2013 Membership Marketing Benchmarking Report: Putting Membership Marketing Practices & Performance in Perspective

2013 Membership Marketing Benchmarking Report

Putting Membership Marketing Practices & Performance in Perspective

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If You Want to Ask a Question…

Twitter: mktgeneral

E-mail: [email protected]

Booth #347 at the ASAE Annual Conference in Atlanta

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Speaking Today

Erik Schonher, MBA, CeMVice President, MGI

Adina Wasserman, PhDDirector of Research, MGI

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Why do this research?

“The purpose of this study continues to be the development of meaningful benchmarks by which the leadership of individual membership and trade associations can effectively evaluate their own membership marketing strategies and tactics.”

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Agenda

1. Study Methodology2. Industry Review: Top 5 Findings3. Tactics that Drive Membership

1. Awareness2. Recruitment3. Engagement4. Retention5. Reinstatement

4. Other Observations5. Q & A

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What are the Trends in Association Membership?

2013 Membership Marketing Benchmarking Report

• Fifth Year Produced by MGI

• Over 695 Participating Associations

• Up Front Disclaimer What not Why Correlation not Causation

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Research Goals1. 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 effective

4. Understand through cross tabulation with new member, renewal and growth numbers what practices are related to better outcomes

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Survey Overview

1. Survey open from January 8, 2013 to February 20, 2013 – 7 Weeks Total

2. 7,857 requests to participate3. 751 (9.56%) completed surveys4. 695 (8.85%) participating associations (one

response per association)5. Margin of error + / - 3.7% with a 95% confidence

level

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Industry Review

Top 5 Findings

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Stability

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1

New Member Acquisition is Up!

CHANGE IN NEW MEMBER ACQUISITION OVER PAST YEAR — COMPRESSED

2013

(n = 690)

2012 (n =

687)

2011 (n = 638)

2010 (n

= 405)

2009

(n = 325)

Percentage Increased Overall 63% 60% 57% 42% 49%

Percentage Unchanged Overall 17% 17% 21% 20% 22%

Percentage Declined Overall 16% 15% 16% 26% 21%

Percentage Unsure 4% 10% 8% 12% 10%

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Changes in Renewal Rates – Slightly down

CHANGE IN RENEWAL RATE OVER PAST YEAR — COMPRESSED

2013

(n = 691)

2012 (n = 683)

2011 (n = 638)

2010 (n

= 403)

2009

(n = 326)

Percentage Increased Overall 35% 36% 32% 21% 22%

Percentage Unchanged Overall 30% 33% 37% 27% 39%

Percentage Declined Overall 31% 22% 24% 44% 31%

Percentage Unsure 4% 10% 7% 8% 9%

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MEAN MEMBERSHIP RENEWAL RATEIndividual Member

Trade/ Organizational Hybrids

All members 79% 87% 76%

First-year members 64% 78% 61%

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Overall Membership Size - Stable

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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Market Dynamics

Growth

• Finance– Accounting– Banking – Insurance

• Healthcare

Loss

• Building– Construction

• Manufacturing

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The Top Goals for Membership are…

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2

Top 3 Membership Goals

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

74%

74%

38%

33%

28%

21%

16%

9%

2%

2013 (n = 690)

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One-half of associations raise dues only 1% to 5%

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3

Percentage of Last Membership Dues Increase

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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%

51%

25%

9%

7%

4%

1%

1%

1%

2% 2013 (n = 636)

Social Media is beginning to become a structured medium.

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4

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%

Top three social media platforms.Top social media platform.Upward trend

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Top Social Media Used by Associations

• Facebook1. Generating Awareness2. Promoting Association Events3. Promoting Industry Events

• Twitter1. Promoting socialization/discourse among attendees at events2. Promoting specific sessions & programs at meetings/events3. Promoting association events

• LinkedIn1. Harvesting contact information for recruitment2. Generating awareness for your association3. Soliciting new members

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Department Responsible for Social Media Programs

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Communications

Marketing

Membership

IT

Education

Advocacy and policy

Social media

Other

52%

44%

31%

8%

7%

6%

4%

12% 2013 (n = 657)

Associations reporting increases in overall membership over the past year are significantly more likely to

use research.

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5

GROWTH STATISTICS FOR INDIVIDUAL MEMBERSHIP ORGANIZATIONSWHO 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%

GROWTH STATISTICS FOR TRADE ASSOCIATIONS WHO INTRODUCED MEMBER RESEARCH IN 2012

Change in Overall

Membership (n=66)

Change in Renewal Rate

(n=64)

Change in New Members

(n=64)

Increased 53% 38% 72%Stayed the Same 21% 28% 16%Decreased 26% 34% 13%

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Using a variety of research techniques

Quantitative survey research

Focus groups

Phone interviews

On-site interviews/intercepts

Secondary research

Online panels/bulletin boards

None

Other

70%

39%

30%

30%

22%

17%

8%

8%

77%

41%

31%

24%

23%

13%

8%

7%

2012 (n = 687)2013 (n = 691)

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Tactics that Drive Membership

AwarenessRecruitmentEngagement

RetentionReinstatement

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Awareness

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How do members discover your association?

• Word-of-Mouth 86%• Association Website 80%• Email 66%• Conference Promotion 55%• Association Sponsored

Social Networking Sites 54%• Local Events/Meetings 52%

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How do maintain awareness of your association?

• Association Website 86%• Email 81%• Word-of-Mouth 79%• Association Sponsored

Social Networking Sites 74%• Conference Promotion 69%

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Membership Recruitment

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Reasons Members Join

• Networking 24%• Access to specialized information13%• Advocacy 8%• Best practices 8%

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Most Effective Channels for Promotion

IMO Trade Both

1. Word-of-Mouth 60% 60% 51%

2. Email 35% 32% 36%

3. Association Website 34% 20% 33%

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Membership Engagement

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60%

34%

6%

2013 (n = 688)

YesNoNot sure

Do you have a separate strategic initiative or

tactical plan to increase engagement?

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Quickly becoming a strategic part of the membership marketing strategy

Top 3 Methods Used to Onboard New Members

1. Email Welcome

2. Mailed Welcome Kit

3. Membership Card or Certificate

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How has Engagement Changed?

• Increased1. Participation in Public Social Network2. Participation in Private Social Network3. Young Professional Program

• Decreased1. Directory purchases2. Conference attendance3. Donations to foundation or PAC

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Membership Renewals

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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%Top three channels for renewals.Top channel for renewalsDownward trend.

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

1 to 6 contacts 7 or more contacts

Less than 80% renewal 43% 33%

80% or higher renewal 57% 67%

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When to start?

Two to Four Months from Expire.

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

Three months or less prior to expiration

More than three months prior to expiration

Less than 80% renewal 41% 32%

80% or higher renewal 59% 68%

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When to stop?

Two to Four Months After Expire.

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RENEWAL RATES BY WHEN RENEWAL EFFORTS STOPINDIVIDUAL MEMBERSHIP ASSOCIATIONS (n = 286)

Up to 3 months after expiration

More than three months after expiration

Less than 80% renewal 41% 35%

80% or higher renewal 59% 65%

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Top Reasons for Not Renewing

1. Budget cuts

2. Lack of engagement

3. Could not justify the cost of membership

4. Employer won’t pay

5. Lack of value

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Member Reinstatement

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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%

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RENEWAL RATES BY HOW LONG LAPSED MEMBERS ARE CONTACTED INDIVIDUAL MEMBERSHIP ASSOCIATIONS

(n=238)

1-3 years after expiration More than 3 years after expiration

Less than 80% Renewal 40% 35%

80% or Higher Renewal 60% 65%

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Other Observations

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What should my membership marketing budget be?

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MEAN AMOUNT SPENT ON MEMBERSHIP MARKETING PROGRAMS BY ORGANIZATION TYPE

IndividualMember Trade Hybrids

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

MEAN AMOUNT SPENT ON MEMBERSHIP MARKETING PROGRAMS BY RENEWAL RATE

Less than 80% 80% and higherAcquisition $134,399 $137,295 Retention $92,838 $100,532

ASSOCIATION MANAGEMENT SOFTWARE USED BY STUDY YEAR2013

(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/AMicrosoft Access 3% N/AMicrosoft CRM 3% N/ASalesforce 2% N/AAptify 2% 2%Affiniscape 2% N/AProtech 2% 2%YourMembership 2% 2%CDC gomembers 2% 1%ISSI (Impak) 2% 1%MemberClicks 1% 1%Wild Apricot 1% N/AACGI Software 1% 2%CiviCRM 1% N/AEuclid Clear Vantage 1% N/ATimberlake Software 1% --123Signup Association Management Solutions, Inc. 1% 1%JL Systems (NOAH) 1% 1%None 4% 9%Other 22% 32%

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

• Membership marketing is most successful when you ask members/potential members what they want and then 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 way to get the word about your association's value out there. No one tactic will work.

• Listen, listen, listen. Be aware of the changing world around you and spoon feed members the information and benefits they want and need. Don't try and offer too many choices – determine your 3 core offerings and message them to death.

• Test, test, test! And try things over – things change every year so something that didn't work 3-5 years ago might work now.

• Try to understand how members actually use your association and their experiences rather than relying on your own limited perception.

• Segmenting is incredibly valuable—people need to feel like you understand their specific needs and can offer products or services that respond to those needs.

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Special Reports• Individual Member Organizations• Trade Associations• Both IMO and Trade• Renewal Rates of 80% or higher• 5,000 – 20,000 member organizations• Healthcare• Education• Professional Services: White Collar

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Sources for MMBR Updates!

• Marketing General Blog http://www.marketinggeneral.com/blog/

• Association Research Blog - http://associationresearch.blogspot.com/

• Experts in Membership Marketing Blog – http://expertsinmembershipmarketing.blogspot.com/

• Membership Marketing Blog – http://membershipmarketing.blogspot.com/

Thank you.

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Adina Wasserman, PhD

Director, Market Research703.706.0373

[email protected]

Erik Schonher MBA, CeM

Vice President703.706.0358

[email protected]