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Diagnosing and solving membership marketing challenges Tony Rossell - mgi
The document presents insights from the 2018 Membership Marketing Benchmarking Report, highlighting key challenges and trends in membership organizations, such as growth statistics and reasons for member renewal failures. It discusses effective membership marketing strategies, including market segmentation, value proposition development, and engagement tactics to increase membership retention and recruitment. Additionally, it emphasizes the importance of understanding and addressing lapsed members for improving overall membership health and engagement.
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Diagnosing and solving membership marketing challenges Tony Rossell - mgi
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- 3. What are the Vital Signs for Membership Organizations Today? 2018 Membership Marketing BenchmarkingReport • Over 800 Participating Organizations • Tenth Year Produced by MGI • Download: www.MarketingGeneral.com
- 4. Total One YearMembership Growth MEMBERSHIP CHANGE IN PAST YEAR Total (n = 819) Increased 48% Decreased 25% Remained the same 26% Not sure 2%
- 5. Total Five YearMembership Growth CHANGE IN MEMBERSHIP OVER PAST FIVE YEARS Total (n = 809) Increased 53% Decreased 29% Remained the same 14% Not sure 4%
- 6. Increase in Membership RenewalRates CHANGE IN MEMBER RENEWAL RATE OVER PAST YEAR Total (n =774) Increased 27% Decreased 24% Remained the same 42% Not sure 7%
- 7. Increase in NewMember Recruitment CHANGE IN NEW MEMBER ACQUISITION OVER PAST YEAR Total (n = 785) Increased 47% Decreased 12% Remained the same 35% Not sure 7%
- 8. Membership Director’s Reported Challenges TOPREASONS FOR NOT RENEWING MEMBERSHIP Total (n = 639) Lack of engagement with the organization 37% Could not justify membership costs with any significant ROI 28% Budget cuts/economic hardship of company 24% Left the field, industry, or profession 24% Lack of value 23% Employer won't pay or stopped paying dues 23% Forgot to renew 21% Too expensive 20%
- 9. Reasons for Membership Decline Why do you believe your membership has decreased? Industry consolidation; free‐rider problems; lack of perceived value. More competition from social networking and free professional development and niche organizations. The Leadership was infighting, and members were not being engaged, no events/no benefits to joining. There was nobody dedicated to recruitment consistently. Ageing demographic with not enough members brought in to replace deceased members.
- 10. Membership Dashboard toTrack Vital Signs
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- 12. A Membership MarketingSystem The Membership Lifecycle – Awareness – Recruitment – Engagement – Renewal – Reinstatement
- 13. – Awareness: ______________ – Recruitment: ______________ –Engagement: ______________ – Renewal: ______________ – Reinstatement _____________ Defining Your Membership Impediment
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- 16. Defining Your TargetMarket “When you seek to engage with everyone, you rarely delight anyone. . . The solution is simple but counterintuitive: Stake out the smallest market you can imagine. The smallest market that can sustain you, the smallest market you can adequately serve.” Seth Godin, Seth’s Blog
- 17. “The message .. . is that no company can succeed today by trying to be all things to all people. It must instead find the unique value it alone can deliver to a chosen market.” Treacy and Wiersema, The Discipline of Market Leaders, page xiv Defining Your Value Proposition
- 18. Value Proposition Example Who:MGI exclusively serves growth oriented membership organizations What: with effective strategic marketing solutions How: using innovative, data driven, and market tested best practices Why: so clients can maximize their membership potential and achieve their mission.
- 19. Defining Your Organizations ValueProposition Who: ___________________________ What: __________________________ How: ___________________________ Why:____________________________
- 20. Capture the contact informationand opt-in of those who are interested in you! Trading Content for Conact
- 21. The Growth ofDigital Marketing
- 22. 1 2Targeted AdPlacement. Data Capture on Microsite. 3 Cultivation e-mail campaign with enrollment offers. Example of Facebook Online Lead Generation
- 23. 2 Capture the contact informationand opt-in of those who are interested in you! Lead Generation with LinkedIn
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- 27. Recruitment Strategy 1. Marketing Segmentation(WHO?)– who you want to reach – this includes determining what are your primary markets and acquiring or building lists of these prospects. 2. Membership Offer (WHAT?)– what a member will receive – this includes how you package your membership product and what special offers you will make in your promotions to attract new members. 3. Promotional Tactics (HOW?)– how a member will be reached – this includes selecting the best marketing channels like personal sales, direct mail, email, telemarketing, etc. and the frequency and timing of promotions. 4. Testing and Tracking (WHERE?) – where to take future efforts – this includes trying variations of the four points listed above and recording which lists, offers, messages, and channels produce the best ROI and number of new members.
- 28. Former Members Like Organizations Subscribers Directories SegmentingYour Target Market
- 29. • A first year dues discount. • A "no‐risk" or “no‐obligation” offer with a “bill‐me”. •A product voucher offering new members $75 to $100 in savings on any future product purchase. • Premiums (free gifts). • Offering more of the product (e.g., 15 months of membership for the price of 12). • A free trial offer membership. • Installment billing turns a $239 membership into an easy monthly payment of $19.91. Membership Special Offers
- 30. Using Facebook, AdRoll,and Google Remarketing to retarget website visitors. Capturing Visitors through Remarketing
- 31. 1 Prospect visitstargeted page on your website. 2 Prospect is shown your targeted ads when she logs into her Facebook account. Facebook Remarketing
- 32. Be Aware ofFeedback “Now it has become clear to me that these ads targeted to me appear in several media. I have also met them in The New York Times, The Guardian (UK), Politiken (Denmark), Hufvudstadsbladet (Finland), Le Figaro (France), El Pais (Spain), Il Tempo (Italy), Bangkok Post (Thailand). Just to name a few. It seems to me like you have infected my Mac with a virus.”
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- 35. 35% Boost Testing and Tracking:Identifying a Control
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- 38. Strategy: 1. Target – Define you most vulnerable market segments. 2.Interaction – Member involvement and usage are the best levers for engagement. 3. Communicate Relevance – Providing lots of communications that are not targeted are relevant to a member can cause disengagement. Let behavior drive your communications strategy. 4. Score Engagement – Define the measurable behaviors that indicate engagement (i.e. transactions, website usage, email behavior, volunteering). Engagement Strategy
- 39. Lapsed Year TenureCount of Members % of Members Lapsed Members 10 619 2.81% 9 2,668 12.12% 8 536 2.43% 7 530 2.41% 6 582 2.64% 5 747 3.39% 4 898 4.08% 3 1,404 6.38% 2 2,318 10.53% 1 11,720 53.22% Total 22,022 Be Aware of Feedback
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- 42. One Month Statistics: •Impressions:185,000 • Clicks: 1,800 • Cost: $1,100 • Cost Per Impression: $.006 Cost Effective Engagement
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- 44. 1. Renew Frequency and Timing –Like it or not, people forget to renew. 2. Budget – Most organizations under‐spend on renewals. 3. Payment – Offering automatic credit card or EFT renewal, turns renewals from an opt‐in decision to an opt‐out action. 4. Personalization – Adding personalized messages to renewal efforts like, “because of your membership, you saved $50.00 on your product purchases this year.” Or, “we had some success on the legislative issue you were most concerned about.” Renewal Strategy
- 45. RENEWAL RATES BYNUMBER OF RENEWAL CONTACTS INDIVIDUAL 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% Frequency of Renewal Contacts
- 46. RENEWAL RATES BYSTART OF RENEWAL EFFORT INDIVIDUAL MEMBERSHIP ASSOCIATIONS (N=354) Renewal Rate Three months or less prior to expiration More than three months prior to expiration Less than 80% 51% 40% 80% or higher 49% 60% Start of Renewal Contacts
- 47. RENEWAL RATES BYEND OF RENEWAL EFFORT INDIVIDUAL 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% End of Renewal Contacts
- 48. • Average dues rate of $195. • Nine part mail renewal program with supporting emails. •The incremental cost to service a member is approximately $24 per member. • Amount spent to renew each member from each renewal effort. Effort #1 ‐‐ $ 2.31 Effort #2 ‐‐ $ 4.05 Effort #3 ‐‐ $ 8.75 Effort #4 ‐‐ $10.24 Effort #5 ‐‐ $15.96 Effort #6 ‐‐ $10.15 Effort #7 ‐‐ $ 9.36 Effort #8 ‐‐ $ 20.54 Effort #9 ‐‐ $ 37.61 Renewal Budgets
- 49. TOP RENEWAL OPTIONS Total (n= 406) Installment renewal payments (monthly, quarterly) 37% Multi-year renewals 36% Automatic annual credit card renewal 35% Lifetime membership 24% Renewal bill-me 21% Automatic annual Electronic Funds Transfer (EFT) renewals 17% Early-renewal discounts 17% Gift or premiums for renewal 7% Renewal Payment Options
- 50. Multi-step, integrated channel, issue driven, digitally printed,renewal program. Renewal Personalization
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- 52. Definition: 1. Conduct Lapsed Member Research – When members leave they highlight a breakdown in the membership system. Conducting research to understand why members do not continue with an organization will impact all parts of the membership lifecycle 2.Learn and Improve – Use what you learn and message differently to lapsed members than what you communicated to “never members” 3. Never Give Up – Lapsed members are almost always the most economical members reach out to for membership. Reinstatement Strategy
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- 55. CONTACT AFTER MEMBERSHIPLAPSE OR EXPIRATION Total (n = 636) We don’t contact lapsed members 12% 1 year after expiration 18% 2 years after expiration 10% 3 years after expiration 8% 4 to 5 years after expiration 5% 6 or more years after expiration 2% We continue indefinitely to contact lapsed members 33% Not sure 6% Other 7% Staying in Contact with Lapsed Members
- 56. Questions Contact Information Tony Rossell SeniorVice President Marketing General Incorporated Email: [email protected] Web: www.MarketingGeneral.com Blog: Membership Marketing Blog Twitter: @TonyRossell