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Archive for October, 2010
Benchmark Your Membership Marketing Success.
MGI Membership Dashboard
The ASAE book 7 Measures of Success documented that remarkable associations collect and use data to build success. One measurement tool that I believe is fundamental, but not fully utilized in the membership area, is benchmarking.
There are five key benchmarks for a membership program that should be captured each month and they can be presented on a single sheet of paper in what is called a “Membership Dashboard.”
Just like a car dashboard gives the driver the key data that’s needed to keep the car on the road moving forward in a safe manner, a membership dashboard highlights key statistics for an association.
The membership dashboard includes the key items that drive the growth or possible decline of an association’s membership. These will include:
- Total Membership
Current Membership
Membership the same month in the previous year
Percentage increase or decrease in year-to-year membership - New Members by MonthCurrent New Members
New Members the same month in the previous year - Membership Conversion (Renewal of First Year Members) by MonthFirst year members eligible to renew
First year members who actually do renew
Conversion renewal rates (renewing new members / eligible to renew new members) - Year Two and Subsequent Renewals (Y2+) by MonthY2+ members eligible to renew
Y2+ members who actually do renew
Y2+ renewal rates (renewing members / members eligible to renew) - Total Renewals by Month
Total members eligible to renew
Total members who actually do renew
Total renewal rates (see post from July 5th for assistance with calculating renewal rates)
If an association has different levels or types of membership, the top level of the dashboard can show the aggregate membership of the association. However, the dashboard also can include additional spreadsheet tabs for other categories of membership.
Are renewal incentives a good idea?
I read a posting on the ASAE Membership Listserve asking about “kinds” of renewal incentives to use. While I’m not against using (and have used) renewal incentives, I think that, if an association is delivering value, the ‘incentive’ is being realized throughout the year (you may want to test adjusting your renewal copy to indicate just that).
Incentives are great tools to provide that ‘little something extra’ to get someone to try something new or join. But, if after using the resources of the association for a year you still need to provide a ‘little something extra’ to get people to come back, perhaps you’re missing something? (In fact, here’s a thought: if you use a premium, perhaps you segment off those members who renewed to the premium offer and place them in an “intensive” engagement program” then try to renew them without the premium? Just a thought.)
That “something” could be pricing, the wrong people joined, lack of knowledge as to the resources provided by the association, inability to use/find resources to solve their issues (why they joined), left the company/industry, etc.(this feeds directly into using the MEMBERSHIP LIFECYCLE as a strategic diagnostic tool. If you’d like to learn more about it, I’d be happy to forward some information).
In all of these cases, I don’t really see a renewal premium as the ‘silver bullet,’ but I do see the need to analyze who is not renewing by:
• Who joined (title, company, etc.)?
• When they joined?
• Why they joined?
• Have they participated in the association?
• To what extent have they participated?
• Who is paying for their membership?
• How long have they been members?
• etc.
With that said, if you use a premium go with one that links directly to the value proposition – information, career tool, etc. And keep it inexpensive, renewals are about increasing ROI.
That’s my two-cents.
Seven Tips to Improve Your Membership Recruitment Efforts.
Membership is a “push” product. This means that prospects need to be encouraged or sold in order to join an organization. That is why direct response media like direct mail and email are the channels of choice to acquire new members.
But just like any tool, these channels can be used either poorly or effectively. I have distilled some of the experiences that I have found in direct response membership recruitment down into seven tips to improve membership recruitment. I hope you find them helpful.
1. Begin each and every campaign by thinking creatively and asking “Who might be interested in joining?” Then search out lists that contain these potential members. Not taking the time to research and test mail and email lists is the single biggest mistake in membership recruitment. In any given outreach, the results from one list to the next can vary by 1,000%. Even if you primarily promote to an in-house prospect list, try some direct response rental lists and compare the results. You may be very surprised at the results from tapping into a new file of prospective members. Some of the best outside lists to try are members of similar associations, subscribers to industry magazines, and buyers of books related to your association. Tip: Ask current members what other professional literature that they read and try these lists first.
2. Once you have found the best lists, carefully develop a strong Unique Selling Proposition (USP) to drive the positioning and copy of your promotion. The USP answers the prospect’s question of, “Why this association?” The USP is the big benefit that your association can deliver compared to any other group. Tip: Ask someone who is not familiar with your organization to read your copy and define the USP in one sentence. If they can’t, go back to the drawing board.
3. Develop a special offer to answer your prospect’s question: “Why join now?” After many tests, one of the best offers continues to be a limited-time, introductory dues discount. Ideally, this discount will bring the dues down to a psychological price point – a dues amount that ends with a dollar amount of a “7” or “9”. For example, an acquisition price of $139 will typically generate more revenue and members than a price of $150. But be sure to offer something. Direct response marketing is offer driven.
4. Build your promotion around a metaphor — something a prospect will recognize and know what to do with. Try using an invitation, survey, certificate, or temporary membership card format. People process information by putting it into mental boxes. They make a split second decision on whether a promotion is important or not, so you need to get their attention. An invitation, for example, typically requests a response and goes in the mental box that says: “I NEED TO RSVP”.
MGI Tipster Volume 9, Issue 10
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