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MARKETING 101: MEMBER RECRUITMENT & RETENTION Alumni Leadership Connection June 11, 2011 GOALS FOR TODAY 2 Session Overview • Membership Philosophy and Approach • Membership Today • The Decision to Join • The Basics • 10 Steps to Growing Your Program • Idea Exchange/Q&A 3 4 Membership Defined mem·ber·ship, n. • A group of individuals who come together to support a common cause Membership = Engaged Communities • Membership should support the enduring values of your organization and the promise of your experience • Access is easy … but membership is complex, diverse, and ever-changing 5 MEMBERSHIP TODAY 6 Key Trends Impacting Groups • Members are in-charge • More splintering and blurring of loyalty • Convenience and ease are all-important • Members are more self-directed • Members are more critical, seeking guarantees • Changing workforce dynamics, demographic , and consumption habits • Time is currency 7 8 Approach to Membership Development • Membership development is a continuous process of testing new ideas and adjusting the variables that affect response and improve ROI – Monitor performance of segments, lists, media, offers, creative, message – Analyze membership data to unlock opportunities – Research to uncover trends – Apply learning and gained knowledge – Results through innovation • Drive high-quality membership through strategic, integrated marketing campaigns 9 WHY JOIN Why Join The Decision to Join “Membership” should answer four key questions Pride 1. Why should I join? 2. What do I get? Obligation Benefits Membership 3. What do you do with the money? Affiliation/ Networking Mission 4. Why should I stay? 11 THE BASICS 12 Key Considerations Mission Organizational Goals Data Market (Audience) Message/Offer/Timing Media/Distribution Experience Level of (Perceived) Risk Brand/Recognition Budget Before You Begin • Membership is a process—not an event – – – – Single appeals are no longer enough Tactics/channels cannot operate in a vacuum Cultivation and involvement are key Not every communication is about asking for money • Great programs provides a continuous outlet for individuals to support your organization or cause – Builds rewarding relationships – Allows you to communicate with lots of people over time Features of Great Membership Marketing • Strategic – Orientation has shifted from siloed to integrated • Integrated – Across multiple channels – Within an organization – Throughout the member experience • Specific and focused – Measurable – Scalable – Results-driven • Data driven – Should generate a response – Both data-generating and data-collecting • Frequent and Consistent Engagement Channels Events Email Welcome Kits Publications Engagement Website Direct Mail Member Calls Social Media 16 Factors Influencing Response Timing 10% Offer 25% Audience 50% Creative 15% • Who are your best members today? • How did they find you? • What are they doing for you? • Who do they know? • What do you give them? • Why do you need more? Impact: A data driven approach can increase results by 10-30% and allow your organization to minimize risk and optimize investment 17 10 STEPS TO GROWING YOUR MEMBERSHIP PROGRAM 18 Organizational Checklist 1. Take stock in your organization 2. Know your audience 3. Set goals 4. Start small 5. Create a plan 6. Make membership relevant 7. Be a broken record 8. Provide access and choice 9. Engage the right people 10. Rinse and repeat 19 1. Take Stock in Your Organization • Understand business priorities • Internal review of marketing activities, results, and data assets • External review of best practices across multiple verticals • Illustrate concepts and financial impact of decisions • Make short-term and long-term recommendations 2. Know Your Audience Timing 10% Offer 25% Audience 50% Creative 15% • Who are your best members today? • How did they find you? • What are they doing for you? • Who do they know? • What do you give them? • Why do you need more? Impact: A data driven approach can increase results by 10-30% and allow your organization to minimize risk and optimize investment 21 3. Set Goals Net Growth 22 4. Start Small 23 5. Create a Plan Part 1: Develop a strategic marketing program that provides profitable results • Understand overall marketing objectives • Understand historic direct marketing initiatives (media, frequency, spend levels, etc.) • Identify various customer segments and review trends in customer behavior • Review any key demographic, psychographic, and/or attitudinal information Part 2: Create a communications roadmap • Which segments are most responsive to direct mail or other channels • What types of offers can be efficiently offered to whom • What is the “right” communications frequency by segment • Determine the impact of various offers by segment Part 3: Continually measure results and improve performance • Customer value metrics • Overall ROI by program and segment • Results by campaign, segment and offer 24 Sample Plan • • • • • Project Name Date of the effort Audience or segment Effort name Channel(s) or media used • • • • • • Quantity Project costs Response Members Revenue Net 25 6. Make Membership Relevant Impact: Personalized communications can increase results by as much as 25% versus non-personalized communications 7. Be a Broken Record Announcement/ Launch Reminder Reminder Last Chance Impact: Frequency and consistent communications have a multiplier effect on overall results 27 8. Provide Access and Choice Impact: Multi-channel contact yields better results – adding a response channel can improve overall response by 20%- 30% 28 “Other” Choices Response Mechanisms Channels – – – – – – – – Online BRE Events In Person Length of Membership – – – – Mail Email Phone Social Messages – – – – Partial Annual Multi-Year Life Billing & Payment Member Types – – – – – – – – Auto renew Bill Me Installments ACH/EFT Benefit-driven Mission-driven Peer-driven Industry-driven Free Basic Enhanced Discounted 9. Engage the Right People • Motivate them with “why” membership is important – Help them understand the organization’s story • Help them get in touch with their own story of how membership has influenced their life and success • Tell them “how” they can be involved – Focus on the strengths of your volunteers • Help them establish a plan of “what” to do – Create a written plan of action – Set specific goals 10. Rinse and repeat 31 The Real #10 …. Ask for help Remember…. Acquisition Retention • • • • • • Offer renewals early and often • Try more efforts • Renew in unexpected places/media • Segment renewals to match acquisition strategies Tell a story and use specifics Ask early, ask often Test, test, test Frequency = success Use multiple channels Best Practices Best Practices • Programmatic programs • • • • • (e.g. annual membership drive) • Member-get-a-member • Event-based recruitment • Incentives/premiums Personalize (e.g. handwritten note) Call lapsed members Put it in an envelope Renewal incentive Multi‐year renewals 33 Final Thoughts • Great membership programs are strategic, integrated, focused, data driven, and measurable • Communicate with people when they want, how often they want, and in the manner that they are most comfortable • Data contributes to the ongoing dialog with members and provides a foundation for greater interaction Final Thoughts • Identify characteristics of your best members and use that to find new members and markets not reached • Engagement is not joining, so get members involved on Day 1 • Start slow, but don’t be afraid to challenge convention QUESTIONS 36 IDEAS TO GROW MEMBERSHIP 37 Idea Exchange • Research – Conduct annual brief survey • Programming – Develop programming and events based on members’ input – Segment or create new programming to attract specific segments and retain current members (family, young, career networking) • Communications – – – – – Welcome e-mail to new members Welcome phone call with follow up information by email Announcement of new members at next chapter meeting New member webcast or online chat Send link to recorded welcome video from Chapter President 38 Joe Fiochetta Penn State Alumni Association 814-863-2307 [email protected] THANK YOU 39 Membership is…. … a way to stay connected to Penn State and show your Penn State Pride … an investment in Penn State, the community … a vote for the enduring value of a Penn State education … a way to preserve the past and ensure a vibrant future … another way to give back to and support the University 40