Region X Conference

Membership MarketingThe Bottom Line

September 2013

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Membership MarketingThe Bottom Line – A brief overview

NARFE has experienced a thirty year decline in

membership, leaving the association in serious trouble

The association did not have the expertise to analyze the

problem or develop and implement a plan to attack the

issues

Marketing General Inc. (MGI), a firm with over thirty years

of marketing experience with hundreds of associations was

contracted and additional industry knowledge and

experience was brought in-house

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Membership MarketingThe Bottom Line – A brief overview

Ongoing marketing plans are developed to test best

options and implement successful efforts

There is no silver bullet

We have slowed the year-over-year decline and are

building the foundation for the future.

19791985

19911997

20032009

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May-13

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100,000

200,000

300,000

400,000

500,000

600,000OPM List History - Over 30 years since membership high = vulnerability

• Early 1980-1982 – Full access to OPM file

• 1983–1993 – No access to OPM file

• 1993 – began twice yearly OPM access

• Current - OPM back log in full retirement benefits

Environmental History - Over 30 years since membership high = outside of NARFE control

• Aging membership base

• Cultural shift away from membership organizations

• Technology based lifestyle change

NARFE 30-Year Membership DeclineSince the NARFE membership high in 1982, reliance on the OPM list for acquisition, the aging of a retired membership base and both cultural and environmental shifts have accounted for steep decline.

Note: Thirty Year Trend / Constant Loss since 1999

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Membership MarketingThe Bottom Line – member deaths

NARFE member deaths are escalating: contributing to an erosion of the renewal rates and an increase in Dropped for Non-Payment statistics.

Monthly average reported deaths have increased 23% from 2012 (Does not include database cleansing efforts)

Unreported deaths impact renewal rates which have eroded from 82% to 78% over the course of five years

9% increase in Drops form 2011 to 2012. 10% increase in Drops form 2012 to 2013

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Membership MarketingThe Bottom Line - recruitment

Recruitment of new members is our most critical initiative.

Reversing the decades of membership decline requires high volume recruitment of new members.

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Membership MarketingThe Bottom Line - OPM

OPM response has declined steadily over the last decade

The OPM list has historically been the sole source of high volume new membership. It has never produced enough new members to maintain membership levels

The current OPM backlog, which leaves so many recent retirees with only partial annuity, is contributing to a further decline in responseCampaign Response

Spring 2005 6.6%

Fall 2005 9.8%

Fall 2012 4.0%

Spring 2013 4.3%

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Membership MarketingThe Bottom Line – Other Lists

The rental universe, beyond OPM, for federal employees and retirees is relatively small and the most responsive lists are quite expensive. Standard offers have not worked.

Successful use of these lists will be dependent on:

1. Success of the Free 6 Month Trial Offer or

2. A new break-through offer.

With limited and expensive outside list options, building an internal prospect list (lead generation) is the key to large scale acquisition.

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Membership MarketingThe Bottom Line – Prospecting

As of the 2013 budget, advertising dollars have been brought to the prospecting task. Our media spending now must work double-time, providing both high brand exposure AND a high volume prospects.

Testing has revealed that highly targeted electronic newsletters are most effective. We are finding and engaging the active federal employee where they gather online.

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Membership MarketingThe Bottom Line – Prospecting

Within the first eight months of online advertising, we saw just under 13 million impression of the NARFE brand.

In the first seven months of this year, we have generated over 8,000 leads from this effort alone.

92% of the leads generated are Active Federal Employees

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Membership MarketingThe Bottom Line – Prospecting

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Membership MarketingThe Bottom Line – Prospecting

What does Headquarters do with the prospect list?

New prospect letter The first correspondence, a letter acknowledging the prospect’s

recent interest and inviting them to join, is sent within a week of data entry.

Email cultivation series All prospects, upon data entry, are entered into a six-part email

cultivation program. Prospects are offered white papers, take a survey, and are invited to join. Relevant engagement is a key factor in converting prospects to members.

Bi-Monthly mailings Prospects are selected for bi-monthly acquisition mailings.

Multiple exposure is a key factor in converting prospects to members.

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Membership MarketingThe Bottom Line - reinstatements

With dedicated promotional effort beginning in the Fall of 2010, culminating in the current bi-monthly mailing to lapsed members, we see significant gains in reinstatements – despite member deaths.

Reinstate Improvement

2010 vs. 2011 +17%

2011 vs. 2012 +33%

2012 vs. 2013 +36%

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Membership MarketingThe Bottom Line - retention

On account of strong reinstate statistics and despite escalating deaths, total retention (renewal plus reinstate) remains extremely high.

NARFE Retention Rate is 92%

Only 15% of member associations report retention rates of 90% or higher

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Membership MarketingThe Bottom Line – slowing the decline

There is ongoing evidence that the membership

decline is slowing

In order to accurately reflect year-over-year comparisons,

4,718 members (those removed from the file as we

researched decades of unreported deaths) needs to be

excluded from the data to reflect current realities. Once done:

Over the course of the last three months, we have

seen a 20 to 25% decrease in losses compared to the

same time periods in 2012

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Membership MarketingThe Bottom Line – “getting into federal buildings”

Beyond the substantial exposure to current federal employees via online advertising and lead generation, four additional plans are in place to “get into” federal buildings.

Six month plan to “gift” 165 agency HR officers with magazines, brochures, white papers, “how can we help you?” surveys and emails with free downloads for distribution. (Sample of July issue letter attached)

Introductory letter from Headquarters available for use in the field. It will be included in the updated F-10, Chapter and Federation’s Officers Manual. (Letter attached)

“Best Effort” model from Headquarters for entry and implementation into two agencies. (Draft letter attached)

Call for best practices from field to be solicited in next Recruitment & Retention Journal and shared online.

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Membership MarketingIn the Field

Assess the resources within your chapter and federation Are there funds / matching funds / successful recruiters /

potential recruiters

Assess the opportunities in your area, district and state Are there federal facilities / events / gatherings that may

at first blush seem unlikely

Work the OAM and M12 Prospects and new members can be found here

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Membership MarketingIn the Field

Engage, Engage, Engage – and then ask

Don’t just send a letter and forget prospects – include a magazine and brochure

Develop a prospect follow up plan over the course of six months

New members are likely active employees or recent retirees – welcome them!, understand their unique needs or perspectives

New members are likely active employees or recent retirees – they are your best potential recruiters

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Membership MarketingIn the Field

Seek/share expertise Develop a relationship with nearby chapter membership

chairs and federation officers Comb the quarterly Recruitment and Retention Journals

for top recruiters in your area and contact them

Map out event opportunities and best possible/available staffing (limited) Set goals Order magazines, brochures and M2s for event tables Develop a personal elevator speech that strongly

positions NARFE as the Legislative Voice and Information Resource for federal employees and retirees

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Membership MarketingIn the Field

Identify, build and cultivate relationships within local agencies Individual’s success in gaining access to federal buildings and

invitations to events within them have been most often based on long-term cultivation of a personal relationship

Pursue social media For those who are comfortable within social media,

spreading the word about NARFE is effective public relations

For those who resist local chapter membership, suggest eNARFE

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Membership MarketingIn the field

Prospecting – field support

The F-135, current narfe magazine and M-2 cards are promoted wherever possible as key recruiting and prospecting tools. All are encouraged to limit event materials to this “kit”.

A sample “elevator speech” is sent with each request and available online.

Keeping the Exchange Focused

Limiting materials and having a rehearsed

“elevator speech "will keep the conversation

focused and provide manageable, digestible

information for the prospect.

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Membership MarketingIn the field

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