Transcript Document

NARFE
Membership Marketing
Federation Presidents
Membership Crisis – “State of the Union”
July 2013, Orlando Florida
NARFE 30-Year Membership Decline
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.
600,000
OPM List History - Over 30 years
since membership high =
vulnerability
500,000
• Early 1980-1982 – Full access to
OPM file
• 1983–1993 – No access to OPM
file
400,000
• 1993 – began twice yearly OPM
access
300,000
• Current - OPM back log in full
retirement benefits
200,000
Environmental History - Over 30
years since membership high =
outside of NARFE control
100,000
• Aging membership base
0
• Cultural shift away from
membership organizations
Note: Thirty Year Trend / Consitant Loss
since 1999
• Technology based lifestyle
change
Membership Crisis – “State of the Union”
Loss Analysis – Reported Deaths
3

Reported Deaths among NARFE members has escalated, currently
running 23 percent higher then 2012.
Reported Deaths
Monthly Ave 2012
685
Monthly Ave Jan-Apr 2013
845*
Percent Change
2012 vs 2013
* Does not include deaths from Life Membership file (3,658) or
Honorary Membership file (1,060)
23%
Membership Crisis – “State of the Union”
Loss Analysis – Renewal Rate Erosion
4

With the increase in reported deaths, we can only assume that
unreported deaths are also on the rise. Both reported and unreported
deaths are contributing to a renewal rate erosion.
Expire Months
Jun – Nov 2012
78%
Dec 2011 – May 2012
79%
Jun – Nov 2011
81%
Dec 2010 – May 2011
82%
Membership Crisis – “State of the Union”
Loss Analysis – Dropped for Non-Payment
5

With the escalating reported and unreported deaths, the monthly
average “Dropped for Non-Payment” (as reported on the Gain/Loss) is
on the rise.
Dropped for Non-Payment
Monthly Ave 2011
2,946
Monthly Ave 2012
3,210
Monthly Ave Jan-Apr 2013
3,526
Percent Change
2012 vs 2013
10%
2011 vs 2012
9%
Membership Crisis – “State of the Union”
Gain Analysis - Reinstatements
6

With dedicated promotional effort beginning in the Fall of 2010,
culminating in the current bi-monthly mailing to lapsed members, we
see significant gains in reinstatements.
Reinstatements
Monthly Ave 2010
720
Monthly Ave 2011
842
Monthly Ave 2012
1,119
Monthly Ave Jan-Apr 2013
1,526
Percent Change
2012 vs. 2013
+36%
2011 vs. 2012
+33%
2010 vs. 2011
+17%
Membership Crisis – “State of the Union”
Gain Analysis – Retention
7

Despite escalating deaths, total retention (renewal plus reinstate)
remains extremely high.
Annually
Renewing
Life /Honorary
Members
Percent of Total
Membership
Renewal
Reinstate
Retention
66%
78%
45%
88%
100%
100%
100%
100%
100%
100%
12%
Dues Withholding
22%
Total
15% of individual member association report retention
rates of 90% or higher
92%
Membership Crisis – “State of the Union”
Slowing the Decline
8

With the exception of reported deaths, all gain/loss indicators are going
to the right direction.
GAIN
Reinstates
Total
New Members
LOSS
Dropped
Reported
Deaths
Total
Gain/Loss
Cancels
2011
1,257
842
2,099
52
2,946
695
3,693
(1,593)
2012
1,047
1,119
2,167
37
3,210
685
3,932
(1,766)
J-M
2013
1,015
1,526
2,541
39
3,400
815*
4,254
(1,713)
2011 to
2012
-17%
+33%
+3%
+9%
+1%
+6%
-11%
2012 to
2013
-3%
+36%
+17%
+6%
+19%
+8%
-3%
* Does not include deaths from Life Membership file (3,658) or
Honorary Membership file (1,060)
Membership Crisis – “State of the Union”
Slowing the Decline
9
May Close Results – further evidence of a slowing decline

The May Gain/Loss Report reflects a total membership of 258,111.

When the Life Membership database initiative (which removed over ten
years of unreported deaths (3,568) from the file) is eliminated from the
year-to-date figures, January to May losses are 23% less than this same
time period last year.
Membership Crisis – “State of the Union”
Recruitment Efforts
10

OPM response has seen a steady decline over time. With the back log in
full annuity payments, we are hovering at 4%.
Campaign
Response
Spring 2005
6.58%
Fall 2005
9.18
Spring 2010
6.76
Fall 2010
6.94
Spring 2012
7.00
Fall 2012
4.02
Spring 2013
3.62 to-date
Reliance on OPM for large volume acquisition has left us vulnerable. Aggressive
prospecting and further testing of outside lists are essential.
Membership Crisis – “State of the Union”
Recruitment Efforts
11
Outside Lists


The rental universe, beyond OPM, for federal employees and retirees is
relatively small and the most responsive lists are quite expensive. Standard
offers have not worked.
Successful use of these lists will be dependent on 1. Success of the Free 6
Month Trial Offer or 2. A new break-though.
Membership Crisis – “State of the Union”
Prospecting Efforts
12

Prospecting – remains key to high volume acquisition

As the 2013 budget, advertising dollars have been brought to the prospecting task.
Our media spending now must work double-time, providing both high brand
exposure AND high volume prospects.

Testing has revealed that highly targeted electronic newsletters are most effective,
i.e.



Government Executive Retirement Planning eNewsletter
Fed Daily Newsletter
Government Executive Pay & Benefits eNewsletter

Select interstitials (pop-ups) are working well and email blasts to best performing
newsletters are being tested

Radio and WTOP online advertising did not produce high volume leads, only
expensive exposure.
Membership Crisis – “State of the Union”
Prospecting Efforts
13

Prospecting – online lead generation ad samples
Membership Crisis – “State of the Union”
Prospecting Efforts
14

Prospecting – statistics of note

September 2012 – April 2013, online advertising delivered 12,994,330
impressions.

Period March – May 2012 produced an average cost per lead of $11.90 (Industry
standard -- $20-$25)

92% of leads generated are active federal employees

NARFE’s ad click through Rates (CTR) is currently running at 13% (Industry standard
.07-10%)

NARFE conversion rate (Form-fill of virtual M2) is 24.1% (Industry standard – 815%)

January through June 2013 NARFE online campaign generated 6,040 leads
Membership Crisis – “State of the Union”
Prospecting Efforts
15

Prospecting – field support continues

The F-135, current narfe magazine and M-2 cards are promoted wherever possible
as key recruiting and prospecting tools. All are encouraged to limit event materials to
this “kit”.

A sample “elevator speech” is sent with each request and available online.
Keeping the Exchange Focused
Limiting materials and having a rehearsed
“elevator speech "will keep the conversation
focused and provide manageable, digestible
information for the prospect.
Membership Crisis – “State of the Union”
Prospecting Efforts
16
What does Headquarters do with the prospect list?



New prospect letter
 The first correspondence, a letter acknowledging the prospect’s recent interest
and inviting them to join, is sent within a week of data entry.
Email cultivation series
 All prospects, upon data entry, are entered into a six-part email cultivation
program. Prospects are offered white papers, take a survey, and are invited to
join. Relevant engagement is a key factor in converting prospects to members.
Bi-Monthly mailings
 Prospects are selected for bi-monthly acquisition mailings. Multiple exposure is a
key factor in converting prospects to members.
Membership Crisis – “State of the Union”
Efforts to “Get into Federal Buildings”
17

Beyond the substantial exposure to current federal employees via
online advertising and lead generation, four additional plans are in
place to “get into” federal buildings.

Six month plan to “gift” 165 agency HR officers with magazines, brochures, white
papers, “how can we help you?” surveys and emails with free downloads for
distribution. (Sample of July issue letter attached)

Introductory letter from Headquarters available for use in the field. It will be
included in the updated F-10, Chapter and Federation’s Officers Manual. (Letter
attached)

“Best Effort” model from Headquarters for entry and implementation into two
agencies. (Draft letter attached)

Call for best practices from field to be solicited in next Recruitment & Retention
Journal and shared online.
Membership Crisis – “State of the Union”
eNARFE
18

With a current membership of 14,971 and test results which reveal that
eNARFE is our most responsive offer, eNARFE remains the critical direct
response offer during the membership crisis.
Local Chapter vs.
eNARFE
eNARFE vs Choice
Segment
INCREASE in response to eNARFE
offer
Lapsed
75%
Prospects
72%
OPM Annuitant
15%
OPM Survivor
15%
Segment
DECREASE in Response to Choice
Lapsed
62%
OPM Annuitant
33%
OPM Survivor
24%
Prospects
Sample to small for significance
Membership Crisis – “State of the Union”
eNARFE
19
Important to note:

The ONLY active eNARFE promotion to lapsed (non-members) begins eight months postdropped for non-payment.

Lapsed members from as far back as 2005 have been successfully reinstated

Prior to receiving a lapsed member mailing, an individual would have received:



Three renewal notices,
A last issue cover wrap and,
If there is an email address on file, three electronic renewal notices.
This is in addition to any chapter or federation level efforts. All encourage
renewal to the local chapter.

The NARFE brochure, website and magazine all offer both local chapter and eNARFE
membership
Membership Crisis – “State of the Union”
The Bottom Line
20





Sole reliance on the OPM list of recent retirees and survivors has left
NARFE vulnerable.
The current OPM backlog, which leaves so many recent retirees with only
partial annuity, is contributing to a decline in response to the OPM mailings.
NARFE member deaths are escalating, contributing to an erosion of the
renewal rates and an increase in Dropped for Non-Payment statistics.
Reinstate statistics have improved dramatically, providing us a very strong
retention rate – despite member deaths.
There is growing evidence that the membership decline is slowing.
Membership Crisis – “State of the Union”
The Bottom Line
21





Recruitment of new members is our most critical initiative.
With limited and expensive outside list options, building an internal
prospect list is the key to large scale acquisition.
Advertising dollars spent for online lead generation are providing both a
large volume of prospects and far reaching exposure of the NARFE brand
to active federal employees.
HQ is currently “Getting into Agencies” via online lead generation and a
monthly “gifting plan” for agency HR officers.
An agency introduction letter has been provided for chapter and
federation use.
Membership Crisis – “State of the Union”
The Bottom Line
22


Headquarters will solicit and compile best “Agency Entry” practices from
the field.
eNARFE is our most responsive direct mail offer and critical in our efforts to
manage the membership crisis.
Membership Crisis – “State of the Union”
Federation and Chapter Crisis Management Initiatives
23
In addition to HQ initiatives, Federations and Chapters can support recruitment efforts:


Develop a prospecting plan

Map out event opportunities and best possible staffing (limited)

Set goals

Keep brochures (F-135) and M2s on hand for chance encounters

Order magazines, brochures and M2s for event tables

Develop a personal elevator speech that strongly positions NARFE as the Legislative Voice
and Information Resource for federal employees and retirees (sample available)
Identify, build and cultivate relationships within local agencies

Individual’s success in gaining access to federal buildings and invitations to events within
them have been most often based on long-term cultivation of a personal relationship
Membership Crisis – “State of the Union”
Federation and Chapter Crisis Management Initiatives
24
In addition to HQ initiatives, Federations and Chapters can support
recruitment efforts:



Pursue social media

For those who are comfortable within social media, spreading the word about NARFE is
effective public relations

Best Practices will be solicited, compiled and made available
Welcome and engage new members

Assess new member needs

A happy new member is the best NARFE recruiter
For those who resist local chapter membership, suggest eNARFE