MARKETING 101: MEMBER RECRUITMENT & RETENTION

Alumni Leadership ConnectionJune 11, 2011

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GOALS FORTODAY

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Session Overview

• Membership Philosophy and Approach

• Membership Today

• The Decision to Join

• The Basics

• 10 Steps to Growing Your Program

• Idea Exchange/Q&A

PHILOSOPHY AND APPROACH

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Membership Defined

mem·ber·ship, n.

• A group of individuals who come together to support a common cause

• Membership should support the enduring values of your organization and the promise of your experience

• Access is easy … but membership is complex, diverse, and ever-changing

Membership = Engaged Communities

MEMBERSHIP TODAY

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Key Trends Impacting Groups

• Members are in-charge• More splintering and blurring of loyalty• Convenience and ease are all-important

• Members are more self-directed • Members are more critical, seeking guarantees• Changing workforce dynamics, demographic , and

consumption habits

• Time is currency

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Approach to Membership Development

• Membership development is a continuous process of testing new ideas and adjusting the variables that affect response and improve ROI– Monitor performance of segments, lists, media, offers,

creative, message– Analyze membership data to unlock opportunities– Research to uncover trends– Apply learning and gained knowledge– Results through innovation

• Drive high-quality membership through strategic, integrated marketing campaigns

Why Join

WHY JOIN

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The Decision to Join“Membership” should answer four key questions

1. Why should I join?

2. What do I get?

3. What do you do with the money?

4. Why should I stay?

Membership

Pride

Benefits

MissionAffiliation/Networking

Obligation

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THE BASICS

Key Considerations

Mission Organizational Goals Data

Market (Audience) Message/Offer/Timing Media/Distribution

Experience Level of (Perceived) Risk Brand/Recognition

Budget

Before You Begin

• Membership is a process—not an event– Single appeals are no longer enough– Tactics/channels cannot operate in a vacuum– Cultivation and involvement are key– Not every communication is about asking for money

• Great programs provides a continuous outlet for individuals to support your organization or cause – Builds rewarding relationships– Allows you to communicate with lots of people over time

Features of Great Membership Marketing

• Strategic– Orientation has shifted from siloed to integrated

• Integrated– Across multiple channels– Within an organization– Throughout the member experience

• Specific and focused– Measurable– Scalable– Results-driven

• Data driven– Should generate a response– Both data-generating and data-collecting

• Frequent and Consistent

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Engagement Channels

Engagement

Events

Publications

Direct Mail

Member Calls

Social Media

Email

Welcome Kits

Website

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Factors Influencing Response

• Who are your best members today?

• How did they find you?• What are they doing for

you?• Who do they know?• What do you give them?• Why do you need more?

Audience50%

Creative15%

Offer25%

Timing10%

Impact: A data driven approach can increase results by 10-30% and allow your organization to minimize risk and optimize investment

10 STEPS TO GROWING YOUR MEMBERSHIP PROGRAM

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Organizational Checklist

1. Take stock in your organization2. Know your audience3. Set goals4. Start small5. Create a plan6. Make membership relevant7. Be a broken record8. Provide access and choice9. Engage the right people10. Rinse and repeat

1. Take Stock in Your Organization

• Understand business priorities

• Internal review of marketing activities, results, and data assets

• External review of best practices across multiple verticals

• Illustrate concepts and financial impact of decisions

• Make short-term and long-term recommendations

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2. Know Your Audience

• Who are your best members today?

• How did they find you?• What are they doing for

you?• Who do they know?• What do you give them?• Why do you need more?

Audience50%

Creative15%

Offer25%

Timing10%

Impact: A data driven approach can increase results by 10-30% and allow your organization to minimize risk and optimize investment

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3. Set Goals

Net Growth

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4. Start Small

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5. Create a PlanPart 1: Develop a strategic marketing program that provides profitable results

• Understand overall marketing objectives• Understand historic direct marketing initiatives (media, frequency, spend levels, etc.)• Identify various customer segments and review trends in customer behavior• Review any key demographic, psychographic, and/or attitudinal information

Part 2: Create a communications roadmap

• Which segments are most responsive to direct mail or other channels• What types of offers can be efficiently offered to whom• What is the “right” communications frequency by segment• Determine the impact of various offers by segment

Part 3: Continually measure results and improve performance

• Customer value metrics• Overall ROI by program and segment• Results by campaign, segment and offer

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Sample Plan

• Project Name• Date of the effort• Audience or segment• Effort name• Channel(s) or media used

• Quantity• Project costs• Response• Members• Revenue• Net

Impact: Personalized communications can increase results by as much as 25% versus non-personalized communications

6. Make Membership Relevant

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7. Be a Broken Record

Announcement/Launch

Reminder Reminder Last Chance

Impact: Frequency and consistent communications have a multiplier effect on overall results

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8. Provide Access and Choice

Impact: Multi-channel contact yields better results – adding a response channel can improve overall response by 20%- 30%

“Other” Choices

Channels– Mail– Email– Phone– Social

Messages– Benefit-driven– Mission-driven– Peer-driven– Industry-driven

Member Types– Free– Basic– Enhanced– Discounted

Billing &Payment– Auto renew– Bill Me– Installments– ACH/EFT

Length ofMembership– Partial– Annual– Multi-Year– Life

Response Mechanisms– Online– BRE– Events– In Person

9. Engage the Right People

• Motivate them with “why” membership is important– Help them understand the organization’s story

• Help them get in touch with their own story of how membership has influenced their life and success

• Tell them “how” they can be involved– Focus on the strengths of your volunteers

• Help them establish a plan of “what” to do– Create a written plan of action – Set specific goals

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10. Rinse and repeat

The Real #10 ….

Ask for help

Remember….

Acquisition• Tell a story and use specifics• Ask early, ask often• Test, test, test• Frequency = success• Use multiple channels

Best Practices• Programmatic programs

(e.g. annual membership drive)• Member-get-a-member• Event-based recruitment• Incentives/premiums

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Retention• Offer renewals early and often• Try more efforts• Renew in unexpected

places/media• Segment renewals to match

acquisition strategies

Best Practices• Personalize (e.g. handwritten note)• Call lapsed members• Put it in an envelope• Renewal incentive• Multi year renewals‐

Final Thoughts

• Great membership programs are strategic, integrated, focused, data driven, and measurable

• Communicate with people when they want, how often they want, and in the manner that they are most comfortable

• Data contributes to the ongoing dialog with members and provides a foundation for greater interaction

Final Thoughts

• Identify characteristics of your best members and use that to find new members and markets not reached

• Engagement is not joining, so get members involved on Day 1

• Start slow, but don’t be afraid to challenge convention

QUESTIONS

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IDEAS TO GROW MEMBERSHIP

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Idea Exchange

• Research– Conduct annual brief survey

• Programming– Develop programming and events based on members’ input– Segment or create new programming to attract specific segments and

retain current members (family, young, career networking)

• Communications– Welcome e-mail to new members– Welcome phone call with follow up information by email– Announcement of new members at next chapter meeting– New member webcast or online chat– Send link to recorded welcome video from Chapter President

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THANK YOU

Joe FiochettaPenn State Alumni Association814-863-2307jtf11@psu.edu

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Membership is….

… a way to stay connected to Penn State and show your Penn State Pride

… an investment in Penn State, the community

… a vote for the enduring value of a Penn State education

… a way to preserve the past and ensure a vibrant future

… another way to give back to and support the University