Transcript Document

NARFE
Membership Marketing
32nd NARFE National Convention
August 2012
Membership Marketing
Overview - 2010 Perspective
NARFE could no longer depend on the status quo to address the
membership crisis and to reverse the long-term, steep membership decline.
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Reliance on the OPM recruitment mailings as the sole new member
acquisition effort produced insufficient membership gain and left the
association vulnerable.
Membership marketing best practices and proven strategies and
principles were not in place.
Membership materials were in need of major revision and redesign.
Only large-scale change would produce large scale results.
Membership Marketing
Overview - Creating the Solution
Analysis, expertise, strategic planning and resources were needed to “turn the ship”.
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MGI (Marketing General, Inc), a consulting firm specializing in
association direct response marketing, was retained.
MGI brings best practices and strategic insight based on experience with hundreds
of membership organizations.
MGI lends both strategic and tactical support to the Recruitment and
Retention staff.
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A 2012 Strategic Membership Marketing plan was developed
based on proven strategies.
Innovative and aggressive testing is underway.
A 2013 Strategic Plan will be developed based on 2012
learning.
Membership Marketing
Presentation Agenda
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Draw a clear picture of the NARFE membership history and the
current membership dynamic.
Present a clear understanding of how we are addressing NARFE’s
unique membership situation.
Provide an update on what has been done, what we have learned,
and what efforts are in progress.
Review of NARFE Membership History
and Current File Dynamic
Why is history important?
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To understand what factors have contributed to membership decline
so that we can react /adapt to these threats
To gage the degree to which these factors have and will continue to
have impact so that we can quantify the threat
To clarify where the opportunity for big turnaround exists so that we
can focus our resources
NARFE Membership History
Since the NARFE membership high in 1982, reliance on the OPM list for acquisition, the aging of a retired
membership base and both cultural and environmental shifts have accounted for steep decline.
OPM List History - Over 30 years
since membership high = vulnerability
• Early 1980-1982 – Full access to
OPM file
• 1983–1993 – No access to OPM
file
• 1993 – began twice yearly OPM
access
• Currently - OPM back log in full
retirement benefits impacts response
Environmental History - Over 30
years since membership high = outside
of NARFE control
• Aging membership base
• Cultural shift away from membership
organizations
• Technology-based lifestyle change
Current File Dynamic
Retention
NARFE is currently retaining over 90% of membership
Annual Drops
Reinstatement
Net Annual Drops
Gross Retention Rate
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42,595 (or 15% of the membership file)
30%
29,817 (or 10% of the 2011 year-end membership file)
90%
The Gross Retention Rate is based on the 2011 year-end membership. It
does not account for either reported or unreported deaths. Deaths result in
a smaller “renewable” file.
Only 22% of all associations are retaining members at a rate above 90%
Current File Dynamic
Attrition vs. Acquisition
NARFE Retention of 90% is highly successful given industry norms and our
decreasing “renewable membership file”.
Acquisition is the critical focus.
Membership Attrition (Loss)
10%
New Member Acquisition (Gain)
6.5% (5 year average)
Net Membership Loss
3.5%
Only large scale, profitable acquisition efforts will turn the tide.
Current File Dynamic
Projected Natural Membership Decline
NARFE Membership also faces a growing rate of decline given the aging
membership base
Current Annual Reported Deaths
Unreported Death Assumption
Total Assumed Annual Deaths
10,000
5,000
15,000
Given the age of the membership file, this projected natural decline will
increase exponentially. Assuming there is a 50% increase in annual deaths
each year;
Year 1
Year 2
Year 3
15,000
22,500
33,750
Over the course of three years, NARFE may see a natural decline in membership
of over 70,000 members
New Members Efforts
Large Scale Acquisition
Priority of acquisition efforts moves from “hot” to “cold”
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Lapsed Members – 1st priority. “Hottest” leads. Will “acquire” members at the highest
response and lowest cost. Finite list.
Prospecting – Where lapsed members are “hot leads” -- prospects are “warm”. They are
within the target audience and have knowledge of NARFE and our benefits
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Examples: Online lead generation (responded online to offer of free NARFE Q&A white paper), trade shows
(face-to-face discussion about NARFE and our benefits)
Outside Lists – Large volume, “cold leads”, and higher cost. Must test small
quantities, refine offers, message and package -- and then build on success.
Two-step Prospecting – Building a relationship with those who have access to
our target audience
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Examples: Federal HR Managers, GSA approved Pre-Retirement Seminar and Financial Service Providers
Membership Marketing Plan
Completed To Date
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Lapsed Member Telemarketing Reinstatement Program
2000 paid reinstated members
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On-Line Lead (Prospect) Generation Program
690 leads over initial three month test
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3-part email cultivation (convert prospects to members) effort in process
Other NARFE prospects are included in this series
Spring OPM Mailings with Outside List Test Panel
2056 new, paid members
1st New (non-OPM) Member Acquisition Mailing
1614 new paid members
Membership Marketing Plan
Completed To Date
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2nd New (non-OPM) Member Acquisition Mailing
dropped June 25th
3rd New (non-OPM) Member Acquisition Mailing
dropped August 13th
Revised renewal notices, added advance renewal test
“Member-Get-A-Member” campaign
mailed June 12th
Membership Marketing Plan
In Progress
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Two additional 2012 New Member Acquisition Efforts Planned
Expanding and enhancing the online lead cultivation (convert
prospects to members)series
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Expanding from 3 to six emails
Adding new engagement vehicles (survey, Q&A download with
membership)
Fall OPM Mailing Scheduled (revisit messaging given the multiyear decline in response.)
2012 Lapsed Member Telemarketing Effort – now ongoing
campaign
Membership Marketing Plan
Additional 2H 2012 Plans
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Outreach to Federal Human Resource Managers
Outreach to GSA approved PRS and Financial Planning
providers
Website tools
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Membership Toolkit
Best Practices Repository
2013 Strategic & Tactical Planning – will include marketing
strategy for a fully integrated branding, lead generation, and
recruitment & retention plan