morning and say, "hey, I really need to join something today." Instead, they need to be actively sold.
However, we live in a time of exciting change and the paradigm for membership recruitment is changing with it.
Today, effective membership recruitment often includes a pull strategy as part of the marketing mix by taking advantage of online opportunities and social networking tools.
In fact, in our most recent Membership Marketing Benchmarking Report, 56 percent of association executives reported that one way prospective members learned about their association was through association-sponsored social networking sites like Facebook and LinkedIn and another 33 percent report the use of search engine advertising or online ads helped make prospects aware of membership. These channels still fall below the top awareness builders for membership, but they reflect signgrowth over the previous year.
Here is what survey respondents highlighted as the top means by which prospects became aware of membership.
We are effectively implementing a pull strategy through what we call trading content for contact. Instead of initiating a relationship by selling a membership, we allow potential members who are seeking specific information to find us through the very content they seek.
With this pull strategy, the relationship is started by presenting valuable information and resources that only a qualified or prospective member would find of value. This concept takes portions of the membership content and offers it for free through a host of online tools. These include:
• Co-Registration Submissions
• Ad Networks including LinkedIn and Facebook
• Online PR Releases
• Article Submissions
• Blogs
• Social Media Ads
• Affinity Media
• Search Engine and Content Advertising
As prospective members access the valuable content, they also are asked to opt-in to receiving additional communications from the organization. These prospective members who have raised their hand to a relationship are cultivated and given the opportunity to join the association and take advantage of all the products and services available.
In a very real sense, by using this pull strategy, the membership organization opens a very large funnel to allow potential members to pull themselves into a relationship at their own pace and as their needs dictate.
And because of the traceability of each stage of the relationship through web and database records, the system can continually be monitored and optimized to make the movement into a full membership relationship as simple and easy as possible.
Is it time to put a little PULL into your membership recruitment efforts? Please share any experiences you are having with these methods.
Last Chance to Participate
We are closing the questionnaire for the 2010 Membership Marketing Benchmarking Survey. But before we do, I wanted to give you one last chance to participate.
This is the second year we are conducting this research. And by completing the survey, you will receive a free copy of the final report. The report will include a trend analysis of what has changed over the past year and highlight key data on what associations are doing in membership marketing and what practices correlate with better renewals and more members.
Please take a moment now to complete the survey. It should only take 10 minutes.
You can participate using this survey link.
2010 Membership Marketing Benchmarking Survey: Please Participate
We have just launched the questionnaire for the 2010 Membership Marketing Benchmarking Survey and I want to invite each of you who work for a membership organization to participate.
As you may recall, last year, our survey provided critical comparative data on how organizations recruit members, engage new members and renew their members. This year the report will add trend analysis and segment membership organizations by industry.
The survey gives you a chance to benchmark your organization against nearly 500 other associations.
You can participate using this survey link.
To thank you for your participation in this best practices research project, I will send you a copy of the final report from this study. No specific responses will be reported from any individual or association without your specific written consent. Your participation is much appreciated.
As you may recall, last year, our survey provided critical comparative data on how organizations recruit members, engage new members and renew their members. This year the report will add trend analysis and segment membership organizations by industry.
The survey gives you a chance to benchmark your organization against nearly 500 other associations.
You can participate using this survey link.
To thank you for your participation in this best practices research project, I will send you a copy of the final report from this study. No specific responses will be reported from any individual or association without your specific written consent. Your participation is much appreciated.
Your Feedback Requested
Over the next couple of weeks, I am beginning to work on the questionnaire for the 2010 version of the Membership Marketing Benchmarking Survey.
As I get started, I would appreciate your feedback on what new benchmarking data might be of help to you and your organization. Some portions of the survey will be repeated from this year to allow for trend analysis, but I also want to add new elements that give you statistical data for questions you might have.
So if you have the opportunity, please feel free post a comment here with your suggestions of any membership marketing areas for which you want additional benchmarking information.
If you would like to take another look at the 2009 Report, here is the link to download a copy: http://www.marketinggeneral.com/accessWp.asp.
My goal is to build the questionnaire over the holidays and your feedback will be a big help.
As I get started, I would appreciate your feedback on what new benchmarking data might be of help to you and your organization. Some portions of the survey will be repeated from this year to allow for trend analysis, but I also want to add new elements that give you statistical data for questions you might have.
If you would like to take another look at the 2009 Report, here is the link to download a copy: http://www.marketinggeneral.com/accessWp.asp.
My goal is to build the questionnaire over the holidays and your feedback will be a big help.
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