2015 IMO report

2015 Membership Marketing Benchmarking Report

Individual Member Organizations

Special Report Erik Schonher

Vice President

Introduction2

The data in this report are taken from the 2015 MGI Membership Marketing Benchmarking Report. Over 914 associations participated in this year’s study, providing the strategies and tactics they use to recruit members, engage new members, renew existing members, and reinstate former members.

This special report provides a breakdown of membership marketing trends from over 400 Individual Member Organizations (IMO).

Our hope is that the information contained in this report will enable the readers to compare the performance of their membership marketing strategies and tactics with other Individual Member Organizations.

We appreciate the opportunity to provide this special report to you, and we encourage you to consider reviewing the other drill down reports available.

- Erik SchonherMGI Research Team(703) 706-0358

Table of Contents3

Section/Question PageASSOCIATION STATISTICS 3How has your membership changed in the past ONE YEAR period? 4What was the percentage change in your entire membership over the past ONE YEAR period? 5Over the past FIVE YEARS, how has the total percentage of your membership changed? 6What do you estimate has been the total percentage change in your membership over the past FIVE YEARS? 7AWARENESS AND RECRUITMENT (ACQUISITION) 8In the past ONE YEAR, how has your NEW member acquisition changed? 9What was the percentage change in your NEW member acquisition? 10What do you believe is the ONE TOP reason members JOIN your organization? 11What recruitment marketing channels get your organization the most new members? 12ENGAGEMENT, RENEWAL, REINSTATEMENT (RETENTION) 13In the past ONE YEAR, how has your member renewal rate changed? 14What was the percentage change in your member RENEWAL rate over the past year? 15What is your overall membership renewal rate? 16CHALLENGES AND GOALS 18What do you believe are the top reasons members DO NOT renew their membership in your organization? 19What are your organization’s TOP THREE biggest challenges to growing membership? 20What are your association’s top membership goals? 21

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ASSOCIATION STATISTICS

Change in Membership Over Past One Year—

Compressed

5

47%

25%

26%

2%

IncreasedRemained the sameDecreasedNot sure

n = 403

How has your membership changed in the past ONE YEAR period?

Over 40% of association executives report their entire membership increased over the past year.

MEMBERSHIP CHANGE IN PAST YEAR

Less than 1,000

(n=216)

1,000 to less than 5,000(n=89)

5,000 to less than

20,000(n=64)

20,000 or more(n=31)*

Increased 48% 45% 42% 55%

Decreased 26% 25% 30% 29%Remained the same

25% 29% 27% 16%

Not sure 2% 1% 2% --Red = top percentage per column*Small samples can inflate percentages.

Change in Membership Over Past One Year

by Size

Of those respondents who report an increase in their membership, 64% indicate their membership increased 1% to 5% over the past year.

6

What was the percentage change in your entire membership over the past ONE YEAR period?

PERCENTAGE INCREASED IN MEMBERSHIP OVER PAST YEAR

Individual(n = 184)

Mean % Increased* 7%Median % Increased 5%

Increased 1% to 5% 64%Increased 6% to 10% 22%Increased 11% to 25% 10%Increased 26% to 50% 3%Increased more than 50% 1%*Means are influenced by high and low numbers in the data set.

PERCENTAGE DECREASED IN MEMBERSHIP OVER PAST YEAR

Individual(n = 99)

Mean % Decreased* 5%Median % Decreased 4%

Decreased 1% to 5% 69%Decreased 6% to 10% 22%Decreased 11% to 25% 9%Decreased 26% to 50% --Decreased more than 50% --*Means are influenced by high and low numbers in the data set.

Change in Membership Over Past Five Years by Size

Change in Membership Over Past Five Years—

Compressed

7

50%

16%

31%

4%


n = 395

Over the past FIVE YEARS, how has the total percentage of your membership changed?

Half of participants report that their membership has increased over the past five years.

CHANGE IN MEMBERSHIP OVER PAST FIVE YEARS

Less than 1,000

(n=210)

1,000 to less than 5,000(n=88)

5,000 to less than

20,000(n=63)

20,000 or more(n=31)*

Increased 50% 48% 52% 55%


18% 16% 16% 3%

Not sure 4% 3% 2% 7%Red = top percentage per column*Small samples can inflate percentages.

Of those who indicate membership growth over the past five years, 50% report their membership increased 11% to 25%.

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What do you estimate has been the total percentage change in your membership over the past FIVE YEARS?

PERCENTAGE INCREASED IN MEMBERSHIP OVER PAST FIVE YEARS

Individual(n = 186)



PERCENTAGE DECREASED IN MEMBERSHIP OVER PAST FIVE YEARS

Individual(n = 111)


Decreased 1% to 5% 24%Decreased 6% to 10% 32%Decreased 11% to 25% 37%Decreased 26% to 50% 7%Decreased more than 50% --*Means are influenced by high and low numbers in the data set.

9

AWARENESS AND RECRUITMENT (ACQUISITION)

Change in New Member Acquisition Over Past Year by Size

Change in New Member Acquisition Over Past Year—Compressed

10

44%

34%

14%

7%IncreasedRemained the sameDecreasedNot sure

n = 387

In the past ONE YEAR, how has your NEW member acquisition changed?

Regardless of size, executives from individual member organizations are all likely to report that their new member acquisition increased over the past year.

CHANGE IN NEW MEMBER ACQUISITION

Less than 1,000

(n=205)

1,000 to less than 5,000(n=86)

5,000 to less than

20,000(n=63)

20,000 or more(n=30)*

Increased 45% 50% 35% 50%


34% 38% 32% 27%


Of respondents reporting an increase or a decrease in new member acquisition over the past year, half of either report a change between 1% and 5%.

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What was the percentage change in your NEW member acquisition?

PERCENTAGE INCREASED IN NEW MEMBER ACQUISITION OVER PAST YEAR

Individual(n = 159)



PERCENTAGE DECREASED IN NEW MEMBER ACQUISITION OVER PAST YEAR

Individual(n = 52)


Decreased 1% to 5% 52%Decreased 6% to 10% 17%Decreased 11% to 25% 25%Decreased 26% to 50% 6%Decreased more than 50% --*Means are influenced by high and low numbers in the data set.

Associations with less than 5,000 members indicate networking with others in the field and continuing education are the top two reasons members join their organizations.

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What do you believe is the ONE TOP reason members JOIN your organization?

TOP REASON FOR JOINING ORGANIZATION

Less than 1,000

(n=192)

1,000 to less than 5,000(n=77)

5,000 to less than

20,000(n=60)

20,000 or more(n=28)*

Networking with others in the field 15% 26% 20% 11%

Continuing education 15% 18% 12% 18%Access to specialized and/or current information 10% 9% 20% 7%

Advocacy 10% 7% 3% 14%Prestige of belonging to the association 8% 7% 2% 7%

Conferences/trade shows 5% 7% 2% --Association publications 5% 3% 5% 4%Learning best practices in their profession 4% 3% 5% 4%

Discounts on product or meeting purchases 4% 5% 12% 7%

Accreditation or certification 4% 7% 8 4%Advancing their position 4% 3% -- 11%Required to gain or maintain professional certification 2% 1% 2% --

Members-only education 1% 1% -- --Insurance (affinity programs) 1% 3% -- --Access to industry thought leaders 1% -- -- --

Access to industry benchmark studies 1% -- -- --

Job board 1% -- -- --Not sure 3% -- 2% 4%Other 9% 3% 8% 11%

• 20% of associations with 5,000 to less than 20,000 members report networking and access to specialized and/or current information are the top two reasons members join their organization.

• Associations with 20,000 or more members say continuing education and advocacy are the two main reasons members join.

Red = top two percentages per column*Small samples can inflate percentages.

Across all membership size segments, word-of-mouth recommendations and email are two of the most effective recruitment marketing channels.

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What recruitment marketing channels get your organization the most new members? You may select up to THREE choices.

RECRUITMENT MARKETING CHANNELS

Less than 1,000

(n=183)

1,000 to less than 5,000(n=70)

5,000 to less than

20,000(n=58)

20,000 or more(n=27)*

Word-of-mouth recommendations 48% 52% 54% 29%Email 40% 29% 26% 43%Association website 27% 14% 21% 29%Direct mail 25% 24% 30% 57%Chapters 17% 6% 23% 18%Cross-sell to non-members who buy your products or attend your conferences 13% 22% 25% 21%Promotion to/at your own conferences/trade shows 13% 8% 10% 11%Local events/meetings 12% 17% 16% 4%Association-sponsored social networking websites (e.g., Facebook, LinkedIn) 10% 14% 5% --Promotional incentives 10% 10% 5% 7%Association-sponsored events 9% 13% 20% 4%Exhibiting at other conferences 9% 4% 10% --Free membership offered with a non-member meeting registration 7% 11% 10% --Content marketing 6% 5% 3% 11%Search engines (organic) 5% 4% 2% --Personal sales calls 4% 5% 7% --Accreditation promotion 3% 6% 5% 4%Advertising in your own publications 2% 1% -- 4%Public relations 2% 3% -- 4%Telemarketing 1% -- -- 11%Advertising in outside publications 1% 1% -- --Search engine ads (paid or pay-per-click) 1% -- 2% --Paid banners on other websites 1% -- -- --Radio or TV -- -- 3% --Other 11% 10% 10% 11%

• More than 20% of respondents believe direct mail attracts the most new members.

Red = top three percentages per column*Small samples can inflate percentages.

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ENGAGEMENT, RENEWAL, REINSTATEMENT (RETENTION)

Change in Renewal Rate Over Past Year by Size

Change in Renewal Rate Over Past Year—

Compressed

15

21%

45%

24%

10%


n = 384

In the past ONE YEAR, how has your member RENEWAL rate changed?

The majority of respondents indicate their member renewal rate remained the same over the past one year.

CHANGE IN MEMBER RENEWAL RATE OVER PAST YEAR

Less than 1,000

(n=203)

1,000 to less than

5,000(n=85)

5,000 to less than 20,000(n=63)

20,000 or more(n=30)*

Increased 19% 19% 29% 30%Decreased 29% 20% 22% 13%Remained the same

42% 54% 38% 47%


• Associations with more than 5,000 members are more likely than smaller organizations to report increases in the member renewal rate in the past year.

Of respondents reporting an increase or a decrease in their member renewal rate over the past year, approximately three-quarters of either report a change between 1% and 5%.

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What was the percentage change in your member RENEWAL rate over the past year?

PERCENTAGE INCREASED IN MEMBER RENEWAL RATE OVER PAST YEAR

Individual(n = 77)


Increased 1% to 5% 73%Increased 6% to 10% 18%Increased 11% to 25% 5%Increased 26% to 50% 1%Increased more than 50% 3%*Means are influenced by high or low numbers in the data set.

PERCENTAGE DECREASED IN MEMBER RENEWAL RATE OVER PAST YEAR

Individual(n = 84)


Decreased 1% to 5% 74%Decreased 6% to 10% 13%Decreased 11% to 25% 12%Decreased 26% to 50% 1%Decreased more than 50% --*Means are influences by high or low numbers in the data set.

17

OVERALL MEMBERSHIP RENEWAL RATE

(n = 325)

Mean 79%

Median 82%

Under 50%

50 - 59%

60 - 69%

70% - 79%

80 - 89%

90% or higher

4%

2%

13%

19%

37%

25%

n = 324

Overall Membership Renewal Rate

What is your overall membership renewal rate (%)?

62% of associations have membership renewal rates of 80% or higher.

Associations with less than 1,000 members have the highest renewal rates (80%).

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OVERALL MEMBERSHIP RENEWAL RATE

Less than 1,000

(n=216)

1,000 to less than

5,000(n=67)

5,000 to less than 20,000(n=54)

20,000 or more

(n=27)*

Mean 80% 78% 79% 77%Median 82% 80% 85% 83%

What is your overall membership renewal rate (%)?

*Small samples can inflate percentages.

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CHALLENGES AND GOALS

Across all segments, respondents indicate that members allow their membership to lapse because employers won’t pay/stopped paying dues or members left the field, industry, or profession.

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What do you believe are the top reasons members DO NOT renew their membership in your organization? You may select up to THREE choices.

TOP REASONS FOR NOT RENEWING MEMBERSHIP

Less than 1,000

(n=182)

1,000 to less than

5,000(n=73)

5,000 to less than 20,000(n=57)

20,000 or more(n=26*)

Lack of engagement with the organization 35% 26% 23% 35%Employer won’t pay or stopped paying dues 34% 43% 33% 35%Left the field, industry, or profession 31% 38% 40% 42%Could not justify membership costs with any significant ROI 28% 18% 19% 35%

Too expensive 23% 16% 23% 19%Forgot to renew 20% 23% 24% 19%Budget cuts/economic hardship of company 19% 14% 21% 15%Lack of value 17% 18% 16% 39%Retirement 15% 29% 25% 8%Moved 9% 8% 2% 4%Lack of relevance 8% 4% 5% 8%Student memberships do not convert to full memberships 8% 7% 7% 4%

Can get materials from other members/other sources 7% 8% 9% 8%

Lost job 7% 8% 7% 4%Disappointment with the benefits/services 4% 4% 4% 4%Company closed or merged 2% 3% 4% --Disagree with advocacy position of the association 2% 1% 4% --

Switch to competitor 1% 1% 9% --Poor customer service 1% -- -- --Not sure 2% -- -- --Other 8% 7% 12% 8%

• Over one-third of associations with less than 1,000 members and associations with 20,000 or more members report lack of engagement as one of the top reasons members do not renew their membership.

• More than 20% of associations with 1,000 to less than 20,000 members cite retirement as a top reason members allow their membership to lapse.


Regardless of segment, associations struggle with communicating membership value.

21

What are your organization's TOP THREE biggest challenges to growing membership?

TOP THREE BIGGEST CHALLENGES FOR GROWING MEMBERSHIP

Less than 1,000

(n=369)

1,000 to less than

5,000(n=131)

5,000 to less than 20,000(n=91)

20,000 or more

(n=38*)

Difficulty in communicating value 31% 27% 23% 30%Difficulty attracting and/or maintaining younger members 31% 9% 21% 30%

Membership too diverse; difficulty meeting needs of different segments 18% 13% 18% 11%Declining member/employer budgets 17% 16% 20% 19%Economy/cost of membership 17% 19% 9% 19%Competitive association(s) or sources of information 16% 19% 23% 15%Insufficient staff 15% 27% 11% 4%Difficulty identifying prospects 13% 10% 18% 11%Difficulty in converting student memberships to regular memberships 13% 4% 7% 7%Perception of the association and/or its culture (i.e., old boy’s network, not specialized enough) 12% 16% 16% 7%

Lack of a strategy or plan 12% 14% 9% 7%Insufficient budget 12% 13% 7% 7%Weak product or service offerings 11% 11% 4% 11%Industry consolidation/industry shrinkage 10% 9% 9% 4%Lack of integration between national and chapters 9% 7% 14% 7%Limited or very specific members 8% 13% 11% 7%Changing demographics of industry/fewer young people in industry 8% 19% 13% 11%Inadequate association management database 7% 7% 9% 15%Lack of marketing expertise 7% 4% 9% --Inadequate research to understand market 6% 4% 5% 15%Market saturation 4% 9% 11% 22%Misalignment of goals between board and executive staff 3% 6% 2% 4%Other 6% 9% 9% 11%


More than half of respondents, across all segments, report that increasing membership acquisition is one of their top three membership goals.

22

What are your association's top membership goals? You may select up to THREE choices.

ASSOCIATIONS’ TOP GOALS

Less than 1,000

(n=180)

1,000 to less than 5,000(n=71)

5,000 to less than

20,000(n=56)

20,000 or more(n=27*)

Increasing membership retention 78% 59% 70% 70%Increasing member engagement 63% 69% 70% 52%Increasing membership acquisition 63% 68% 63% 56%Increase understanding of member needs 30% 32% 29% 33%Increasing non-dues revenue from members (attendance at conferences, purchase of services/education, etc.)

22% 20% 25% 19%

Increasing dues revenue 22% 20% 20% 33%Increasing member diversity 11% 10% 7% 11%Other 2% 3% -- --

• Over 60% of associations with less than 20,000 members report increasing member engagement as one of their top membership goals.


Thank you.

For more information about this report or to discuss the research and marketing services provided by Marketing General Incorporated, contact…

Erik SchonherVice President

[email protected](703) 706-0358

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2015 IMO report

Documents

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