Early Results from the 2011 Membership Benchmarking Survey: Memberships are on the Rise!!

Results of the 2011 Membership Benchmarking Survey indicate that overall membership growth, the primary indicator of association health, is on the rise in comparison with results from the 2009 and 2010 Membership Benchmarking Surveys.

                                                 2011          2010        2009


Percentage Increased Overall        49%          36%         45%

Percentage Unchanged Overall     16%          14%         16%

Percentage Declined Overall          34%         48%          35%

Not Sure                                      2%            3%             5%



While there are many possible reasons, growth in new member recruitment appears to be the big driver in membership growth.  Of responding association executives, 57% report the acquisition of new members increased over the past year.  These results are significantly better compared to previous years (both 2009 & 2010).

Guest blogger Caroline H. Fuchs gives some good advice

I'm fortunate to know many very smart and very talented people. Two such people, Caroline Fuchs and Andrew Goldschmidt, presented at the ASAE Marketing and Membership Conference last week. There session was so good that I asked Caroline if she'd be kind enough to write a brief summary of that session for us. 

As a quick primer, Caroline H. Fuchs is an experienced association marketing and membership professional who had successfully led staff teams at both professional societies and trade associations. As a marketing strategist, she helps organizations identify connections and uncover inventive and practical solutions in the areas of membership marketing, brand rejuvenation, communication enhancement, and product and service innovation. She can be reached at cfuchs555@gmail.com.

Membership on Caffeine

How do you show your passion for membership issues? You crowd into a chilly conference room at 7:00 in the morning to share experiences and ideas. That’s how more than 50 attendees of the ASAE 2011 MM&C Conference demonstrated their dedication—grabbing cups of coffee and participating in last Tuesday’s 7:00 a.m. Early Riser session titled “Under the Membership Tent.”

I was delighted to co-facilitate the group discussion with my colleague Andrew S. Goldschmidt, CAE, MBA, director of membership marketing at NACo-National Association of Counties. The session’s conversation covered a variety of topics, but there was not doubt that economy had taken its toll when renewals were voted as the first topic of the morning. 

Here are a few of the conversations that stood out:

Renewals of 1^st Year members continue to be a challenge. Whether they initially joined through a conference or for certification, failure to convert into long-term members remains frustrating for membership professionals. Strategies combating the attrition rate included researching the needs of at-risk audiences, developing unique onboarding programs, and tracking participation and member ROI. Check out the dashboard report

Andrew Goldschmidt shared with attendees and the white paper I authored for SmithBucklin Corporation on Membership Management Standard Practices.

Retaining student members remains difficult. Several attendees mentioned the success they’ve had with mentoring programs. One program model matched mentors and mentees at the annual conference and found the affinity and goodwill fostered worth the effort of a rather labor-intensive program.

Bringing non-renewing or lapsed members back into membership reaps rewards. According to the 2010 Membership Marketing Benchmarking Report recently released by Marketing General, associations with renewal rates of 80% or above are extremely likely to continue to indefinitely contact lapsed members for membership reinstatement. Murmurs of interest around the room made it clear that this strategy would get renewed emphasis at a number of organizations. (The 2011 Membership Marketing Benchmarking Report will be published in August this year. If you'd like a pre-pub copy, please let Erik know)

Member Get a Member campaigns remain viable. Jim Kokkines, membership manager, Healthcare Financial Management Association (HFMA) commented on the success they’ve found with the HFMA Member Get a Member program.  

The use of social media in all areas of membership is growing. One participant from a trade association actively used LinkedIn to reach prospects while others used Facebook, Twitter feeds, and blogs to reinforce membership communications. An interesting discussion ensued regarding the value of member-only online networks versus open communities, but no clear path emerged. For additional thoughts on this topic, read the point-counterpoint article Social Networking Sites for Associations: Open Access or Members Only? in the ASAE Membership Section newsletter Membership Developments.

Amazing. At such an early hour, more than 50 individuals—powered by caffeine—willingly contributed and learned together. Thank you to each and every participant!

Look for "AssociationTRENDS" Special Focus

Hey everybody,

MGI sponsored an AssociationTRENDS update with a special focus on Membership. Rick Whelan, President of MGI, and Tony Rossell, Sr VP MGI, both authored articles including "What are the biggest impediments to member Growth?" and "Defining member value to optimize benefits."

The articles include results from the MGI 2010 Membership Benchmarking Survey and mentions some early results from the 2011 Membership Benchmarking Survey which will be released at the upcomming ASAE Annual Conference this August.

If you'd like a copy of the article, go to http://www.associationtrends.com/ or contact me and I'll forward one to you.

If you'd like a pre-release copy of the 2011 Membership Benchmarking Survey, contact me and I'll put you on my "Early Distribution List."


Erik's Experts in Membership Marketing Blog is written by Erik Schonher, Vice President of Marketing General, Inc. For more information, contact Erik at Erik@marketinggeneral.com

25 Universal Secrets that Could Help You Drive Your Membership and Non-Dues Revenue

My good friend and mentor, Tony Rossell ( Membership Marketing Blog ), sent me the following "25 Secrets." These are true gems for everyone who needs to have others accept and act on his/her ideas - Exec Director to Board, President to Client...even Parent to Child.

In that line of thought, perhaps even Association to Prospective Member. 

These secrets are universal and I thought perhaps I'd share them with you all with the recommendation that you think about them when you develop your membership and product sales strategies.  

Have fun and good luck... 

1 Don’t sell me your product, sell me solutions.

2 Understand my business, understand my industry, and understand my market.

3 Understand your product or service thoroughly so that you know every conceivable way it might help me solve my problems or meet my goal.

4 Know everything you can about your competition. I have to make decisions about which product is best, and I need to know what makes yours the best choice for me.

5 Watch what you say about the competition. I want to know why your product is the best choice, but I don’t want you to knock the competition. Concentrate on your strengths, not their weaknesses.

6 Don’t give me a canned, generic pitch. Appreciate my unique qualities and challenges.

7 Have my best interest at heart.

8 Make me feel important. Make me believe I’ m the only customer you have even though I know it’s not true.

9 Have a purpose for every call.

10 Organize your materials so that when I ask to see information, you have it easily accessible.

11 Return my calls promptly. I expect that you’ll be as available to talk to me now as you were before the sale was completed.

12 Let me know how to reach you. If I can’t find you, I’ll go with someone else.

13 Help me solve a problem, even if it’s your fault, and I’ll most likely remain a loyal customer.

14 I’m looking for a sales rep I can consider a member of my Account Management, a partner, almost an employee. When you help me find solutions to run my business better, it’s easier for me to see you in that light.

15 Keep your promises. If you say you’ll get back to me, do it.

16 Anyone can make a one-time sale. It’s the follow-through that keeps me coming back for more.

17 If you don’t have an immediate answer, don’t try to fake it or make one up. I’d rather you say,   I don’t know, but I’ll find out. Of course, once you say that, you must get back to me with the answer as soon as possible.

18 Let me know that you’re interested in my success. If that means that you sometimes recommend the competition or tell me I’m better off with the product or service I now have, I’ll respect you greatly and find a way to do business with you in the future.

19 Be my consultant. Show me how others in my field have been successful. Become a resource for me so that I can call on you when I’m in a bind and need advice even if it’s got nothing to do with your product or service.

20 Create added value. Price is not my only criterion. The extra service and special attention you give me is worth more than dollars in many instances.

21 Exceed my expectations. Let me know that you are willing to go beyond the norm, to make that extra effort it takes to ensure success mine and yours.

22 Don’t keep me waiting. If you’re going to be late, call me.

23 Exhibit a positive attitude and enthusiasm about your job and your product. If you don’t believe in yourself, I won’t believe in you either.

24 Don’t argue with me or be too aggressive. If I feel like I’m being pushed into a sale, I know you’re interested in your commissions, not your customers.

25 Be honest with me in all situations. If there are problems, let me know so that together we can begin to think of solutions.

Barry J. Farber, “Sales Secrets from Your Customers”, Career Press (April 1995). 

Unexpected Results on Social Networking and Association Renewal - Is Social Networking Really a Bad Thing?

The 2010 Membership Marketing Benchmarking Report has been published with a surprising result!  As stated on P.9, "Results also indicated that associations using Facebook, Twitter and/or their private association social networking are significantly more like to have renewal rates under 80%."

While some may argue that this may be a "sampling error," or some other statistical anomaly, might it also be a possible warning?

One of the overall 'take aways' for me from this study is the importance of 'personal touch' in the marketing program for both member and trade associations. In almost every instance, those associations that employed some level of "personal touch" like phone calls or personal visits, had either a higher acquisition rate, a higher renewal rate or both.

With this said, is it really surprising that associations using social networking have a lower renewal rate? I'd be interested in hearing what you all have to say on this.

MMC - A Success!

First day back from the ASAE MMC and I want to send cudos to the ASAE team that ran this program. I think it was one of the best MMCs ever. The sessions were good and the attendees were very much "into it."

MGI also launched the 2010 Membership Benchmarking Survey results at a reception we sponsored. If you attended, I hope you all enjoyed it. If you have any questions concerning the study or would like a free copy, please feel free to contact me.

I also spoke with Vinay Kumar on how you can use the Membership Lifecycle to help you diagnose problems within your membership program. It was well attended with over 30 people who had a lot to say and share. It was a great session and I want to thank everyone who attended and participated.

Ten Top Tips from the Membership Marketing Benchmarking Report

It's finally here! The MGI 2010 Membership Marketing Bechmarking Report. You can download your own copy by going to http://www.marketinggeneral.com/ Web site registration is required for the download.

Tony Rossell offers a wonderful summary of the Top 10 Tips taken from this study on his blog (which I strongly recommend that you read). Here is that summary:

"1. Out of a list of 10 options, association executives are most likely to rank growth in member counts (22%), revenue growth (21%), and net revenue growth (21%) as the primary definition of success for their organization.

2. Findings indicate a more marked difference in membership growth of over 11% for those organizations focused on acquisition rather than those focused on retention or on a balanced strategy (18%: acquisition vs. 4%: retention and 9%: both), the five year change in membership (38%: acquisition vs. 27%: retention and 34%: both), and the change in new members (24%: acquisition vs. 7%: retention and 16%: both).

3. For associations with over 5,000 members, direct mail is considered the most effective channel for new member recruitment.

4. While Facebook, Twitter and LinkedIn are the most commonly used social media tools, they are not necessarily considered the most effective in reaching membership goals by association executives. In fact, the most effective social networking tools are considered to be those that are basically housed within the association itself, namely the association listserv (50%) and/or a private association social network (39%).

5. Approximately two-thirds of respondents report using mailed welcome kits, a decrease from the 2009 study of 15 percentage points (68% in 2010 vs. 83% in 2009). However, findings indicate that associations with greater than 80% renewal are significantly more likely to use the mailed welcome kits (75% vs. 58%).

6. Directionally, findings demonstrate that associations with overall increases in membership over the past year, as well as those with renewal rates higher than 80% are more likely to attempt more renewal contacts before a membership expires. These increases in renewal rates appear after seven contacts.

7. Associations with renewal rates of 80% or higher are significantly more likely to offer EFT renewals (14% vs. 3%) as well as installment payment plans (55% vs. 35%). Associations with renewal rates less than 80% are significantly more inclined to offer multi-year renewals (54% vs. 18%).

8. Associations showing an increase in renewals over the past year are significantly more likely to offer automatic credit card renewals, compared to associations with declines in renewals (29% vs. 17%).

9. Unlike in the 2009 study, price is not the top driver responsible for non-renewals; in fact, one-third of the association executives indicate that they believe members do not renew because they perceive a lack of value in the organization. This is an increase of about 80%.

10. Associations did not experience radical changes in membership numbers over the past year. The largest percentage of increases or declines in membership ranged from 1% to 5% of the previous year’s total."

If you have any questions concerning the study please feel free to contact me at Erik@MarketingGeneral.com or call me at 703.706.0358

Please feel free to share your thoughts and reaction to the report in the comments section below.

Prepress Learnings from the MGI 2010 Membership Benchmarking Study - Most Effective Recruitment Channels

While we will be presenting the 2010 Membership Benchmarking Study this Monday, June 14, 2010, at a special reception sponsored by MGI at the ASAE Marketing and Membership Conference in Washington, DC, here is a taste of what over 400 associations who participated in the survey and shared their membership practices and their opinions on what works best for each stage of the membership lifecycle had to say when asked "What are the Most Effective Recruitment Channels?"

For associations with less than 5,000 members, word-of-mouth is the most effecive method of new member recruitment. It is also the second most effective method for associations with over 5,000 members.

For associations with over 5,000 members, the exact opposite is true: direct mail is considered to be the most effective channel for new member recruitment while word-of-mouth is the second most effective method.

For trade associations, as well as those offering both individual membership and trade membership, the most effective recruitment method is member word-of-mouth.

There is so much more to this study, so I hope to see you at the MMC next week. If you can't make it or would like your own copy, please contact me at erik@marketinggeneral.com and I'll forward it after next Monday or you can go download a copy from our website at http://www.marketinggeneral.com/.

Last Chance to Participate

For the second year in a row, MGI is conducting a Membership Marketing Benchmarking Survey. The report will include a trend analysis of what has changed over the past year (since the 2009 Membership Marketing Benchmarking Survey) and highlight key data on what associations are doing in membership marketing - awareness, acquisition, engagement and renewal.

As we're about to close the questionnaire for our 2010 Membership Marketing Benchmarking Survey, I wanted to make sure that you had one last chance to participate. For each person who completes a questionnaire, you'll receive a free copy of the final report.

If you'd like to participate, please use the link below to open the survey.

https://www.snapsurveys.com/swh/surveylogin.asp?k=126590674222

It should only take about 10 minutes to complete.

If you have any questions, please feel free to contact me.