2012 TSAE Education Day & Trade Show - Session 3 - Marketing/Membership Track - Membership Benchmarking: What Does it Mean for the Future of Your Association? Linda Chreno

MEMBERSHIP BENCHMARKING: WHAT DOES IT MEAN FOR THE FUTURE OF YOUR ASSOCIATION?

Linda S. Chreno, CAE, IOM

@lindachreno

#EdDay25

October 17, 2012

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LEARNING OBJECTIVES

Identify 3 strategies for engaging non-members to foster interest in an association

Learn 4 membership calculations

Create 2 strategies to increase awareness of your association Linda S. Chreno, CAE, IOM #EdDay25

2012 MGI Annual Membership Marketing Benchmarking Report

4th Year Produced by MGI

Over 690 Participating Associations

Up Front Disclaimero What not Whyo Correlation not

Prediction

How Does YOUR ASSOCIATION Stack Up Against Others?

WHAT DO YOU BELIEVE IS THE ONE TOP REASON MEMBERS JOIN?

Linda S. Chreno, CAE, IOM #EdDay25

REASONS MEMBERS JOIN ASSOCIATION 2012

(N = 684)

2011 (N

= 641)

2010

(N = 400)

2009 (N = 303)

Networking with others in the field 22% 25% 24% 22%Access to specialized and/or current information 12% 14% 13% 23%Advocacy 12% 10% 11% N/AContinuing education 8% 7% 11% 5%Learning best practices in their profession 7% 7% 9% 8%Accreditation or certification 5% 4% 4% 2%Discounts on products or meeting purchases 5% 5% 6% 9%Association publications 4% 3% 6% 3%Conferences/trade shows 4% 5% N/A N/APrestige of belonging to the association 4% 5% N/A N/AAccess to industry thought leaders 2% 1% N/A N/AAdvancing in their position 2% 2% 2% 4%Members-only education 2% N/A N/A N/AAccess to career resources 1% 1% 3% 1%Access to industry benchmark studies 1% 1% 1% N/AInsurance (Affinity programs) 1% 1% N/A N/ANot sure 1% 1% 2% N/AOther 6% 8% 9% 10%

Word of Mouth

Email

Direct Mail

Personal sales calls

Individual Membershi

p Assoc.

Individual Membershi

p Assoc.

Organizational/ Trade

Assoc.

Organizational/ Trade

Assoc.

MOST EFFECTIVE MARKETING CHANNELS:


HIGHEST LEVELS OF ENGAGEMENT


• Attend annual show/meeting

Conference/Trade Show

• Attend at least one PD meeting

Professional Development

• Acquire or maintain certification through your organization

Certification


FIRST YEAR ENGAGEMENT PLAN

Goals

• Multi-Channel• Multi-Step• Evoke second

interaction

Sample Plan

• Orientation email

• Mailed product voucher

• Benefits survey• Courtesy call

CALCULATIONS

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RENEWAL RATE


Renewal Rate measures the number of members kept over a given period of time -- usually during a fiscal or calendar year. To renewal rate:

Renewal Rate = (Total Number of Members Today – new members in the past 12 months) / Total Number of Members in Previous Year

RESPONSE RATE

Response rate measures the number of prospects who responded to a marketing effort.

Response Rate = Total number of responses / Total number of prospects contacted X 100.


COST TO OBTAIN A MEMBER

The cost to obtain a member is the total costs you spend on acquisition divided by the total members acquired.

Cost to Obtain a Member = Acquisition Costs/Members Acquired


AVERAGE TENUREDefines how long on average

members stay with an association.

Average Tenure = 1/(reciprocal of renewal rate)

Reciprocal of Renewal Rate = 1 – renewal rate (also known as lapse rate) Linda S. Chreno, CAE, IOM #EdDay25

LIFETIME VALUE OF MEMBER (LTV)

Defines the economic value produced by a typical member.

LTV = (Annual Dues revenue per member + annual non-dues revenue per member) * Average Tenure


MAXIMUM ACQUISITION COST (MAC)Defines the theoretical maximum investment

that can be made to acquire a member or customer at a profit.

MAC = ((Avg. dues rev. per members + avg. non-due rev. per member) – (Incremental Servicing Costs + avg. cost of goods sold)) * Avg. Tenure

OR:

(Total revenue per member – total costs per member) * Avg. Tenure


MEMBERSHIP RENEWAL RATES

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OVERALL MEMBERSHIP RENEWAL RATE


HOW MANY MEMBERSHIP RENEWAL CONTACTS?


RENEWAL RATES BY NUMBER OF CONTACTS



BASIC ANNUAL MEMBERSHIP DUES BY RENEWAL RATE

Less than 80% 80% or Higher

Under $50 9% 3%$50 - $99 21% 7%$100 - $149 15% 6%$150 - $199 16% 10%$200 - $299 11% 13%$300 - $399 7% 10%$400 - $499 2% 6%$500 - $749 5% 7%$750 - $999 2% 3%$1,000 and over 3% 7%Varies by company size 9% 29%

START THE RENEWAL EFFORT WHEN?



WHICH SOCIAL MEDIA DOES YOUR ORGANIZATION OFFICIALLY USE?


Could select multiple categories

SOCIAL MEDIA

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Acquisition

Facebook

Twitter

LinkedIn (Public access)

YouTube

Retention

Assoc. Social Network (Members only)

Association Listserv

Association Blog

LinkedIn (Members only)

SOCIAL MEDIA

Linda S. Chreno, CAE, IOM #EdDay25Linda S. Chreno, CAE, IOM #EdDay25


WHAT PERCENTAGE OF YOUR SOCIAL MEDIA CONTENT IS PUBLIC AND WHAT PERCENTAGE ISMEMBERS-ONLY?



Many, many social media seeking to engage members, potential members, as well as former members.

ENGAGED MEMBERS

UNENGAGED MEMBERS

VS.

What have you done for me lately?

I read your

magazine.

I blog about the

organization.

I Follow you on twitter.

I buy your books.

I attend your

conferences.

I donate to your

foundation.

Hello, I’m Jeremy.

I’m much more likely to become a member or

renew my membership or be an association

evangelist.

I’m much less likely to become

engaged.


ACQUISITION

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MEMBER ACQUISITION

Successful membership growth depends on strong renewals but relies on successful acquisition.


AWARENESS …WHEN PROSPECTS FIRST DISCOVER YOU Awareness—recognition of the organization

by the segment or profession it serves. Member Acquisition uses a variety of

messaging formats and communications channels. AdvertisingDirect mailEmailWeb advertising


ACTION INCENTIVES WORKPrice discountsLimited quantitiesDiscount couponsBonus gifts for acting before a deadline

Money back guarantee

SELLING IS SIMPLEPromote the benefitsList the features - pair with the benefit

Identify your target audience

Reassure memberTALK to your members


SALES TOOLS TO INCLUDETestimonialsEndorsementsComparisonsReliabilitySpecific FactsRepetition


FOLLOW UP WITH

YOUR LEADS

HOW TO FIND THEM…HOW TO FIND THEM…HOW DO I FIND THEM?

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Keywords are ways that you are found by your members, customers, etc.

Best keywords must MATCH your unique value proposition with the words used by your members.

KEYWORDS

KEYWORDS CONTINUEDAll staff should be up-to-date with keywords being used - include in conference copy, etc.

http://semrush.com Competitors , Google keywords


http://semrush.com/

continued growth as a social media platform;documented effective advertising outlet

ONLINE RESEARCH – SOCIAL MEDIA


ONLINE RESEARCH – SOCIAL MEDIA

offers the ability to target:

by industryby job titles by groups

which allows for finite slicing and dicing of your target audience


Recruitment Campaign

Online Behavior

1. Understand online behavior of association audience segments.

2. Utilize keyword and social monitoring tools to identify key topics and content within target audience.

Lead Gen Offers

FREE Whitepaper Offers an

excerpt of the latest industry research.

FREE Trial Membership Offers a 30-Day

FREE Trial Membership.

Online Media

Co-Registration Online News & PR Search Engine Ads Ad Networks Article Submissions Blogs & Forum Posts Social Media Ads Sponsored Links

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21 3

4

5

Client Web Site

SEARCH ENGINE MARKETING


1 2

• Confirmation E-mail.

• Link to Download White Paper.

• Learn More Link.

3

Example: Lead Generation Cultivation Series

4

• Additional White Paper Offer.

• Why Others Have Joined.

• Click to Join Link.

• Free Video/Webcast Offer.

• Most Popular Benefits.


• Free Industry Report Offer.

• Member Testimonial.


Also be sure to market Conferences, Seminars and Books to your leads.


1 2Targeted Ad Placement. Data Capture on Microsite.

3

Cultivation e-mail campaign with additional content offers.

EXAMPLE – ONLINE LEAD GENERATION CAMPAIGN


4 MEMBERSHIP TRENDS YOU CANNOT MISS OUT ON


1. Video2. Mobile3. Social Media4. Content MarketingThanks to Melissa Harrison, XYZ University


• Engagement is key to retention. Retention trumps recruitment every day of the week. Outcomes are more important than outputs.

• Segmentation is key. You cannot send the exact same message out to all members or prospects.


• The power of Word of Mouth. There's no greater and more effective marketing tool than the referral and recommendation of a friend.


• Cultivate, cultivate, cultivate - connect your member with the service or program that uniquely meets his/her needs, the better you understand your member the better the relationship with be for them and for your organization.

QUESTIONS?


Contact Information:

Linda S. Chreno, CAE, IOMCell: 510.316-5416Email: [email protected]: lindachreno


mailto:[email protected]

Business

2012 TSAE Education Day & Trade Show - Session 3 - Marketing/Membership Track - Membership Benchmarking: What Does it Mean for the Future of Your Association? Linda Chreno