Tony Rossell Senior Vice President, Marketing General Incorporated

Online Conference for Small Staff AssociationsFebruary 17-19, 2015

On Target Membership Marketing: Ready, Aim, Fire

Three Steps to Target Your Membership Marketing

•Ready•Aim •Fire

Are you “Ready?”

“21 percent of associations surveyed do not know their member retention rate.”

Advanced Solutions International (ASI) “Global Benchmark Report on Membership Performance.”

HOW DO YOU MEASURE

YOUR MEMBERSHIP MARKETING?

Are you “Ready?”

Getting “Ready”

• Total Membership by month and year over year.

• New Members by month and year over year.• Membership Conversion (Renewal of First

Year Members).• Year Two and Subsequent Year Renewals

(Y2+) • Total Renewals by Month and Year

Getting “Ready”

2014 Membership Marketing Benchmarking Report

• Nearly 900 Participating Associations• Sixth Year• Benchmarking provides a baseline or guide for • Additional tool to primary dashboard

Getting “Ready”

“Aim”

• Calculating your economic model• Setting achievable membership goals

Association executives might be more successful if they thought like farmers.

Don’t budget for the seeds, budget for the harvest.

Taking Aim on Your Economic Model

Renewal Rate measures the number of members kept over a given period of time -- usually during a fiscal or calendar year. To determine how many – Total Number of Members Today (minus 12

month new members) / Total Number of Members in Previous Year

– Example: (105 -15)/100 = 90%

Renewal Rate

Defines how long on average members stay with an association. –Reciprocal of Renewal Rate - .10–Divide Reciprocal into = 1 /.10– Example: 1/ .10 = 10

Membership Tenure

Defines the economic value produced by a typical member. – Assume $100 / Year Dues and $50 / Year in Non-

Dues Revenue– ($100 + $50) * Average Tenure = LTV– ($100 + $50) * 5 = $750

Lifetime Value

Defines the equilibrium of total membership where members gained and members lost will be equal.–Annual New Member Input / Lapse Rate =

Steady State Membership– Example: 1,000 / .20 = 5,000–90% Renewal Rate = 10,000 (1,000 / .10)–60% Renewal Rate = 2,500 (1,000 / .40) –90% Renewal Rate and 200 New Members =

2,000 (200 / .10)

Realistic Membership Goals

“Fire”

• Executing your plan– Effective Recruitment Activities– Effective Retention Activities

“Fire”

Effective Recruitment Activities

1. Enhance the Value of Membership

2. Increase Volume of Recruitment Efforts

3. Add New Marketing Channels

4. Test New Lists, Offers, and Creative

5. Increase the Frequency of Touches to Top Prospects

Effective Retention Activities

1. Increased Member Usage

2. Identify “At Risk” Members

3. Increase the Frequency of Contact

4. Increase Renewal Contact Channels

5. Offer Members Payment Options

Contact Information

Tony RossellSenior Vice President, Marketing General Incorporated

Phone: 703-706-0360Email: Tony@MarketingGeneral.com

Website: www.Maketing General.com