2 0 1 0 - nSight Marketing · Percentage Change in Entire Membership Over Past FIVE Years 2010 2009 Percentage Increased Overall 57% 60% Percentage Unchanged Overall 8% 8% Percentage

BENCHMARKING REPORT

MEMBERSHIP M ARKETING

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RESEARCH CONDUCTED BY:Marketing General Inc.

UNDER THE SUPERVISION OF:Adina Wasserman, PhD,Director of Research, andTony Rossell, Senior Vice President

www.marketinggeneral.com

EXECUTIVE SUMMARY

2

The 2010 Membership Marketing BenchmarkingReport marks the second year that MarketingGeneral Inc. (MGI) has surveyed associations tobetter understand the strategies and tactics theyuse to recruit members, engage new members,renew existing members and reinstate formermembers.

Over 400 associations participated in the surveyand shared their membership practices and theiropinions on what works best for each stage of themembership lifecycle. The report includes dataon what social media are used by associations,how prospective members find out about theassociation, what acquisition marketing channelsand offers are used, and how many renewalcontacts are sent out.

Besides cataloging membership practices, thisBenchmarking Report also takes these practicesand cross-tabulates them with the membershipresults that associations are experiencing. Arenew member counts up or down? Are renewalrates above or below average? Has membershipgrown in the past year? How about in the pastfive years?

The comparison of practices andoutcomes in membership providesstrong directional information onwhat tactics and strategies might beadded or dropped to help improvea membership program.

However, there is an important disclaimer thatone should be aware of as a result of this report.Because an activity or practice has a statisticalcorrelation with a growing or decliningmembership or better renewal rates, we are notclaiming that any one behavior in and of itselfcauses this outcome. There are literallythousands of variables that impact membershipresults.

Nevertheless, if as a marketer one sees thatorganizations with certain behaviors or practicestend to be doing better, one at least will want toexplore the issue and see if there is somethingthat can be applied to another organization.

The report includes dozens of key findings thatcan provide insights and direction formembership marketing programs. Here are somehighlights of the key trends that came out of thisyear’s research.

BENCHMARKING REPORT

MEMBERSHIP M ARKETING

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MEMBERSHIP GROWTH TRENDS

One benefit of conducting the MembershipMarketing Benchmarking research for a secondyear is the opportunity to measure trends.

The trend that jumps out more than any otherbetween the 2009 and 2010 study is howchallenging a year it has been to get and keepmembers. Associations reported that they werehaving trouble acquiring new members, renewingthe members that they had and growing theoverall membership count compared to last year.

The most significant drop-off for membershiporganizations appears to be in renewals. In 2009,31 percent of responding associations reportedthat renewal rates for their organization haddecreased in the previous year. In 2010, 44percent of associations reported a decline inrenewal rates.

On the positive side, 62 percent of associationsreported that new member input in 2010 haseither increased or remained the same from theprevious year. But this is still lower than the 71percent of associations who reported this in 2009.

Clearly, when renewal rates are down and newmember input is declining, it will come as nosurprise that total membership for associationsis also reported to be down from 2009.

However, membership still shows a strongresiliency. This year, 57 percent of associationsreported that membership was up over the pastfive years and 36 percent said that membershipnumbers were up for the past year.

Percentage Change in Member RENEWALSOver Past ONE Year

2010 2009Percentage Increased Overall 21% 22%

Percentage Unchanged Overall 27% 39%

Percentage Declined Overall 44% 31%

Percentage Change in NEW MemberAcquisition Over Past ONE Year




Percentage Change in Entire MembershipOver Past FIVE Years




Percentage Change in Entire MembershipOver Past ONE Year




4


TRADE ASSOCIATIONSCOMPARED TO INDIVIDUALMEMBERSHIP ASSOCIATIONS

In our 2010 Membership MarketingBenchmarking study, we asked respondents toidentify their association by what membershipstructure they operated under: trade ororganizational, individual, or both.

In a number of areas this provided useful data.In particular, it highlighted that trade associationshave had a much tougher membership year thanhave individual membership associations.

When we cross-tabulated structure with ourmembership growth question, we found that43 percent of individual membership associationshad experienced membership growth in thepast year, but only 26 percent of tradeassociations saw growth.

43%

12%

45%

26%

16%

58%

35%

17%

48%

Increased Remained the Same Decreased

Individual (N=215) Organizational/ Trade (N=112) Both (N=65)


5

MEMBERSHIP GROWTH STRATEGY

If membership is going down in an association,is there anything that the study showed can bedone to turn around the trend? The answer isyes, from what we found; it appears there arenumerous practices that can help to growmembership.

One of the most interesting is that membershipgrowth may depend on what the membershipgoal is the association has targeted.

In the study this year, we asked participants totell us their membership growth strategy. Weoffered three options:

1. A greater priority on acquisition than retention.2. A greater priority on retention than acquisition.3. An equal priority on acquisition and retention.

Then we cross-tabulated these answers withreported membership growth rates overone year and five years to see which strategycorrelated with increased membership growth.

Interestingly, those organizations that placed apriority on membership acquisition comparedto a retention strategy or a balanced strategydirectionally were more likely to experiencegrowth in membership.

Percentage Change in Growth Based on Growth GoalsOne Year Change Five Year Change New Member Change Renewal Rate ChangePriority

Over 1% Over 11% Over 1% Over 11% Over 1% Over 11% Over 1% Over 11%Acquisition 38% 18% 60% 38% 51% 24% 24% 0%Retention 33% 4% 57% 27% 39% 7% 24% 3%Equally on both 37% 9% 58% 34% 43% 16% 16% 3%

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ASSOCIATIONS REPORT BROADARRAY OF ASSOCIATION GOALS

We also sought to gain a better understandingof the overall goals for associations through ourresearch this year.

The goal question arose out of conversationsthe author of the study has had with a numberof associations over the past year where thereseems to be a lack of clarity in what theassociation is attempting to accomplish. In fact,stated association goals are often in conflict witheach other. An association may set a goal tosignificantly grow membership and also to

increase net revenue. These goals can conflictsince typically membership growth requiresre-investing net revenue in marketing. It is veryhard to increase volume and profits at thesame time.

The responses to the goal question suggestthat indeed there is remarkably little consensusamong associations on strategic goals.

Here is a breakdown on how respondentsranked various association goals.

Ranked Percentages On Definitions Of Association Success

Rank 1 2 3 4 5 6 7 8 9 10 11

Growth in member counts 22% 17% 20% 9% 6% 7% 6% 4% 4% 3% 2%

Growth in revenue 21% 16% 10% 10% 6% 7% 7% 5% 7% 7% 4%

Growth in net revenue 21% 16% 11% 8% 6% 6% 6% 8% 8% 6% 3%

Growth in participation 6% 7% 6% 15% 13% 11% 13% 12% 10% 7% 2%

Growth in attendance 4% 7% 9% 15% 17% 15% 11% 9% 4% 8% 2%

Increase in new members 4% 10% 13% 16% 16% 15% 10% 8% 6% 2% 1%

Increase in renewal rates 3% 7% 13% 13% 18% 13% 15% 7% 6% 4% 1%

Increase in organization visibility 5% 6% 11% 10% 8% 10% 15% 19% 11% 4% 2

Increase in visibility for industry 6% 9% 7% 6% 7% 6% 8% 15% 21% 14% 3%Increase in advocacy effectiveness 10% 8% 4% 4% 5% 6% 5% 10% 14% 25% 9%

%3%4%0%1%1%0%0%0%2%91rehtO 70%


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THE VALUE OF MEMBERSHIP

One apparent change that has come about as aresult of the challenges faced by membershiporganizations is an increased focus on the valueof membership.

Our 2010 Membership Marketing BenchmarkingSurvey confirms the heightened concern aroundthis issue.

For a second year, we asked associationexecutives what was the top reason that theirmembers did not renew. Last year the answersfocused on cost with the top two reasons given as“the employer would not pay for membership” orthe membership was “too expensive.”

However, for 2010, the top reason given for non-renewal was a “lack of value.” A total of 36percent of respondents cited value as the keyissue, an 80% leap over last year.

Is there any good news in this change ofperspective? We think so. When we believemembers lapse because dues are too expensive,it does not leave much room for fixing theproblem. However, if we think members leavefor value issues, we can do research and memberinterviews to better understand what they arelooking to receive and make changes tocommunications or the products themselves toenhance the value.

Asking how we can deliver more value to ourmembers is a very productive question when weput actions behind it to discover the answer.

EFFECTIVENESS OF SOCIAL MEDIA

On a final note, we of course had to add socialmedia questions to this year’s survey.

Not surprisingly, only 8 percent of respondentssaid that their association does not use anyofficially-sponsored social media. So the spreadof social media into associations is nearlycomplete.

What was more interesting was the rankingsrespondents gave various social mediaapplications. When asked to rank the socialmedia that was most effective in helping theirassociation achieve their membership goalsthe highest-rated applications were AssociationListservs and Association Private Social Networks.This in spite of the fact that the most widelyused social media were reported as Facebook,Twitter and LinkedIn.

WE WANT TO THANK the 407 associationsthat took the time to participate in the2010 Membership Marketing Benchmarkingresearch. You have provided your associationcolleagues with valuable data that will help allof us better serve members and prospectivemembers, and do our jobs more effectively.

There is an ancient proverb that describesthe impact of our sharing so well. It says,"Without counsel plans fail, but with manyadvisers they succeed."

MGI 2010 Membership Benchmarking Survey Results

Comparison of 2010 to 2009Reported Reason for Non-Renewal

Reported in2009

Reported in2010

TOP Reason forMember Non-Renewal

4%4%Retirement3%4%Lost Job

11%6%Forgot Renewal22%11%Too Expensive

22%25%Employer Won’t Pay Dues

20%36%Lack of Value

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SURVEY OBJECTIVE

The 2010 Membership Marketing BenchmarkingReport is the second annual edition of thistracking study. The original survey wasconducted in March and April, 2009. The purposeof this follow-up study is to gain perspective onthe tactics and strategies that organizations useto recruit new members, renew existing membersand reinstate former members, and tounderstand which tactics and strategiesassociation executives perceive as the mosteffective in reaching their goals. Some questionsfrom the previous study were removed for2010, and some new questions were added tothis study.

METHODOLOGY

The Second Annual Membership MarketingBenchmarking Study was conducted online andwas launched on February 12, 2010. It was leftopen to respondents through March 8, 2010.Email invitations were sent to approximately 3,250association professionals. Additionally, a link wasset up on a blog site allowing people to accessthe survey without a formal invitation. More than400 association professionals responded to thesurvey providing data and information regardingtheir membership marketing experiences.

To ensure that each association’s responses werecalculated only once, we removed “duplicate”responses from an association. For instance, ifmore than one person from a single associationcompleted the survey, the responses of theindividual most closely associated with themarketing aspect of the association were used.Twenty-two duplicate association respondentswere removed from the final results of this study,leaving the total number of respondents for thisstudy at 407, with a margin of error ofapproximately +/- 5%.

What is the margin of error? Since it is virtuallyimpossible to survey all association executives,statisticians rely on a random sample ofindividuals from the “universe” of associationexecutives to estimate what the results of theentire specified population would be. The resultsfrom the randomly-generated sample can beseen as a “snapshot” of the universe. The marginof error, or standard error, is a statistical termused to measure the random fluctuations inherentin samples. The smaller the standard error, themore accurate the measurement of thepopulation, or universe.

This study’s significance level of .05 carries withit a 95% confidence interval, meaning that ifthis study were conducted 100 times, the sameresults, plus or minus the margin of error (inthis case 5%), would occur 95 out of 100 times.The confidence interval is established as thelikelihood that the same results would beachieved and that it would not be due tochance or random fluctuations.

RESPONSE RATE

As indicated above, email invitations were sentto 3,250 association professionals, yieldingresponses from 312 individual associationexecutives. A link was also set up on a blogwebsite allowing people access to the surveywho did not receive an email invitation. Thislink provided another 117 respondents, bringingthe total to 429, and yielding a response rateof 13%. However, after removing the duplicateassociation responses, findings from a net of407 respondents are included in this study.

INTRODUCTION


9The top three social mediatools used by associationsinclude Facebook (75%),Twitter (66%) and LinkedIn(59%). After that, about onethird of associations useYouTube (35%), theirassociation listserv (31%)and/or their association blog(30%).

Approximately 8% ofassociations do not use anysocial media tools. While thisrepresents only a smallpercentage of associations,findings indicate that of theseassociations, those with arenewal rate of 80% or higherare significantly less likely touse social media tools.

Results also indicate thatassociations using Facebook,Twitter and/or their privateassociation social networkingare significantly more likely tohave renewal rates under 80%.Furthermore, those usingLinkedIn are significantly morelikely to show a decrease intheir overall membership overthe past year. Associationsusing Twitter and/or YouTubeare significantly more likely toshow declines in new membersover the past year.

Facebook is the mostcommonly used social mediaoutlet. Twitter, YouTube and/orthe association blog are mostoften used by associationswith 5,000 members or more.Associations with fewer than1,000 members aresignificantly less likely to useany social media outlets.

Associations offering individualmemberships are significantlymore likely to use Facebookcompared to organizational/trade associations (81%:individual vs. 65%:organizational/trade).

Scientific/engineeringassociations are more likely touse Facebook than other typesof associations. LinkedIn ispredominantly used byassociations in building/construction, finance/accounting and scientific/engineering industries.Twitter is most often used byassociations in the educationand building/constructionindustries.

Which types of social media does your organizationofficially use?

75%

66%

59%

35%

31%

30%

17%

13%

6%

4%

3%

8%

6%

Facebook

Twitter

LinkedIn

YouTube

Association Listserv

Association Blog

Private Association Social Network

Wikis

Ning/Groupsite

MySpace

Second Life

No social media tools used

Other 2010 (N=405)

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While Facebook, Twitter andLinkedIn are the mostcommonly used social mediatools, they are not necessarilyconsidered the most effectivein reaching membership goalsby association executives. Infact, the most effective socialnetworking tools areconsidered to be those thatare basically housed within theassociation itself, namely theassociation listserv (50%)and/or a private associationsocial network (39%).

Facebook is ranked most oftenas the second most effectivesocial media tool, with 28% ofthe users ranking it second.However, for those who offer aprivate social networkexperience within theirmember base, this privatenetwork is ranked as secondmost effective for achievingmembership goals by 27% ofits users.

Facebook is considered mosteffective by associationsoffering individualmemberships (33%), whileLinkedIn is considered mosteffective byorganizational/tradeassociations (31%) and thoseoffering both organizationaland individual memberships(30%).

Of the social media outlets your organization uses, which twoare most effective in achieving your membership goals?

Most Effective Social Media Outlets in Reaching Membership Goals

N % Rank 1 % Rank 2Association Listserv 125 50% 14%Private association social network 70 39% 27%LinkedIn 242 33% 23%Facebook 307 30% 28%Association Blog 123 19% 16%Ning/Groupsite 23 13% 9%Twitter 267 10% 26%Wikis 55 9% 13%YouTube 141 6% 16%MySpace 15 0% 0%Second Life 10 0% 0%Other 25 24% 4%


11

A majority of associations useconference or conventiondiscounts, product discounts,coupons or vouchers, and/ormember-referral incentives.About one-half of theassociations indicate they usenew member dues discounts,a decline from the previousstudy (50% in 2010 vs. 56% in2009).

An increased number ofassociations indicate they useconference or conventiondiscounts very often or all thetime, compared to findingsfrom the 2009 study (45% in2010 vs. 38% in 2009).

The percentage ofassociations that use first-yeardues discounts more than 80%of the time, the second mostused incentive in 2009, hasdropped by about one-half(15% in 2010 vs. 31% in 2009).

Notably, of the associationsthat offer a first-year duesdiscount incentive, those withrenewal rates of 80% or moreare significantly more likely tooffer it less often, only up to20% of the time, suggestingthat using this incentive toofrequently may diminish itsvalue.

How often do you use the following special recruitmentincentives to acquire NEW members?

Special Recruitment IncentivesNever(0%)

Not often(1%-20%)

Occasionally(21%-50%)

Frequently(51%-80%)

Very often(81%-99%)

Always (100%)

2010 24% 12% 11% 10% 13% 32% Conference or conventiondiscount 2009 29% 11% 13% 9% 10% 28%

2010 41% 15% 15% 10% 7% 12% Product discount, couponsor vouchers 2009 44% 16% 17% 8% 6% 8%

2010 44% 18% 13% 8% 4% 14% Member-referral incentives(given to member) 2009 44% 23% 11% 8% 6% 9%

2010 50% 14% 13% 8% 7% 8%Dues discount for first year 2009 38% 11% 13% 7% 11% 20% 2010 55% 22% 12% 5% 3% 2%Drawings or contests 2009 52% 19% 18% 7% 3% 2%2010 57% 20% 11% 7% 4% 2%Free gifts or premiums 2009 54% 16% 15% 10% 4% 3%2010 65% 10% 8% 4% 4% 9%Online registration discount2009 63% 8% 10% 7% 5% 8%2010 68% 18% 6% 3% 2% 4%Free trial2009 66% 18% 8% 4% 2% 2%2010 69% 9% 6% 4% 3% 9%Multiple-year dues discount2009 68% 8% 7% 2% 3% 12% 2010 83% 6% 2% 1% 2% 6%No risk/dues back guarantee

(refundable dues) 2009 82% 8% 3% 1% 2% 5%2010 78% 5% 5% 2% 2% 9%Other2009 41% 14% 0% 17% 14% 14% 2010 55% 15% 7% 7% 10% 7%No special offers2009 51% 16% 9% 6% 11% 6%

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How do prospective members learn about or become awareof your organization?

91%

88%

67%

67%

66%

66%

59%

56%

56%

56%

51%

50%

47%

46%

39%

37%

32%

31%

23%

22%

20%

20%

18%

13%

5%

3%

0%

77%

85%

61%

54%

76%

65%

52%

51%

37%

35%

53%

40%

34%

39%

29%

30%

35%

28%

23%

24%

14%

8%

18%

12%

7%

3%

1%

Member word-of-mouth recommendations

Association website

Email to prospects

Co-worker/colleague recommendations

Direct mail to prospects

Promotion to/at your own conferences/conventions

Cross-sell to non-members who buy your products or attend yourconferences

Advertising in your own publications

Association-sponsored events

Association-sponsored social networking websites (e.g., Facebook,LinkedIn)

Exhibiting at other conferences

Recommendations/ connections with other associations

Search engines (organic)

Chapters

Public relations

Employer recommendations

Faculty recommendations

Advertising in outside publications

Job board

Personal sales calls

Accreditation promotion

Search engines (paid or pay-per-click)

Telemarketing to prospects

Paid banners on other websites

Radio or TV

Other

Do not know

2010 (N=405)

2009 (N=599)


13

Similar to the 2009 study, member word-of-mouth recommendations (91%) andassociation website (88%) are the two mostcommon methods by which prospectivemembers become aware of an association;however, the order is switched and memberword-of-mouth takes the top spot this year andassociation website ranks as second. Both ofthese methods have shown increases over theprevious study.

About two-thirds of association executivesindicate that prospective members becomeaware of their association through email (67%),co-workers or colleagues (67%), direct mail(66%) and/or promotion to/at your ownconference/convention (66%). Emailpromotions and co-worker recommendationsappear to be effective in generatingassociation awareness, while direct mail andpromotion to/at own conference seem to havelost some effectiveness in building awarenessover the past year.

Other methods for generating associationawareness that have gained momentuminclude:

• Association-sponsored events(56% in 2010 vs. 37% in 2009)

• Association-sponsored socialnetworking websites(56% in 2010 vs. 35% in 2009)

• Recommendations/connectionswith other associations(50% in 2010 vs. 40% in 2009)

• Search engines (organic)(47% in 2010 vs. 34% in 2009)

• Chapters(46% in 2010 vs. 39% in 2009)

• Public relations(39% in 2010 vs. 29% in 2009)

• Employer recommendations(37% in 2010 vs. 30% in 2009)

• Search engines (paid or pay-per-click)(20% in 2010 vs. 8% in 2009)

Associations relying on paid banners, paidsearch engines, advertising in outsidepublications, and/or their own chapters aresignificantly more likely to show renewal ratesless than 80%.

Association-sponsored events has shown notonly to be increasing in its effectiveness forcreating association awareness, but is one ofthe few methods in which the associations thatuse it are more likely to show increases inoverall membership after one year andsignificant increases in membership after fiveyears. This is not surprising because anassociation-sponsored event creates a positive,proactive and socially-engaging impressionupon the attendee.

Aside from the top two channels from whichprospective members learn of an association,findings indicate that trade associations aresignificantly more likely to rely on personalsales calls and public relations. Associationsoffering individual memberships and thoseoffering both individual and organizationalmemberships are significantly more likely torely on paid search engines, faculty, employerand/or co-worker recommendations and theirchapters. Associations offering individual andorganizational memberships are significantlymore likely to also depend on organic searchengines, promotion to/at their ownconferences and advertising in their ownpublications.

14


Association professionals indicatethat member word-of-mouthrecommendations and direct mailto prospects are the two mosteffective channels for membershipmarketing, with just over one-quarter of those who have usedthese channels indicating they arethe most effective.

These two channels are alsoconsidered the second mosteffective, indicating that whereone was chosen as most effective,the other was chosen as secondmost effective.

What are the two most effective membership recruitmentmarketing channels you have used?

Most Effective Recruitment Channels

N % Rank 1 % Rank 2Member word-of-mouth recommendations 371 27% 19%Direct mail to prospects 268 27% 17%Personal sales calls 90 23% 16% Co-worker or colleague recommendations 270 13% 13% Promotion to/at your own conferences/conventions 266 11% 8%Email to prospects 272 10% 14% Chapters 188 10% 9%Association website 359 8% 11% Employer recommendations 150 8% 5%Telemarketing to prospects 73 7% 7%Cross-sell to non-members who buy your products or attend yourconferences 238 6% 12%

Faculty recommendations 128 6% 7%Accreditation promotion 82 6% 4%Exhibiting at other conferences 208 3% 5%Public relations 158 3% 3%Association-sponsored events 226 2% 8%Recommendations/connections with other associations 202 2% 5%Advertising in outside publications 128 2% 3%Search engines (organic) 192 1% 5%Advertising in your own publications 226 0% 1%Association-sponsored social networking websites (e.g., Facebook,LinkedIn) 226 0% 0%

Job board 94 0% 0%Search engines (paid or pay-per-click) 80 0% 0%Paid banners on other websites 51 0% 0%Radio or TV 19 0% 0%Other 13 15% 0%


15

Most Effective Recruitment ChannelsThose Ranked Most Effective by Organization Size

Association Member Size Most Effective(N=395)

Second Most Effective(N=392)

Up to 1,000 Word of Mouth Email1,001 to 5,000 Word of Mouth Direct Mail5,001 to 20,000 Direct Mail Word of Mouth Over 20,000 Direct Mail Word of Mouth

Most Effective Recruitment ChannelsThose Ranked Most Effective by Year

2010(N=395)

2009(N=363)

Member word-of-mouth recommendations 27% 32%Direct mail to prospects 27% 46%Personal sales calls 23% 11%Co-worker or colleague recommendations 13% 6%Promotion to/at your own conferences/conventions 11% 15%Email to prospects 10% 24%Chapters 10% 8%

Compared to the 2009 findings,member word-of-mouthrecommendations and directmail are still the top two mosteffective recruitment methods.However, perceptions as to theeffectiveness of both of thesemarketing channels havedeclined. Perceivedeffectiveness of word-of-mouthrecommendations has droppedfrom 32% to 27% and directmail has dropped from 46%to 27%.

The perceived effectiveness ofpersonal sales has jumped intothe top three, increasing from11% in 2009 to 23% in 2010.

Additionally, the perceivedeffectiveness of email toprospects, which was in thetop three in the previous study,has declined from 24% in 2009to 10% in 2010, a drop ofalmost 60%.

The perceived effectiveness ofco-workers or colleagues hasincreased, more than doublingits rating of being the mosteffective recruitment channel(13% in 2010 vs. 6% in 2009).

For smaller associations, word-of-mouth marketing is themost effective method of newmember recruitment. It isranked as second mosteffective for associations withmembers numbering over5,000.

For associations with over5,000 members, direct mail isconsidered the most effectivechannel for new memberrecruitment.

For associations offeringindividual memberships, themost effective recruitmentchannel is direct mail (22%)

and/or member word-of-mouth (22%). Fororganizational/tradeassociations, as well as thoseoffering both types ofmembership, the mosteffective recruitment methodis member word-of-mouth(27% each).

16


What do you believe is the ONE TOP reason membersJOIN your organization?

24%

13%

11%

11%

9%

6%

6%

4%

3%

2%

1%

2%

9%

22%

23%

5%

8%

9%

3%

2%

1%

4%

10%2010 (N=400)

2009 (N=303)

Not asked in 2009

Not asked in 2009

Not asked in 2009

Network with others in the f ield

Access to specialized information

Continuing education

Advocacy

Learn best practices in their profession

Obtain discounts on products or meeting purchases

Monthly publication(s)

Accreditation

Access to career resources

Advance their position

Access to industry benchmark studies

Not sure

Other


17

In the current study, about one-quarter ofassociation executives feel that members aremost likely to join their organization to networkwith others in the field.

Only 13% of respondents indicate thatmembers join their association for access tospecialized information. This represents analmost 50% drop from the previous study (13%in 2010 vs. 23% in 2009).

Just over one in ten association executivesreport that members join their association forthe continuing education (up from 5% in 2009to 11% in 2010) or advocacy (also 11%).Associations with greater than 80% renewalrates and overall increases in membership overthe past year are significantly more likely toindicate that their members join because ofthe advocacy aspect of the association.

Obtaining discounts on products or meetingpurchases is no longer one of the top threereasons why respondents say members jointheir association, having dropped from 9% to6%. Furthermore, findings indicate thatassociations having less than 80% renewal ratesand/or decreases in their renewal figures aresignificantly more likely to report that membersjoin specifically to obtain these discounts.

For associations in the healthcare industry,advocacy is more often considered the mainreason members join. Associations offeringorganizational/trade memberships aresignificantly more likely to report that advocacyis a main reason as well, compared toassociations offering only individualmemberships or both.

Associations offering individual membershipsare significantly more inclined to indicate thatcontinuing education and monthly publicationsare main drivers for joining, compared toassociations offering other types ofmembership.

18


Whereas the first-year duesdiscount was previously seenas the most effectiverecruitment method forgetting the most newmembers, conference orconvention discounts arecurrently viewed as the mosteffective method for gainingthe most members.

Discounts onconferences/conventions arealso considered the mosteffective recruitment tactic forattracting members cost-effectively.

First-year dues discounts areconsidered the second mosteffective recruitment strategyboth for recruiting the mostmembers and recruitingmembers cost-effectively.

Associations with less than80% renewal rates aresignificantly more likely toindicate their most effectiverecruitment tactic for gainingthe most members is throughmultiple-year dues discounts(9% vs. 4%).

Association executives thatindicate a free trial is mosteffective in recruiting membersand most cost-effective are

significantly more likely toshow increases in newmembers and in renewalsover the past year.

Associations relating toprofessional services,education and healthcare aremore likely to indicate thatdiscounts on conferences aremost effective for bringing innew members, whereasassociations in thefinance/accounting andbuilding/constructionindustries report that first-yeardues discounts are mosteffective for recruiting themost new members.

Which of the offers was most effective in recruiting themost members?

Most Effective Offers for Recruiting New Members

Most effective in getting the most members

Most effective in attractingnew members cost-effectively

2010 2009 2010 2009Conference or convention discount 24% 17% 25% 21%

Dues discount for first year 18% 25% 18% 11%

Product discount, coupons or vouchers 11% 6% 11% 6%

Member-referral incentives (given to member) 11% 8% 11% 8%

Free trial 7% 9% 7% 4%

Online registration discount 7% 4% 7% 3%

Multiple-year dues discount 6% 4% 6% 3%

Free gifts or premiums 5% 7% 5% 5%

Drawings or contests 3% 2% 3% 3%

No risk/dues back guarantee (refundable dues) 1% 1% 1% 3%

Other 1% 6% 1% 2%

No special offers 7% 4% 6% 10%


19

What is your overall membership renewal rate?

Close to 60% of associationexecutives indicate that theyhave a renewal rate of 80% orhigher. What is noticeable,however, is that thepercentage of associationswhose renewal rate of 90% orhigher has droppeddramatically. While this may bea function of the sample thisyear, there are increases in thepercentage of associationsreporting lower renewal ratesoverall.

Associations indicating arenewal rate at 90% or higherare significantly more likely toreport overall associationmembership increases overthe past year.

While the majority ofassociations report renewalrates between 80% and 90%,smaller associations (fewerthan 1,000 members) aresignificantly more likely toreport renewal rates at 90% orhigher, compared toassociations with moremembers.

One-quarter of the largestassociations (those with over20,000 members) have arenewal rate less than 70%.

Organizational/tradeassociations are significantlymore likely to report renewalrates of 90% or higher,compared to associationsoffering individual or bothtypes of memberships (31%:organizational/trade vs. 15%:individual and 9%: both).

3% 4%

11%

21%

40%

18%

3%2%4% 4%

29%

7%

16%

37%

Under 50% 50% to 59% 60% to 69% 70% to 79% 80% to 89% 90% or higher Not sure

2010 (N=403)

2009 (N=337)

Renewal Rate by Association Member Size

Association Member Size N 0% to69%

70% to79%

80% to89%

Over90% Not sure

Up to 1,000 97 13% 11% 44% 29% 2%1,001 to 5,000 106 19% 29% 31% 17% 4%5,001 to 20,000 105 17% 24% 39% 16% 4%Over 20,000 88 23% 19% 47% 11% 0%

20


Which of the following communications methods do you useto help onboard or engage new members in the association?

72%

68%

59%

32%

27%

25%

23%

20%

20%

18%

11%

10%

4%

2%

5%

62%

83%

58%

26%

14%

23%

17%

19%

11%

20%

7%

4%

2%

2%

8%

Email welcome

Mailed welcome kit

Membership card orcertificate

Volunteer or staffwelcome phone call

New member introductoryemail series

Invite to chapter meeting

Special discounts onpurchases

In-person new memberreception

New member newsletter(mail or electronic)

New member survey

Custom new memberrenewal series

Telemarketing welcomephone call

Early or "at-birth" renewal

No specialcommunication

Other2010 (N=402)2009 (N=337)


21

Seventy-two percent of association executivesindicate they use an email welcome kit to helponboard or engage new members, an increaseover the previous study (72% in 2010 vs. 62% in2009).

Approximately two-thirds of respondentsreport using mailed welcome kits, a decreasefrom the 2009 study of 15 percentage points(68% in 2010 vs. 83% in 2009). However,findings indicate that associations with greaterthan 80% renewal are significantly more likelyto use the mailed welcome kits (75% vs. 58%).

About 59% of association executives indicatethey provide a membership card or certificateto help onboard or engage new members.Results show, however, that associationsproviding these membership documentsare significantly more likely to have haddecreases in overall new member growthover the past year.

Another communication tactic that iscorrelated with renewal rates of 80% or higheris a volunteer or staff welcome phone call.Furthermore, associations showing increases inoverall membership over the past year aresignificantly more likely to use this “personalservice” in the form of an in-person newmember reception.

Organizational/trade associations aresignificantly more likely to use volunteer orstaff welcome phone calls and in-personmember receptions to onboard new memberscompared to associations offering individual orboth types of membership.

On the other hand, associations that usetelemarketing welcome phone calls, wherethere is little personal shared experience, aresignificantly more likely to have demonstrateddeclines or no change in membership numbersover the past year.

Interestingly, the smaller associations (thosewith 5,000 or fewer members) are significantlymore likely to engage or onboard newmembers using the more personal tactics suchas volunteer or staff welcome phone callsand/or in-person new member receptions.

Association executives frombuilding/construction and manufacturingindicate their associations are still more likelyto use mailed welcome kits than an emailwelcome (85% and 92%, respectively) to helpengage or onboard new members.

22


The number of membershiprenewal contacts made beforea membership expires with anorganization has not variedmuch since the previous study.The majority of associationexecutives indicate that theirassociation attempts four to sixcontacts before themembership expires (44% in2010 vs. 46% in 2009). Abouttwo in ten association

professionals report that theirassociation makes fewer thanfour (22%: one to threecontacts) or greater than sixbut fewer than ten (20%: sevento nine contacts).

Directionally, findingsdemonstrate that associationswith overall increases inmembership over the pastyear, as well as those with

renewal rates higher than 80%,are more likely to attemptmore renewal contacts beforea membership expires. Theseincreases in renewal ratesappear after seven contacts.

How many membership renewal CONTACTS do you makebefore a membership expires with your organization (such asmailings, emails, phone calls)?

2%

44%

20%

6%

2%1%

2% 2%1%

7%

2%1% 1%

3%

22%

19%

46%

21%

None 1 to 3 4 to 6 7 to 9 10 to 12 13 to 15 16 to 18 More than18

Not sure

2010 (N=404)2009 (N=337)


23

When do you start the renewal effort?

6%

8%

5%

3%

14%

35%

15%

7%

3%

3%

10%

8%

7%

5%

13%

33%

13%

5%

4%

5%

Immediately afterwelcoming

Prior to 6 months ofexpiration

At 6 months prior toexpiration

5 months prior toexpiration




1 month prior toexpiration

The month ofexpiration

Not sure2010 (N=405)2009 (N=336)

Statistically, there are fewdifferences between thefindings from the current studyand the previous study withregard to when associationsbegin the renewal effort.Directionally, however, it seemsthat associations are a bit lesslikely, compared to the 2009findings, to begin the renewaleffort until four months prior tomembership expiration.

One-third of associations stillbegin the renewal efforts atabout three months prior tomembership expiration, on parwith the previous study.

Results indicate thatassociations with renewal ratesof 80% or higher, as well asthose that have shownmembership increases overthe past five years aresignificantly more likely to waituntil about two months priorto membership expiration tobegin their renewal efforts.

24


Similar to the 2009 findings,about one-quarter of theassociation executives indicatethey end renewal efforts up totwo months after amembership expires (24%). Anadditional one-quarter ofassociations continue theirrenewal efforts until threemonths after expiration (23%).

Directionally, associations thatboast renewal rates of 80% orhigher are more likely toindicate they do not stopcontacting members after theylapse (16% vs. 20%).Interestingly, associationexecutives indicate they areslightly less likely to continuecontact indefinitely with lapsedmembers compared to thosefrom the 2009 study.

While organizational/tradeassociations and those offeringboth types of membership aresignificantly more likely to endtheir renewal efforts after threemonths, associations offeringindividual memberships aresignificantly more inclined notto end until more than sixmonths after expiration.

When do you end renewal efforts (stop renewal contacts tothe member)?

Not asked in 2009

1%

9%

14%

23%

7%

2%

8%

14%

19%

3%

2%

9%

13%

21%

13%

17%

21%

4%

At the month of expiration

1 month after expiration

2 months after expiration



More than 4 months after expiration



More than 6 months after expiration

We don't stop contact

Not sure2010 (N=404)

2009 (N=336)

Not asked in 2009

Not asked in 2009

Not asked in 2010


25Almost one-half of theassociation executives indicatetheir association offers somesort of installment plan forrenewal payments (i.e.,monthly, quarterly, etc.) (46%).One-third of the associationsoffer multi-year renewals,presumably at a discountedprice.

Associations with renewal ratesof 80% or higher aresignificantly more likely to offerEFT renewals (14% vs. 3%) aswell as installment paymentplans (55% vs. 35%).Associations with renewal ratesless than 80% are significantlymore inclined to offer multi-year renewals (54% vs. 18%).

Associations showing anincrease in renewals over thepast year are significantly morelikely to offer automatic creditcard renewals, compared toassociations with declines inrenewals (29% vs. 17%).

The smallest associations (upto 1,000 members) aresignificantly more likely to offerinstallment renewal payments.The largest associations (over20,000 members) aresignificantly more likely to offerautomatic annual credit cardrenewal and/or multi-yearrenewals.

Individual membershipassociations are significantlymore inclined to offerautomatic annual credit cardrenewal thanorganizational/tradeassociations (28% vs. 9%),while organizational/tradeassociations are significantlymore likely to offer installmentpayments (67% vs. 41%).

Associations in the educationand scientific/engineeringindustries are most likely tooffer multi-year renewals, whilethose associations pertainingto professional services orhealthcare are more likely tooffer payment installments asrenewal options.

Do you offer any of the following renewal options?

46%

33%

28%

22%19%

10%

Installment renewalpayments

(monthly, quarterly)

Multi-year renewals Renewal bill-me Automatic annualcredit card renewal

Early-renewaldiscounts

Automatic annualElectronic FundsTransfer (EFT)

renewals

2010 (N=246)

26


88%

85%

49%

24%

23%

15%

14%

11%

7%

3%

83%

91%

56%

31%

27%

28%

15%

17%

4%

4%

Email marketing

Direct mail

Staff phone calls

Peer member contacts

Telemarketing

Board phone calls

Chapter phone calls

Fax

Employer contact

Other

2010 (N=405)

2009 (N=333)

Which of the following marketing channels do you use formembership renewals?


27

Greater than eight in ten associationexecutives use email marketing and/or directmail marketing channels for membershiprenewals. Interestingly, the percentage of thoseusing email marketing has increased in nearlythe same proportion as the decline in thepercentage of respondents using direct mailfrom the 2009 study, suggesting that emailmarketing may be replacing direct mailmarketing for some associations.

Almost one-half of the associationprofessionals report using staff phone calls as amembership renewal channel. This percentagehas also declined slightly since the previousstudy.

In fact, the proportion of associationexecutives indicating what channels they usefor renewals has declined for almost everycategory, with the exception of emailmarketing and employer contact. For boardphone calls, the percentage of executivesusing this channel for renewals has dropped byalmost half.

Personal contact, however, appears to be a keyingredient for increasing renewals, asassociations with renewal rates of 80% orhigher are significantly more likely to usepersonal approaches such as staff phone calls(56% vs. 38%) and/or peer member contacts(28% vs. 19%). Interestingly, chapter phonecalls do not have the same “personal” effect,as associations with renewal rates below 80%,as well as those indicating declines in overallnew member growth, are significantly morelikely to utilize chapter calls as a renewalmarketing channel.

Telemarketing is used significantly more bythose associations reporting new memberdeclines as well.

Larger associations (those with 5,000 or moremembers) are significantly more likely to utilizemarketing channels such as email marketing,direct mail, telemarketing and chapter phonecalls compared to associations with fewer than5,000 members. The smaller associations aresignificantly more likely to employ the more“personal” marketing channels such as staffand board member phone calls and peermember contacts.

Trade/organizational associations aresignificantly more likely to rely on staff phonecalls and board phone calls than individualmember associations for renewals, utilizing themore “personal approach” for their renewalefforts. Individual member associations andthose offering both types of membership aresignificantly more likely to depend on emailmarketing, telemarketing and chapter phonecalls for their renewal efforts, compared totrade/organizational associations.

28


What do you believe is the ONE TOP reason members DONOT renew membership in your organization?

36%

25%

11%

6%

4%

4%

1%

1%

2%

12%

20%

22%

22%

11%

4%

3%

0%

0%

4%

14%

Perceived lack ofvalue

Employer won't pay orstopped paying dues

Too expensive

Forgot to renew

Retirement

Lost job

Switch to competitor

Customer service

Not sure

Other

2010 (N=400)

2009 (N=333)


29

Unlike in the previous study, price is not thetop driver responsible for non-renewals; in fact,one-third of the association executives indicatethat they believe members do not renewbecause they perceive a lack of value in theorganization. This is an increase of about 80%.

One-quarter of association professionalsindicate they believe members do not renewbecause employers have stopped or will notpay for membership dues (25%). Thisrepresents only a small increase from the 2009findings. Individual member associations aswell as those offering both individual andorganizational memberships are significantlymore likely to report this as the reason formembers not renewing, compared toassociations offering only organizational/tradememberships (32%: individual and 22%: bothvs. 11%: organizational/trade).

Only 11% of association executives indicatethat members do not renew because the duesare too expensive, a drop of 50% from theprevious study (11% in 2010 vs. 22% in 2009).Furthermore, only about 6% feel that memberssimply forget to renew, also a decline byalmost 50% (6% in 2010 vs. 11% in 2009).

While the forgetfulness aspect is considered aleading cause of non-renewal by only 6% of theassociation executives, associations with 80%renewal rates or higher, overall increases inmembership over the past year and/or the pastfive years, increases in new members and/orrenewals are significantly more likely toindicate that membership lapses are due tothe fact that members simply forgot to renew.

Respondents indicating a decline inmembership after five years are significantlymore likely than associations showing growthto indicate that members do not renewbecause of a perceived lack of value (45%:decline after 5 years vs. 32%: growth after 5years). This may suggest that an association’svalue proposition should be enhanced orreviewed to help retain members.

Trade associations are significantly more likelyto report that members do not renew becauseof a perceived lack of value (50%: trade vs.29%: individual and 37%: both).

Associations indicating declines in overallmembership figures and/or member renewalsare significantly more likely to believemembers do not renew because theiremployers will not pay or have stopped payingthe dues.

30


How long after a membership expires do you continue to“grace” members with services?

22%

19%

16%

27%

5%

8%

1%

2%

20%

16%

14%

25%

11%

10%

0%

4%

Services stop atmembership expiration

1 month

2 months

3 months

4 months

More than 4 months

Services continueindefinitely

Not sure2010 (N=404)

2009 (N=334)


31

Twenty-two percent of associationprofessionals indicate that services stop whenthe membership expires, on par with findingsfrom 2009 (22% in 2010 vs. 20% in 2009).

One-third of association executives report thatservices stop within two months ofmembership expiration (35%). This representsa somewhat higher percentage of associationscompared to the previous study, indicating thatassociations are not “gracing” formermembers with services for as long as they mayhave in the past.

About one-quarter of respondents indicatetheir associations stop all member servicesthree months after the membership hasexpired.

Only 14% continue to “grace” members withservices for four months or longer, down from21% in 2009.

Findings indicate that associations withrenewal rates of 80% or more are more likely to“grace” their lapsed members with services forat least four months after their membershiphas expired. Associations with renewal ratesunder 80% are significantly more likely to stopservices at the point of membership expiration.

Furthermore, associations reportingmembership increases over the past yearand/or the past five years are significantly morelikely to have extended a grace period forservices of at least four months to lapsedmembers.

The largest associations (over 20,000 members)are significantly more inclined to terminate allservices at the point of membership expiration,while the smaller associations (up to 5,000members) are significantly more likely toextend services for more than four months tolapsed members.

Associations offering organizational/tradememberships are significantly more likely toreport they provide services for more than fourmonths, compared to individual membershipassociations or those offering bothmembership types (14%: trade vs. 6%:individual and 4%: both).

32


After a membership lapses or expires, how long do youcontinue to contact the member to invite them to reinstatetheir membership?

10%

24%

15%

6%

6%

1%

1%

24%

7%

7%

8%

25%

13%

6%

5%

1%

0%

30%

7%

6%

We don't contact lapsedmembers

1 year after expiration

2 years after expiration

3 years after expiration

4 to 5 years after expiration

6 to 9 years after expiration

10 years or more afterexpiration

We continue indefinitely tocontact lapsed members

Not sure

Other

2010 (N=403)2009 (N=333)


33

Overall, the percentages from the 2010findings are very similar to those of 2009 withregard to how long associations continue tocontact lapsed members to reinstate theirmembership. The marked difference is that asmaller percentage of associations indicatethey continue indefinitely to contact lapsedmembers, dropping from 30% in 2009 to 24%in 2010.

Ten percent of association executives indicatethey do not contact lapsed members to invitethem to reinstate their membership, a slightincrease over the 2009 findings.

About one-quarter of association professionalsreport that they contact lapsed members forup to one year after membership expiration toreinstate membership, on par with findingsfrom the 2009 study.

Findings illustrate those associations withrenewal rates of 80% or higher are significantlymore likely to continue indefinitely to contactlapsed members (28% vs. 20%). This findingreplicates the 2009 results.

Not surprisingly, associations that do notcontact lapsed members to reinstatemembership are significantly more likely toindicate the association goals are focusedmore on acquiring new members than onretaining current members (19% vs. 9%).

The largest associations (over 20,000 members)are significantly more likely to stop contactwith lapsed members after 2 years, whereasthe smallest associations (under 1,000members) are significantly more inclined tomaintain contact with lapsed membersindefinitely.

Trade/organizational membership associationsare significantly more likely to continue tocontact lapsed members indefinitely (39%:trade vs. 19%: individual and 18%: both).

34


One-third of associationsreport increases in overall totalmembership over the past year(36%), a drop from 45% in2009. Additionally, while onlyone-third of associationsreported overall declines inmembership (35%) in 2009,current findings indicate thatclose to half of theassociations experiencedmember loss over the pastyear (48%).

Associations did notexperience radical changes inmembership numbers over thepast year. The largestpercentage of increases ordeclines in membershipranged from 1% to 5% of theprevious year’s total.

On par with the 2009 findings,just over 10% of associationsreported no change in overallmembership numbers (14% in2010 vs. 16% in 2009).

Associations offering individualmemberships were more likelyto report increases inmembership over the past year(42%: individual vs. 25%: tradeand 34%: both).

Fewer associations reportedthat they were unsure of theirchange in membershipnumbers (3% in 2010 vs. 5% in2009).

What was the percentage change in your entire membershipover the past ONE YEAR period?

Percentage Change in Entire MembershipOver Past ONE Year




1%

2%

5%

7%

21%

14%

26%

13%

8%

1%

0%

3%

0%

1%

7%

10%

27%

16%

19%

9%

6%

1%

0%

5%

Increased by more than50%

Increased 26% to 50%


Increased 6% to 10%

Increased 1% to 5%

Remained the same

Declined by 1% to 5%




Declined by more than50%

Not sure

2010 (N=405)

2009 (N=331)


35

Percentage Change in Entire MembershipOver Past FIVE Years




7%

7%

17%

14%

13%

8%

11%

8%

8%

2%

1%

5%

3%

7%

16%

18%

16%

8%

7%

9%

9%

2%

5%

0%




Increased 6% to 10%

Increased 1% to 5%

Remained the same






Not sure

2010 (N=405)

2009 (N=332)

Compared to the 2009numbers, the change inmembership over the past fiveyears varies little, as about sixin ten associations reportoverall increases inmembership (57% in 2010 vs.60% in 2009) and about threein ten report membershipdeclines (30% in 2010 vs. 27%in 2009).

About one-quarter ofassociations have grown by upto 10% (27%), while about 19%of associations have declinedby up to 10%. A greaterpercentage of small declines(up to 5%) occurred in 2010compared to 2009, while asmaller percentage ofincreases (up to 10%) occurredin 2010 compared to 2009.

Eight percent of associations(both in 2010 and in 2009)report that their membershipnumbers remainedunchanged.

Over the past FIVE YEAR period, what do you estimate hasbeen the total percentage change in your membership?

36


Forty-two percent ofassociations report increases innew members, a slightdecrease from the 2009 study.Conversely, a slightly higherpercentage of associations arereporting declines in newmembers over the past yearcompared to findings from2009.

About 30% of associationsindicate their new membershave increased by up to 10%,compared to 16% ofassociations reporting declinesin membership of the sameproportion.

Twenty percent of associationsindicate that new memberfigures have not changed overthe past year.

Just over 10% of associationsare unsure of the percentagechange in new members.

Associations with individualmemberships are slightly morelikely to report increases innew members compared totrade/organizationalassociations or associationsoffering both types ofmembership (45%: individualvs. 40%: trade and 38%: both).

In the past year, what was the percentage change in yourNEW member acquisition?

Percentage Change in NEW MemberAcquisition Over Past ONE Year




2%

2%

10%

9%

20%

20%

10%

6%

7%

3%

1%

12%

1%

4%

7%

12%

25%

22%

10%

5%

3%

2%

10%

1%




Increased 6% to 10%

Increased 1% to 5%

Remained the same



Declined by 11% to25%

Declined by 26% to50%


Not sure

2010 (N=402)

2009 (N=325)


37

Results indicate that thepercentage of associationexecutives reporting renewalsover the past year has basicallyremained the same asreported in the previous study(21% in 2010 vs. 22% in 2009).

The largest differences areseen in the percentage ofassociations claiming nochange in renewals; one-quarter of association

executives report no change inthe percentage of renewalsover the past year, a 31%downward difference from theprevious study (27% in 2010 vs.39% in 2009).

Overall, 44% of associationsreport declines in renewals, anincrease from 31% in the 2009study. There appears to be a40% increase in thepercentage of associations

reporting declines of up to 5%in renewals over the past year(29% in 2010 vs. 18% in 2009).

Trade/organizationalassociations are less likely toreport increases in renewalrates, however, they are morelikely to enjoy renewal ratesover 90%, as shown previously.

Percentage Change in Member RENEWALSOver Past ONE Year




1%

1%

1%

5%

14%

27%

29%

10%

5%

1%

0%

8%

0%

1%

2%

4%

15%

39%

18%

9%

3%

1%

9%

0%




Increased 6% to 10%

Increased 1% to 5%

Remained the same






Not sure

2010 (N=403)

2009 (N=326)

In the past year, what was the percentage change inyour RENEWAL rate?

38


Association executives aremost likely to rank growth inmember counts (22%), revenuegrowth (21%), and net revenuegrowth (21%) as their primarydefinition of success.

Definitions such as growth inparticipation and increase innew members are most oftenranked fourth behind the topthree listed above (15% and16%, respectively).

Increased visibility, either forthe association itself or theprofession (industry), anincrease in advocacyeffectiveness or otherdefinitions are most oftenranked last in the peckingorder for definitions ofsuccess.

These results suggest that thetangible and operationallydefined definitions are mostoften used to define, calculateand track the success ofmembership marketing efforts.

Associations that rank growthin member counts as their topdefinition of success aresignificantly more likely to haveshown increases in renewalover the past year (33% vs.21%). Associations that rankgrowth in net revenue as theirsecond definition of successare also significantly morelikely to report increases inrenewals over the past year(26% vs. 15%).

Although only about 10% ofassociations ranked anincrease in the effectivenessof their advocacy as their topdefinition of success, theseassociations were significantlymore likely to indicate arenewal rate at 80% or higher(13% vs. 5%).

While individual membershipassociations and those offeringboth individual andorganizational membership aresignificantly more likely to rankgrowth in net revenue as thetop definition of success, tradeorganizations are more likelyto consider growth in membercounts as their primarydefinition.

How does your organization’s leadership define success?

Ranked Percentages On Definitions Of Association Success

Rank 1 2 3 4 5 6 7 8 9 10 11

Growth in member counts 22% 17% 20% 9% 6% 7% 6% 4% 4% 3% 2%

Growth in revenue 21% 16% 10% 10% 6% 7% 7% 5% 7% 7% 4%

Growth in net revenue 21% 16% 11% 8% 6% 6% 6% 8% 8% 6% 3%

Growth in participation 6% 7% 6% 15% 13% 11% 13% 12% 10% 7% 2%

Growth in attendance 4% 7% 9% 15% 17% 15% 11% 9% 4% 8% 2%

Increase in new members 4% 10% 13% 16% 16% 15% 10% 8% 6% 2% 1%

Increase in renewal rates 3% 7% 13% 13% 18% 13% 15% 7% 6% 4% 1%

Increase in organization visibility 5% 6% 11% 10% 8% 10% 15% 19% 11% 4% 2

Increase in visibility for industry 6% 9% 7% 6% 7% 6% 8% 15% 21% 14% 3%Increase in advocacy effectiveness 10% 8% 4% 4% 5% 6% 5% 10% 14% 25% 9%

Other 19% 2% 0% 0% 0% 1% 1% 0% 4% 3% 70%


39

How would you characterize your membership growth goals?

16%

37%

45%

2%

13%

33%

52%

3%

Greater priority onacquisition than on

retention

Greater priority onretention than on

acquisition

Equal priority onacquisition and retention

Not sure

2010 (N=403)

2009 (N=325)

Percentage Change in Growth Based on Growth GoalsOne Year Change Five Year Change New Member Change Renewal Rate ChangePriority

Over 1% Over 11% Over 1% Over 11% Over 1% Over 11% Over 1% Over 11%Acquisition 38% 18% 60% 38% 51% 24% 24% 0%Retention 33% 4% 57% 27% 39% 7% 24% 3%Equally on both 37% 9% 58% 34% 43% 16% 16% 3%

The majority of associationexecutives indicate that theirassociation places an equalemphasis on acquisition ofnew members and retentionof current members; however,compared to the previousstudy, this figure has declinedsomewhat (45% in 2010 vs.52% in 2009).

Similarly, there has been aslight increase in thepercentage of associationprofessionals indicating thattheir organization placesgreater priority either onretention (37% in 2010 vs. 33%in 2009) or on acquisition (16%in 2010 vs. 13% in 2009).

Associations with renewal ratesbelow 80% are significantlymore likely to indicate theirgoals are focused more onacquisition, compared tothose with higher renewalrates (21% vs. 12%).

Interestingly, findings indicatea more marked difference inmembership growth of over11% for those focused onacquisition than on retentionor on a balanced strategywhen examining the one yearchange in membership (18%:

acquisition vs. 4%: retention and9%: both), the five year change inmembership (38%: acquisition vs.27%: retention and 34%: both),and the change in new members(24%: acquisition vs. 7%: retentionand 16%: both).

Associations in most industriesindicate they focus equallyon acquisition and retention.However, associations infinance/accounting andbuilding/construction reportthey focus more on retentionfor membership growth.

40


What do you estimate is your current market penetration?

Compared to the previousstudy, it appears as though themarket penetration forparticipating associations hasdeclined. A greaterpercentage of associationexecutives indicate that theirmarket penetration is below61% of the available market(68% in 2010 vs. 54% in 2009).

Results illustrate that there hasbeen a marked decline in thepercentage of associationsthat have a market penetrationabove 60% (18% in 2010 vs.33% in 2009).

Associations with renewal ratesabove 80% are significantlymore likely to indicate theirmarket penetration is above40% of the available members.Associations with renewal rates

below 80% are significantlymore apt to have a marketpenetration of up to 20% ofthe available market, or beunsure of their marketpenetration percentage.

Trade associations aresignificantly more likely toreport current marketpenetration rates of more than80% of the available market.

28%

22%

18%

12%

4%

16%

25%

14%

15%

25%

8%

12%

Up to 20% of the availablemembership

21% to 40% of theavailable membership



More than 80% of theavailable membership

Not sure 2010 (N=401)2009 (N=326)


41

What type of membership offering best describes yourorganization?

About two-thirds of the associationexecutives indicate theirorganization offers individualmemberships, a decline from theprevious study (54% in 2010 vs.64% in 2009).

There was a slight increase in thepercentage of organizational/tradeassociations, as well as associationsthat offer both types ofmembership compared to theprevious year.

Organizational/trade associationsare significantly more likely toindicate a decline in overallmembership over the past year,even with higher renewal rates,while individual membershipassociations are significantly morelikely to report overall membershipgrowth even though their renewalrates tend to be lower.

Associations with renewal rates of80% or higher are significantlymore likely to be organizational ortrade associations, and those withlower renewal rates are significantlymore likely to be individualmembership organizations.

43%

12%

45%

26%

16%

58%

35%

17%

48%

Increased Remained the Same Decreased

Individual (N=215) Organizational/ Trade (N=112) Both (N=65)

54%

28%

17%

1%

64%

22%

14%

1%

Individual Organizational/Trade Both Other

2010 (N=404)2009 (N=326)

42


How would you define the scope of your association?

Compared to the previous study,there has been an increase in thepercentage of international (41% in2010 vs. 34% in 2009) and national(40% in 2010 vs. 34% in 2009)associations included in this study.

Conversely, there has been anequal decline in the percentage ofstate (9% in 2010 vs. 14% in 2009)and local (5% in 2010 vs. 14% in2009) associations represented.

41% 40%

2%

9%

5%3%

34% 34%

2%

14% 14%

2%

International National Regional (Multi-state)

State Local Other

2010 (N=403)2009 (N=326)


43

What membership categories does your association offer?

Almost seven in tenassociations offer individualbasic membership (69%) andmore than half provide student(59%), company or institution(55%) and/or retired membercategories (50%).

About one-third ofassociations offer a lifetimemembership (33%) andapproximately two in tenprovide a vendor membership(21%) and/or a multi-yearmembership option (20%).

Only 16% of associations inthis study offer a groupmembership. Results illustratethat associationsdemonstrating an overallincrease in membership overthe past five years aresignificantly more likely tooffer a group membership,compared to associationsshowing declines inmembership (20% vs. 11%).

69%

59%

55%

50%

33%

21%

20%

16%

16%

16%

14%

8%

10%

Individual Basic

Student

Company or institution

Retired

Lifetime

Vendor

Multi-year

Individual Plus (added benefits to basic membership)

Group

Unemployed

Online

Freemium (no-cost membership)

Other 2010 (N=403)

44


The sizes of the associations in thisstudy seem to be more evenlydistributed. One-quarter of theassociations report up to 1,000paid members (24%), 1,001 up to5,000 members (26%), 5,001 up to20,000 members (26%) or morethan 20,000 members (22%).

The fluctuations compared to theprevious study are minimal, witha slightly lower percentage ofassociations reporting 1,001 to5,000 members (26% in 2010 vs.30% in 2009) and a slightly higherpercentage reporting between5,001 and 20,000 members(26% in 2010 vs. 22% in 2009).

How many paid members are in your association?

Number of Paid Members

2010 2009Up to 1,000 24% 26%

1,001 to 5,000 26% 30%

5,001 to 20,000 26% 22%

More than 20,000 22% 21%

3%

3%

9%

10%

26%

12%

15%

5%

5%

2%

5%

6%

1%

4%

3%

7%

12%

30%

13%

9%

5%

6%

2%

4%

4%

1%

1 to 100

101 to 250

251 to 500

501 to 1,000

1,001 to 5,000

5,001 to 10,000

10,001 to 20,000

20,001 to 30,000

30,001 to 40,000

40,001 to 50,000

50,001 to 100,000

More than 100,000

Not sure

2010 (N=403)2009 (N=325)


45

About one-third of theassociations indicate theirannual dues are up to $150(32%). This represents a34% increase over the 2009study (22%).

The percentage of associationsin this study charging morethan $200 in annual fees hasdeclined from the previous

study (39% in 2010 vs. 59% in2009). This also representsabout a 34% decline from thebenchmark study.

Interestingly, a much greaterpercentage of associationsindicate that their duesstructure varies by companysize (19% in 2010 vs. 9%in 2009).

Not surprisingly, tradeassociations are significantlymore likely to have dues ratesthat are $750 or higher, or tohave dues that vary by the sizeof the member company.

How much are your basic annual membership dues?

6%

12%

14%

12%

11%

10%

5%

4%

3%

6%

19%

4%

7%

11%

12%

16%

13%

9%

11%

3%

7%

9%

Under $50

$50 to $99

$100 to $149

$150 to $199

$200 to $299

$300 to $399

$400 to $499

$500 to $749

$750 to $999

$1,000 and over

Varies by companysize

2010 (N=401)

2009 (N=324)

46


On average, over $100,000 isspent on awareness andbranding and membershiprecruitment marketing plans(Means = $118,789 and$109,633, respectively).

About half of the amountspent on membershiprecruitment is used formember renewal campaigns(Mean = $53,485).

Associations spend, onaverage, the least amount onmember engagement andmembership reinstatement.Findings indicate, however,that associations that showedoverall member increases overthe past five years weresignificantly more likely tospend more on new memberengagement, compared toassociations demonstrating afive year decline in membership(Means = $31,456 vs. $18,058).

Not surprisingly, as associationsize grows, so does theamount spent on variousmember marketingcampaigns.

Individual membershipassociations spendsignificantly more on everytype of marketing programcompared to organizational/trade associations.

Over the course of a year, and excluding staff costs, howmuch do you spend on the following marketing programs?

$118,789

$109,633

$53,485

$27,520

$19,644

Awareness and branding

Membership recruitment

Member renewals

New member engagementand onboarding

Membership reinstatementor win-back Means


47

What best describes your job function?

The industries most representedin this study include: healthcare(21%), education (16%),professional services (13%) andscientific/engineering (10%).

What best describes your association’s industry?

21%

16%

13%

10%

4%

3%

3%

3%

2%

26%

Healthcare

Education

Professional Services

Scientific/Engineering

Finance/Accounting

Building/Construction

Philanthropic

Manufacturing

Government

Other

2010 (N=382)

40%

21%

17%

4%

3%

2%

1%

1%

0%

0%

0%

0%

10%

Membership

Marketing

Executive Director

Communications

Administration/f inance

Education

Computer/IT

Conventions/Meetings

Government Relations

Human Resources

Legal

Publications

Other

2010 (N=399)

Forty percent of the respondents inthis study indicate their job functionincludes Membership responsibilities.About 21% of the associationexecutives are in Marketing and17% report they are the ExecutiveDirector for their association.

Adina W. Wasserman, PHDDirector of Market Research,Marketing General Inc.

Adina W. Wasserman, Ph.D. is Director of Market

Research at Marketing General Inc. Dr. Wasserman

is renowned for pioneering the concept of

Indispensability Measurement for associations. In

addition, she has created engagement measurements

including the Customer Relationship Index and the

Communications Effectiveness Index. She earned her

undergraduate degree at the University of Michigan,

Ann Arbor. She completed her master's and Ph.D.

in social psychology at Florida State University.

Adina can be reached at 703-706-0373 or at

[email protected].

Tony RossellSenior Vice President,Marketing General Inc.

Tony Rossell is Senior Vice President of Marketing

General Inc. in Alexandria, Virginia. A frequent

writer and speaker on marketing topics, he is a

contributing author to two books,MembershipMarketing (ASAE 2000) andMembershipEssentials (ASAE 2008). He has over 25 years ofexperience in helping organizations grow their

membership.

Tony can be reached at 703-706-0360 or at

[email protected].

703-739-1000 www.marketinggeneral.com

ABOUT MARKETING GENERAL INC.Marketing General Inc. is the nation’s largest marketing agency working exclusivelywith membership associations. During the past 30 years, MGI has helped hundredsof associations increase their membership, improve retention, enhance memberengagement, grow revenue, and gain new insights through member and marketresearch and analysis. Additional information can be found atwww.marketinggeneral.com or by contacting us at 703-739-1000.

© 2010 Marketing General Incorporated

209 Madison Street, Third Floor, Alexandria, Virginia 22314

Documents

2 0 1 0 - nSight Marketing · Percentage Change in Entire Membership Over Past FIVE Years 2010 2009 Percentage Increased Overall 57% 60% Percentage Unchanged Overall 8% 8% Percentage