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It is my pleasure to announce the release of the 2014 Membership Marketing Benchmarking Report. This marks the sixth year that Marketing General Incorporated (MGI) has surveyed associations to better understand what is going on in the membership market and what is working best to recruit members, engage new members, renew existing members, and reinstate former members. It also marks the highest level of association participation with 865 separate associations sharing their data. The 2014 Report includes new questions related to social media usage, email frequency and open rates, and who pays membership dues (individuals or companies). A free download of the full report is available from the Marketing General Incorporated website.
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2014 Membership Marketing Benchmarking Report
Review of Findings
Presented byTony RossellSenior Vice PresidentMarketing General Incorporated
What are the Trends in Association Membership?
•Sixth Year Produced by MGI
• Up Front Disclaimer….
What, not why.
Correlation, not causation.
2
Research Goals
1. Gain an understanding of the membership marketing practices of associations
2. Determine the challenges in membership marketing faced by individual membership and trade associations
3. Define what practices they believe are most effective
4. Understand through cross tabulation with new member, renewal and growth numbers what practices are related to better outcomes
3
Survey Overview
1. Survey open from January 7, 2014 to February 18, 2014 – 7 Weeks Total
2. 6,483 requests to participate
3. Total Response Rate: 1,043– 865 completed surveys – 178 completed at least 25% or more
4. Margin of error for the sample of + / - 3.0% at a 95% confidence level
4
FINDINGS
Key Statistics
CHANGE IN MEMBERSHIP OVER PAST ONE YEAR—COMPRESSED
2014(n = 884)
2013(n = 691)
2012 (n = 689)
2011 (n = 642)
2010 (n
= 405)
Percentage Increased Overall 53% 52% 52% 49% 36%
Percentage Unchanged Overall 16% 16% 16% 16% 14%
Percentage Declined Overall 27% 31% 29% 34% 48%
Percentage Unsure 4% 1% 3% 2% 3%
CHANGE IN MEMBERSHIP OVER PAST FIVE YEARS — COMPRESSED
2014 (n = 881)
2013(n = 690)
2012 (n =
689)
2011
(n = 639)
2010
(n = 405)
Percentage Increased Overall 54% 54% 52% 51% 57%
Percentage Unchanged Overall 10% 7% 9% 9% 8%
Percentage Declined Overall 33% 36% 34% 38% 30%
Percentage Unsure 5% 2% 5% 4% 5%
CHANGE IN NEW MEMBER ACQUISITION OVER PAST YEAR — COMPRESSED
2014(n = 887)
2013(n = 690)
2012 (n =
687)
2011
(n = 638)
2010
(n = 405)
Percentage Increased Overall 58% 63% 60% 57% 42%
Percentage Unchanged Overall 21% 17% 17% 21% 20%
Percentage Declined Overall 13% 16% 15% 16% 26%
Percentage Unsure 8% 4% 10% 8% 12%
CHANGE IN RENEWAL RATE OVER PAST YEAR — COMPRESSED
2014(n = 875)
2013(n = 691)
2012 (n
= 683)
2011
(n = 638)
2010
(n = 403)
Percentage Increased Overall 31% 35% 36% 32% 21%
Percentage Unchanged Overall 36% 30% 33% 37% 27%
Percentage Declined Overall 27% 31% 22% 24% 44%
Percentage Unsure 7% 4% 10% 7% 8%
*2014 and 2013 versions of the survey allowed for an open-ended response and not a choice of categories.**Not sure was not included as an option in 2014 and 2014
MEAN MEMBERSHIP RENEWAL RATE
Less than 80% renewal
80% renewal or higher
Individual Member Trade Combination
Mean 64% 88% 76% 85% 80%
Median 70% 88% 80% 88% 82%
*2014 and 2013 versions of the survey allowed for an open-ended response and not a choice of categories.**Not sure was not included as an option in 2014 and 2014
MEAN NEW MEMBER RENEWAL RATE
Less than 80% renewal
80% renewal or higher
Individual Member Trade Combination
Mean 52% 78% 62% 79% 66%
Median 52% 82% 64% 85% 66%
MEMBERSHIP TYPE BY STUDY YEAR
2014(n = 886) 2013
(n = 693)2012
(n = 643)2011
(n = 643)2010
(n = 404)
Individual Member 44% 48% 54% 49% 54%
Trade 28% 30% 28% 36% 28%
Combination 26% 20% 15% 13% 17%
Other 2% 2% 3% 2% 1%
FINDINGS
Challenges
REASONS FOR NOT RENEWING MEMBERSHIP 2014
(n = 802)
2013 (n = 691)
2012 (n = 687)
2011 (n = 639)
2010 (n = 400)
Lack of engagement with the organization
17% 15% 14% N/A N/A
Could not justify membership costs with any significant ROI
12% 11% 11% N/A N/A
Budget cuts/economic hardship of company
11% 18% 17% N/A N/A
Employer won’t pay or stopped paying dues
10% 10% 12% 15% 25%
Left the field, industry, or profession
10% 7% 8% 12% N/A
Lack of value 9% 10% 11% 24% 36% Too expensive 5% 5% 5% 14% 11% Company closed or merged 4% 3% 2% 7% N/A Forgot to renew 3% 4% 4% 7% 6% Lack of relevance 3% 1% 3% N/A N/A Retirement 2% 2% 2% 2% 4%
Response rate analysis
Source code or keycode capture and analysis
Liftetime value analysis
Computer matchback to prospect database
Regression analysis
None
52%
34%
22%
21%
13%
17%
11%
18%
29%
2%
49%
37%
25%
24%
17%
16%
15%
5%
4%
31%
2%
0.49
0.29
0.16
0.2
0.15
0.07
0.06
0.4
2012 (n = 667)
2013 (n = 691)
2014 (n = 743)
HOW TO YOU MEASURE YOUR MEMBERSHIP MARKETING?
FINDINGS
Recruitment
REASONS MEMBERS JOIN ASSOCIATION
2014(n = 863)
2013(n = 693)
2012 (n = 684)
2011 (n = 641)
2010 (n
= 400)Networking with others in the field 21% 24% 22% 25% 24%
Access to specialized and/or current information 20% 13% 12% 14% 13%
Advocacy 8% 8% 12% 10% 11%Discounts on products or meetings 8% 4% 5% 5% 6%Learning best practices in their profession 6% 8% 7% 7% 9%Continuing education 5% 7% 8% 7% 11%
Accreditation or certification 4% 4% 5% 4% 4%
Conferences/trade shows 3% 6% 4% 5% N/AAssociation publications 3% 4% 4% 3% 6%Prestige of belonging to the association 3% 4% 4% 5% N/AAdvancing in their position 2% 2% 2% 2% 2%Insurance (Affinity programs) 2% 1% 1% 1% N/A
TOP THREE MOST EFFECTIVEMARKETING CHANNELS FOR NEW MEMBERS BY
ASSOCIATION TYPEIndividual Member 2014 (n = 380)
Most Effective Word-of-mouth recommendations 50%
Email 43%Direct mail 30%
Trade 2014 (n = 244)
Most Effective Word-of-mouth recommendations 49%
Personal sales calls 36%Email 32%
Combination 2014 (n = 227)
Most Effective
Email 52%Word-of-mouth recommendations 43%Promotion to/at your own conferences/ trade shows
30%
Over the course of the past fiscal year, excluding staff costs, how did the amount of your budget change for each of the following membership marketing programs?
Awareness and Branding
Recruitment
Engagement/On-boarding
Renewals
Reinstatement/Win-back
32%
30%
19%
17%
13%
59%
62%
74%
75%
80%
9%
8%
7%
8%
7%
Increased Stayed the same Decreased
FINDINGS
Engagement
Increasing member engagement
Increasing membership retention
Increasing membership acquisition
Increase understanding of member needs
Increasing dues revenue
Increasing non-dues revenue from members (attendance at conferences, purchase of services/education, etc.)
Increasing member diversity
Other
67%
64%
60%
28%
27%
25%
11%
3%2014 (n = 784)
What are your association’s top membership goals? (You may select up to three choices.)
- Attendance at annual conference/trade show (55% vs. 45% and 34% respectively) - Attendance at professional development meetings (52% vs. 38% and 33%)- Attendance of webinars (70% vs. 45% and 54%)- Volunteerism (37% vs. 30% and 17%)- Number of members who acquire or maintain certification (59% vs. 42% and 36%)- Purchase of non-dues products (45% vs. 24% and 25%)- Purchase of non-dues services (46% vs. 28% and 17%)- Number of visits to members-only section of website (61% vs. 48% and 36%)
Associations Report Program Increases by Memberships that Increased/Unchanged/ Decreased)
TOP 5 COMMUNICATION METHODS USED TO ONBOARD NEW MEMBERS
2014 (n = 852)
2013(n = 693)
2012 (n =
685)
2011 (n = 643)
2010 (n
= 402)Email welcome 71% 79% 72% 71% 72%
Mailed welcome kit 55% 60% 64% 67% 68%
Members-only website sections 49% N/A N/A N/A N/A
Membership card or certificate 44% 51% 51% 51% 59%
Volunteer or staff welcome phone call 26% 31% 29% 30% 32%
FINDINGS
Renewal
Email marketingDirect mail
Staff phone callsPeer member contacts
TelemarketingBoard phone calls
Chapter phone callsEmployer contacts
Magazine cover wrapsSocial media contacts
FaxTexting
Renewal app for mobile devicesTweeting
Other
72%56%
40%18%
10%7%7%
4%3%3%
1%1%1%1%
7%
2014 (n=796)
WHAT MARKETING CHANNELS GENERATE THE MOST RENEWALS
Installment renewal payments (monthly, quarterly)
Multi-year renewals
Automatic annual credit card renewal
Renewal bill-me
Lifetime membership
Early renewal discounts
Automatic annual Electronic Funds Transfer (EFT) renewals
Gift or premiums for renewal
44%
25%
24%
21%
21%
19%
13%
12%
47%
28%
25%
26%
20%
19%
18%
14%
46%
32%
24%
26%
22%
22%
15%
46%
32%
24%
28%
25%
21%
15%
46%
33%
22%
28%
19%
10%
2010 (n = 246)2011 (n = 440)2012 (n = 445)2013 (n = 469)2014 (n = 520)
Not asked in 2010
RENEWAL OPTIONS OFFERED
RENEWAL RATES BY START OF RENEWAL EFFORT INDIVIDUAL MEMBERSHIP ASSOCIATIONS (n = 301)
Three months or less prior to
expiration
More than three months prior to
expiration Less than 80% renewal 45% 39%
80% or higher renewal
55% 61%
RENEWAL RATES BY WHEN RENEWAL EFFORTS STOP INDIVIDUAL MEMBERSHIP ASSOCIATIONS (n = 299)
Three months or less prior to
expiration
More than three months prior to
expiration Less than 80% renewal 45% 41%
80% or higher renewal
55% 59%
FINDINGS
Social Media
SOCIAL MEDIA USAGE
Facebook (n=707)
Twitter (n=671)
YouTube (n=408)
LinkedIn (n=494)
Generating awareness of association 88% 40% 10% 0%Harvesting contact information for recruitment 18% 2% 1% 0%Promoting association events 82% 24% 8% 1%Promoting educational opps/certification programs 60% 12% 3% 0%Promoting industry events 44% 8% 3% Promoting membership 56% 16% 4% 0%Promoting socialization/discourse among event attendees 37% 5% 5% 0%
Promoting socialization/discourse among members 48% 6% 4% 100%Promoting specific association benefits 71% 23% 3% 0%Promoting specific sessions and programs at events 42% 7% 3% 0%Providing advocacy 40% 9% 1% 0%Providing association news 75% 17% 3% 0%Providing how-to information 19% 15% 0% 0%Providing industry-related information 50% 11% 3% 0%Soliciting new members 43% 12% 3% 0%
Questions?
