This document summarizes a presentation on diagnosing and solving membership marketing challenges through applying systems thinking. It discusses key concepts from the book The Fifth Discipline by Peter Senge on using a systems approach to identify high-leverage changes. The presentation then covers membership marketing vital signs, challenges in different stages of the membership lifecycle, and strategies for awareness, recruitment, engagement, and renewal.

1. Tony Rossell Tony Karrer
Presenter Moderator
Diagnosing and Solving Your
Membership Marketing Challenges
Proudly Sponsored By:

2. Applying Systems Thinking to Membership
Marketing
“We tend to focus on
snapshots of isolated parts of
the system, and wonder why
our deepest problems never
seem to get solved. System
thinking is a conceptual
framework … to make the full
patterns clearer, and to help us
see how to change them
effectively.”
Peter Senge, The Fifth Discipline

3. Finding Long-Term Solutions by Removing
Impediments
“Systems thinking shows that small, well-focused actions
can sometimes produce significant, enduring
improvements, if they’re in the right place. Systems
thinkers refer to this principle as ‘leverage’. Tackling a
difficult problem is often a matter of seeing where the high
leverage lies, a change which – with a minimum of effort –
would lead to lasting and significant improvement. The
only problem is that high-leverage changes are usually
highly nonobvious to most participants in the system.”
(Senge, page 63-64)

4. A Membership Marketing System
The Membership Lifecycle
– Awareness
– Recruitment
– Engagement
– Renewal
– Reinstatement

5. Diagnosing Your Membership
Marketing Challenges

6. Membership Marketing Vital Signs
• Membership Growth
• Renewal Rate
• New Members Conversion Rate
• Product and Service Usage
• Market Penetration

7. What are the Vital Signs for Associations
Today?
2012 Membership Marketing
Benchmarking Report
• Over 691 Participating Associations
• Up Front Disclaimer
 What not Why
 Correlation not Causation
 Every Association is Unique
• Fourth Year Produced by MGI

8. Is your membership growing?
CHANGE IN MEMBERSHIP OVER PAST ONE YEAR—COMPRESSED
2012 2011 2010 2009
(N = 689) (N = 642) (N = 405) (N = 331)
Percentage Increased Overall 52% 49% 36% 45%
Percentage Unchanged Overall 16% 16% 14% 16%
Percentage Declined Overall 29% 34% 48% 35%
Percentage Unsure 3% 2% 3% 5%

9. What is your overall membership renewal rate?
3%
Under 3% 2012 (N=685)
50% 3%
2% 2011 (N=643)
4% 2010 (N=403)
50% to 6%
59% 4% 2009 (N=337)
4%
7%
60% to 10%
69% 11%
7%
22%
70% to 23%
79% 21%
16%
38%
80% to 34%
89% 40%
37%
22%
90% or 23%
higher 18%
29%
3%
Not 2%
sure 3%
4%

10. What is your retention rate for first year
members?
Under 50% 10%
50% to 59% 13%
60% to 69% 12%
70% to 79% 19%
80% to 89% 17%
90% or higher 12%
Not sure 18%
(N=682)

11. What proportion of your members engage in the
following areas EACH YEAR?
AREAS OF ENGAGEMENT
1%- 6%- 11%- 16%- 21%- 31%- 41%- Over
N 0% N/A
5% 10% 15% 20% 30% 40% 50% 50%
Attend your annual conference/trade show 644 1% 12% 13% 11% 12% 11% 11% 6% 10% 12%
Attend at least one of your professional development meetings 663 1% 12% 13% 10% 9% 10% 9% 6% 9% 23%
Acquire or maintain a certification with your organization 666 2% 9% 6% 6% 5% 4% 3% 2% 8% 57%
Attend at least one of your webinars 658 2% 15% 14% 9% 8% 6% 2% 4% 4% 36%
Purchase a non-dues product (other than previously checked) 655 2% 18% 11% 9% 8% 8% 3% 3% 6% 33%
Purchase a non-dues service (other than previously checked) 658 3% 17% 11% 9% 7% 6% 3% 4% 6% 36%
Purchase or maintain insurance through your organization 658 2% 14% 5% 3% 3% 2% 2% 1% 3% 64%
Purchase a book or directory 653 2% 19% 10% 6% 5% 5% 3% 2% 3% 46%
Participate in your public social network 666 3% 25% 21% 13% 10% 8% 5% 3% 3% 10%
Participate in your private social network 660 3% 20% 13% 7% 6% 5% 4% 3% 2% 38%
Upgrade their membership 658 2% 16% 8% 6% 3% 1% 1% 2% 3% 58%
Volunteer within your organization 664 2% 32% 21% 14% 11% 7% 4% 2% 2% 7%
Donate to your association foundation or PAC 662 3% 23% 13% 6% 5% 2% 2% 1% 2% 42%
Participate in your young professional program 656 2% 16% 8% 4% 2% 2% 1% 1% 1% 67%
Participate in your mentoring program 661 4% 18% 5% 3% 2% 2% 1% 1% 1% 66%

12. What is the market penetration of your
membership?
• The average individual membership association
has a 36% market penetration
• The average trade association has a market
penetration of 41%.

13. Membership Dashboard to Track Vital Signs

14. Which Part of the Lifecycle is Your Biggest
Membership Marketing Challenge?
The Membership Lifecycle
– Awareness
– Recruitment
– Engagement
– Renewal
– Reinstatement

15. Solving Your Membership
Marketing Challenges

16. Awareness Strategy
Definition:
The process of establishing your brand in the minds of prospective members and
building your knowledge base of who they are and how to contact them.

17. Awareness Strategy

18. Awareness Strategy
Strategic Process Landing
Pages
Online Behavior Special Offers Online Media
 Product Searches FREE Whitepaper  Paid Search Web
 Information FREE Trial  Co-Registration Site
Searches Membership  Ad Networks
 Events E-Newsletter  Online PR Releases
 Social Media Sign Up for Alerts  Article Submissions
Searches  Blogs / Forum Posts Social
 Educational  Social Media Ads Media
Searches  Sponsored Links
 Product purchases
Leads Cultivated Through
Ongoing Interaction

19. Example of Google Online Lead Generation
Process
Designed a PPC & Content Network Ads
collection of WEF
published articles Google gives you the
into cohesive free ability to display your ads
content. based on geography and
time of day.
Landing page with offer. Thank you page with more options.

20. Components of the Campaign
If the prospect has not joined
The Fulfillment Email from any of the previous
contains a link to components, a series of sent.
download the free content Each email focuses on a different
and contains a benefit of membership.
membership offer.

21. Example of Facebook Online Lead Generation
1 Targeted Ad Placement. 2 Data Capture on Microsite.
3 Cultivation e-mail campaign
with enrollment offers.

22. Example of Targeting through LinkedIn
LinkedIn allows you to deliver advertising only to
people with certain qualifications or
titles, people with specific job functions, and/or
people specifying a particular skill set. •Title/Qualifications
•Job Function
This makes the advertising spending very
efficient, and fast movers can also take •Skills
advantage of the current low prices on the
platform.
•Groups
LinkedIn Groups draw users back for longer
sessions, and this can be a great way to reach
targeted individuals while they are considering
business issues and topics in the group setting.

23. Recruitment Strategy
Definition:
The process of proactively inviting potential members to become a part of your
organization in order to establish a long term relationship.
Strategy:
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 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.
3. 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.
4. The Marketing Message – why a member should join – this includes proving your
value proposition and presenting solutions and benefits to members that are
compelling.
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.

24. Recruitment Strategy

25. Recruitment Channels
Personal
Sales
E-Mail Database
Marketing Marketing
Google Re- Multi-Channel Direct Mail
Marketing
Marketing Marketing
Search Engine Telemarketing
Optimization
(SEO)
Social Media

26. Recruitment Offers
Special Offers
• A first year dues discount.
• A "no-risk" or “no-obligation” offer with a “bill-me”.
• A product voucher offering new members $75 to $100 in
savings on any future product purchase.
• Premiums (free gifts).
• Offering more of the product (e.g., 15 months of
membership for the price of 12).
• A free trial offer membership.
• Installment billing turns a $239 membership into an easy
monthly payment of $19.91.

27. Recruitment Testing
35%
Boost
Identifying a control Rate
Package Type Response
Green Card 1.12%
Invitation .83%

28. Recruitment Testing
111%
Boost
35%
Boost
Improving the Control
List Segment $75 Voucher Subscription Response
Boost
Young 3.46% 2.57% 35% Boost
Physicians

29. Recruitment Testing
37%
Boost
Beating the control
Package Type Response Rate
Green Card 1.35%
Membership Card 1.85%

30. Engagement Strategy
Definition:
The process of moving members from observers into users of the products and
services made available by your organization and strengthening their emotional,
psychological or physical investment.
Strategy:
1. Interaction – Member involvement and usage are the best levers for
engagement.
2. Communicate Relevance – Providing lots of communications that are not
targeted are relevant to a member can cause disengagement. Let behavior
drive your communications strategy.
3. Score Engagement – Define the measurable behaviors that indicate
engagement (i.e. transactions, website usage, email behavior, volunteering).

31. Engagement Research
Very Little Difference Between
Non-Engaged Members and Lapsed Members
Members “who are not involved lie perilously close to
former members in the overarching assessment of the value
they derive from associations. If former members are
thought to be dead, the uninvolved are close to comatose”
(The Decision to Join, p 4).

32. Engagement Strategy
Data Analytics for one association on engagement.
• Members who attended an association meeting in the past year were
19% more likely to renew than those who did not attend a meeting.
• Members who attended four or more meetings were 30% more likely
to renew than members who never attended a meeting.
• Members who placed a product order in the past year were 28% more
likely to renew than those who had not placed an order.
• Members who upgraded their membership in the past year to a higher
level of service were 12% more likely to renew.

33. Engagement Communication
Targeted Monthly e-Newsletters
• Deliver timely updates
• Reinforce membership value and vision
• Customize content by segment
• Promote increased interaction
• Certification
• Publications
• Events
• Webinars
• Track and respond

34. Engagement Communication
Tracking and Responding
I’m interested in
certification
information!
Triggered Certification
Email

35. Renewal Strategy
Definition:
The process of confirming the value that has been delivered to the member over
the past year and requesting the continuance of the relationship.
Strategy:
1. Renew Frequency and Timing – Like it or not, people forget to renew.
2. Channels – Use all of the tools that are available to you for retention
3. Conversion – Typically, first year members are the least likely to renew.
4. Budget – Most organizations under-spend on renewals.
5. Payment – Offering automatic credit card or EFT renewal, turns renewals
from an opt-in decision to an opt-out action.
6. Offers – This is highly debated, but some organizations have great success
with giving incentives for early renewals.
7. Personalization – Adding personalized messages to renewal efforts like,
“because of your membership, you saved $50.00 on your product purchases
this year.” Or, “we had some success on the legislative issue you were most
concerned about.”

36. Renewal Timing
RENEWAL RATES BY NUMBER OF RENEWAL CONTACTS
INDIVIDUAL MEMBERSHIP ASSOCIATIONS (N=356)
7 or more
1-6 renewal
Renewal Rate renewal
contacts
contacts
Less than 80% 49% 44%
80% or higher 51% 56%

37. Renewal Timing
RENEWAL RATES BY START OF RENEWAL EFFORT
INDIVIDUAL MEMBERSHIP ASSOCIATIONS (N=354)
More than
Three months
three months
Renewal Rate or less prior to
prior to
expiration
expiration
Less than 80% 51% 40%
80% or higher 49% 60%

38. Renewal Timing
RENEWAL RATES BY END OF RENEWAL EFFORT
INDIVIDUAL MEMBERSHIP ASSOCIATIONS (N=354)
More than
1-3 months
three months
Renewal Rate after
after
expiration
expiration
Less than 80% 51% 43%
80% or higher 49% 57%

39. Renewal Budget
Case Study
• Average dues rate of $95.
• Nine part mail renewal program with supporting emails.
• The incremental cost to service a member is approximately $24 per
member.
• Amount spent to renew each member from each renewal effort.
Effort #1 -- $ 2.31
Effort #2 -- $ 4.05
Effort #3 -- $ 8.75
Effort #4 -- $10.24
Effort #5 -- $15.96
Effort #6 -- $10.15
Effort #7 -- $ 9.36
Effort #8 -- $ 20.54
Effort #9 -- $ 37.61

40. Renewal Budget
Analysis
• The last effort, they are spending over $37 to get a member
to renew.
• Is that too much?
• Here is the math: (($37.61 + $24.00) – ($95)) = $33.84).

41. Do you offer any of the following renewal options?
Installment renewal payments 46%
46%
(monthly, quarterly) 46%
32%
Multi-year renewals 32%
33%
26%
Renewal bill-me 28%
28%
24%
Automatic annual credit card renewal 24%
22%
22%
Lifetime membership 25%
Not asked in 2010
2012 (N=445)
22%
Early renewal discounts 21% 2011 (N=440)
19%
2010 (N=246)
Automatic Electronic Funds Transfer 15%
15%
(EFT) renewals 10%

42. Renewal Personalization
Multi-
step, integrated
channel, issue
driven, digitally
printed, renewal
program.

43. Reinstatement Strategy
Definition:
The process of defining the where the breakdown occurred in the membership
relationship and restoring former participants to a paid status. A “winback” or
reinstatement strategy helps to reconnect former participants.
Strategy:
1. Never Give Up on Lapsed Members – Lapsed members are almost always the
most economical members reach out to for membership.
2. Develop Messaging – For many groups, former members are very likely to
rejoin an organization, but messaging should be different than what is
communicated to “never members”
3. Conduct Lapsed Member Research – When members leave they highlight a
breakdown in the membership system. Conducting research to understand
why members do not continue with an organization will impact all parts of
the membership lifecycle

44. Reinstatement Strategy
10%
We don't contact lapsed 11%
members 10%
8%
22%
1 year after expiration 22%
24%
25%
13%
2 years after expiration 14%
15%
13%
10%
3 years after expiration 9%
6% 2012 (N=686)
6%
5% 2011 (N=641)
4 to 5 years after expiration 4%
6% 2010 (N=403)
5%
2009 (N=333)
1%
6 to 10 years after expiration 1%
1%
1%
We continue indefinitely to 31%
30%
contact lapsed members 24%
30%
5%
Not sure 5%
7%
7%
4%
Other 3%
7%
6%

45. Reinstatement Strategy
• Reinstatement programs test the effectiveness of your
renewal program.
• Many organizations are sitting on thousands of prospects
just waiting to return.
• Employ research and analytics to determine what went
wrong for your lapsing members.
– Under served market segments
– Product and service gap analysis
– Value proposition update

46. Reinstatement Systems Thinking
"Look not where you fell, look where
you slipped.“
(African Proverb)

47. Diagnosing and Solving Your
Membership Marketing Challenges
Questions?
Tony Rossell
Tony@MarketingGeneral.com