Mgi 2013-membership-marketing-benchmarking-report

www.marketinggeneral.com

SURVEY CONDUCTED BY: Marketing General Incorporated

UNDER THE SUPERVISION OF: Erik Schonher, MBA, CeM, Vice President Adina Wasserman, PhD, Director of ResearchTony Rossell, Senior Vice President Jeff Tranguch, MA, Market Research Analyst

625 North Washington Street, Suite 450 • Alexandria, Virginia 22314

703.739.1000www.MarketingGeneral.com

May 2013

Dear Colleague,

I am pleased to present you with the 2013 edition of Marketing General Incorporated’sMembership Marketing Benchmarking Report.

This is the fifth consecutive year that we have published this report and we take pride in thefact that it truly has become a benchmark document about and for the association community.

Every year we add to our understanding and knowledge, making the information gained even more valuable with time. Not only are we able to track changes from year to year, we are building a growing record that readily identifies directions and trends over an even longerperiod. In truth, it has become what we had hoped for when we launched this project fiveyears ago.

As always, we strive to ensure that our survey questions are timely, relevant, and reflect theinformation our readers seek. This year, based on their suggestions, we added severalquestions on dues increases and probed more deeply into social media, effectivenessmeasurements, membership models, and the use of association management software. Wethink that including these findings only adds to the report’s value.

As evidence of the Membership Marketing Benchmarking Report’s success, MGI also authorsseveral spin-off documents including our Competitive Set Analysis Reports, where individualassociations can compare their own responses to those of like associations. If you would likemore information on these reports, please contact us. In addition, we are planning severalwhite papers based on this year’s findings.

The success of the study would not be possible, of course, without the participation ofhundreds of respondents who give both their time and information. This year is no different,with nearly 700 associations participating—a record number. I am especially grateful for yourinput. I also would like to extend my thanks to the many individuals who have requestedcopies of the report or downloaded it from our website, and to those who use or reference it.

Special appreciation goes to our staff, particularly Erik Schonher, Tony Rossell, Dr. AdinaWasserman, Jeff Tranguch, and Rachelle Smith for developing, writing, and analyzing the data,and Aleda Ahmed, Kimberly Humphries, Bill Schaffner, and their teams, for overseeing thereport’s creative and production aspects.

I hope you find this year’s report of value and help as you pursue your many membershipmarketing endeavors.

Best wishes,

Richard Whelan, CDMPresident, Marketing General Incorporated


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Executive SummaryFor the fifth consecutive year, Marketing GeneralIncorporated (MGI) is proud to present our annualMembership Marketing Benchmarking Report. Thisyear’s study explores the membership marketinginitiatives and outcomes of 695 participatingassociations.

This research yields a broad base of strategic andtactical information including primary challenges toassociation growth, dues increases, effective tools foracquisition and retention, common uses for socialmedia, and more.

The next phase of analysis will be a series of “Drill-Down” reports to be published later in 2013 that willprovide greater understanding of the membershipmarketing strategies and tactics of the reportingassociations based on:

1. Association Type — Individual, Trade, and Both

2. Membership Strategies and Tactics of IndividualMembership Associations with an 80%+ RenewalRate

3. Membership Strategies and Tactics of IndividualMembership Associations by Number of Members

4. Membership Strategies and Tactics by SelectIndustry

ObjectiveThe purpose of this study continues to be thedevelopment of meaningful benchmarks by which theleadership of individual membership and tradeassociations can evaluate their own membershipmarketing strategies and tactics.

Findings Good news! Over 52% of the 690+ associationsparticipating in this study report a growth inmembership, versus only 31% reporting a decline intheir membership. And the reported growth isvigorous, with nearly 24% of associations reporting again in membership of 6% or more. This is the secondyear in a row that the majority of participants reportmembership growth and continues the positive trendfrom the low point of only 36% reported in 2010.

Further analysis of the data by market served indicates that 64% of healthcare associations showedconsiderable growth in membership over the pastyear. Additionally, by number of members and size ofbudget, associations with 20,000 or more membersand those reporting an operating budget in excess of$1 million report the highest levels of growth over thepast year.

From this year's survey, the major indicators ofmembership health — overall total membership, newmembers acquired, and membership renewals —have increased for the majority of associations.Growth in new members has increased from theprevious study, while overall membership growth andmembership renewals remain on par with findingsfrom 2012.

Similar to trends in overall membership growth,associations continue to see an increase in newmember acquisition since the low of 2010. Of theresponding association executives, 63% report anincrease in the acquisition of new members over thepast year. These results come on top of a strong 2012when 60% of respondents said that they had anincrease in new members.

CHANGE IN MEMBERSHIP OVER PAST ONE YEAR—COMPRESSED

2013 (n = 691)

2012 (n = 689)

2011 (n = 642)

2010 (n = 405)

2009 (n = 331)

Percentage Increased Overall 52% 52% 49% 36% 45% Percentage Unchanged Overall 16% 16% 16% 14% 16% Percentage Declined Overall 31% 29% 34% 48% 35% Percentage Unsure 1% 3% 2% 3% 5%


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CHANGE IN NEW MEMBER ACQUISITION OVER PAST YEAR — COMPRESSED

2013 (n = 690)

2012 (n = 687)

2011 (n = 638)

2010 (n = 405)

2009 (n = 325)


CHANGE IN RENEWAL RATE OVER PAST YEAR — COMPRESSED

2013 (n = 691)

2012 (n = 683)

2011 (n = 638)

2010 (n = 403)

2009 (n = 326)


Compared to the previous studies, a higherpercentage of associations are reporting increases inmembership renewals.

The majority of associations (68%) have renewal ratesthat are at 80% or higher. Only 32% of associationsreport renewal rates below 80%. The mean renewalrate for participating associations is about 81%.

In summary, the continued increases in each of thesethree key membership statistics — overall growth,member acquisition, member renewal — speaks tothe continued strengthening and improvement in thehealth and performance of membership associations.

TOP CHALLENGES TO GROWING MEMBERSHIP BY MEMBERSHIP TYPE

Challenge

Individual Member (n = 332)

Trade (n = 206)

Both (n = 136)

Insufficient staff

Membership too diverse

Perception of the association

Insufficient budget

Difficulty attracting/maintaining young members

For the second year in a row, we asked associationexecutives to tell us what they perceived as thebiggest impediments to membership growth, andtheir top goals for membership in their organization.

As was the case in 2012, the top three challenges togrowing membership remain “insufficient staff,”

“difficulty attracting and/or maintaining youngermembers,” and “perception of the association and/orits culture.” It is interesting to note that while in 2012“membership too diverse” was considered thebiggest issue, this year it fell out of the top three tofourth place.

Additional Findings


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An equal percentage of responding associations (74%)indicate that “increasing member engagement” and“increasing both membership acquisition andretention” are the top two membership goals.

Trade associations are significantly more likely thanindividual membership associations to set a goal toincrease member engagement (83% vs. 71%).

74%

74%

38%

33%

28%

21%

16%

9%

2%

Increasing member engagement

Increasing both membership acquisition and retention

Increase understanding of member needs

Increasing non-dues revenue from members

Increasing dues revenue

Increasing membership retention

Increasing membership acquisition

Increasing member diversity

Other 2013 (n = 690)

Facebook, Twitter, and LinkedIn (public access) are thethree most common social media sites used byassociations for the past four years. Individualmembership associations are significantly more likelythan trade associations to use Facebook (89% vs. 79%)and association listservs (30% vs. 18%). Twitter tendsto be used over Facebook to promote or discussspecific sessions at events. Facebook is used moreoften than Twitter for soliciting new members andpromoting membership.

With the growing use of social media, we includednew questions this year on how it is managed withinassociations. As indicated above, the majority ofassociations report that the communicationsdepartment is responsible for their social media sites.Of interest is the fact that 4% indicate they have aseparate social media department that manages thischannel.

52%

44%

31%

8%

7%

6%

4%

12%

Communications

Marketing

Membership

IT

Education

Advocacy and policy

Social media

Other 2013 (n = 657)


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To no surprise, the primary reasons associationexecutives give as to why members join associationscontinues to be networking (24%), access tospecialized/current information (13%), and advocacy(8%). This year “learning best practices in theirprofession” (8%) ranks among the top three reasons.While still among the top three, findings show acontinued downward trend in the number ofassociations reporting advocacy as a membershipdriver, dropping from 12% in 2012 to 8% currently.

Similar to findings in 2012, the top three reasons citedfor not renewing are:

1. Budget cuts/economic hardship of the company (18%).

2. Lack of engagement with the organization (15%).

3. Unable to justify membership costs with anysignificant ROI (11%).

Member engagement has long been recognized as akey factor for influencing renewals. The top threecommunication methods used to onboard newmembers continues to include:

1. Email welcome kit (79%).

2. Mailed welcome (60%).

3. Membership card or certificate (51%).

Data indicate that associations are increasing thenumber of renewal contacts included in their renewalseries. A majority of associations report 4 to 6 renewalcontacts within their renewal series (38%), with about27% making 7 to 12 renewal contacts. Results indicatethat while there is a slight drop in the percentage ofassociations using between 4 and 9 renewal contactscompared to 2012, there is a slight increase in thenumber of associations contacting members 10 to 15times in their renewal series (14% vs. 10%).

RENEWAL RATES BY NUMBER OF RENEWAL CONTACTS INDIVIDUAL MEMBERSHIP ASSOCIATIONS (n = 289)

1 to 6 contacts 7 or more contacts

Less than 80% renewal 43% 33%

80% or higher renewal 57% 67%

Individual member associations using 7 or morecontacts in their renewal series are more likely toreport overall membership renewal rates at 80% or higher.

Similar to previous years, we asked associationexecutives to report how much they spend annuallyon membership marketing programs. In comparisonto last year's report, there are substantial increases inspending on programs promoting awareness andbranding (66%), engagement/onboarding (56%), andreinstatement (33%).

Associations with renewal rates at or above 80%spend more on awareness and branding, andrenewals, while associations with renewals under 80%spend more on recruitment and reinstatement.Associations tend to spend similar amounts onengagement/onboarding.

For the second year in a row, we asked respondentsto answer five open-ended questions:

1. What are some of the most effective tools you’veused or programs you’ve offered to increasemembership engagement with your association?

2. If you could freely say anything to your members,what would you say?

3. With regard to your association, what keeps you upat night?

4. If there was one hurdle you could remove to makeyour association run smoother, what would it be?

5. In your own words, what are the most important orsuccessful lessons you have learned in the area ofmembership marketing?

Of the total responses received, we’ve noted some ofthe more interesting for your review at the end of thisreport. The full list of responses can be downloadedfrom our website at www.MarketingGeneral.com.


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Report BackgroundThis is the fifth year that Marketing GeneralIncorporated has surveyed associations to betterunderstand the strategies and tactics they use toacquire and engage new members, renew and retainexisting members, and reinstate memberships thathave lapsed.

This report not only provides the basic information onmembership practices, but cross-tabulates them withmembership results associations are experiencing toprovide best practices information. The comparison ofpractices and outcomes in membership providesstrong directional guidance on what tactics andstrategies might be added or dropped to helpimprove a membership program.

There is an important disclaimer that readers shouldbe aware of as they evaluate this report. Because anactivity or practice has a statistical correlation with agrowing or declining membership or better renewalrates, we are not claiming that any one behavior in

and of itself causes this outcome. There are literallythousands of variables that impact membershipresults.

Nevertheless, if as a marketer one sees thatorganizations with certain behaviors or practices tendto be doing better, one at least will want to explorethe issue and determine if there is something that canbe applied to one's own organization.

The report includes dozens of key findings that canprovide insight and direction for membershipmarketing programs. We hope that you find it of helpas you seek to maximize membership results for yourorganization.

If you have questions or need assistance with yourmembership marketing, the team at MarketingGeneral Incorporated is pleased to be of help. Ourwebsite is: www.MarketingGeneral.com. Please findour individual contact information on the back panelof this report.


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IntroductionSurvey ObjectiveMarketing General Incorporated (MGI) presents thefifth annual Membership Marketing BenchmarkingReport, an independent study of the most commonpractices associations use to recruit new members,retain current ones, and reinstate those who havelapsed. Data was gathered in early 2013 and runagainst benchmarking statistics from the past fouryears to detect trends and then analyze them. MGImakes the annual benchmarking report freelyavailable in print and online for the benefit of thegreater association community.

We update and hope to improve the report everyyear. We evaluate the utility of each survey question,remove less important ones, and add new ones so theanalysis will be fully relevant. This year we removed,but then by request added back, several questions ondues increases. We also probed more deeply intosocial media, effectiveness measurements,membership models, and use of associationmanagement software.

We also asked for new ideas from subscribers toMGI's monthly Tipster electronic newsletter. Wereceived nearly one hundred responses and includedseveral suggestions in this year’s survey.

MethodologyThe 2013 survey was conducted online from January 8to February 20. A total of 7,857 invitations were sentto association executives who are Tipster subscribers,had downloaded last year’s report, or appeared on athird party list of association executives. 751association professionals responded, but we acceptedjust one responder per association, selecting the onewhose responsibilities were closest to membershipmarketing. Responses were not used when anassociation name was not provided. Overall, 56respondents had to be dropped from the analysis.The final data set contains information from 695different associations.

670 association professionals completed the surveyonline and 81 used a link from the MGI blog or askedto be included. The final count was 751 completedsurveys, a response rate of approximately 10%. Themargin of error is +/- 3.7%.

The margin of error is a statistical measurement toassess the accuracy of data compared to the largeruniverse of all possible respondents. Since it isimpossible to survey all respondents, statisticians relyon a random sample to estimate the results of theentire population. The margin of error accounts forrandom fluctuations inherent in any sample. Thesmaller the margin of error, the more accurate themeasurement of the entire universe will be.

This study’s .05 significance interval carries a 95%confidence level, so that were this study conducted100 times, the same results, plus or minus the marginof error, would occur 95 times out of 100.

Report LayoutThis year’s report consists of nine sections:• Section 1: Association Statistics• Section 2: Awareness and Recruitment (Acquisition)• Section 3: Engagement, Renewal, Reinstatement

(Retention)• Section 4: Social Media• Section 5: Challenges and Goals• Section 6: Dues and Membership Structure• Section 7: Managing Your Association• Section 8: The Demographics of Your Association• Section 9: Words of Wisdom


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Association StatisticsThis section provides information on the overall membership statistics of participating associations.

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

CHANGE IN MEMBERSHIP OVER PAST ONE YEAR 2013

(n = 691) 2012

(n = 689) 2011

(n = 642) 2010

(n = 405) 2009

(n = 331) Increased more than 50% 1% 1% 1% 1% --

Increased 26% to 50% 1% 3% 2% 2% 1%

Increased 11% to 25% 7% 8% 9% 5% 7% Increased 6% to 10% 15% 13% 11% 7% 10%

Increased 1% to 5% 28% 27% 26% 21% 27%

Remained the same 16% 16% 16% 14% 16% Declined 1% to 5% 19% 19% 19% 26% 19%

Declined 6% to 10% 8% 7% 11% 13% 9%

Declined 11% to 25% 3% 2% 4% 8% 6% Declined 26% to 50% 1% 1% -- 1% 1%

Declined more than 50% -- 1% -- -- --

Not sure 1% 3% 2% 3% 5%

A majority of respondents report that theirmembership has increased by 1 to 5% over the pastyear (28%), a continued upward trend for thispercentage growth bracket starting in 2011.

More than half of the participating associationsreport increases in overall membership over the pastyear (52%), with slightly more respondents reporting

increases of 6 to 10% in membership. Thisrepresents a steady rise in membership by 6 to 10%since 2011.

Holding steady since 2011, 16% indicate there is no discernible change in their membership over thepast year, and 19% report losses of up to 5% inmembership.

As mentioned, 52% of associations report increasesin overall membership over the past year, similar tofindings from 2012; while 31% reported a decline.

Associations showing increases in the past year aresignificantly more likely to report overall increasesover the past five years, as well as increases in newmembers and renewals.

CHANGE IN MEMBERSHIP OVER PAST ONE YEAR—COMPRESSED

2013 (n = 691)

2012 (n = 689)

2011 (n = 642)

2010 (n = 405)

2009 (n = 331)


SECTION 1


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CHANGE IN MEMBERSHIP OVER PAST FIVE YEARS — COMPRESSED

2013 (n = 690)

2012 (n = 689)

2011 (n = 639)

2010 (n = 405)

2009 (n = 332)


Over the past FIVE YEARS, what do you estimate has been the total percentagechange in your membership?

CHANGE IN MEMBERSHIP OVER PAST FIVE YEARS

2013 (n = 690)

2012 (n = 686)

2011 (n = 639)

2010 (n = 405)

2009 (n = 332)

Increased more than 50% 4% 6% 6% 7% 3%

Increased 26% to 50% 8% 8% 7% 7% 7%


Increased 1% to 5% 15% 12% 12% 13% 16%


Declined 6% to 10% 8% 9% 11% 8% 9%

Declined 11% to 25% 11% 9% 11% 8% 9% Declined 26% to 50% 2% 3% 3% 2% 2%

Declined more than 50% 1% 1% 1% 1% --

Not sure 2% 5% 4% 5% 5%

There is a slight uptick in the percentage ofassociations reporting increases of up to 10% inoverall membership over the past five years. There is

also an increase in the percentage of associationsreporting declines in membership of up to 5% andbetween 11 and 25%.

Associations with operating budgets over $1 millionare significantly more likely to report membershipincreases over the past year compared toassociations with smaller operating budgets.

Associations reporting less than 60% renewals for first-year members are significantly more likely to report declines in overall membershipduring the past year, suggesting problemsretaining new members may be a substantialsource of overall membership decline.

Associations with 20,000 or more members reportedthe highest levels of growth over the past year with

60% showing an increase in membership. Only 50%of associations with less than 1,000 membersreported an increase in membership.

Associations in healthcare reported the highestlevels of growth over the past year with 63%showing an increase in membership followed byFinance/Accounting/Banking/Insurance with 60% reporting an increase in membership.Associations in Education, Professional Services(blue collar), and Construction reported some ofthe lowest levels of growth over the past year at43%, 42%, and 31%, respectively.

Associations with an 80% renewal rate or higher aremore likely to report increases in membership overthe past five years, as are those with increases inmembership over the past year, increases in newmembers, and increases in renewals.

More than half of associations reporting less than60% retention of first-year members also reportdeclines in membership over the past five years(54%), suggesting that their membership declinemay be related to poor retention of first-yearmembers.


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In the past year, what was the percentage change in your NEW member acquisition?

CHANGE IN NEW MEMBER ACQUISITION OVER PAST YEAR

2013 (n = 690)

2012 (n = 687)

2011 (n = 638)

2010 (n = 402)

2009 (n = 325)

Increased more than 50% 3% 5% 2% 2% 1%

Increased 26% to 50% 4% 4% 5% 2% 4%


Increased 1% to 5% 28% 25% 25% 20% 25%


Declined 6% to 10% 4% 3% 3% 6% 5%

Declined 11% to 25% 3% 2% 3% 7% 3% Declined 26% to 50% 1% 1% 1% 3% 2%

Declined more than 50% -- 1% -- 1% 1%

Not sure 4% 10% 8% 12% 10%

Over the past year, new member acquisition hasincreased, with most associations reporting anaverage of 1 to 5% growth in new members.

There are only slight variations in the percentage ofassociations reporting declines in membership of anydegree compared to 2012 and 2011 results.

CHANGE IN NEW MEMBER ACQUISITION OVER PAST YEAR — COMPRESSED

2013 (n = 690)

2012 (n = 687)

2011 (n = 638)

2010 (n = 405)

2009 (n = 325)


Overall, a greater percentage of associations arereporting increases in new member acquisition, acontinued growth trend since 2011.

Overall, the percentage of associations indicatingnew member acquisition has declined has remainedsteady since 2011.

Associations reporting increases in new memberacquisition are significantly more likely to alsoreport increases in overall new members over thepast year, and over the past five years, as well asincreases in renewals.

Associations with more than 20,000 paid membersare significantly more likely to report increases in newmembers, compared to associations with fewermembers.


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CHANGE IN RENEWAL RATE OVER PAST YEAR — COMPRESSED

2013 (n = 691)

2012 (n = 683)

2011 (n = 638)

2010 (n = 403)

2009 (n = 326)


CHANGE IN RENEWAL RATE OVER PAST YEAR

2013 (n = 691)

2012 (n = 683)

2011 (n = 638)

2010 (n = 403)

2009 (n = 326)

Increased more than 50% 1% 1% -- 1% --

Increased 26% to 50% 1% 1% 1% 1% 1%


Increased 1% to 5% 23% 23% 21% 14% 15%


Declined 6% to 10% 6% 5% 5% 10% 9%

Declined 11% to 25% 2% 2% 2% 5% 3% Declined 26% to 50% 1% 1% -- 1% 1%

Declined more than 50% -- -- -- -- --

Not sure 4% 10% 7% 8% 9%

Compared to the previous studies, a higherpercentage of associations are reporting increases inrenewals of between 6 and 10%.

Almost one-quarter of associations (22%) report thattheir renewal rate has declined by 1 to 5%, asubstantial increase over findings from 2012 and 2011.

Associations reporting increases in overall membership over the past year and the past five years, as well asincreases in new members, are significantly more likely to show increases in renewal rates over the past year.

OVERALL MEMBERSHIP RENEWAL RATE

2013* (n = 607)

2012 (n = 685)

2011 (n = 643)

2010 (n = 403)

2009 (n =337)

Under 50% 3% 3% 3% 3% 2%

50% to 59% 2% 4% 6% 4% 4%

60% to 69% 8% 7% 10% 11% 7% 70% to 79% 19% 22% 23% 21% 16%

80% to 89% 38% 38% 34% 40% 37%

90% or higher 30% 22% 23% 18% 29% Not sure** N/A 3% 2% 3% 4%

What is your overall membership renewal rate?

*2013 version of the study allowed for an open-ended response and not a choice ofcategories. **Not sure was not included as an option in 2013.

The majority of associations (68%) have renewal rates that are at 80% or higher. Only 32% of associations reportrenewal rates below 80%. The mean renewal rate for participating associations is about 81%.

In the past year, what was the percentage change in your member RENEWAL rate?


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Associations reporting increases in overallmembership over the past year and the past fiveyears, plus increases in new members and inrenewals, are significantly more likely to report anoverall membership renewal rate at or above 90%.

Trade associations are also significantly more likely toreport renewal rates at or above 90%.

Interestingly, associations with new member renewalsabove 60% are also significantly more likely toindicate their overall renewal rate is above 90%.

MEAN MEMBERSHIP RENEWAL RATE

Less than 80% renewal

80% renewal or higher

Individual Member Trade Both

Mean 66% 88% 79% 87% 76% Median 70% 88% 81% 88% 80%

On average, associations reporting renewal ratesbelow 80% have renewal rates at around 66%, whilethose reporting renewal rates above 80% haverenewal rates that are at 88%.

Trade associations tend to have a higher meanrenewal rate (87%) compared to individual memberorganizations (79%) or those with both types ofmembers (76%).

What is your renewal rate for first-year members?

OVERALL NEW MEMBER RENEWAL RATE

2013* (n = 607)

2012 (n = 685)

Under 50% 18% 10%

50% to 59% 14% 13%

60% to 69% 11% 12% 70% to 79% 21% 19%

80% to 89% 15% 17%

90% or higher 22% 12% Not sure** N/A 18%

*2013 version of the study allowed for an open-ended response and not a choice of categories. **Not sure was not included as an option in 2013.

Compared to last year's findings, there is asignificantly greater percentage of associations oneither end of the spectrum. 18% report new memberrenewals under 50%. Another 22% report newmember renewals at 90% or higher.

The mean renewal rate for new members is about 68%.

MEAN NEW MEMBER RENEWAL RATE

Less than 80% renewal

80% renewal or higher


Mean 51% 76% 64% 78% 61% Median 50% 77% 70% 80% 65%

Associations with overall renewal rates at or above 80% have, on average, new member renewal rates thatare at about 76%, compared to only 51% for associations with overall renewal rates below 80%.


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What do you estimate is the percentage of your current market penetration?

CURRENT MARKET PENETRATION

2013* (n = 411)

2012 (n = 688)

2011 (n = 636)

2010 (n = 401)

2009 (n =326)

Up to 20% of available market 29% 27% 31% 28% 25%

21% to 40% of available market 23% 22% 20% 22% 14%

41% to 60% of available market 18% 18% 15% 18% 15% 61% to 80% of available market 15% 11% 10% 12% 25%

More than 80% of available market 14% 6% 7% 4% 8%

Not sure** N/A 17% 16% 16% 12% *2013 version of the study allowed for an open-ended response and not a choice of

categories. **Not sure was not included as an option in 2013.

Compared to the previous benchmarking studies, asignificantly higher percentage of associations reportthat their market penetration is more than 80% of theavailable market (14%). The mean market penetrationfor participating associations is about 41%.

Similarly, there is a continuing upward trend from2011 in the percentage of associations reporting their market penetration at 61 to 80% of the available market.

However, results also indicate that nearly 3 in 10associations have 20% or less market penetration intheir respective industry and only about one-quarterhave a market penetration between 21 to 40%.

Associations with overall renewal rates above 80%are significantly more likely to report marketpenetration at or above 60%.

Results also show that as new member renewalsincrease, so does the percent of market penetrationfor an association.

CURRENT MARKET PENETRATION BY ASSOCIATION TYPE


Trade (n = 135)

Both (n = 74)

Up to 20% of available market 29% 29% 31%

21% to 40% of available market 21% 26% 23%

41% to 60% of available market 20% 13% 20% 61% to 80% of available market 14% 16% 16%

More than 80% of available market 15% 16% 10%

The mean market penetration for both individualmember associations and trade organizations isabout 42%, while the mean market penetration forhybrid associations is about 37%.

A greater percentage of trade associations have amarket penetration above 60% compared toindividual member associations or combinationassociations.


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Awareness and Recruitment(Acquisition)

How do members initially discover your association? (Check all that apply.)

The first step in getting members to join any association is increasing awareness among prospective members.Once prospects are aware that an association exists, the next step is recruiting that prospect to join. This sectioncontains information on the most and least effective methods for generating awareness and recruiting members.

HOW MEMBERS INITIALLY DISCOVER YOUR ASSOCIATION

2013 (n = 690)

Word-of-mouth recommendation 86% Association website 80% Email 66% Promotion to/at your own conferences/conventions 55% Association-sponsored social networking websites (e.g., Facebook, LinkedIn) 54% Local events/meetings 52% Association-sponsored events 48% Cross-sell to non-members who buy your products or attend your conferences 47% Direct mail 44% Search engines (organic) 42% Exhibiting at other conferences 41% Advertising in your own publications 36% Chapters 36% Public relations 30% Advertising in outside publications 25% Personal sales calls 23% Job board 21% Accreditation promotion 15% Search engines (paid or pay-per-click) 12% Telemarketing 9% Paid banners on other websites 9% QR codes 8% Mobile apps 7% Radio or TV 4% Texting 1% Do not know 1% Other 9%

SECTION 2

Association executives indicate that most membersdiscover their association through word-of-mouthrecommendations (86%), the association website(80%), and email (66%).

Compared to associations reporting declines inoverall membership over the past year,associations reporting increases are significantlymore likely to indicate members become aware oftheir association through their website (85% vs.77%), through cross-selling to non-members whohave been to association events (52% vs. 39%),and their job board (17% vs. 11%).

Associations with renewal rates at or above 80% arealso significantly more likely to employ personal salescalls (26% vs. 18%) compared to those with renewalrates below 80%.

Individual and combination associations are morelikely than trade associations to use job boards,accreditation promotion, or advertise in their ownpublications. Conversely, trade associations aresignificantly more likely to use sales calls.


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HOW MEMBERS INITIALLY DISCOVER YOUR ASSOCIATION BY MEMBERSHIP TYPE


Trade (n = 209)

Both (n = 136)

Word-of-mouth recommendation 85% 57% 85% Association website 81% 79% 80% Email 67% 68% 59% Promotion to/at your own conferences/conventions 54% 57% 54% Association-sponsored social networking websites (e.g., Facebook, LinkedIn) 57% 49% 54% Local events/meetings 53% 49% 54% Association-sponsored events 47% 54% 43% Cross-sell to non-members who buy your products or attend your conferences 46% 44% 53% Direct mail 47% 43% 37% Search engines (organic) 43% 40% 43% Exhibiting at other conferences 42% 41% 43% Advertising in your own publications 38% 30% 38% Chapters 50% 18% 32% Public relations 26% 34% 35% Advertising in outside publications 27% 21% 22% Personal sales calls 10% 44% 21% Job board 26% 11% 27% Accreditation promotion 16% 11% 20% Search engines (paid or pay-per-click) 14% 9% 14% Telemarketing 9% 12% 7% Paid banners on other websites 12% 4% 10% QR codes 8% 8% 11% Mobile apps 7% 9% 6% Radio or TV 4% 3% 5% Texting 1% 1% 2% Do not know 1% -- 1% Other 9% 10% 9%

How do you create/maintain brand awareness of your organization? (Check all that apply.)

METHODS FOR CREATING AND MAINTAINING ASSOCIATION AWARENESS

2013 (n = 691)

2012 (n = 683)

2011 (n = 638)

2010 (n = 405)

2009 (n = 599)

Association website 86% 92% 87% 88% 85%

Email 81% 94% 71% 67% 61%

Word-of-mouth recommendations 79% 83% 90% 91% 77% Association-sponsored social networking sites (e.g., Facebook, LinkedIn) 74% 71% 51% 56% 35%

Promotion to/at your own conferences/ conventions 69% 79% 65% 66% 65%

Association-sponsored events 59% 68% 57% 56% 37%

Advertising in your own publications 56% 72% 48% 56% 51%

Direct mail 56% 69% 62% 66% 76%

Local events/meetings 53% 60% 53% N/A N/A

Exhibiting at other conferences 49% 61% 50% 51% 53% Cross-sell to non-members who buy your products or attend your conferences 48% 61% 56% 59% 52%

Public relations 48% 61% 40% 39% 29%

Search engines (organic) 40% 48% 45% 47% 34%

Chapters 40% 42% 38% 46% 39%

Advertising in outside publications 32% 47% 31% 31% 28%

Job board 30% 39% 24% 23% 23%

Personal sales calls 24% 32% 25% 22% 24%

Accreditation promotion 20% 24% 18% 20% 14%

Mobile apps 15% 20% N/A N/A N/A

Search engines (paid or pay-per-click) 14% 20% 14% 20% 8%

QR codes 13% 30% N/A N/A N/A

Telemarketing 12% 22% 16% 18% 18%

Paid banners on other websites 12% 21% 12% 13% 12%

Radio or TV 8% 15% 7% 5% 7%

Texting 2% 6% N/A N/A N/A

Other 3% 3% 4% 3% 3%

Do not know 1% 1% 0% 0% 1%

Blue: Increase from previous year.Top three methods for creating brand awareness.


18

Similar to findings from the past four years, themethods most associations use for creatingawareness of their organization include theassociation’s website (86%), email (81%), and/orword-of-mouth recommendations (79%).

Interestingly, the only method for creating awarenessthat shows continued growth is the use ofassociation-sponsored social networking sites,indicating a greater use of this medium forgenerating and maintaining awareness of theorganization. All other methods of creatingawareness seem to have declined in use.

Compared to associations showing a decline in newmembers, those reporting increases are significantlymore likely to indicate they use association-sponsored events, advertising in outsidepublications, and accreditation promotion to createand maintain brand awareness of their organization.

Associations reporting increases in overallmembership over the past year report usingassociation-sponsored events, exhibiting at otherconferences/conventions, cross-selling to non-members who have purchased products or attendedevents, search engines (organic and pay-per-click),and promotion of accreditation programs.

Associations with new member renewal rates at orabove 80% are significantly more likely to utilize emailand word-of-mouth recommendations to createand/or maintain awareness of their association.

Individual member associations are significantly morelikely than trade associations to use association-sponsored social media outlets, advertisements intheir own publications, chapter contact, job boards,accreditation promotion, mobile apps, and paidbanners. Trade and combination associations,however, are more likely to engage in personal salescalls compared to individual member organizations.

What are the TOP THREE most effective and least effective membership recruitmentmarketing channels you have used?

EFFECTIVENESS OF MEMBERSHIP RECRUITMENT MARKETING CHANNELS

Marketing Channel Most Effective Least Effective

2013 (n = 685)

2012 (n = 685)

2013 (n = 609)

2012 (n = 630)

Word-of-mouth recommendations 58% 54% 1% 3% Association website 33% 34% 7% 7% Email 31% 37% 9% 11% Direct mail 24% 30% 24% 24% Cross-sell to non-members who buy your products or attend your conferences 18% 20% 5% 7%

Promotion to/at your own conferences/conventions 18% 16% 11% 9% Personal sales calls 16% 17% 7% 7% Chapters 16% 14% 6% 8% Local events/meetings 14% 10% 7% 5% Association-sponsored events 13% 16% 4% 4% Exhibiting at other conferences 9% 10% 22% 28% Promotional incentives 9% 8% 14% 16% Association-sponsored social networking sites (e.g., Facebook, LinkedIn) 7% 5% 18% 18%

Accreditation promotion 5% 4% 5% 4% Search engines (organic) 5% 2% 8% 8% Public relations 4% 5% 8% 11% Telemarketing 4% 4% 17% 13% Advertising in your own publications 3% 3% 16% 17% Advertising in outside publications 3% 2% 22% 25% Search engines (paid or pay-per-click) 1% 1% 9% 10% Job board 1% 1% 10% 13% Radio or TV 1% 1% 13% 11% Paid banners on other websites 1% -- 14% 14% Mobile apps 1% N/A 6% N/A Texting -- -- 8% 5% QR codes -- NA 16% N/A Other 3% 3% 1% 3% Blue: Increase from previous year.

Top three most/least effective membership recruitment channels.


19

TOP THREE MOST EFFECTIVE AND LEAST EFFECTIVE MARKETING CHANNELS BY ASSOCIATION TYPE

Individual Member 2013 2012

Most Effective Word-of-mouth recommendations 60% 51% Email 35% 39% Association website 34% **

Least Effective Exhibiting at other conferences 27% 31% Direct mail 23% 20% Advertising in outside publications 22% 23%

Trade 2013 2012

Most Effective Word-of-mouth recommendations 60% 56% Personal sales calls 32% 37% Association website 30% **

Least Effective Direct mail 26% 34% Advertising in outside publications 23% 28% Exhibiting at other conferences 20% 22%

Both 2013 2012

Most Effective Word-of-mouth recommendations 51% 61% Association website 36% 31% Email 33% 40%

Least Effective Direct mail 21% 22% Advertising in outside publications 19% 25% Exhibiting at other conferences 18% 30%

**Not one of the top three in 2012. Blue: Increase from previous year.

Individual member, trade, and combinationassociations all consider word-of-mouthrecommendations to be the most effectiverecruitment marketing channels. A higher proportionof association executives for individual member andtrade associations indicate that word-of-mouthmarketing is one of the most effective channels.

Additionally, the association website is also rated asone of the most effective recruitment vehicles byindividual member, trade, and combinationassociations. In the 2012 research, the association

website was not among the top three listed as mosteffective for recruitment marketing, suggesting thatassociation executives now see their websites asstrong marketing tools.

Channels considered least effective by individual,trade, and combination associations includeexhibiting at other conferences, advertising inoutside publications, and direct mail. In most cases,the percentage of respondents indicating these astheir least effective channels has declined since 2012.

Similar to the previous year, the most effectiverecruitment channels include word-of-mouthrecommendations, the association’s website, andemail. However, the percentage of respondentsreporting email as the most effective recruitment toolhas declined since last year.

The percentage of respondents that report word-of-mouth recommendations as the most effective formof recruitment has increased since 2012. Otherrecruitment channels that have increased inperceived effectiveness include promotion to/at yourown conferences, chapter involvement, localevents/meetings, association-sponsored socialnetworking sites, and search engines (organic).

Associations reporting declines in renewal ratesoverall are more likely to engage chapters in theirrecruitment efforts compared to associationsreporting increases in renewals.

Telemarketing and texting are seen by morerespondents as ineffective recruitment methodscompared to the previous research.

Associations with 20,000 or more members cite directmail as the most effective membership recruitmentchannel.


20

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

REASONS MEMBERS JOIN ASSOCIATIONS 2013

(n = 693) 2012

(n = 684) 2011

(n = 641) 2010

(n = 400) 2009

(n = 303) Networking with others in the field 24% 22% 25% 24% 22% Access to specialized and/or current information 13% 12% 14% 13% 23%

Advocacy 8% 12% 10% 11% N/A

Learning best practices in their profession 8% 7% 7% 9% 8%

Continuing education 7% 8% 7% 11% 5%

Conferences/trade shows 6% 4% 5% N/A N/A

Accreditation or certification 4% 5% 4% 4% 2% Discounts on products or meeting purchases 4% 5% 5% 6% 9%

Association publications 4% 4% 3% 6% 3%

Prestige of belonging to the association 4% 4% 5% N/A N/A

Access to industry thought leaders 2% 2% 1% N/A N/A

Advancing in their position 2% 2% 2% 2% 4%

Members-only education 2% 2% N/A N/A N/A

Access to career resources 1% 1% 1% 3% 1%

Access to industry benchmark studies 1% 1% 1% 1% N/A

Insurance (Affinity programs) 1% 1% 1% N/A N/A

Not sure 1% 1% 1% 2% N/A

Other 7% 6% 8% 9% 10%

Blue: Top membership driver.Top three reasons members join.

Similar to findings since 2009, association executivesbelieve that members are most likely to join theirorganization to network with others and to haveaccess to specialized and/or current information.Additionally, association professionals also believemembers join to support the advocacy conducted onbehalf of their organization, although the percentageof respondents indicating advocacy as a membershipdriver has declined. Now, learning best practices intheir profession is on par with advocacy as amembership driver.

Trade association executives are significantly morelikely to indicate that networking is a topmembership driver compared to associationprofessionals from individual member organizations(32% vs. 19%), and twice as likely to report thatadvocacy is a membership driver (12% vs. 7%).

Networking and conferences are significantly morelikely to be membership drivers for smaller

associations (up to 5,000 members), whilepublications and accreditation are significantly moreimportant membership drivers for associations withmore than 5,000 members.

Networking is also a significantly strongermembership driver for associations with operatingbudgets up to $5 million, compared to those withlarger operating budgets.

While networking is most often considered thetop membership driver across associationindustries, continuing education is the strongestmembership driver for healthcare associations,and learning best practices is most important formembers in the education profession.Publications are the leading membership driverfor hobby/enthusiast associations, andconferences and trade shows are the strongestmembership driver for retail/consumer productassociations.


21

Engagement, Renewal, Reinstatement (Retention)After successfully acquiring new members, associations must work hard to retain their membership. Memberengagement programs will help increase renewal rates, and in some cases can assist in reinstating lapsed members. Thissection contains information on the most common strategies used to help onboard, engage, and reinstate members.

Which of the following communication methods do you use to help onboard orengage new members in the association? (Check all that apply.)

COMMUNICATION METHODS USED TO ONBOARD NEW MEMBERS 2013

(n = 693) 2012

(n = 685) 2011

(n = 643) 2010

(n = 402) 2009

(n = 337) Email welcome 79% 72% 71% 72% 62%

Mailed welcome kit 60% 64% 67% 68% 83%

Membership card or certificate 51% 51% 51% 59% 58%

Volunteer or staff welcome phone call 31% 29% 30% 32% 26%

New member introductory email series 28% 25% 25% 27% 14%

Special discounts on purchases 23% 24% 23% 23% 17%

Invite to chapter meeting 23% 22% 18% 25% 23%

In-person new member reception or orientation 21% 25% 23% 20% 19%

New member newsletter (print or electronic) 16% 16% 15% 20% 11%

New member survey 15% 16% 17% 18% 20% New member gift (e.g., gift card, calendar, notepad) 12% 12% 11% -- --

New member webinars 10% 9% N/A N/A N/A

Custom new member renewal series 9% 10% 10% 11% 7%

Telemarketing welcome phone call 9% 10% 12% 10% 4%

Early or “at-birth” renewal 4% 4% 5% 4% 2%

No special communication 3% 3% 2% 2% 2%

Other 5% 3% 5% 5% 8%

Blue: Top onboarding communication method.Top three onboarding methods.

SECTION 3

Continuing the trend since 2010, a majority ofassociation professionals report that an emailwelcome is most often used to onboard or engagenew members (79%). This represents a higherpercentage than in the 2012 research (72%).

A mailed welcome kit and a membershipcard/certificate round out the top threecommunication methods used for onboarding orengaging new members. However, findings indicatethat fewer associations are using a mailed welcomekit than in previous years, perhaps opting for theemail welcome instead. Although still used by 60% ofassociations, this finding represents a continueddecline in the use of a mailed welcome kit.

A greater percentage of associations are usingnew member introductory email services towelcome and inform new members of thebenefits their association offers.

Compared to the 2012 findings, a higher percentageof associations report that they engage newmembers with a volunteer or staff welcome phonecall (31%), and/or a new member introductory emailseries (28%). Fewer associations are using an in-person new member reception or orientation (21%vs. 25%).

Associations with renewal rates at 80% or higher aresignificantly more inclined to use the volunteer orstaff welcome phone call, compared to associationswith lower renewal rates.


22

Associations reporting overall increases inmembership are significantly more likely to reportusing new member webinars to engage newmembers. Associations reporting increases inmembership over the past five years are significantlymore inclined to also use new member webinars, aswell as new member newsletters and in-person newmember receptions, compared to those associationsreporting a five-year decline in membership.

Trade associations are more likely to engage newmembers on a more personal level than individualmember organizations using volunteer or staffwelcome calls and in-person receptions ororientations, whereas individual member

organizations are more likely to engage newmembers with a membership card/certificate andnew member surveys.

Associations with new member renewal rates at 80%or above are significantly more likely to employvolunteer or staff phone calls to engage newmembers.

Trade associations are significantly more likely thanindividual membership associations and associationswho identify as both individual and trade to employvolunteer or staff welcome phone calls (47% vs. 21%and 29%, respectively).

In the past fiscal year, how has member engagement and participation changed?

AREAS OF ENGAGEMENT

n Increased Stayed the same Decreased

Attendance at your annual conference/trade show 599 48% 34% 18% Volunteerism with your organization 587 34% 57% 9% Participation in your public social network 567 76% 23% 2% Number of visits to members-only section of website 528 58% 39% 3% Attendance at your professional development meetings 511 48% 40% 12% Attendance at webinars 420 61% 31% 7% Participation in your private social network 406 66% 28% 6% Non-dues product purchases (other than previously checked) 401 36% 51% 13% Non-dues service purchases (other than previously checked) 342 34% 58% 8% Donations to your association’s foundation or PAC 334 38% 48% 14% Book or directory purchases 282 25% 55% 20% Number of members who acquire or maintain a certification with your organization 276 54% 37% 9%

Number of membership upgrades 276 41% 49% 9% Participation in your Young Professional program 221 65% 29% 6% Number of members who purchase or maintain insurance through your organization 197 26% 62% 11%

Participation in your mentoring program 188 43% 48% 9% Top three in each column.

A majority of association executives report that overthe past year they have seen increases inengagement in participation in their public socialnetwork (76%), participation in their private socialnetwork (66%), and participation in their youngprofessionals program (65%).

Decreases in engagement are seen mostly in theareas of book or directory purchases (20%),

attendance at annual conferences/trade shows (18%), and donations to the association PAC orfoundation (14%).

Most associations indicate there has been no changein engagement regarding volunteerism (57%),insurance purchases through the organization (62%),and non-dues service purchases (58%).


23

Within the past year, which of the following has your association introduced toenhance member engagement? (Check all that apply.)

73%

51%

39%

32%

32%

24%

18%

10%

7%

8%

Changes to website

Public social media (Facebook, LinkedIn, Twitter, etc.)

Digital publications

Mobile apps

Member research

QR codes

Private social media

RSS feeds

None

Other

2013 (n = 690)

GROWTH STATISTICS FOR INDIVIDUAL MEMBERSHIP ORGANIZATIONS WHO INTRODUCED MEMBER RESEARCH IN 2012

Change in Overall Membership

(n = 102)

Change in Renewal Rate

(n = 100)

Change in New Members

(n = 92) Increased 59% 45% 65% Stayed the Same 16% 32% 20% Decreased 26% 23% 16%

Three-quarters of associations have introducedchanges to their website as a way to enhancemember engagement. This is an interesting findingbecause the association website is now consideredone of the top three channels for creating ormaintaining brand awareness and one of the mosteffective methods for recruiting new members.

Additionally, about half of associations haveenhanced member engagement with public socialmedia outlets. As noted earlier, three-quarters ofassociation professionals indicate that they useassociation-sponsored social media to create ormaintain brand awareness. Trade associations aresignificantly more likely to report the use of socialmedia platforms compared to individual memberassociations.

Almost 4 in 10 associations have introduced digitalpublications to improve member engagement.

Associations reporting increases in overallmembership over the past year and the past fiveyears are significantly more likely to use memberresearch compared to associations showingmember declines in the same time period.

Nearly 70% of associations indicate they did notconduct member research in the past year. Amongthose associations who introduced member researchin 2012, findings show that these associations weremore likely to see increases in overall membership,renewal rates, and new members. The charts belowsummarize the growth statistics among individualmembership and trade associations who conductedmember research in 2012.


24

GROWTH STATISTICS FOR TRADE ASSOCIATIONS WHO INTRODUCED MEMBER RESEARCH IN 2012


(n = 66)


(n = 64)



GROWTH STATISTICS FOR "BOTH" ASSOCIATIONS WHO INTRODUCED MEMBER RESEARCH IN 2012


(n = 45)


(n = 46)



Do you have a separate strategic initiative or tactical plan to increase engagement?

60% 34%

6%

2013 (n = 688)

Yes

No

Not sure

60% of association executives report that theirorganization has a separate strategic initiative ortactical plan to increase engagement. Only one-thirdof associations do not have a separate plan at thistime.

Associations reporting increases in overallmembership over the past year and over the past fiveyears, as well as those indicating increases in

renewals, are significantly more likely to have aseparate strategic initiative or tactical plan toincrease member engagement.

Associations with operating budgets that are over $5million are also significantly more likely to have aseparate member engagement plan compared toassociations with smaller operating budgets.


25

Is membership renewal based on a fixed calendar date for all members or ananniversary date from the start of membership?

42%

54%

5%

2013 (n = 691)

Fixed calendar date

Membership anniversary date

Other

42% of associations have a fixed calendar date forrenewal of all members, whereas 54% report thatrenewals are based on the anniversary date from thestart of membership.

Associations with renewal rates at or above 80% aresignificantly more likely to report that they have afixed calendar renewal date. Individual member andhybrid organizations tend to have membership

anniversary date renewals, whereas tradeassociations tend to have fixed calendar daterenewals.

Similarly, small associations (with up to 1,000members) are more likely to report fixed daterenewals compared to associations with moremembers.

AVERAGE RENEWAL RATES BASED ON RENEWAL DATE INDIVIDUAL MEMBERSHIP ASSOCIATIONS*

Overall Renewal Rate

Renewal Rate for First Year

Members Fixed calendar date 84% 75% Membership anniversary date 76% 57%

*All findings significant.

AVERAGE RENEWAL RATES BASED ON RENEWAL DATE TRADE ASSOCIATIONS*




*All findings significant.

AVERAGE RENEWAL RATES BASED ON RENEWAL DATE "BOTH" ASSOCIATIONS




Further analysis of the data reveals that associationsthat have a fixed calendar date for membershiprenewals are significantly more likely to have a higherrenewal rate than associations that base their renewals

on a membership anniversary date. This relationship is true among both individual membership and tradeassociations. The charts above summarize thedifferences between the groups.


26

How many membership renewal CONTACTS (such as mailings, emails, phone calls)do you have in your renewal series?

NUMBER OF MEMBERSHIP RENEWAL CONTACTS 2013

(n = 691) 2012

(n = 686) 2011

(n = 642) 2010

(n = 404) 2009

(n = 337) None 1% 1% 2% 2% 1%

1 to 3 21% 20% 23% 22% 21%

4 to 6 38% 40% 44% 44% 46%

7 to 9 18% 23% 18% 20% 19%

10 to 12 9% 7% 7% 6% 7%

13 to 15 5% 3% 1% 2% 2%

16 to 18 2% 2% 1% 1% 1%

More than 18 2% 2% 2% 2% 1%

Not sure 3% 3% 1% 2% 3%

A majority of associations report 4 to 6 renewalcontacts within their renewal series (38%), with about27% making 7 to 12 renewal contacts.

Results indicate a slight drop in the percentage ofassociations using between 4 and 9 renewal contactscompared to the 2012 research. However, there is aslight increase in the number of associationscontacting members 10 to 15 times in their renewalseries (14% vs. 10%) compared to findings from 2012.

Directionally, associations with increases in overallmembership in the past year tend to have a greaternumber of contacts in their renewal series.

Comparatively, trade associations tend to have fewercontacts in their renewal series compared toindividual member organizations.

Smaller associations (up to 1,000 members) andthose associations with smaller operating budgets(less than $1 million) also tend to have fewer contactsin their renewal series

RENEWAL RATES BY NUMBER OF RENEWAL CONTACTS INDIVIDUAL MEMBERSHIP ASSOCIATIONS (n = 289)

1 to 6 contacts 7 or more contacts



Individual member associations using 7 or more contacts in their renewal series are more likely to report overallmembership renewal rates at 80% or higher.

MEMBERSHIP TYPE BY NUMBER OF CONTACTS


Trade (n = 197)

Both (n = 130)

1 to 6 contacts 55% 71% 65%

More than 6 contacts 45% 29% 35%

Regardless of association membership type, a majority send up to six contacts in their renewal series, with tradeassociations being most likely to only send six or fewer renewal messages.


27

WHEN RENEWAL EFFORTS START 2013

(n = 690) 2012

(n = 685) 2011

(n = 641) 2010

(n = 405) 2009

(n = 336) Immediately after welcoming 8% 9% 8% 6% 10%

Prior to 6 months before expiration 5% 5% 6% 8% 8%

6 months prior to expiration 6% 7% 7% 5% 7%





1 month prior to expiration 11% 8% 8% 7% 5%

The month of expiration 4% 4% 3% 3% 4%

Not sure 1% 2% 3% 3% 5%

RENEWAL RATES BY START OF RENEWAL EFFORT INDIVIDUAL MEMBERSHIP ASSOCIATIONS (n = 289)

Three months or less prior to expiration

More than three months prior to expiration



MEMBERSHIP TYPE BY START OF RENEWAL EFFORT


Trade (n = 205)

Both (n = 136)

3 months or less prior to expiration 67% 69% 78%

More than 3 months prior to expiration 33% 31% 22%

About one-third of associations begin the renewalprocess 3 months prior to expiration (36%). Thisrepresents a slight drop from the 2012 data.

Results indicate that a slightly higher percentage ofassociations are beginning their renewal effortscloser to the date of expiration (1 to 2 months beforeexpiration), representing a continued upward trendfor this tactic (29% vs. 24%).

Review of renewal timing indicates that tradeorganizations tend to start their renewal effortssooner than individual member organizations,whereas associations with smaller operating budgetstend to start their renewal efforts closer to theexpiration date.

When do you start the renewal effort?

Individual membership associations that begin their renewal efforts more than three months beforeexpiration are more likely to have overall renewal rates that are at 80% or higher (68% vs. 59%).

The majority of associations, regardless of type, start their renewal efforts 3 months or less prior toexpiration; however, associations with both individual and organizational memberships are most likely tobegin their renewal efforts 3 months or less prior to expiration.


28

When do you end renewal efforts (stop renewal contacts to the member)?

WHEN RENEWAL EFFORTS STOP 2013

(n = 687) 2012

(n = 688) 2011

(n = 639) 2010

(n = 404) 2009

(n = 336) At the month of expiration 2% 2% 2% 1% 2%

1 month after expiration 10% 7% 8% 9% 9%

2 months after expiration 15% 13% 13% 14% 13%



5 months after expiration 3% 2% 3% 2% N/A

6 months after expiration 10% 8% 8% 8% N/A

More than 6 months after expiration 10% 11% 11% 14% N/A

We don’t stop contact 20% 21% 22% 19% 21%

Not sure 2% 3% 3% 3% 4%

MEMBERSHIP TYPE BY WHEN RENEWAL EFFORTS STOP


Trade (n = 204)

Both (n = 133)

Up to 3 months after expiration 50% 44% 47%

More than 3 months after expiration 50% 56% 53%

While the data show no differences among individual member associations, trade associations and combinationassociations are more likely to send renewal notices to members for more than three months after expiration.

About one-third of associations end their renewalefforts within 2 to 3 months after expiration (36%). Aslightly higher percentage of associations stop at the2 month point with a corresponding drop inassociations that wait until the 3 month mark to endtheir renewal efforts.

20% of associations do not stop contact with theirlapsed members in an effort to renew themembership.

Associations indicating an overall increase inmembership over the past five years are significantlymore likely to report that they do not stop contactingmembers (21% vs. 11%).

Trade associations tend to extend their renewalefforts longer than individual membershiporganizations.

Associations with 80% or higher renewals on newmembers are more likely to indicate they do notstop contacting members in their renewal efforts.


29

Which of the following marketing channels do you use for membership renewals?(Check all that apply.)

MARKETING CHANNELS USED FOR MEMBERSHIP RENEWALS

2013 (n = 690)

2012 (n = 685)

2011 (n = 644)

2010 (n = 405)

2009 (n = 333)

Email marketing 90% 88% 88% 88% 83% Direct mail 79% 81% 82% 85% 91% Staff phone calls 53% 53% 52% 49% 56%

Peer member contacts 26% 23% 20% 24% 31% Telemarketing 20% 21% 24% 23% 27% Board phone calls 17% 17% 18% 15% 28% Magazine cover wraps 15% 17% 15% N/A N/A

Chapter phone calls 15% 13% 14% 14% 15% Social media contacts 12% 15% 13% N/A N/A Employer contacts 8% 6% 8% 7% 4% Fax 7% 9% 10% 11% 17% QR codes 3% N/A N/A N/A N/A PURL 2% 3% N/A N/A N/A Texting 1% 2% N/A N/A N/A Renewal app for mobile devices 1% 1% N/A N/A N/A

Other 6% 3% 3% 3% 4%

The top marketing channels for the past five yearsare email marketing, direct mail, and staff phonecalls. Data indicate a slight increase in thepercentage of associations using email whencompared to data since 2009. Conversely, thepercentage of associations that use direct mail as achannel for membership renewal has decreased eachyear since 2009.

When looking at the relationship between the topthree marketing channels and renewal rate, datareveal the following:

— 67% of associations that use email marketing havean 80% or better renewal rate

— 70% of associations that use direct mail have an80% or better renewal rate

— 76% of associations that use staff phone calls havean 80% or better renewal rate

Individual membership associations are significantlymore likely than trade associations to usetelemarketing as a channel for membership renewals(24% vs. 13%). Similarly, individual membershipassociations are significantly more likely than tradeassociations to use chapter phone calls (19% vs. 10%)and social media contacts (14% vs. 8%).

Among those associations that use email marketingas a channel for membership renewals, 67% have arenewal rate of 80% or better.

Blue: Top marketing channel used for membership renewals.Red: Continued decrease in use as a marketing channel for renewals.

Top three marketing channels used for membership renewals.


30

Do you offer any of the following renewal options? (Check all that apply.)

47%

28%

26%

25%

20%

19%

18%

14%

46%

32%

26%

24%

22%

22%

15%

46%

32%

28%

24%

25%

21%

15%

46%

33%

28%

22%

19%

10%

Installment renewal payments (monthly, quarterly)

Multi-year renewals

Renewal bill-me

Automatic annual credit card renewal

Lifetime membership

Early renewal discounts

Automatic annual Electronic Funds Transfer (EFT) renewals

Gift or premiums for renewal

2013 (n = 469)

2012 (n = 445)

2011 (n = 440)

2010 (n = 246)

Not asked in 2010

Not asked previously

The most popular renewal option associations offerare installment renewal payments that can be paidmonthly, quarterly, etc. Trade associations aresignificantly more likely to offer this type of renewaloption when compared to individual membershipassociations (69% vs. 40%).

Trend data show a steady decrease in thepercentage of associations that offer a lifetimemembership renewal option.

Individual membership associations are significantlymore likely than trade associations to offer multi-year

renewals (39% vs. 12%), automatic annual credit cardrenewal (29% vs. 20%), lifetime membership (31% vs.4%), and a gift or premium (18% vs. 10%).

Associations with an 80% or higher renewal rate aresignificantly more likely to use installment renewalpayments when compared to associations with a lessthan 80% renewal rate (58% vs. 32%). On the otherhand, associations with a less than 80% renewal rateare significantly more likely to use early renewaldiscounts (28% vs.14%).


31

What do you believe is the ONE TOP reason members DO NOT renew theirmembership in your organization?

For the second year in a row, association executivesreport that the number one reason members do notrenew membership is due to budget cuts oreconomic hardship of the company. This is thenumber one cited reason among trade associations(30%). Most individual membership associations saythat members do not renew because of the lack ofengagement with the organization.

Segmenting data by membership size reveals thatassociations with 20,000 or more members are most

likely to report that members do not renewmembership in their organization because of a lackof value (14%).

The number one reason for not renewingmembership among associations with a less than60% renewal rate for first-year members is thatmembers could not justify membership costs withany significant ROI.

Blue: Top reasons for not renewing membership per year.Red: Continued decline as a reason for non-renewal.

Top three reasons for not renewing membership.

REASONS FOR NOT RENEWING MEMBERSHIP 2013

(n = 691) 2012

(n = 687) 2011

(n = 639) 2010

(n = 400) 2009

(n = 333) Budget cuts/economic hardship of company 18% 17% N/A N/A N/A

Lack of engagement with the organization 15% 14% N/A N/A N/A Could not justify membership costs with any significant ROI 11% 11% N/A N/A N/A

Employer won’t pay or stopped paying dues 10% 12% 15% 25% 22%

Lack of value 10% 11% 24% 36% 20% Left the field, industry, or profession 7% 8% 12% N/A N/A Too expensive 5% 5% 14% 11% 22%

Forgot to renew 4% 4% 7% 6% 11%

Company closed or merged 3% 2% 7% N/A N/A

Retirement 2% 2% 2% 4% 4%

Lack of relevance 1% 3% N/A N/A N/A Can get materials from other members/other sources 1% 1% N/A N/A N/A

Disagree with the advocacy position of the association 1% 1% N/A N/A N/A

Lost job 1% 1% 3% 4% 3%

Poor customer service 1% 1% -- 1% -- Student memberships do not convert to full memberships 1% 1% N/A N/A N/A

Disappointment with the benefits/services 1% 2% N/A N/A N/A

Moved 1% 2% N/A N/A N/A

Switch to competitor -- 1% 1% 1% --

Not sure 2% 2% 6% 2% 4%

Other 7% 4% 9% 12% 14%


32

After a membership lapses or expires, how long do you continue to contactmembers to invite them to reinstate their membership?

LENGTH OF TIME FOR CONTACTING LAPSED MEMBERS TO REINSTATE THEIR MEMBERSHIP 2013

(n = 689) 2012

(n = 686) 2011

(n = 641) 2010

(n = 403) 2009

(n = 333) We don’t contact lapsed members 10% 10% 11% 10% 8%

1 year after expiration 19% 22% 22% 24% 25%

2 years after expiration 12% 13% 14% 15% 13%

3 years after expiration 8% 10% 9% 6% 6%

4 to 5 years after expiration 5% 5% 4% 6% 5% 6 to 10 years after expiration 1% 1% 1% 1% 1% We continue indefinitely to contact lapsed members 32% 31% 30% 24% 30%

Other 7% 4% 3% 7% 6%

Not sure 5% 5% 5% 7% 7%

After a membership lapses or expires, mostassociations (32%) continue to contact lapsedmembers indefinitely to invite them to reinstate theirmembership. Data reveal a steady increase in thepercentage of associations that report doing thisfrom 2010.

Most individual membership associations continue tocontact lapsed members up to 1 year after expiration(21%), while most trade associations continue tocontact lapsed members indefinitely (43%).

MEMBERSHIP TYPE BY HOW LONG LAPSED MEMBERS ARE CONTACTED


Trade (n = 178)

Both (n = 120)

We don't contact lapsed members 13% 10% 11%

1 to 3 years after expiration 46% 38% 53%

More than 3 years after expiration 41% 52% 37%

Trade associations tend to contact lapsed members longer than individual member organizations or combination organizations.


33

What methods do you use to continually contact lapsed members? (Check all that apply.)

90%

66%

51%

9% 3% 1%

5%

91%

65%

40%

14% 6%

0%

Email Direct mail Phone Social media Fax Text Other

2013 (n = 584) 2012 (n = 209)

N/A

Email is the preferred method of communicationassociation executives use in order to continuallycontact lapsed members to renew their membershipin the association.

Findings indicate there is a substantial increase in theuse of phone calls to contact lapsed members.

Trend data suggest that a slightly lower percentageof associations are using social media to continuallycontact lapsed members for membership renewal.


34

Social MediaSocial media has become an increasingly used marketing tool across many industries—associations included.The next section will provide information about social media uses for membership marketing amongassociations.

Which social media does your organization officially use? (Check all that apply.)

SOCIAL MEDIA OUTLETS OFFICIALLY USED BY ASSOCIATIONS

2013 (n = 690)

2012 (n = 685)

2011 (n = 641)

2010 (n = 405)

Facebook 85% 86% 91% 75% Twitter 76% 79% 71% 66% LinkedIn (Public Access) 54% 56% 53% 59% YouTube 52% 53% 45% 35% Association Blog 35% 30% 27% 30% LinkedIn (Members Only) 34% 30% 28% N/A Association Listserv 24% 22% 24% 31% Flickr 17% 15% 15% N/A Private Association Social Network 16% 19% 18% 17% Google+ 11% 11% N/A N/A Pinterest 10% N/A N/A N/A Wikis 5% 8% 9% 13% Ning/Groupsite 2% 4% 4% 6% MySpace 1% 1% 1% 4% None 4% 3% 6% 8% Other 5% 4% 4% 6%

Blue: Most commonly used social media tool.Red: Steady increase in social media usage.

Top three social media tools.

Facebook, Twitter, and LinkedIn (public access) arethe three most common social media sites used byassociations for the past four years. Individualmembership associations are significantly more likelythan trade associations to use Facebook (89% vs.79%) and an association listserv (30% vs. 18%).

Trend data show a steady increase in the percentageof associations that use an association blog and amembers-only LinkedIn site.

Associations with an annual operating budget over$5 million are significantly more likely to use a privateassociation social network when compared toassociations with smaller budgets.

SECTION 4


35

SOCIAL MEDIA USAGE

n

Asso

c.

Blog

Asso

c.

List

serv

Face

book

Flic

kr

Goog

le+

Link

edIn

(P

rivat

e)

Link

edIn

(P

ublic

)

Pint

eres

t

Priv

ate

Asso

c.

Soci

al

Net

wor

k

Twitt

er

YouT

ube

Generating awareness for your association 574 30% 12% 84% 11% 6% 21% 50% 8% 8% 69% 43%

Promoting specific association benefits, services, programs 477 25% 16% 74% 3% 5% 22% 35% 3% 15% 59% 21%

Providing association news 546 30% 17% 80% 2% 5% 21% 38% 2% 13% 67% 14%

Promoting association events 463 26% 17% 81% 6% 5% 24% 41% 4% 14% 71% 25%

Promoting industry events 410 26% 17% 81% 3% 3% 21% 36% 2% 12% 67% 16%

Providing advocacy/legislative information 370 34% 19% 66% 1% 3% 17% 29% 1% 13% 60% 15%

Providing industry-related information 494 33% 17% 68% 2% 6% 22% 36% 4% 13% 61% 18%

Promoting education/certification 463 21% 19% 78% 3% 5% 23% 39% 1% 16% 59% 19%

Providing how-to information 297 27% 19% 39% 1% 3% 14% 23% 2% 17% 28% 29%

Promoting socialization/discourse among members 442 21% 19% 67% 4% 3% 25% 30% 3% 18% 45% 8%

Promoting socialization/discourse among attendees while at events 375 14% 9% 56% 7% 3% 10% 17% 3% 13% 77% 10%

Promoting specific sessions and programs at your meetings/events 460 22% 14% 70% 3% 3% 19% 33% 1% 12% 71% 12%

Soliciting new members 335 14% 6% 70% 1% 5% 14% 45% 2% 4% 47% 16%

Promoting membership in your organization 455 21% 10% 77% 4% 4% 19% 44% 3% 8% 57% 25%

Harvesting contact information for recruitment efforts 274 9% 7% 48% 1% 1% 20% 51% -- 6% 24% 4%

Highest percentage in each row. Second-highest percentage in each row. Third-highest percentage in each row.

Seeing as Facebook, Twitter, and a public LinkedInsite are the most commonly used social mediaplatforms for associations, it is no surprise that theyare most often used for almost all forms of memberengagement.

Twitter tends to be used over Facebook whenpromoting discussion or specific sessions at events,and YouTube is used slightly more than Twitter whenproviding how-to information, presumably because itincorporates a video demonstration, although Twittercan include a link to the YouTube feed.

Facebook is used more often than Twitter forsoliciting new members and promoting membershipin the organization, but the public LinkedIn site isused for harvesting the contact information forrecruitment efforts.

For about one-third of associations, the internalassociation blog is used to provide advocacy andlegislative information.

Of the social media outlets that you use, please indicate how you use them.


36

Which department in your association is responsible for your social media programs?(Check all that apply.)

52%

44%

31%

8%

7%

6%

4%

12%

Communications

Marketing

Membership

IT

Education

Advocacy and policy

Social media

Other 2013 (n = 657)

While half of the sample indicates that their communications department is responsible for social media sites, 4%of associations in the sample indicate they have a separate social media department that manages theorganization’s social media platforms.

The communications department is most likely to handle social media programs in individual member and tradeassociations, whereas the marketing department is most often responsible for social media in associations thathave both individual and organizational memberships.

54%

42%

28%

8%

5%

6%

4%

10%

53%

41%

33%

7%

10%

7%

4%

12%

46%

51%

31%

9%

9%

8%

5%

13%

Communications

Marketing

Membership

IT

Education

Advocacy and policy

Social media

Other

Individual (n = 324)

Trade (n = 189)

Both (n = 130)


37

Challenges and GoalsIt is necessary for an association to define its challenges and then strategically plan its goals for the coming year.The next section will focus on what associations see as their biggest challenges and the membership goals thatwill define success.

What are your organization's TOP THREE biggest challenges to growingmembership?*

TOP CHALLENGES TO GROWING MEMBERSHIP 2013

(n = 688) 2012

(n = 683) 2011

(n = 631) Insufficient staff 27% 24% 16%

Difficulty attracting and/or maintaining younger members 24% 24% N/A Perception of the association and/or its culture (i.e., old boy’s network, not specialized enough) 23% 24% N/A

Membership too diverse; difficulty meeting needs of different segments 22% 26% N/A

Insufficient budget 22% 21% 13% Changing demographics of industry 20% 18% N/A Competitive associations 19% 16% N/A

Lack of strategy or plan 18% 17% 11%

Weak product or service offerings 17% 18% 13%

Inadequate association management database 16% 13% 8% Lack of marketing expertise 12% 10% 7%

Industry consolidation 11% 14% N/A

Inadequate research to understand market 10% 10% 7% Difficulty in converting student memberships to regular memberships 10% 9% N/A

Market saturation 9% 10% 9%

Lack of integration between national and chapters 7% 8% N/A

Misalignment of goals between board and executive staff 4% 4% N/A

Poor customer service 1% 1% N/A

Economy -- 1% N/A

Other 11% 12% 16% *In the 2011 Membership Benchmarking Survey, respondents were asked to choose the single biggest challenge togrowing membership.Blue: Top challenge to growing membership.

Top three challenges to growing membership.

2013 data suggest that the top three challengesassociations have when it comes to growingmembership are insufficient staff, difficulty attractingand/or maintaining younger members, and theperception of the association and/or its culture.

The top challenge for associations with an 80% orabove renewal rate is insufficient staff. Conversely,the number one challenge to growing membershipamong associations with a less than 80% renewal rateis difficulty attracting and/or maintaining youngermembers.

When examining data according to an association'soperating budget, findings suggest that the numberone challenge among associations with an operatingbudget under $5 million is insufficient staff. Amongthose associations that report having an operatingbudget over $5 million, their number one challengeto growing membership is meeting the specificneeds of a diverse membership.

SECTION 5


38

TOP CHALLENGES TO GROWING MEMBERSHIP BY FIVE YEAR MEMBERSHIP GROWTH

Challenge Five Year Membership Increased (n = 367)

Five Year Membership Unchanged (n = 50)

Five Year Membership Decreased (n = 254)

Insufficient staff



Insufficient budget Difficulty attracting/maintaining young members

Changing demographics of industry

This year’s findings indicate that there is someoverlap in challenges between associations withdifferent long-term growth patterns. The challengesfaced by associations showing increases inmembership over the past five years (insufficient staff,too much diversity in membership, and perceptionsof the association) are shared by those showing nochange or declines in membership.

Associations showing no change struggle also withinsufficient budgets and a change in industrydemographics.

Associations showing declines in five-yearmembership and those showing no change findattracting and/or maintaining young members to bea substantial challenge.

TOP CHALLENGES TO GROWING MEMBERSHIP BY MEMBERSHIP TYPE

Challenge


Trade (n = 206)

Both (n = 136)

Insufficient staff



Insufficient budget

Difficulty attracting/maintaining young members

Data also highlight several differences between thetype of membership an association offers. While allthree types of membership cite insufficient staff as atop challenge, we find that trade organizations andassociations that offer both individual member and

trade membership are more likely to report that aninsufficient budget is a top challenge. Similarly, theseassociations are more likely to report that a diversemembership is a significant barrier to growingmembership.


39

TOP CHALLENGES TO GROWING MEMBERSHIP BY SIZE OF MEMBERSHIP

Challenge Up to 1,000

(n = 298)

1,001-5,000

(n = 181)

5,001-20,000

(n = 111)

More than 20,000 (n = 65)

Insufficient staff



Insufficient budget Difficulty attracting/maintaining young members

Segmenting data by the size of an association'smembership also reveals key differences.Associations with fewer than 5,000 members aremore likely to say insufficient staff is a significantchallenge. Conversely, associations with more than5,000 members are more likely to state that attractingor maintaining younger members is difficult.

Those associations with fewer than 20,000 membersare more likely to report that an insufficient budget isa challenge.

74%

74%

38%

33%

28%

21%

16%

9%

2%

Increasing member engagement

Increasing both membership acquisition and retention

Increase understanding of member needs

Increasing non-dues revenue from members

Increasing dues revenue

Increasing membership retention

Increasing membership acquisition

Increasing member diversity

Other

2013 (n = 690)

What are your association's TOP THREE membership goals?

Findings suggest that the top three goals associationsset are increasing member engagement, increasingboth membership acquisition and retention, andincreasing understanding of member needs.

Trade associations are significantly more likely thanindividual membership associations to set a goal toincrease member engagement (83% vs. 71%).

Associations with a budget larger than $1 million aresignificantly more likely than associations withbudgets less than $1 million to set a goal to increasedues revenue.


40

Dues and Membership StructureAssociations are often plagued with questions about how and when to raise dues. Recently, we’ve seen anincrease in the shifting of membership models to create a different type of dues structure. The following dataanswers questions about how associations are handling dues increases and membership models.

How much are your basic annual membership dues?

BASIC ANNUAL MEMBERSHIP DUES

2013 (n = 690)

2012 (n = 686)

2011 (n = 641)

2010 (n = 401)

2009 (n = 324)

Under $50 6% 6% 7% 6% 4%

$50 - $99 11% 12% 11% 12% 7%

$100 - $149 10% 9% 11% 14% 11%

$150 - $199 11% 12% 13% 12% 12%

$200 - $299 11% 12% 12% 11% 16%

$300 - $399 8% 9% 7% 10% 13%

$400 - $499 5% 4% 6% 5% 9%

$500 - $749 6% 6% 5% 4% 11%

$750 - $999 2% 2% 2% 3% 3%

$1,000 and over 6% 6% 6% 6% 7%

Varies by company size 23% 22% 20% 19% 9%

Results indicate there is very little shift in theassociation dues from the previous research.

About one-third of associations indicate theirmembership dues are between $100 and $299 (32%).This is similar to the 2012 results.

Just under one-quarter of the associations in thesample say their annual membership dues vary bycompany size.

BASIC ANNUAL MEMBERSHIP DUES BY MEMBERSHIP TYPE


Trade (n = 209)

Both (n = 136)

Under $50 9% 1% 7% $50 - $99 15% 1% 17% $100 - $149 15% 2% 10% $150 - $199 16% 2% 12% $200 - $299 15% 5% 13% $300 - $399 11% 4% 10% $400 - $499 6% 4% 3% $500 - $749 5% 8% 6% $750 - $999 2% 3% 2% $1,000 and over 2% 15% 2% Varies by company size 5% 56% 19%

While most individual membership associations(16%) charge $150–$199 for annual membershipdues, trade associations and associations who

identify as both an individual membership and tradeassociation are most likely to offer prices formembership that vary by company size.

Blue: Highest percentage per membership type.

SECTION 6


41

How often does your association raise membership dues?

When was the last time your association raised membership dues?

24%

21%

11% 9% 8%

5% 3%

6%

15%

2013 or plan to

this year

2012 2011 2010 2009 2008 2007 2006 Other year

2013 (n = 680)

Almost half (45%) of the association executivesindicate that their organization either plans to raisedues this year or raised their membership dues in2012.

Associations with renewal rates at or above 80% aremore likely to indicate they plan to raise dues thisyear compared to those with lower renewal rates(27% vs. 19%).

Among those associations that report raising dues in2012, 34% saw an increase in renewal rates over thepast year, while 28% saw no change and 38% saw adecrease in renewal rates.

31% of trade associations plan to increase theirmembership dues this year compared to 21% ofindividual member organizations. However, 25% ofindividual membership associations report that theyraised their membership dues in 2012 compared toonly 16% of trade associations.

22%

6%

63%

10%

0%

17%

4%

58%

9%12%

Annually Every other year As needed Never Other

2013 (n = 610) 2011 (n = 644)

Similar to findings from 2011, most associations raisedues only as needed. After that, about 22% ofassociations raise dues annually.

Associations with renewal rates that are 80% orhigher are more likely to raise dues annuallycompared to associations with lower renewal rates(28% vs. 13%). An annual dues hike is often lowerthan one that may occur sporadically.

Trade associations are significantly more likely toraise their dues annually compared to individualmember organizations (29% vs. 17%).

Associations with the highest percentages of newmember renewals (80% or higher) are significantlymore likely to raise dues annually, while thosewith lower renewal rates are more likely to raisedues as needed.


42

What was the average percentage of your last membership dues increase across allmembership categories?

51%

25%

9%

7%

4%

1%

1%

1%

2%

1% to 5%

6% to 10%

11% to 15%

16% to 20%

21% to 25%

26% to 30%

31% to 35%

36% to 40%

More than 40% 2013 (n = 636)

How would you describe your membership dues structure?

51%

22%

12%

1%

14%

47%

25%

14%

2%

13%

The membership dues are based on certain attributes (e.g., qualifications, experience,

company size, revenue)

Everyone pays the same membership dues

The membership dues are based on a tiered structure of increasing benefits

The membership dues are based on member-selected benefits (à la carte)

Other

2013 (n = 693)

2012 (n = 686)

A membership dues structure based on specificattributes is the most common type of membershipstructure for participants in this study (51%), a slightincrease from the previous year.

There are slight declines in other types ofmembership structures, including the “one size fitsall” model where everyone pays the same dues andthe tiered membership structure which offers anincreased level of benefits for higher dues payments.

About one-half of associations raise dues only 1 to 5%,while one-quarter raise dues between 6 and 10%.

Associations with 80% or more renewal rates are significantly more likely to raise dues up to5% only.

Trade associations are significantly more likely toraise dues up to 5% compared to individual memberorganizations (60% vs. 45%), while individual membergroups have a significantly higher propensity toincrease dues by 6 to 10% (29% vs. 20%).


43

Findings demonstrate that associations with renewalrates at or above 80% are significantly more likely tohave a membership structure that is based onspecific attributes and criteria, while those withrenewal rates under 80% are significantly more likelyto report that everyone pays the same dues rate.

69% of trade associations report a dues structurebased on specific criteria compared to only 42% ofindividual member organizations, while 29% of theindividual member groups employ a single feemembership structure compared to only 15% oftrade associations.

The largest associations (20,000 or more members)are more likely to report that everyone pays the samedues, while smaller associations (under 20,000members) are more likely to have a dues structurebased on specific attributes.

Industries most likely to indicate a structure whereeveryone pays the same dues includephilanthropic/service organizations and real estate.Industries most likely to report a tiered membershipstructure include arts/cultural/historical/museums.

Have you made any changes to your membership model (i.e., the membershipcategories your association offers) within the past two years?

33%

67%

(n = 671)

YesNo

Only one-third of associations have made changes totheir membership model within the past two years.

While associations boasting 80% renewal rates orhigher are significantly more likely to indicate theyhave not made changes to their membership model

(70%), findings show that associations reportingincreases in new members and increases in overallrenewals are significantly more likely to have madesuch changes compared to associations with nochange or declines in new members and renewals.

42%

29%

13%

2%

14%

69%

15%

5%

2%

9%

46%

15%

17%

2%

21%

The membership dues are based on certain attributes (e.g., qualifications, experience,

company size, revenue)

Everyone pays the same membership dues

The membership dues are based on a tiered structure of increasing benefits

The membership dues are based on member-selected benefits (a la carte)

Other

Individual (n = 334)

Trade (n = 209)

Both (n = 136)


44

Managing Your AssociationThis section contains information on the business of running an association. Results pertaining to operatingbudgets, spending on membership marketing programs, and how much of the budget is attributed to eachspending area are discussed. Additionally, this section reports on the most used AMS software and differenttypes of research used to measure the effectiveness of marketing campaigns.

What is your organization's annual operating budget?

65%

14%

12%

7%

3%

65%

14%

10%

8%

3%

56%

20%

13%

9%

3%

Up to $4.9 million

$5 million to $9.9 million

$10 million to $19.9 million

$20 million to $50 million

More than $50 million

2013 (n = 673)

2012 (n = 670)

2011 (n = 613)

Compared to the 2012 research, there are very few differences in operating budgets. Similar to 2012, about two-thirds of associations report operating budgets less than $5 million.

OPERATING BUDGET BY NUMBER OF PAID MEMBERS AND STUDY YEAR

Less than $1 million $1 million to $4.9 million $5 million and higher 2013

(n = 193) 2012

(n = 165) 2013

(n = 227) 2012

(n = 262) 2013

(n = 225) 2012

(n = 237) Up to 1,000 68% 67% 36% 27% 35% 8% 1,001 to 5,000 26% 29% 39% 42% 18% 19% 5,001 to 20,000 4% 4% 22% 24% 24% 32% More than 20,000 2% -- 3% 7% 23% 41% Blue: Highest percentage per column.

Substantial decrease from previous year. Substantial increase from previous year.

Findings from 2013 show that most associations witha less than $1 million budget and a $5 million andhigher budget have up to 1,000 members. Among

those associations that have an operating budget of$1 million to $4.9 million, most have a membership of1,001 to 5,000 members.

SECTION 7


45

Over the course of a year, excluding staff costs, how much did you spend on thefollowing membership marketing programs?

MEAN AMOUNT SPENT ON MEMBERSHIP MARKETING PROGRAMS BY YEAR

2013 2012 2011 2010

Awareness and branding $76,512 $46,009 $92,453 $109,633 Recruitment $62,566 $80,275 $56,705 $118,789 Engagement/onboarding $32,929 $21,132 $43,401 $53,485 Renewals $42,332 $40,358 $24,943 $27,520 Reinstatement or win-back $18,628 $14,018 $14,048 $19,644

While spending seemed to decline since 2010, thefindings this year indicate that associations havestarted to increase their budgets again, as meanspending in all areas has increased except forrecruitment.

The average increases for each of the areas:

– 66% increase in spending for awareness andbranding

– 56% increase in spending forengagement/onboarding

– 5% increase in spending for renewals

– 33% increase in spending for reinstatement

The average decline in spending for recruitment isabout 22%.

“Engagement with both potential and current members is the key to success.You must create a valuable experience for members.”

MEAN AMOUNT SPENT ON MEMBERSHIP MARKETING PROGRAMS BY ORGANIZATION TYPE


Awareness and branding $88,307 $56,926 $88,306 Recruitment $80,816 $42,482 $53,570 Engagement/onboarding $41,182 $25,871 $27,829 Renewals $58,799 $24,392 $28,911 Reinstatement or win-back $26,986 $8,964 $9,121

MEAN AMOUNT SPENT ON ACQUISITION AND RETENTION BY ORGANIZATION TYPE


Acquisition $169,123 $99,408 $141,876 Retention $126,967 $59,227 $65,861

Regardless of the type of organization, the largest amount is spent on awareness and branding of the association.The chart below shows that associations tend to spend more in general on acquisition programs than onretention programs.

“When you make retention your primary goal and focus on deliveringvalue to your members, that will make the decision to renew obvious;

the recruitment challenge then becomes that much easier.”


46

MEAN AMOUNT SPENT ON MEMBERSHIP MARKETING PROGRAMS BY RENEWAL RATE

Less than 80% 80% and higher

Awareness and branding $66,051 $73,079 Recruitment $68,348 $64,216 Engagement/onboarding $32,549 $33,711 Renewals $38,514 $48,969 Reinstatement or win-back $21,775 $17,852

Associations with renewal rates at or above 80%spend more on awareness and branding andrenewals, while associations with renewals under 80%

spend more on recruitment and reinstatement.Associations tend to spend similar amounts onengagement/onboarding.

What percentage of revenue is attributable to each of the following areas? (Means reported)

43%

25%

6%

5%

4%

2%

15%

Dues

Conferences/meetings/trade shows

Books/products/services

Webinars/seminars/training (not offered during annual meeting)

Certification and accompanying materials

Affinity programs (e.g., insurance, credit cards)

All other revenue areas

2013 (n = 695)

Two-thirds of associations’ revenue comes from duesand conferences, meetings and/or trade shows.

Results indicate that associations reporting increasesin membership over the past year and the past fiveyears attribute a significantly higher percentage ofrevenue to conferences, meetings, and trade showsthan those associations showing membershipdeclines in the same areas.

While not a large part of the revenue stream,individual member associations report significantlyhigher revenues attributable to certification,webinars/seminars, and books/products/services,compared to trade associations.

Associations with new member renewals of 80% orhigher attribute a significantly higher percentage ofrevenue to dues and webinars/seminars compared toassociations with lower new member renewal rates.

“We need to diversify our revenue streams, including a greater percentage from dues income. We can't raise dues significantly for

many members because they see us as only providing value through our trade shows and are missing the year-round advocacy

and information value we provide all year long.”


47

40%

24%

7%

5%

5%

2%

17%

48%

26%

5%

4%

2%

3%

13%

40%

27%

6%

6%

4%

1%

16%

Dues

Conferences/meetings/trade shows

Books/products/services

Webinars/seminars/training (not offered during annual meeting)

Certification and accompanying materials

Affinity programs (e.g., insurance, credit cards)

All other revenue areas

Individual (n = 334)Trade (n = 210)Both (n = 136)

While all association types gain their largest share of revenue from dues, almost half of trade associations aresupported by membership dues. The second largest revenue generator is the annual conference or trade show.

What types of research tools do you use to effectively measure member needs?(Check all that apply.)

70%

39%

30%

30%

22%

17%

8%

8%

77%

41%

31%

24%

23%

13%

8%

7%

Quantitative survey research

Focus groups

Phone interviews

On-site interviews/intercepts

Secondary research

Online panels/bulletin boards

None

Other 2013 (n = 691)

2012 (n = 687)

Of the associations that conduct member research,the most common is quantitative survey research,although this has declined since the previous year.

On par with findings from 2012, close to 40% ofassociations use focus groups and 30% employphone interviews.

The methodologies that have increased in use sincethe 2012 study are on-site interview/intercepts,probably conducted at annual meetings and tradeshows, and online panels/bulletin boards, which canbring people together to discuss issues regardless oftheir location.


48

Associations reporting increases in membership overthe past year are significantly more likely to usequantitative survey research than associationsshowing declines. Additionally, associationsindicating increases or no change in renewals arealso significantly more likely to employ quantitativesurvey research.

Compared to individual member organizations, tradeassociations are significantly more likely to use phoneinterviews (40% vs. 24%). Individual member

organizations, however, are significantly moreinclined to utilize quantitative survey research (74%vs. 67%) and focus groups (45% vs. 33%).

Associations with more than 20,000 members andthose with operating budgets over $5 million aremore inclined to use research to measure memberneeds, and are significantly more likely to employseveral research methodologies than smallerassociations or those with smaller budgets.

What types of analysis do you use to measure the effectiveness of your membershipmarketing campaigns? (Check all that apply.)

49%

37%

25%

24%

17%

16%

15%

5%

4%

31%

2%

49%

29%

16%

20%

15%

7%

6%

40%

Response rate analysis

Return on investment (ROI)

Source code or keycode capture and analysis

Cost of acquisition

Liftetime value analysis

A/B split marketing tests

Computer matchback to prospect database

Recency/Frequency/Monetary amount analysis

Regression analysis

None

Other

2013 (n = 691)

2012 (n = 667)

Not asked in 2012

Not asked in 2012

Not asked in 2012

49% of associations use response rate analysis tomeasure the effectiveness of their membershipmarketing. This represents no change from theprevious research.

More than one-third of associations employ return oninvestment (ROI) measurements (37%), and aboutone-quarter use source code or keycode capture andanalysis (25%) and cost of acquisition analysis (24%).

31% of associations are not using any analysis tomeasure their marketing effectiveness, but thisrepresents a decline from the findings reported in 2012.

Associations reporting increases in overallmembership over the past year and those withincreases or no change in their renewals aresignificantly more inclined to employ response rateanalysis and return on investment measurementsthan associations with declines in the same areas.

Individual member organizations, those with morethan 20,000 members, and those with operatingbudgets of at least $1 million, are significantly morelikely to utilize multiple types of effectivenessmeasurements.

“Develop a deep understanding of your membership through data in your database and through outside market research. This

information is very useful in setting direction and priorities, andunderstanding shortcomings and approaches to address them. It hasproven invaluable in gaining buy-in from the leadership and CEO.”


49

What association management software (AMS) do you use?

ASSOCIATION MANAGEMENT SOFTWARE USED BY STUDY YEAR

2013 (n = 684)

2012 (n = 640)

iMIS (ASI-iMIS) 20% 19% Avectra Inc. 13% 11% Personify/TMA Resources 7% 6% Home grown or tailor-made system 6% 11% Microsoft Excel 4% N/A Microsoft Access 3% N/A Microsoft CRM 3% N/A Salesforce 2% N/A Aptify 2% 2% Affiniscape 2% N/A Protech 2% 2% YourMembership 2% 2% CDC gomembers 2% 1% ISSI (Impak) 2% 1% MemberClicks 1% 1% Wild Apricot 1% N/A ACGI Software 1% 2% CiviCRM 1% N/A Euclid Clear Vantage 1% N/A Timberlake Software 1% -- 123Signup Association Management Solutions, Inc. 1% 1% JL Systems (NOAH) 1% 1% None 4% 9% Other 22% 32%

While there is a wide variety of AMS technologyavailable, the most widely used associationmanagement software systems are iMIS (20%) andAvectra (13%).

Fewer associations are using home grown systemscompared to the previous research.

Additionally, only 4% of association professionalsnow indicate they do not use any associationmanagement software.


50

The Demographics of Your AssociationThe questions in this section are to help associations better understand the results of this report in the context ofwho participated. Providing this information allows association executives to better understand how theycompare to other associations that are similar in size, industry, membership type, etc.

What type of membership offering best describes your organization?

TYPE OF ASSOCIATION BY STUDY YEAR

2013 (n = 693)

2012 (n = 643)

2011 (n = 643)

2010 (n = 404)

2009 (n = 326)

Individual Member 48% 54% 49% 54% 64% Trade 30% 28% 36% 28% 22% Both 20% 15% 13% 17% 14% Other 2% 3% 2% 1% 1%

Down from last year, fewer individual member organizations have participated in this year’s study, but there is acorresponding increase in the percentage of organizational/trade associations and combination associations.

How do you define the scope of your association?

SCOPE OF ASSOCIATION BY STUDY YEAR

2013 (n = 693)

2012 (n = 687)

2011 (n = 643)

2010 (n = 403)

2009 (n = 326)

International 39% 37% 39% 41% 34% National 34% 37% 38% 40% 34% Regional (multi-state) 4% 3% 3% 5% 14% State 12% 14% 12% 2% 2% Local 8% 8% 7% 9% 14% Other 3% 2% 2% 3% 2%

Most associations identify themselves as either international or national, with a slight increase in the percentage ofinternational associations and a slight decline in the percentage of national associations.

SECTION 8


51

Does your association have chapters?

Similar to previous research, about half of participatingassociations do not have chapters (50%).

About one-quarter of associations do have chaptersin which membership is optional, while 20% havemandatory chapter membership.

What membership categories does your association offer? (Check all that apply.)

MEMBERSHIP CATEGORIES OFFERED BY STUDY YEAR

2013 (n = 690)

2012 (n = 682)

2011 (n = 636)

2010 ( n= 403)

Individual Basic 57% 60% 64% 69% Student 52% 53% 54% 59% Company/Institutional/Organization 49% 45% 55% 55% Associate 41% 41% N/A N/A Retired 38% 39% 43% 50% Honorary 28% 27% N/A N/A Affiliate 24% 27% N/A N/A Lifetime 24% 26% 29% 33% International 19% 19% N/A N/A Young Professional (those new to the profession/industry or under a certain age) 15% 17% 18% N/A

Vendor/Supplier 14% 15% 22% 21% Academic 14% 16% N/A N/A Multi-year 13% 11% 17% 20% Unemployed 11% 10% 15% 16% Transitioning student/Recent graduate 11% 11% N/A N/A Individual Plus (added benefits to basic membership) 10% 12% 15% 16% Government/Public sector 9% 10% N/A N/A Non-profit 9% 10% N/A N/A Group (multiple individuals) 8% 12% 17% 16% Online only (paperless) 7% 7% 12% 14% Family 6% 7% N/A N/A Military 5% 4% N/A N/A Consultant 5% 6% N/A N/A Publications only 4% 5% N/A N/A Freemium (no-cost membership) 4% 3% 8% 8% Other 11% 10% 12% 10%

26%

20%

4%

50%

26%

21%

3%

51%

30%

17%

3%

51%

Yes, chapter membership is optional

Yes, chapter membership is mandatory

Our organization is a chapter

No

2013 (n = 684) 2012 (n = 688) 2011 (n = 640)

“Engage with our chapters and give them the tools andencouragement they need to help us grow.”


52

The top membership categories offered forparticipating associations include individual basic,student, and company/institutional/organization.However, there is a decline in the percentage ofassociations reporting individual basic membershipsand an increase in those offering acompany/institutional/organization membership.

Results show a continued decline in the percentageof associations offering group memberships,individual plus memberships, vendor/suppliermemberships, lifetime memberships, youngprofessional memberships, and retired memberships.

How many paid members are in your association?

NUMBER OF PAID MEMBERS BY STUDY YEAR

2013 (n = 690)

2012 (n = 689)

2011 (n = 642)

2010 (n = 403)

2009 (n = 325)

Up to 1,000 46% 30% 30% 24% 26% 1,001 to 5,000 28% 30% 28% 26% 30% 5,001 to 20,000 17% 22% 25% 26% 22% More than 20,000 10% 18% 17% 22% 21%

Most associations participating in this year’s studyhave 1,000 members or fewer. This represents asignificant increase over the previous years.

Additionally, there is a large decline in the number ofassociations with more than 5,000 members thatparticipated in this year’s research.

33%

26%

23%

18%

68%

25%

6%

1%

39%

35%

19%

7%

Up to 1,000

1,001 to 5,000

5,001 to 20,000

More than 20,000


Trade (n = 207)

Both (n = 131)

MEAN NUMBER OF PAID MEMBERS

Total Individual Member Trade Both

Mean 10,544 17,886 1,655 8,223 Median 1,200 3,200 555 1,900

Not surprisingly, individual member associations have a higher number of members and trade associations havefewer. Hybrid organizations are in between the two.


53

What is the best estimate of the average age of individuals within your membership?

5%

24%

50%

18%

4%

Less than 35

35 to 44

45 to 54

55 to 64

65 and older

2013 (n = 314)

Data show a normal age distribution across all associations, with half reporting an average member age between45 and 54 years old. The actual mean age is 48 years old and the median age is 49 years old.

PERSONAL JOB FUNCTION BY STUDY YEAR

2013 (n = 693)

2012 (n = 684)

2011 (n = 639)

2010 (n = 339)

Membership 58% 52% 42% 40% Marketing 30% 35% 19% 21% Communications 16% 15% 3% 4% Executive Director 12% 10% 18% 17% CEO/President 10% 10% N/A N/A Administration 10% 10% 3% 3% Publications 8% 6% -- -- Branding 8% 7% -- -- Operations 8% 8% 2% N/A Conventions/Meetings 7% 7% -- 1% Chapter Relations 7% 7% -- 1% Computer/Information Technology 6% 4% 1% 1% Executive Vice President/Senior Vice President 6% 5% N/A N/A Fundraising 6% 4% N/A N/A Board Member 4% 4% N/A N/A Education/Training 4% 4% 1% 2% Volunteer Coordinator 4% 4% N/A N/A Accounting 3% 2% N/A N/A Deputy Director/Associate Director 3% 6% N/A N/A Finance 3% 2% 1% 3% Advocacy 3% 2% N/A N/A COO 3% 2% N/A N/A Government Relations 2% 1% -- -- Human Resources 2% 2% -- -- Legal 1% 1% -- -- Other 5% 3% 9% 10%

Similar to our other studies, the majority ofassociation professionals in this study work inmembership. Results show a continued upward trendin participants in this job function.

Marketing and communications executives alsoconstitute the majority of respondents, with a slightdecline from the high point in 2012 in the number ofmarketing professionals participating.


54

What best describes your association’s industry?

ASSOCIATION INDUSTRY BY STUDY YEAR

2013 (n = 692)

2012 (n = 685)

2011 (n = 639)

2010 (n = 382)

Healthcare 19% 20% 19% 21% Professional Services (White Collar)* 14% 17%* 24%* 13%* Education 13% 11% 13% 16% Scientific/Engineering** 6% 8%** 9%** 10%** Finance/Accounting/Banking/Insurance 6% 7% 5% 4% Arts/Cultural/Historical/Museum 5% 5% N/A N/A Building/Construction 4% 4% 3% 3% Professional Services (Blue Collar)* 4% * * * Government 4% 3% 2% 2% Real Estate 3% 3% 2% N/A Retail/Consumer Products 3% 2% 2% N/A Manufacturing 3% 3% 7% 3% Travel/Hospitality 3% 2% 4% N/A Hobby/Enthusiast/Sports 3% 3% N/A N/A Chamber of Commerce 2% 2% N/A N/A Agriculture 2% 2% 1% N/A Philanthropic/Service 2% 2% 5% 3% IT/Technology** 1% ** ** ** Publishing 1% 1% N/A N/A Automotive -- 1% N/A N/A Environmental -- 1% N/A N/A Religion -- 1% N/A N/A Energy/Water/Power/Utility -- 2% N/A N/A Other 4% 4% 3% 26%

Most association executives in this study representprofessions in healthcare, white collar professionalservices, and education.

This year, while we did not add additional industrycategories, we did divide some categories to providemore meaningful data.

*In previous studies, Professional Services was not divided into two categories.**In previous studies, IT/Technology was combined with Scientific/Engineering.


55

SECTION 9

?

Words of WisdomThis final section contains a selection of verbatim responses to the open-ended questions in this research. Weasked participants to share their thoughts and ideas on issues, challenges, and lessons they have learned asassociation professionals. The selection of responses reflects recurring themes that were echoed by manyrespondents. A full set of the open-ended responses will be available through MGI.

What are some of the most effective tools you’ve used or programs you’veoffered to increase member engagement with your association?

The most effective tool has been the revamping of ourmagazine into a multi-media platform. It now includespopular interactive options.

We initiated a member satisfaction survey this yearwhich is to be sent out annually to benchmark andtrack member satisfaction.

1st year engagement strategy during 1st 6 mos.incorporating Thank You renewal at birth, emailsfeaturing key benefits and services, magazine wraps, etc.

We now offer special new member/first timerprograms at our annual conference, and we'veincreased member touches throughout the yearspecifically to make sure our members are takingadvantage of the top-rated member benefits.

Free attendance at an event if you also bring a non-member to the event. Then we give a freemembership for that year to new members joining that night.

We instituted a program a couple years ago where welook at all of our member groups 3 months before theirdues expiration dates — and in turn — form specificplans of actions for the department.

Engage members early through communication,discounts on programs/products, engagement insocial media. Started new closed e-communities formembers only — easy way to get engaged, volunteer.

Content-based, extremely targeted emailcampaigns/nurture streams. These emails providemembers links to our latest content and researchfindings; they don't try to directly sell the memberanything. They are meant for engagement and help usbuild our product and service pipeline.

Hired a professional marketing company to assist with rebranding as well as a company to create an 18-month marketing plan with increased emphasis onusing social media channels.

Monthly email to new/former members educatingthem about their member benefits in short, digestiblebites. At the tradeshow having the ability todemonstrate technical benefits real-time (with links tothe web & forum). Our biggest is the introduction ofour online member forum. It has been our mostsuccessful engagement benefit and our most effectiveretention tool.

Introduced an Ambassador program to partnerexisting members with new members.

We launched a private LinkedIn group for ourassociation and we have seen a significant increase inpeople join. We have also launched a new e-newsletterwith industry news. This goes out to all members andnon-members weekly. We also offer a free webinarrecording when a member renews. This has been oneof their favorite reasons to renew.

Webinars introducing members to benefits; increasedtraining for chapter leaders on how to engagemembers locally; new newsletter to those memberswithout email addresses to keep them informed;special email to new members inviting them to log intoprivate organization networking site; reaching out toemployers to increase visibility in the workplace.

Email messages to remind member of benefits. Phonecalls to members who are deemed “unengaged” —have not participated in any programs or events.

Send the top 200 most engaged members (we use anengagement point tracking system) a gift box filledwith the newest products within the industry and thishas been a great success.

We offer a 30-day free trial membership. We alsostarted a first-year member email series to remindthem of their benefits and the value of the association.

Free Lunch and Learns to demonstrate new productofferings. You Choose Campaign — Join for 2 years forprice of 1 or Join (and pay) for 2 years and get a freeregistration to national annual meeting.


56

Our association is only as strong as the support givenby each member. If you want to see results, getinvolved and volunteer in an area that interests you.

I would remind our members that in an era of “goodenough” information, your association doesn't stop at“good enough” and strives to provide the best, mostaccurate, and up-to-date information in the industry.We understand that you're busy, and focused on thework at hand, that's why we're here, to fill in the gaps,and provide the education and leadership thateveryone needs to excel in your profession.

Get involved! There are so many great ways to be anactive participant in the association, from being aboard member, joining a committee, or answering thequick member question featured in our monthlymagazine. Your thoughts and ideas are not onlyimportant to the advancement of the association, butalso to their profession.

Please tell all of your friends and peers about the valueof membership. There’s strength in numbers!

We want to hear from you and get feedback on howwe are doing. If we get swamped, please reach out.100% of the time we will learn something new and fix aproblem or improve service.

Maximize your membership! The association offers somuch for you in terms of tangible and intangiblebenefits, but most members don't pay close enough

attention to know what is available to them, so theymiss out. The association is protecting the future ofyour profession and provides you with tools andresources for professional success. Learn more.

Please renew by your expiration date. Don't make uscontact you 15 times!

Wake up. You say we will advocate for the industryanyway and fix the legislative issues, but at some pointthe number of members will fall below the number thatwill support advocacy.

Be more willing to embrace change and support newopportunities. Instead of constraining the growth ofyour association, allow membership to expand andnon-dues revenue opportunities to grow. Movebeyond the "old days" and into the future.

Membership is a two-way experience; we can help you,but can't do everything for you!

Tell us how we can serve you better!

Use us. We want to help your business succeed — that’swhy we’re here and why you’ve joined. Use us as yourtrusted advisor and where you turn for assistance. Wewant to be the region's clearinghouse of information. Ifwe don't know the answer, we will get it for you.

This is the only place in your profession where bigbrother is not watching you and you can ask the realquestions.

? If you could freely say anything to your members, what would you say?

Offer monthly leadership and advocacy calls in whichmembers dial in at a prescribed time and seasonedmembers offer advice to newcomers on leadershiptopics. We get special guests to speak on theadvocacy calls and help members understand whatactions they can take to make a difference; forexample, collecting school supplies, voter registration,letter writing to Congress, etc.

We added a higher level tier with value-addedbenefits.

Eliminated member categories / created new membercategories / adjusted member dues — both up anddown / green discount — save $20 if opt out of printjournal / added benefits / changed definitions ofmember categories.

We consolidated many member categories into fewer,and repriced many of them.

Started bundling events into the membership dues fora small discounted price.

We’ve changed the benefit structure to match ourdonor levels (upper level members get morerecognition-based benefits while lower level membersget more program discounts and merchandise). We’vealso included an invitation to special members-onlyevents as part of the benefits.

We are testing a “digital membership” with limitedbenefits.

We started doing a “pay as you go” membership plan.

We have been able to offer free membership to first-year students, funded by a challenge grant from amember.

We cut down on the number of member categories,adjusted rates, got rid of most verificationrequirements, changed the name of categories toreflect new branding.


57

Give us an opportunity to show you the bottom lineand intrinsic value of the membership vs. only lookingat the dues as a discretionary budget item.

Don’t complain, offer to help. Participate and help getthe job done.

I know you hate the amount of emails that we send.But we need to let you know what we have that willhelp you in your work — especially in keepingconnected with your peers and keeping up with thelatest standards and education.

? Where will the next generation of members come fromand how can we be most relevant to them.

The fragmentation of the profession and socio-economic factors are impacting the association. It’shard to strategize to combat the impact of thesefactors, over which you have no control.

Not enough hours in the day to accomplish whatneeds to be done. Not enough staff resources.

Keeping the member benefits relative to the membersand devising ways to increase the member value for allcategories of membership.

The Board makes decisions and they don’t reflect themembership.

Growing my membership base and keeping theexisting membership base content and satisfied.

The classic catch-22 of association management — weneed more revenue to acquire more members andserve them properly, and we need more members toobtain that revenue.

How will we remain relevant? Bring new ideas/services tothe forefront that keep our members wanting to belong.

Lack of new members joining in the past few years.Worry about younger people not going into the areaof practice we service.

Why doesn't our message of value come across?

It is getting harder each year to get them to renewearly and on time. It is becoming more of a budgetarydecision than a professional/career decision. Theyseem to forget the value of being a member of theassociation and the role they play.

Enhancing the value proposition and communicatingthat message, so that people don't have a 2nd thoughtabout joining or renewing. Trying to increase thenumber of paid members, and finding youngermembers to be the future for an aging membership.How to communicate more effectively to the differentage groups — electronic compared to hard copy.

We're facing the generational challenge — most of theowners of our member businesses are facingretirement. We're looking at connecting with youngerprofessionals and also providing benefits, likesuccession planning, to our existing baby-boomermembers.

The traditional (old) model of a trade association isdying (quickly). What will replace it and will I be able tolead our Board to recognize it and adapt to it ahead ofthe curve?

Staying up with the growth in the digital arena andtrying to get and stay on top of it. Our website needs alot of work which we don't currently have good processand the right resources in place to be able toaccomplish this.

With regard to your association, what keeps you up at night?

? The database constraints and cross-departmentalmisalignment of goals.

Our database is extremely rigid when it comes tocertain things, and that has really impacted us at thestaff-level. I’d love to find a wonderful AMS that isflexible and conforms to our needs without emptyingour bank account.

The unnecessary “red tape” of having the Board ofTrustees approve every major decision when it comesto introducing new membership ideas, benefits or

programs. It sometimes stalls the momentum andstymies creativity.

Change the mentality of some current members from“keeping things the same as in the old days” to“embracing change.”

Our dues are too high ($350). People are finding thatthey can get so much for free and dues are a hurdle toengagement. I’m not advocating a freemium, but Ithink we need to seriously assess the ROI.

If there was one hurdle you could remove to make your association runsmoother, what would it be?


58

Listening to what matters most to members is key. Ifthey are happy and we are helping them, then ourmembership will grow and our global network willexpand.

Never stop listening to and learning about yourmembers. Never.

Be adaptable — your members' needs and wantscould change at any moment and it is important tochange your plan to go along with that.

· 1. Focus on the big picture, but sweat the details. 2. Frequency is your friend. 3. Leverage your messages across multiple channels. 4. Make it personal.

One personal contact from other members or staff ismore important than a thousand emails.

Segmenting is incredibly valuable — people need tofeel like you understand their specific needs and canoffer products or services that respond to those needs.We have a diverse membership that expects to bemarketed to appropriately, which can take a lot of timeand energy, but definitely pays off in the end.

You must have good data on your target group andtailor the message to specific demographics of thetarget group...One size does not fit all.

Test, test, test! And try things over — things changeevery year so something that didn't work 3-5 years agomight work now.

Change is acceptable, and the majority of memberstake it as part of the natural business process. Do notbe frightened of change!

Try to understand how members actually use yourassociation and their experiences rather than relyingon your own limited perception.

Word of mouth is immeasurably valuable: if yourorganization isn't a part of your target group's culturein this most basic way, you have a lot of work to do.

Membership marketing is most successful when youask members/potential members what they want andthen you give it to them how they want it. Additionally,employing multiple marketing tactics — direct mail,email, social media, and word of mouth is the best wayto get the word about your association's value outthere. No one tactic will work.

Listen, listen, listen. Be aware of the changing worldaround you and spoon feed members the informationand benefits they want and need. Don't try and offertoo many choices — determine your 3 core offeringsand message them to death.

When you make retention your primary goal and focuson delivering value to your members, that will makethe decision to renew obvious; the recruitmentchallenge then becomes that much easier.

Focus on engagement as soon as someone joins.

No one type of recruitment effort is sufficient. Rather,we use a variety of methods and must keepexperimenting with methods. In addition, we need toknow our customer and the value proposition that weoffer them. This becomes more important as ourmarket diversifies.

Discover what members need (and are willing to payfor) and tie membership to it — include the mostcoveted products and services in the basicmembership fees. Become essential to your members'success.

Members will join when the message and/or benefitsmeet what they are looking for and not a momentbefore.

Don't oversell. You may get someone with catchphrases for a year, but if you don’t deliver on yourpromises, they won’t be back. Always answer WIIFM —What's in it for me? Don’t talk about what membershipmeans to the organization — talk about what it canmean to the member.

? In your own words, what are the most important or successful lessons youhave learned in the area of membership marketing?

Ha ha ha — the Board? Joking. Lack of communicationacross the different departments. Membership,Meetings, and Publications are all key components tothe organization yet our communication is so fracturedthat great opportunities to cross-sell or utilize the multi-platforms available are lost. At best it makes us a littleineffective. At worst we look incompetent.

Remove the silos internally and externally.

Improve the corporate governance structure so thatthere was an increased focus on strategic initiatives and

continuity of planning and execution.

Embrace technology that would facilitatecommunication internally as well as to our members.

Unified membership, right now someone can be amember of a chapter or section but not a member ofthe parent organization.

Lack of financial resources. This would enable us toenhance programs and add more staff resources.

THE MGI

MEMBERSHIP L IFEC YCLE

625 N. Washington Street, Suite 450Alexandria, Virginia 22314

www.MarketingGeneral.com [email protected]

Since Marketing General opened its doors more than 30 years ago, we have helped hundreds of associations add and keep tens of thousands of members and earn tens of millions of dollars in dues and non-dues revenue.

We have applied our experience to construct theMembership Lifecycle, a five-step marketing model thatidentifies the fundamental building blocks of sustainablemembership growth.

The Membership Lifecycle begins with AWARENESS.Increased awareness facilitates new memberRECRUITMENT. ENGAGEMENT strengthens member ties and improves RENEWAL rates. REINSTATEMENT offormer members completes the cycle.

Used singly, severally, or altogether, Marketing General’s five-step Membership Lifecycle has proven to be an effectivemodel for designing membership growth strategies.

What it is…how it works.

The MGI Membership Lifecyclesegments the membershipexperience into 5 successive steps:

To FIND OUT MORE about how the MGI MembershipLifecycle can work for your organization, telephone us and ask to speak with Rick Whelan at 703-706-0350.

awareness When prospects first discover you.

recruitment When prospects choose to try you.

engagement When new members feel they

belong with you.

renewal When lapsing members decide

whether to keep you.

reinstatement When former members agree

to return to you.

TM

ABOUT MARKETING GENERAL INCORPORATED Marketing General Incorporated is the nation’s largest marketing agency working exclusively withmembership associations. During the past 30 years, MGI has helped hundreds of associations andrelationship-based organizations increase their membership, improve retention, enhance memberengagement, grow revenue, and gain new insights through market research and analysis. Additionalinformation can be found at www.MarketingGeneral.com or by contacting us at 703.739.1000.

625 North Washington Street, Suite 450 • Alexandria, Virginia 22314

Tony Rossell Senior Vice President

Tony Rossell is Senior Vice President

of Marketing General Incorporated

in Alexandria, VA. A frequent writer

and speaker on membership marketing

topics, he is a contributing author to two books,

Membership Marketing (ASAE 2000) and MembershipEssentials (ASAE 2008). He also writes the “MembershipMarketing Blog” and has over 25 years of experience in

helping organizations grow their membership.

Tony can be reached at 703.706.0360 or at

[email protected].

Adina W. Wasserman, PHD Director of Market Research

Adina W. Wasserman, PhD is Director

of Market Research at Marketing General

Incorporated. Dr. Wasserman is

renowned for pioneering the concept

of Indispensability Measurement for associations. In addition,

she has created engagement measurements including the

Customer Relationship Index and the Communications

Effectiveness Index. She earned her undergraduate degree

at the University of Michigan, Ann Arbor and completed

her master's and PhD in social psychology at Florida

State University.

Adina can be reached at 703.706.0373 or at

[email protected].

Erik Schonher, MBA, CeM Vice President

Erik Schonher is Vice President of Marketing

General Incorporated. He is an experienced

strategic planner and a seasoned tactician

who mixes direct marketing, media

placement, branding, creative design, and web marketing

into multi-channel campaigns. Mr. Schonher regularly presents

at meetings and conferences, including the ASAE Annual

Conference and the ASAE Marketing and Membership

Conference. He is the author of many professional articles

and MGI white papers, and hosts “Erik’s Experts in Membership

Marketing,” a blog that examines membership marketing best

practices, research and analysis, communication theories, and

sales techniques.

Erik can be reached at 703.706.0358 or at

[email protected]. Jeff Tranguch, MA Market Research Analyst

Jeff Tranguch is a Market Research Analyst

at Marketing General Incorporated. He

earned his master's degree in Applied Social

Research from West Virginia University where

his training included qualitative and quantitative data analysis,

research design, survey design, and research methodology.

While at WVU, Mr. Tranguch also worked as a graduate teaching

assistant for the Department of Sociology where he instructed

an undergraduate course on research methods and data analysis.

Jeff can be reached at 703.706.0364 or at

[email protected].

703.739.1000www.MarketingGeneral.com

A special thanks to Rachelle Smith, Aleda Ahmed, KimberlyHumphries, Bill Schaffner, and their teams for their help in theproduction of this report

Mgi 2013-membership-marketing-benchmarking-report

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