NSA Membership Marketing Membership Counts and Profiles Recruitment Retention Lifetime Value Value...

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

NSA Membership NSA Membership 9/30/089/30/08

Active Members: 9,453Associate Members: 747Retired Members: 501Student Members: 225Educator Members: 96International Members: 31Life Members: 29Firm Members: 11 Vendor Members: 6

Total Membership:Total Membership: 11,09911,099

NSA Member Profile: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:NSA Member Profile:

• Processes More Than 500 1040s Annually

• More Than ½ 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 RecruitmentMembership 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 RecruitmentMembership RecruitmentFY 07-08 Results FY 07-08 Results

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

New Member Total:New Member Total: 1,2981,298

FY 07- 08FY 07- 08New Members by DistrictNew Members by District

• District I: 49

• District 2: 212• District 3: 73• District 4: 230• District 5: 157• District 6: 57

• District 7: 89• District 8: 122• District 9: 95• District 10: 201• District 11: 3• International: 10

Membership RetentionMembership Retention

• To 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 Factors that Influence Membership RetentionMembership Retention

Associations that offer individualMembership as opposed to

associations with institutional or company

memberships typically will seelower renewal rates.


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.


• Associations 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.


The stronger the incentive used to getmembers to join an association, the

lowerthe renewal rate will be when

comparedto members who joined with no

incentive.


• Active 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


ASAE & The Center reports that the mean

renewal rate is 83% for an individualmembership association and 91% for

atrade association.

Calculating Membership Calculating Membership RetentionRetention

• # 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 RetentionNSA Membership Retention• Multi-part renewal campaign: letters, e-mails,

faxes, last issue newsletters/magazine wraps, telemarketing, incentivize early renewals

• New member welcomes & renewal campaigns• Different messaging for different member

types• Exit surveys• Continually communicate NSA benefits• Engage members• Customer Service & Use of Database• Member Needs Assessment

Lifetime Value (LTV)Lifetime Value (LTV)The Lifetime Value (LTV) of a memberestimates the member’s financialcontributions to the association over thelife of membership. It is critical for

planning& budgeting marketing expenses.

• Average Member Tenure • Average Yearly Membership Dues• Total Nondues Revenue• Cost of Serving Members

Lifetime Value (LTV)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


• Total Nondues Revenue/# of Members = Annual Nondues Revenue per Member

• Annual Nondues Revenue per member x Tenure = Lifetime Nondues Value of a Member


• 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 yearly

expenses/# of members x average tenure

What is Your Value What is Your Value Proposition?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 ValueNew Definitions of Value

Years ago, belonging to one’s professionalassociation was routine and dues werepaid without questioning the benefit.Membership was viewed as a way tosupport the profession or defend the

industry and that was seen as valuableenough to justify a lifetime of membership.


Consumers have come to develop higher expectations from

membership organizations.

Today’s members expect a quantifiable return on their

investment of dues dollars in addition to the association’s delivering on the mission.


For every dollar they spend in dues, they demand at least a dollar’s

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 Value Proposition = Unique Selling PropositionSelling Proposition

The association’s 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 fit

into two categories:1. Does the program provide a tangible or

intangible benefit to the member?2. Is the program related to the mission of the

organization or unrelated to the mission?

Benefits Sweet SpotBenefits Sweet SpotUnrelated to Mission

Related to Mission

Tang

ible

Inta

ngib

le

Credit Card Program

Networking

Publications

AdvocacyDiscounts on

EducationAwards

Discounted Insurance

Knowledge Sharing

Help Desks & Libraries

Understanding & Articulating Understanding & Articulating the Value Proposition: Turning the Value Proposition: Turning

Features into BenefitsFeatures into Benefits

• A feature is a product or service the association offers.

• When describing the benefits of membership, it’s 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 BenefitsTurning Features into Benefits

Feature: program

Benefit: which means you’ll:

Membership Directory

Locate peers in your profession, discuss issues, or capitalize on opportunities

Networking Develop & strengthen contacts to help you in your practice.

Fee Survey Make informed decisions about your fees based on the latest research & even increase revenue.

Reasons for Joining NSAReasons for Joining NSATop reasons members join NSA:

1. Information2. Education and CPE3. Tie: Credibility, Ethics/membership

certificate and publications4. Advocacy5. Networking

Least important reasons for joining:1. Annual meeting 2. Leadership opportunities

75% of members say NSA membership meets to

strongly meets expectations

Member Benefits: Member Benefits: NSA Member Survey ResultsNSA Member Survey Results

1. Keeping up with tax law2. Marketing/business development3. Employee issues: hiring & retaining

staff, etc.4. Technology5. Time management6. Competition

Top 6 challenges facing members:

Member Benefits: Member Benefits: NSA Member Survey ResultsNSA Member Survey Results

1. Customer service and relations: timeliness of service, getting info. from clients, keeping clients honest

2. Education3. Expenses4. Cash flow5. Information overload 6. Pricing of services

Other top challenges:

Membership Marketing TacticsMembership Marketing Tactics

• Use Active Voice • Use Benefits Over Features• Use the word YOU• Keep it Simple and Direct• Use Call Outs, Bullets, Charts, Bold,

Italics, Testimonials, Boxes, Color, etc.

• Use Personalization if Possible


• Letter Packages Outperform Self-Mailers• Letters: Use Johnson Box, PS and PPS;

Put the Appeal and Offer Upfront• Letters: Longer Letters Out Pull Shorter

Letters; should have more emotional appeal than brochures

• Envelopes: Plain or Teaser, Return Address, Live Stamp, Label, Handwritten Font, Color…Plain White & Boring Works


• Speak to your audience’s pain points first and then offer a solution. But only in bite size chunks.

• Don’t 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 card…repeat and make it easy to find.

Membership Marketing TacticsMembership Marketing TacticsWriting the OfferWriting the Offer

• Link Benefits to Two Primary Motivators: Greed and Fear: · What’s in it for me?· What happens if I don’t respond?

• Offers with Deadlines Outperform Offers Without Them (90 Days)


• 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, Testimonials

• Repeat & Repeat the Offer & Take Action Response Mechanisms—Make them Easy to Find

Membership Marketing TacticsMembership Marketing TacticsNew MembersNew Members

• Break Down the Welcome Membership Kit/Materials Into Smaller Pieces to Increase Communication & Encourage Engagement

• Welcome Call • Six Month Check In, Thank You,

“How Are We Doing?” Survey• Communicate BEFORE the Renewal

Cycle Begins

NSA Membership Marketing Membership Counts and Profiles Recruitment Retention Lifetime Value Value...

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