MEMBERSHIP 101

Jamie Clements, President NPO Direct Marketing Diane Ward, President Membership Matters!

Presented by:

CONTACT INFORMATION

Jamie Clements, President NPO Direct Marketing 703.961.9669, x22 • jamie@npodirect.com

Diane Ward, President Membership Matters! 484.461.8466 • dward@membership-matters.com

MEMBERSHIP PROGRAM

➢ Acquisition

➢ Retention

➢ Member Services

IN RECENT ECONOMIC TIMES

➢ Retention

➢ Acquisition

➢ Member Services

MEMBERSHIP RENEWALS

➢ Segmentation

➢ Solicitation Cycles

➢ Upgrading

➢ Internet Appeals

➢ Direct Mail

DIRECT MAIL RENEWALS

DIRECT MAIL RENEWALS

MEMBERSHIP RENEWALS

➢ Segmentation

➢ Solicitation Cycles

➢ Upgrading

➢ Internet Appeals

➢ Direct Mail

➢ Telemarketing

MEMBERSHIP UPGRADES

➢ Renewals

➢ Mid-Term

➢  Major Donor

➢ Direct Mail

➢ Telemarketing

➢ Increase Value

MEMBERSHIP ACQUISITION

➢ On-Site Sales

ONSITE SALES

PASSIVE RECRUITMENT

➢ Join Brochure

➢ Membership Desk

JOIN BROCHURE

ONSITE SALES

PASSIVE RECRUITMENT

➢ Join Brochure

➢ Membership Literature in Shop, Café, Entrance and Exits

➢ Membership Desk

SIGNAGE

ONSITE SALES

ACTIVE RECRUITMENT

➢ Staff at Membership Desk

➢ Greeters at Entrance

➢ Admission Desk Recruitment

➢ Gift Shop Recruitment

ONSITE SALES

LEAD GENERATION

➢ Raffles (qualify prospect)

➢ Guest Directory/Visitor Cards

➢ Admission/Gift Shop/Café

MEMBERSHIP ACQUISITION

➢ On-Site Sales

➢ Direct Mail

DIRECT MAIL

OFFER

➢ Event Marketing • special exhibition • members-only event

MEMBERS-ONLY EVENTS

DIRECT MAIL

OFFER

➢ Experience/Benefits

➢ Event Marketing • special exhibition • members-only event

EXPERIENCE/BENEFITS

DIRECT MAIL

OFFER

➢ Experience/Benefits

➢ Value/Discounts

➢ Event Marketing • special exhibition • members-only event

VALUE/DISCOUNTS

DIRECT MAIL PACKAGE

DIRECT MAIL

LISTS

➢ In-House Prospects

➢ Exchange

➢ Lapsed Members

➢ Commercial

MEMBERSHIP ACQUISITION

➢ On-Site Sales

➢ Direct Mail

➢ Telemarketing

MEMBERSHIP ACQUISITION

➢ On-Site Sales

➢ Direct Mail

➢ Telemarketing

➢ Membership Promotions

➢ Grassroots Prospecting

MEMBER SERVICES

➢ Acknowledgement

➢ Benefits and Privileges

➢ Market Benefits/Encourage Visits

➢ Communication/Social Media

➢ Handle Inquiries/Complaints

  FOOD PYRAMID – Membership Renewals

 BASIC NUTRITION - The Power of Vitamin O! Onsite, Online and Other Acquisition Methods

  ADDITIONAL SUPPLEMENTS Mailings, Offsite Engagements & Social Media

  YOU ARE WHAT YOU EAT (…TRACK & MEASURE) Acquisition Measurement – informed decision making

  NUTRITIONAL VALUE OF YOUR MEMBERSHIP PROGRAM

Membership 101

Renewals: Food Pyramid

Renewals are your most important and consistent source of income

 Unrestricted Operating

 High Return on Investment

 Grass Roots Support

Membership Retention

Common Questions

  When should the renewal cycle start?

  How many printed notices should be sent?

  How many electronic notices should be sent?

  Based on our renewal rate, should we make a greater or lesser investment in renewing members?

Where do we start?

The Renewal Process

  Understand Renewal Profile

  Tweak & Test - Analyze & Adjust

  Track & Measure – Demonstrate Impact

  Renewal Numbers to Know

Renewal Analysis

#1 Renewal Response DURING the cycle

  Determine if renewal rates are “on track” to hit

your renewal goal

  Majority of response must be achieved by the

month of expiration

Renewal Profile

 Predictable response rate per renewal initiative

 Similar to direct mail – but more mailings

 Quickly know if renewal response is “on track”

Notice # Mailed

R1 1,000

R2 - 900

Number renewed in 30 days 100

% renewed in 30 days 10%

Track Renewal Response Notice # Mailed

R2 900

R3 - 750 Number renewed in 30 days 150 % renewed in 60 days 17%

Notice # Mailed

R3 750

R4 - 600 Number renewed in 30 days 150 % renewed in 60 days 20%

Demonstrate Current Profile

24%

38%

49%

R1 60 Days R2 30 Days Month ofExp.

24%

38%

49%

R1 60 Days R2 30 Days Month of Exp.

  Define your goal and strategy (reasons for change)

  Make the case by return on the investment (ROI)

Use Data to Define Strategies

8%

24%

38%

52%

R1 90 Days R1 60 Days R2 30 Days Month of Exp.

# Billed 1,000

Cost $0.55 each or $550

# Renew 80 members or 8%

Revenue @ $80 avg. $6,400

1%

12%20%

5%

48%

1%

57%

Email (1) 30 Days 60 Days AdditionalNotice

90 days Email (2) 120DaysMonths

After Exp

Additional Email Reminders

Additional Mailing Email

Email

Additional Follow-up Efforts

Demonstrate Impact

1%

12%20%

5%

48%

1%

57%

3%

62%

Email Email

Notice

Postcard

Renewal Analysis

Additional Renewal Numbers   Overall Renewal Rate

  Renewal Rates by Level of Membership

  How does each renewal initiative perform?

  Renewal rates for new vs. longer-term members

Membership Acquisition

Current Trends

  Hitting the target is tougher

  Industry standards are changing

BASIC NUTRITION   Proportionally the largest source of new member acquisition   60% - 90% of new sales based on type of organization   Highly measurable performance   Based on “most eligible” prospects to join at arrival

Onsite Sales Membership Sales

Determining Eligible Prospects:

Not all visitors are “eligible prospects” (schools and tour groups)

“Free” admissions (comps/ 2 for 1)

Advanced sale purchases may not qualify

Excludes current and renewing members

Onsite transaction “PAID” visitors usually most eligible prospects

1% - 1.5%

1 new member per 100

“eligible prospects”

Family- Based

4% - 6%+

Onsite Sales Conversion Rates

Special Exhibitions

2% - 3%+

Membership Penetration “Math”

Sample Attendance Profile: 100,000 Visitors

  25,000 School/groups (subtract) 25%

  33,000 Member visits (subtract) 30%

  10,000 Comps, free days (subtract) 10%

68,000 Subtotal of ineligible prospects 68%

32,000 Eligible prospects 32%

150 New/rejoining memberships <1%

(exclude renewals)

Seasonal Fluctuations

1.00%0.90%

0.60%

0%

1%

1%

2%

2%

3%

3%

4%

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Prospects PenetraEon

Specialized Mailings Lapsed Member Mailing

•  A “one a day” pill for all – everyone needs one •  Go back to the flock with proven interest •  Electronic, printed and/or telemarketing

New Member Mailing •  Build internal list of fortified prospects •  Email promotions to self-identify •  Store purchase (AE credit cards) •  On and offsite name captures (raffles and sweepstakes)

External Mailing Lists •  List exchanges with like-minded organizations •  Commercial list purchases

Offsite Engagements

Direct and Indirect Sales Opportunities

•  Reaching prospects that don’t get to you •  Indirect: name capture and collect emails •  Listen and observe •  Targeted follow-up plan •  Use membership volunteers •  Farmer’s Markets, Wine & Jazz Festivals, Township Concerts

Social Media

AWARENESS UNDERSTANDING ATTITUDE BEHAVIOR

Ladder of Engagement – conversations with “touch points”

•  Smart objectives, holistic approach, full transparency •  The Networked Non Profit, Beth Kanter & Allison H. Fine

Friend Participation (virtual)

Advocacy Support Action (donate/join)

Pathway of Engagement – not exact to traditional membership sales

Measurement - Hits? Views? Fans? Tweets? Likes? •  Moved beyond “can’t be measured to what should be measured? •  Includes measuring conversations and communities •  Beth’s Blog – Betj@bethkantor.org

#2 Review data collection and reports  Add new areas (website - ticket center - TM)

 Review old areas - enhance/streamline

 Retire old areas - no longer needed

#1 Review database codes   Proper assignment at time of entry

  Consistency among staff

  Streamline and simplify for analysis

Acquisition: Getting Organized

Honor/Memorial 1 Individual 5 Individual 1

Individual 1 Gift Membership 17 Gift Membership 17

Gift Membership 33 PreColumbian Society 1 PreColumbian Society 1

Womens' Committee 4 donation 1 donation 1

Maya Weekend 9 PreColumb. Society 1 New--Source Unknown 25

PreColumbian Society 2 New--Source Unknown 33 Phone Inquiry 1

expired renewed 2 Phone Inquiry 9 Board-Solicited 3

New--Source Unknown 45 Board-Solicited 5 Members' Event 5

Phone Inquiry 20 Events Calendar 3 Donated Membership 1

Board-Solicited 4 Web Page-Gen. Mus. 2 Summer Camp 1

Chinese New Year 1 Arch and Bible 1 Etruscan/Roman Gall. 2

Pubs Catalogue 2 Alumni Census mailin 7 Young Friends 18

Events Calendar 8 Roman Glass CGS 1 Event Requirement 4

Maya Weekend 1 Donated Membership 4 Unknown 15

Wom. Comm. Tours 3 44 Eyes Participant 18 -------

Beer Event 1 ------- Totals 202

Board Member Solicit 1 Totals 181 =======

Web Page-Publication 3 =======

Web Page-Gen. Mus. 9

Friend of Ban Chiang 1

Canaan & Anc. Israel 11

Donated Membership 1

East Wing Campaign 1

Third Thursday 1

Birth of Art 1

Arch and Bible 8

Alumni Census mailin 1

Unknown 10

-------

Totals 271

Acquisition Source Codes

10%20%

5%

25%

54%

Door Exhibit Office Misc Unknown

Over 50% of revenue can’t be identified by the initiative or origin (how achieved)

You Are What You Eat

Tracking and Measurement for

Informed Decision Making

Flickr Photo by Brett Morrison

Build Knowledge Track the details

Onsite

%

Online %

Store Gift Mbr.

% Mailings

%

Offsite Events

%

Acquisition Profile

•  Profile is a Road Map for informed decision making •  Requires proper coding •  Review, rethink and retire coding & legacy rpt.

•  Streamline: management and leadership meaning •  Partnership is the solution to the common error

SampleAcquisiEonProfile 2008 2009 2010

OnsiteSales 33% 32% 30%

WebsiteSales 22% 24% 33%

DirectMail 9% 17% 9%

Events 13% 5% 7%

Phone 4% 8% 8%

Comps 3% 4% 6%

PromoEons 3% 3% 2%

Unknown 13% 7% 5%

100% 100% 100%

Why invest?

Value of Membership

to Your Organization

Museum Visitation Museum Engagement

Members as an Audience

Additional Spending PER Membership

Other Events $ 14

Annual Fund $12

Museum Store $12 Concerts $9 Cafe $8 Lectures $1 Total $56

Members Additional Spending

MEMBERSHIP 101

Question & Answer