2012 Membership Marketing Benchmarking Report
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Transcript of 2012 Membership Marketing Benchmarking Report
2012 Membership Marketing Benchmarking Report
Presented by Tony Rossell
What are the Trends in Association Membership?
2012 Membership Marketing Benchmarking Report
• Fourth Year Produced by MGI• Over 691 Participating Associations• Up Front Disclaimer
What not Why Correlation not Causation
Research Goals
1. Gain an understanding of the membership marketing practices of associations
2. Determine the challenges in membership marketing faced by individual membership and trade associations
3. Define what practices they believe are most effective4. Understand through cross tabulation with new member,
renewal and growth numbers what practices correlate with better outcomes
Research Methodology
1. Survey open from January 24, 2012 to March 3, 2012 – 6 Weeks Total
2. 5,862 requests to participate3. 11.7% response rate with 691 participating
associations (one response per association)4. Margin of error + / - 3.7% with a 95% confidence
level
Section 1: Association Statistics“Is Association Membership Dead or Dying?”
CHANGE IN NEW MEMBER ACQUISITION OVER PAST YEAR — COMPRESSED
2012 (N =
687)
2011
(N = 638)
2010
(N = 405)
2009 (N =
325)Percentage Increased Overall 60% 57% 42% 49%Percentage Unchanged Overall 17% 21% 20% 22%Percentage Declined Overall 14% 16% 26% 21%Percentage Unsure 10% 8% 12% 10%
CHANGE IN MEMBERSHIP OVER PAST ONE YEAR—COMPRESSED 2012
(N = 689)
2011
(N = 642)
2010 (N
= 405)
2009
(N = 331)
Percentage Increased Overall 52% 49% 36% 45%Percentage Unchanged Overall 16% 16% 14% 16%Percentage Declined Overall 29% 34% 48% 35%Percentage Unsure 3% 2% 3% 5%
CHANGE IN RENEWAL RATE OVER PAST YEAR — COMPRESSED
2012 (N = 683)
2011
(N = 638)
2010 (N
= 403)
2009
(N = 326)
Percentage Increased Overall 36% 32% 21% 22%Percentage Unchanged Overall 33% 37% 27% 39%Percentage Declined Overall 22% 24% 44% 31%Percentage Unsure 10% 7% 8% 9%
TOP CHALLENGES TO GROWING MEMBERSHIP 2012
(N = 683)
2011 (N =
631)Membership too diverse; difficulty meeting needs of different segments 26% N/A
Difficulty attracting and/or maintaining younger members 24% N/A
Insufficient staff 24% 16%
Perceptions of the association and/or its culture (i.e., old boy’s network, not specialized enough, etc.) 24% N/A
Insufficient budget 21% 13%
Changing demographics of industry 18% N/A
Weak product or service offerings 18% 13%
Lack of strategy or plan 17% 11%
Competitive associations 16% N/A
Industry consolidation 14% N/A
Inadequate association management database 13% 8%
Inadequate research to understand market 10% 7%
Lack of marketing expertise 10% 7%
Market saturation 10% 9%
Difficulty in converting student memberships to regular memberships 9% N/A
Lack of integration between national and chapters 8% N/A
Misalignment of goals between board and executive staff 4% N/A
Economy 3% N/A
Poor customer service 1% N/A
Other 12% 16%
Section 2: Membership LifecycleTM Strategies
“What’s working in membership marketing?”
Membership Awareness
METHODS FOR CREATING ASSOCIATION AWARENESS 2012
(N = 683)2011 (N = 638)
2010 (N =
405)
2009 (N =
599)Email 94% 71% 67% 61%Association website 92% 87% 88% 85%Word-of-mouth recommendations 83% 90% 91% 77%Promotion to/at your own conferences/ conventions 79% 65% 66% 65%Advertising in your own publications 72% 48% 56% 51%Association-sponsored social networking sites (e.g., Facebook, LinkedIn) 71% 51% 56% 35%Direct mail 69% 62% 66% 76%Association-sponsored events 68% 57% 56% 37%Cross-sell to non-members who buy your products or attend your conferences 61% 56% 59% 52%Exhibiting at other conferences 61% 50% 51% 53%Public relations 61% 40% 39% 29%Local events/meetings 60% 53% N/A N/ASearch engines (organic) 48% 45% 47% 34%Advertising in outside publications 47% 31% 31% 28%Chapters 42% 38% 46% 39%Job board 39% 24% 23% 23%Personal sales calls 32% 25% 22% 24%QR codes 30% N/A N/A N/AAccreditation promotion 24% 18% 20% 14%Telemarketing 22% 16% 18% 18%Paid banners on other websites 21% 12% 13% 12%Mobile apps 20% N/A N/A N/ASearch engines (paid or pay-per-click) 20% 14% 20% 8%Radio or TV 15% 7% 5% 7%Texting 6% N/A N/A N/AOther 3% 4% 3% 3%Do not know 1% 0% 0% 1%
How does your association create brand awareness of your organization?
Top three methods for creating brand awareness.
Blue: Upward trend
SOCIAL MEDIA OUTLETS OFFICIALLY USED BY ASSOCIATIONS 2012
(N = 685)
2011
(N = 641)
2010 (N
= 405)Facebook 86% 91% 75%Twitter 79% 71% 66%LinkedIn (Public Access) 56% 53% 59%YouTube 53% 45% 35%Association Blog 30% 27% 30%LinkedIn (Members Only) 30% 28% N/AAssociation Listserv 22% 24% 31%Private Association Social Network 19% 18% 17%Flickr 15% 15% N/AGoogle+ 11% N/A N/AWikis 8% 9% 13%Ning/Groupsite 4% 4% 6%Second Life 1% 2% 3%MySpace 1% 1% 4%None 3% 6% 8%Other 4% 4% 6%
Which social media does your organization officially use?
Time to Achieve 50 Million Users
1. Print Hundreds of Years2. Radio 38 Years3. TV 13 Years4. Internet 4 Years5. iPod 3 Years6. Facebook 24 Months7. Twitter 12 Months8. Google+ 6 Months*
* Stephan Scherzer, CEO, VDZ - German Magazine Publishers
Membership Recruitment
EFFECTIVENESS OF MEMBERSHIP RECRUITMENT MARKETING CHANNELS
Marketing Channel Most Effective (N=685)
Least Effective(N=630)
Word-of-mouth recommendations 54% 3%Email 37% 11%Association website 34% 7%Direct mail 30% 24%Cross-sell to non-members who buy your products or attend your conferences 20% 7%Personal sales calls 17% 7%Promotion to/at your own conferences/conventions 16% 9%Association-sponsored events 16% 4%Chapters 14% 8%Exhibiting at other conferences 10% 28%Local events/meetings 10% 5%Promotional incentives 8% 16%Association-sponsored social networking sites (e.g., Facebook, LinkedIn) 5% 18%Public relations 5% 11%Telemarketing 4% 13%Accreditation promotion 4% 4%Advertising in your own publications 3% 17%Advertising in outside publications 2% 25%Search engines (organic) 2% 8%Search engines (paid or pay-per-click) 1% 10%Job board 1% 13%Radio or TV 1% 11%Paid banners on other websites -- 14%Texting -- 5%Other 3% 3%
TOP THREE MOST EFFECTIVE AND LEAST EFFECTIVE MARKETING CHANNELS BY ASSOCIATION TYPE
Individual Membership Associations Percentage
Most Effective
Word-of-mouth recommendations 51%
Email 39%
Direct mail 37%
Least Effective
Exhibiting at other conferences 31%
Advertising in outside publications 23%
Direct mail 20%
Organizational/Trade Associations Percentage
Most Effective
Word-of-mouth recommendations 56%
Personal sales calls 37%
Email 30%
Least Effective
Direct mail 34%
Advertising in outside publications 28%
Exhibiting at other conferences 22%
REASONS MEMBERS JOIN ASSOCIATION 2012
(N = 684)
2011 (N = 641)
2010 (N =
400)
2009 (N = 303)
Networking with others in the field 22% 25% 24% 22%Access to specialized and/or current information 12% 14% 13% 23%Advocacy 12% 10% 11% N/AContinuing education 8% 7% 11% 5%Learning best practices in their profession 7% 7% 9% 8%Accreditation or certification 5% 4% 4% 2%Discounts on products or meeting purchases 5% 5% 6% 9%Association publications 4% 3% 6% 3%Conferences/trade shows 4% 5% N/A N/APrestige of belonging to the association 4% 5% N/A N/AAccess to industry thought leaders 2% 1% N/A N/AAdvancing in their position 2% 2% 2% 4%Members-only education 2% N/A N/A N/AAccess to career resources 1% 1% 3% 1%Access to industry benchmark studies 1% 1% 1% N/AInsurance (Affinity programs) 1% 1% N/A N/ANot sure 1% 1% 2% N/AOther 6% 8% 9% 10%
Membership Engagement
COMMUNICATION METHODS USED TO ONBOARD NEW MEMBERS
2012 (N = 685)
2011
(N = 643)
2010 (N
= 402)
2009
(N = 337)
Email welcome 72% 71% 72% 62%Mailed welcome kit 64% 67% 68% 83%Membership card or certificate 51% 51% 59% 58%Volunteer or staff welcome phone call 29% 30% 32% 26%In-person new-member reception or orientation 25% 23% 20% 19%New-member introductory email series 25% 25% 27% 14%Special discounts on purchases 24% 23% 23% 17%Invite to chapter meeting 22% 18% 25% 23%New-member newsletter (print or electronic) 16% 15% 20% 11%New-member survey 16% 17% 18% 20%New-member gift (e.g., gift card, calendar, notepad) 12% 11% -- --Custom new-member renewal series 10% 10% 11% 7%Telemarketing welcome phone call 10% 12% 10% 4%New-member webinars 9% N/A N/A N/AEarly or “at-birth” renewal 4% 5% 4% 2%No special communication 3% 2% 2% 2%Other 3% 5% 5% 8%
Which of the following communication methods do you use to help onboard or engage new members in the association? (Check all that apply)
What proportion of your members do you estimate engage with your organization in the following areas EACH YEAR?
AREAS OF ENGAGEMENT
N 0% 1%-5%
6%-10%
11%-15%
16%-20%
21%-30%
31%-40%
41%-50%
Over 50% N/A
Attend your annual conference/trade show 644 1% 12% 13% 11% 12% 11% 11% 6% 10% 12%
Attend at least one of your professional development meetings 663 1% 12% 13% 10% 9% 10% 9% 6% 9% 23%
Acquire or maintain a certification with your organization 666 2% 9% 6% 6% 5% 4% 3% 2% 8% 57%
Attend at least one of your webinars 658 2% 15% 14% 9% 8% 6% 2% 4% 4% 36%
Purchase a non-dues product (other than previously checked) 655 2% 18% 11% 9% 8% 8% 3% 3% 6% 33%
Purchase a non-dues service (other than previously checked) 658 3% 17% 11% 9% 7% 6% 3% 4% 6% 36%
Purchase or maintain insurance through your organization 658 2% 14% 5% 3% 3% 2% 2% 1% 3% 64%
Purchase a book or directory 653 2% 19% 10% 6% 5% 5% 3% 2% 3% 46%
Participate in your public social network 666 3% 25% 21% 13% 10% 8% 5% 3% 3% 10%
Participate in your private social network 660 3% 20% 13% 7% 6% 5% 4% 3% 2% 38%
Upgrade their membership 658 2% 16% 8% 6% 3% 1% 1% 2% 3% 58%
Volunteer within your organization 664 2% 32% 21% 14% 11% 7% 4% 2% 2% 7%
Donate to your association foundation or PAC 662 3% 23% 13% 6% 5% 2% 2% 1% 2% 42%
Participate in your young professional program 656 2% 16% 8% 4% 2% 2% 1% 1% 1% 67%
Participate in your mentoring program 661 4% 18% 5% 3% 2% 2% 1% 1% 1% 66%
Membership Renewals
Under 50%
50% to 59%
60% to 69%
70% to 79%
80% to 89%
90% or higher
Not sure
3%
4%
7%
22%
38%
22%
3%
3%
6%
10%
23%
34%
23%
2%
3%
4%
11%
21%
40%
18%
3%
2%
4%
7%
16%
37%
29%
4%
2009 (N=337)
2010 (N=403)
2011 (N=643)
2012 (N=685)
What is your overall membership renewal rate?
What is your retention rate for first year members?
Under 50%
50% to 59%
60% to 69%
70% to 79%
80% to 89%
90% or higher
Not sure
10%
13%
12%
19%
17%
12%
18%
(N=682)
MARKETING CHANNELS USED FOR MEMBERSHIP RENEWALS
2012 (N =
685)
2011 (N =
644)
2010 (N = 405)
2009 (N = 333)
Email marketing 88% 88% 88% 83%
Direct mail 81% 82% 85% 91%
Staff phone calls 53% 52% 49% 56%
Peer member contacts 23% 20% 24% 31%
Telemarketing 21% 24% 23% 27%
Magazine cover wraps 17% 15% N/A N/A
Board phone calls 17% 18% 15% 28%
Social media contacts 15% 13% N/A N/A
Chapter phone calls 13% 14% 14% 15%
Fax 9% 10% 11% 17%
Employer contacts 6% 8% 7% 4%
PURL 3% N/A N/A N/A
Texting 2% N/A N/A N/A
Renewal app for mobile devices 1% N/A N/A N/A
Other 3% 3% 3% 4%
Which of the following marketing channels do you use for membership renewals?
How many membership renewal CONTACTS (such as mailings, emails, phone calls) do you have in your renewal series?
None
1 to 3
4 to 6
7 to 9
10 to 12
13 to 15
16 to 18
More than 18
Not sure
1%
20%
40%
23%
7%
3%
2%
2%
3%
2%
23%
44%
18%
7%
1%
1%
2%
1%
2%
22%
44%
20%
6%
2%
1%
2%
2%
1%
21%
46%
19%
7%
2%
1%
1%
3%
2009 (N=337)2010 (N=404)2011 (N=642)2012 (N=686)
RENEWAL RATES BY NUMBER OF RENEWAL CONTACTSINDIVIDUAL MEMBERSHIP ASSOCIATIONS (N=356)
Renewal Rate 1-6 renewal contacts
7 or more renewal contacts
Less than 80% 49% 44%
80% or higher 51% 56%
Immediately after welcoming
Prior to 6 months before expiration
At 6 months prior to expiration
5 months prior to expiration
4 months prior to expiration
3 months prior to expiration
2 months prior to expiration
1 month prior to expiration
The month of expiration
Not sure
9%
5%
7%
3%
9%
38%
16%
8%
4%
2%
8%
6%
7%
4%
12%
33%
16%
8%
3%
3%
6%
8%
5%
3%
14%
35%
15%
7%
3%
3%
10%
8%
7%
5%
13%
33%
13%
5%
4%
5%
2009 (N=336)
2010 (N=405)
2011 (N=641)
2012 (N=685)
When do you start the renewal effort?
RENEWAL RATES BY START OF RENEWAL EFFORTINDIVIDUAL MEMBERSHIP ASSOCIATIONS (N=354)
Renewal RateThree months or
less prior to expiration
More than three months prior to
expiration
Less than 80% 51% 40%
80% or higher 49% 60%
At the month of expiration
1 month after expiration
2 months after expiration
3 months after expiration
4 months after expiration
5 months after expiration
6 months after expiration
More than 6 months after expiration
We don't stop contact
Not sure
2%
7%
13%
23%
9%
2%
8%
11%
21%
3%
2%
8%
13%
24%
7%
3%
8%
11%
22%
3%
1%
9%
14%
23%
7%
2%
8%
14%
19%
3%
2%
9%
13%
21%
13%
21%
4%
2009 (N=336)2010 (N=404)2011 (N=639)2012 (N=688)
Not asked in 2009
Not asked in 2009
Not asked in 2009
When do you end renewal efforts (stop renewal contacts to the member)?
RENEWAL RATES BY END OF RENEWAL EFFORTINDIVIDUAL MEMBERSHIP ASSOCIATIONS (N=354)
Renewal Rate 1-3 months after expiration
More than three months after
expiration
Less than 80% 51% 43%
80% or higher 49% 57%
Do you offer any of the following renewal options?
Installment renewal payments (monthly, quarterly)
Multi-year renewals
Renewal bill-me
Automatic annual credit card renewal
Lifetime membership
Early renewal discounts
Automatic Electronic Funds Transfer (EFT) renewals
46%
32%
26%
24%
22%
22%
15%
46%
32%
28%
24%
25%
21%
15%
46%
33%
28%
22%
19%
10%
2010 (N=246)
2011 (N=440)
2012 (N=445)
Not asked in 2010
REASONS FOR NOT RENEWING MEMBERSHIP
2012 (N =
687)
2011 (N
= 639)
2010
(N = 400)
2009 (N = 333)
Budget cuts/economic hardship of company 17% N/A N/A N/ALack of engagement with the organization 14% N/A N/A N/AEmployer won’t pay or stopped paying dues 12% 15% 25% 22%Could not justify membership costs with any significant ROI 11% N/A N/A N/ALack of value 11% 24% 36% 20%Left the field, industry, or profession 8% 12% N/A N/AToo expensive 5% 14% 11% 22%Forgot to renew 4% 7% 6% 11%Lack of relevance 3% N/A N/A N/ACompany closed or merged 2% 7% N/A N/ADisappointment with the benefits/services 2% N/A N/A N/AMoved 2% N/A N/A N/ARetirement 2% 2% 4% 4%Can get materials from other members/other sources 1% N/A N/A N/ADisagree with the advocacy position in the association 1% N/A N/A N/ALost job 1% 3% 4% 3%Poor customer service 1% -- 1% --Student memberships do not convert to full memberships 1% N/A N/A N/ASwitch to competitor 1% 1% 1% --Not sure 2% 6% 2% 4%Other 4% 9% 12% 14%
BASIC ANNUAL MEMBERSHIP DUES BY RENEWAL RATE
Less than 80% 80% or Higher
Under $50 9% 3%$50 - $99 21% 7%$100 - $149 15% 6%$150 - $199 16% 10%$200 - $299 11% 13%$300 - $399 7% 10%$400 - $499 2% 6%$500 - $749 5% 7%$750 - $999 2% 3%$1,000 and over 3% 7%Varies by company size 9% 29%
Membership Reinstatement
We don't contact lapsed members
1 year after expiration
2 years after expiration
3 years after expiration
4 to 5 years after expiration
6 to 10 years after expiration
We continue indefinitely to contact lapsed members
Not sure
Other
10%
22%
13%
10%
5%
1%
31%
5%
4%
11%
22%
14%
9%
4%
1%
30%
5%
3%
10%
24%
15%
6%
6%
1%
24%
7%
7%
8%
25%
13%
6%
5%
1%
30%
7%
6%
2009 (N=333)
2010 (N=403)
2011 (N=641)
2012 (N=686)
After a membership lapses or expires, how long do you continue to contact the member to invite them to reinstate their membership?
RENEWAL RATES BY HOW LONG ASSOCIATION CONTINUES TO CONTACT MEMBER FOR REINSTATEMENT
INDIVIDUAL MEMBERSHIP ASSOCIATIONS (N=305)
Renewal Rate 1-3 years after expiration
More than three years after expiration
Less than 80% 51% 42%
80% or higher 49% 58%
Section 3: About the Participating Associations
MEAN AMOUNT SPENT ON MEMBERSHIP MARKETING PROGRAMS BY NUMBER OF PAID MEMBERS
Up to 1,000 1,001-5,000 5,001-20,000 More than
20,000
Acquisition* $17,643 $34,632 $101,931 $503,470
Retention** $12,711 $19,247 $52,240 $298,896
*Acquisition includes money spent on awareness, branding, and recruitment. **Retention includes money spent on engagement/on boarding, renewals, and reinstatement or win-back.
What association management software (AMS) do you use?
Response rate analysis
Source code or Keycode capture and analysis
A/B split marketing tests
Lifetime value analysis
Computer matchback to prospect database
Recency/Frequency/Monetary Amount (RFM) analysis
Regression analysis
None
49%
29%
20%
16%
15%
7%
6%
40%
N=667
What types of analysis do you use to measure the effectiveness of your membership marketing campaigns?
Questions?