Mb d CtMembers and Customers - McKinley Advisors · Title: Microsoft PowerPoint - membersandcustomers-101028122312-phpapp01 [Compatibility Mode] Author: rfriedmann Created Date: 7/25/2013

M b d C tM b d C tMembers and CustomersMembers and CustomersStrategies for Tapping the Revenue PotentialStrategies for Tapping the Revenue Potential

of your Two Most Important Marketsof your Two Most Important Marketsof your Two Most Important Marketsof your Two Most Important Markets

ASAE Denver ASAE Denver -- August 20, 2002August 20, 2002

Nicholas Dousmanis, Managing Director of Strategy and Development, g g gy pInstitute of Management Accountants

Caroline Fuchs, Vice President of Business DevelopmentAmerican Chiropractic Association

Jay Younger, Vice PresidentMcKinley Marketing Inc

Copyright 2002 McKinley Marketing, Inc. ASAE Denver

McKinley Marketing, Inc.

AgendaAgendaAgendaAgenda

• Associations– Know your customers, priorities, applications

• Corporations– Working with members and customersg

• Case StudyIMA Lif l L i C t– IMA Lifelong Learning Center


Quick PollQuick PollQuick PollQuick Poll

• How many sell products or services to non-members?

• How many have actively identified audiences and matched your products and services accordingly?y p g y

• What issues have surfaced?


AssociationsAssociationsAssociationsAssociations

“… He dangles herring before prospective customers evincing a joy identical with that of Pavlowa dancing.”

Excerpt from the poem Fish CrierCarl Sandburg


The BasicsThe BasicsThe BasicsThe Basics

• Know your audiences

• Develop priorities

• Apply to marketing efforts


ASSOCIATION AUDIENCES

Advocacy Constituents

Donors/SponsorsConstituents

Prospective Staff/Leadership

Transaction-based

G l

Prospective Members

MEMBERSCustomers General

Public

I t di Our Members’Customers

Othe A diences

Intermediary Organizations


Other Audiences

Know Your AudienceKnow Your AudienceKnow Your AudienceKnow Your Audience

• Are you serving everyone who should be served?

• Is revenue maximized?



Audubon Naturalist Society (ANS)Audubon Naturalist Society (ANS)udubo atu a st Soc ety ( S)udubo atu a st Soc ety ( S)

Identifying customers:Identifying customers:

• Current customer profiles (database analysis)p ( y )

• Free-form visioning of current and prospective customers customers

*At i i k t d ti *At a minimum, know your customers and prospective customers, then prioritize your pursuit of additional customers.


What Would Happen if ANS did not Exist?What Would Happen if ANS did not Exist?What Would Happen if ANS did not Exist?What Would Happen if ANS did not Exist?

• Six highways through Washington DC

• Roads where there are now forests

• Children with little exposure to the natural world

• No more flying squirrels• No more flying squirrels

• Fewer community action outlets for adults



ANS Customers (partial list)ANS Customers (partial list)ANS Customers (partial list)ANS Customers (partial list)

Schools Board of DirectorsAnimal RehabilitationGovernment employeesNature lovers who use public

Brides and familiesLong-term membersCommunity service

transportationInner city membersDirect mail members

New residentsAll nature loversSanctuary neighbors

Fair attendeesCommunity-at-large (uninitiated)Singles volunteer groups

Unaffiliated birdersWater Quality MonitorsEducation participants

Public school kids Many customers: bookstore, class participants campers


Product/Service Audience #1 Audience #2 Audience #3

Educational Programs: children

Educational Programs: adults

Teacher Training g Children’s Summer Camps

Travel Programs

Bookshop

Mansion House Rentals

Advocacy Activities y Sanctuary Visits

News and Information

Holiday Fair

Nature Fair

Volunteer Program


g Other services

Know Your PrioritiesKnow Your PrioritiesKnow Your PrioritiesKnow Your Priorities

• Revenue

• New members

• Public relations

d• Brand expansion

• Competitionp

• Other


ExamplesExamplesExamplesExamples

American Chiropractic Association (ACA) represents approximately 20% of its target market

American Speech-Language-Hearing (ASHA) represents a 80% of its target market




ASHA Public Site EffectsASHA Public Site EffectsASHA Public Site EffectsASHA Public Site Effects

• ASHA perceived as member advocate

• Increase in public interest in referral service

• Need for ASHA to improve referral service

• Ability to survey the public• Ability to survey the public

• Results used to influence potential sponsors


Know Your Priorities (Revisited)Know Your Priorities (Revisited)Know Your Priorities (Revisited)Know Your Priorities (Revisited)

• Revenue

• New members

• Public Relations

d• Brand expansion

• Competitionp

• Other


Apply to Marketing EffortsApply to Marketing EffortsApply to Marketing EffortsApply to Marketing Efforts

ASHA, ACA, ANS:

• Resource application

• List selection• List selection

• Messages

• Promotional vehicles

Other• Other


ANS Bookstore ProgramANS Bookstore ProgramANS Bookstore ProgramANS Bookstore Program

Audubon Naturalist Society: Bookstore Retail OperationsAudubon Naturalist Society: Bookstore-Retail Operations

Audience Message Communication Vehicle

S t i itSanctuary visitors

Parents with children in camps

Neighbors

Event attendees

Members

Other


CorporationsCorporations

Two cases of working withTwo cases of working withMembers and CustomersMembers and Customers


Case #1Case #1Case #1Case #1

“The Walled Garden”kaka

Turning Members into Customers at


1.31.20011.31.20011.31.20011.31.2001

“Th d i l f h “The tremendous potential of our new company has already been demonstrated by the success we have had in using our online services to showcase gWarner Music CDs, promote Warner Bros. movies and generate new magazine subscriptions.”

Richard Parsons, COOAOL Time Warner


Source: AOL Time Warner

The TheoryThe TheoryThe TheoryThe Theory

Create a “walled garden”Create a walled garden

• “Synergy”• Content glut• Cross promotionp• Marketing efficiency• Brand expansion• Brand expansion


7.18.20027.18.20027.18.20027.18.2002

"We have the best media, entertainment and communications businesses in the world, but our challenge-and our goal in making these changes-is to take the lessons we've learned over the past two to take the lessons we ve learned over the past two years and use them to make the parts work together to create greater value for our shareholders.”

Richard Parsons, CEOAOL Time Warner


Source: AOL Time Warner

$46.88 on Aug. 1, 2001

$11.05 on Aug. 12, 2002


Source: YAHOO Finance

What’s Wrong?What’s Wrong?What s Wrong?What s Wrong?

b CMembers = Customers


Walled Garden?Walled Garden?Walled Garden?Walled Garden?

"In order for the AOL service to be successful it has In order for the AOL service to be successful it has to be very member oriented...we'll make a strong effort to tell them what's on the Warner Bros.

t k B t if d 't t ll th h t' CBS network. But if we don't tell them what's on CBS and NBC as well, they won't feel well served.”

Marshall CohenAOL Marketing


Source: Fast Company


MotivationsMotivationsMotivationsMotivations

"People come to AOL to meet other People come to AOL to meet other people. We figured that out early on --and it was what helped us pull ahead and it was what helped us pull ahead of all of the other Internet services.”

Belinda HankinsAOL Community


Source: Fast Company

AOL TW AUDIENCESProspective

Current

ShareholdersMovie-goers

ISPSubscribers

MusicBuyersNetwork TV

Viewers

Cable TVSubscribers

GeneralPublic

MagazineS b ibSubscribers


What’s this all about?What’s this all about?What s this all about?What s this all about?

Why it’s so hard to turn members into customers:Why it s so hard to turn members into customers:

– Different audiences– Establishing prioritiesEstablishing priorities– Resolving differences of opinion– Creating business process– If you build it, they may not come


Why it might work for AOL TWWhy it might work for AOL TWWhy it might work for AOL TWWhy it might work for AOL TW

• The numbers

• Examples of success• Examples of success

• Broadband

• Advocates


The NumbersThe NumbersThe NumbersThe Numbers

AOL Members: 34,000,000

Daily IM’s: 1 380 000 000Daily IM s: 1,380,000,000

QTR ISP rev: $1,786,000,000

Days to add 1M: 45


2001’s Top 10 Grossing Films 2001’s Top 10 Grossing Films 2001 s Top 10 Grossing Films 2001 s Top 10 Grossing Films

Film Studio Gross (millions)

Harry Potter and the Sorcerer's Stone Warner Bros $317 56Harry Potter and the Sorcerer s Stone Warner Bros. $317.56The Lord of the Rings New Line $313.32Shrek DreamWorks $267.65 Monsters, Inc. Buena Vista $255.52Rush Hour 2 New Line $226.14The Mummy Returns Universal $201.95 Pearl Harbor Buena Vista $198.47 Ocean's Eleven Warner Bros $183 35Ocean s Eleven Warner Bros. $183.35Jurassic Park III Universal $181.17Planet of the Apes 20th Century Fox $180.00

Total $2,325.13 AOL TW Share $1,040.37 (45%)


Source: The Movie Times.com


Case #2Case #2Case #2Case #2

“Members Only”aka

Turning customers into members atTurning customers into members at


Costco By the NumbersCostco By the NumbersCostco By the NumbersCostco By the Numbers

Last 6 month rev: $26 470 000 000Last 6 month rev: $26,470,000,000Stores worldwide: 390SKU’s stocked: 3,700 - 4,500Members: 35,000,000+Dues: $45


A powerful experienceA powerful experienceA powerful experienceA powerful experience

“When we get in a shipment of cashmere sweaters, you’ll see women flipping open their cell phones, calling their friends.”

Wendy DavisCostco General ManagerCostco General Manager


Source: The Oakland Press

When Costco TippedWhen Costco TippedWhen Costco TippedWhen Costco Tipped

St t d B2B• Started B2B• Identified a trend: consumers• Learned they could meet both needs• Discovered the “circle effect”• Discovered the circle effect• 35 million and growing


Costco StrategyCostco StrategyCostco StrategyCostco Strategy

M b l• Members only– Members are more loyal shoppers– Improves profitabilityp p y– Helps bargaining power– Protect “integrity”

L t i b t d t• Lowest price on best products

• Members rule


ClarityClarityClarityClarity

“Our members come first.”

Ginny Roeglin, SVP Member ServiceCostco


COSTCO AUDIENCES

Prospective

Current

Consumer Members

Business Members


Costco TacticsCostco TacticsCostco TacticsCostco Tactics

• Partner for success

• Detailed member feedback• Detailed member feedback

• Multi-level “bundled” memberships


Audience MappingAudience MappingAudience MappingAudience Mapping

• $45

• Spouse card

• $100

• Spouse card

• $45

• Spouse card

• Up to 6 add’l at $35 each

• 2% rebate

• Discount programs


Members & CustomersMembers & CustomersMajor ObstaclesMajor Obstacles

1. Not identifying audiences

2. Not knowing what specific audiences want & need

3 Not prioritizing or defining success3. Not prioritizing or defining success

4. Silos


Members & CustomersMembers & CustomersMajor TakeMajor Take--AwaysAways

1. Members = Customers

2. Membership is what you make of itp y

3. YOU must prioritize and allocate resources

–Audience identification–Marketing and positioning–Member and customer serviceMember and customer service


Case StudyCase StudyCase StudyCase Study

Collaborative Commerce:An Association on the Cutting EdgeAn Association on the Cutting Edge


The WhyThe Whyyy

• Lowest survey scores for Education Department

• Sparsity of product – dated product• Sparsity of product – dated product

• Costly $$$ to develop new product

• Time to market


The Outsource IdeaThe Outsource Idea

• Not new to outsourcing

• Next step from web links• Next step from web links

• Vendors under one roof

• Funds collected up front


The VisionThe Vision

• Virtual catalog of vendor products

• Web driven• Web driven

• Single point of contact/admin.

• “Collaborative Marketing”


HurdlesHurdles

• Technology provider

• Taxonomy - search engine• Taxonomy - search engine

• Shipping tables

• Vendor uploads

• Pricing models
















PromotionPromotion

• E-mail blast to members

• Special offers/discounts

• Newsletter

• Gift certificates• Gift certificates

• Chapter incentive points

• Direct mail inserts


Business Building Business Building gg

• Growing the product line; hard and soft skills

• Expanding the business via portability• Expanding the business via portability-Franchise to chapters, other assns-Unique website “CPE” Learning Center

f-For profit sites

• The world


IMA Lifelong Learning Center

2000

4000SeminarsSelf StudyE-Learning

0

E LearningBooks

IMA Today Tuesday 6/25

Fall 2002 AICPA Cat

Seminars 25 0 0 40

Self Study 18 175 3300 277

0 530 3600 700

6/25

E-Learning 0 530 3600 700

Books 25 1000 3000 364


The IMA will become one of the largest Educational content providers in the CountryCountry.


Useful ReadingUseful ReadingUseful ReadingUseful Reading

“Envisioning ” Diane L Nickolson Envisioning, Diane L. Nickolson, Association Management, May 2002

“Achieving Indispensability With Your Customers,” Donald Achieving Indispensability With Your Customers, Donald Norris, ASAE Marketing Fast Facts, December 2001

“AOL’s True Believers,” George Anders, , g ,Fast Company, July 2002


Thanks!Thanks!Thanks!Thanks!

Contact us:[email protected]@[email protected]

This presentation available at:www.mckinleymarketing.com/resources/presentationsy g / /p


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Mb d CtMembers and Customers - McKinley Advisors · Title: Microsoft PowerPoint - membersandcustomers-101028122312-phpapp01 [Compatibility Mode] Author: rfriedmann Created Date: 7/25/2013