NSA Membership Marketing

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NSA Membership Marketing. Membership Counts and Profiles Recruitment Retention Lifetime Value Value Proposition & Member Benefits Ideas and Tactics. NSA Membership 9/30/08. Active Members: 9,453 Associate Members: 747 Retired Members: 501 - PowerPoint PPT Presentation

Transcript of NSA Membership Marketing

  • NSA Membership Marketing Membership Counts and Profiles Recruitment Retention Lifetime Value Value Proposition & Member Benefits Ideas and Tactics

  • NSA Membership 9/30/08Active Members: 9,453Associate Members: 747Retired Members: 501Student Members: 225Educator Members: 96International Members: 31Life Members: 29Firm Members: 11 Vendor Members: 6Total Membership:11,099

  • NSA Member Profile:Gender: MaleAverage Age: 57Education:At least a 4 Year DegreeType of Practice:Sole ProprietorshipCredentials: Enrolled AgentAnnual Gross Income: $237,019 (in 2006)Annual Net Income:$81,100 (in 2006)

  • NSA Member Profile:Processes More Than 500 1040s Annually

    More Than Gross Income is Derived From Tax Preparation; 20% from write-up work

    Has Been in Practice for 23 Years

    Has 3 Full-Time and 2 Part-Time Employees

  • Membership Recruitment Direct Mail Marketing Exhibits Go Getters State Directors Dual ASO Members Word of Mouth (Viral Marketing) Website ACAT & Scholarships

    On average, 1,300 new members join NSA each year

  • Membership RecruitmentFY 07-08 Results Joined NSA between 9/1/07 and 8/31/08:Active Members:1056Associate Members: 176Student Members: 43Educator Members: 8International Members: 10Vendor Members: 5

    New Member Total:1,298

  • FY 07- 08New Members by District

    District I: 49District 2:212District 3: 73District 4:230District 5:157District 6: 57 District 7: 89 District 8:122 District 9: 95 District 10:201 District 11: 3 International: 10

  • Membership RetentionTo grow, it takes 2 new members to replace 1 dropped member

    It costs 3-6x more to recruit a member than to retain one

  • Factors that Influence Membership Retention

    Associations that offer individualMembership as opposed to associations with institutional or companymemberships typically will seelower renewal rates.

  • Factors that Influence Membership Retention

    Associations that serve a market where dues are reimbursed or paid for by an employer will see better renewal rates than dues paid out of pocket by individuals.

  • Factors that Influence Membership RetentionAssociations with a rapidly growing membership tend to have lower retention rates than groups with a steady or declining membership.

    This occurs because growing associations have a larger proportion of first year members and first year members typically renew at a much lower rate than longer term members.

  • Factors that Influence Membership Retention

    The stronger the incentive used to getmembers to join an association, the lowerthe renewal rate will be when comparedto members who joined with noincentive.

  • Membership RetentionActive Members: 88%Associate Members:72%Retired Members:98%Student Members:59%Educator Members:81%International Members:69%

    *First year member renewal rate averages between 55%-60%.Retention Rates: FY 07-08

  • Membership Retention

    ASAE & The Center reports that the meanrenewal rate is 83% for an individualmembership association and 91% for atrade association.

  • Calculating Membership Retention# of members who renewed/# of members up for renewal. 125 renewed/150 up for renewal = 83%

    Total # of members today minus 12 months of new members/total # of members at this time last year. 3000 members 500 new members= 2500/2800 members now = 89%

  • NSA Membership RetentionMulti-part renewal campaign: letters, e-mails, faxes, last issue newsletters/magazine wraps, telemarketing, incentivize early renewalsNew member welcomes & renewal campaignsDifferent messaging for different member typesExit surveysContinually communicate NSA benefitsEngage membersCustomer Service & Use of DatabaseMember Needs Assessment

  • Lifetime Value (LTV)The Lifetime Value (LTV) of a memberestimates the members financialcontributions to the association over thelife of membership. It is critical for planning& budgeting marketing expenses.

    Average Member Tenure Average Yearly Membership DuesTotal Nondues RevenueCost of Serving Members

  • Lifetime Value (LTV)Average Member Tenure: 1/Inverse of the Retention Rate 80% Retention Rate: Inverse = 20% 1/20@ = 5 Years Average Tenure Average Yearly Dues x Tenure = Lifetime Dues Value of a Member

  • Lifetime Value (LTV)Total Nondues Revenue/# of Members = Annual Nondues Revenue per MemberAnnual Nondues Revenue per member x Tenure = Lifetime Nondues Value of a Member

  • Lifetime Value (LTV)Lifetime Dues Value + Lifetime Nondues Value = Gross Lifetime Value per Member

    Gross Lifetime Value Lifetime Cost to Serve a Member = Net Lifetime Value of a Member

    *Lifetime cost to serve a member = total yearlyexpenses/# of members x average tenure

  • What is Your Value Proposition?Who are you to members and who do you want to be? This vital assessment should drive your benefit & services package.Which benefits & services support the mission, vision & strategic plan of the association?Understand your members and have a keen awareness of what your are capable of doing and what you should or should not be doing.

  • New Definitions of ValueYears ago, belonging to ones professionalassociation was routine and dues werepaid without questioning the benefit.Membership was viewed as a way tosupport the profession or defend theindustry and that was seen as valuableenough to justify a lifetime of membership.

  • New Definitions of ValueConsumers have come to develop higher expectations from membership organizations. Todays members expect a quantifiable return on their investment of dues dollars in addition to the associations delivering on the mission.

  • New Definitions of ValueFor every dollar they spend in dues, they demand at least a dollars worth of value in return.

    To respond to this trend, associations must continually demonstrate the value they return to their members and communicate that value consistently.

  • Value Proposition = Unique Selling PropositionThe associations value proposition is composedof all the programs that are given to memberswhen they join. It answers Why Should I JoinYour Association?:

    From a value standpoint, association programs fitinto two categories:Does the program provide a tangible or intangible benefit to the member?Is the program related to the mission of the organization or unrelated to the mission?

  • Benefits Sweet SpotUnrelated to Mission

    Related to MissionTangibleIntangibleCredit Card ProgramNetworkingPublicationsAdvocacyDiscounts on EducationAwardsDiscounted InsuranceKnowledge SharingHelp Desks & Libraries

  • Understanding & Articulating the Value Proposition: Turning Features into BenefitsA feature is a product or service the association offers. When describing the benefits of membership, its crucial to put yourself in the shoes of the prospect or member. The benefit is more powerful than the feature because it defines actual value or outcome for the member

  • Turning Features into Benefits

  • Reasons for Joining NSATop reasons members join NSA:InformationEducation and CPETie: Credibility, Ethics/membership certificate and publicationsAdvocacyNetworking

    Least important reasons for joining:Annual meeting Leadership opportunities

  • 75% of members say NSA membership meets to strongly meets expectations

  • Member Benefits: NSA Member Survey Results

    Keeping up with tax lawMarketing/business developmentEmployee issues: hiring & retaining staff, etc.TechnologyTime managementCompetition Top 6 challenges facing members:

  • Member Benefits: NSA Member Survey ResultsCustomer service and relations: timeliness of service, getting info. from clients, keeping clients honestEducationExpensesCash flowInformation overload Pricing of services Other top challenges:

  • Membership Marketing Tactics

    Use Active Voice Use Benefits Over FeaturesUse the word YOUKeep it Simple and DirectUse Call Outs, Bullets, Charts, Bold, Italics, Testimonials, Boxes, Color, etc.Use Personalization if Possible

  • Membership Marketing Tactics

    Letter Packages Outperform Self-MailersLetters: Use Johnson Box, PS and PPS; Put the Appeal and Offer UpfrontLetters: Longer Letters Out Pull Shorter Letters; should have more emotional appeal than brochures Envelopes: Plain or Teaser, Return Address, Live Stamp, Label, Handwritten Font, ColorPlain White & Boring Works

  • Membership Marketing Tactics

    Speak to your audiences pain points first and then offer a solution. But only in bite size chunks.Dont give away all of your information. Create a desire to learn more and make it easy for them to find out more. Use every response technique you can - email, toll free telephone, fax, business reply cardrepeat and make it easy to find.

  • Membership Marketing TacticsWriting the OfferLink Benefits to Two Primary Motivators: Greed and Fear: Whats in it for me? What happens if I dont respond?Offers with Deadlines Outperform Offers Without Them (90 Days)

  • Membership Marketing Tactics

    Offer Incentives & Discounts: Should be 15-35%Price Points: #s Ending in a 7 or 9 Get Higher Response Rates Use Real Examples, Numbers Product Data, TestimonialsRepeat & Repeat the Offer & Take Action Response MechanismsMake them Easy to Find

  • Membership Marketing TacticsNew MembersBreak Down the Welcome Membership Kit/Materials Into Smaller Pieces to Increase Communication & Encourage EngagementWelcome Call Six Month Check In, Thank You, H