MEMBERSHIP MARKETING BENCHMARKING REPORT

Transcription

1 2017 MEMBERSHIP MARKETING BENCHMARKING REPORT SUPERVISED BY: Tony Rossell Senior Vice President Adina Wasserman, PhD Director of Research Matt Kerr, MA Market Research Analyst

2 SUMMER 2017 Dear Colleague, You have in front of you a marketing research tool like no other: the 2017 Marketing General Incorporated (MGI) Membership Marketing Benchmarking Report. This is the original and I think the most complete report of its kind. I hope you ll agree! For the 9th year, MGI has conducted its annual Benchmarking Survey to analyze, track, and report on the strategies and tactics that membership organizations from the US and from around the world use to recruit new members, engage and renew those members, and reinstate lapsed members. This year we had a total of 1,005 unique associations (our largest response ever) participate from a combination of Member Associations, Associations, and Associations combining characteristics of both. My thanks to all of them. In addition to the pages of actual survey results, take the time to read the answers to the open-ended questions. This is where our respondents share their thoughts and professional experiences with membership growth, member satisfaction, their most popular benefits, payment plans, how and when they raise their dues, and what keeps them up at night. How have the Membership Marketing Benchmarking Report findings changed over the last nine years? For the ninth consecutive year, more associations are reporting that their membership has increased than those reporting a decline. While communication methods and best practices have certainly changed over the past nine years, each type of organization has adopted those changes to best meet their goals and objectives. This report represents the combined efforts of our research and creative teams, individually listed on the back cover. All of us at MGI hope that this report helps you gain increased knowledge and understanding of this ever-evolving profession of ours that knits together people and communities around the world. Call me, me, or contact MGI through our website with any questions, thoughts, comments, and suggestions on this or future reports. Sincerely yours, Richard Whelan, CDM President, Marketing General Incorporated Rick@MarketingGeneral.com info@marketinggeneral.com North Washington Street, Suite 450 Alexandria, Virginia 22314

3 EXECUTIVE SUMMARY The headline for the 2017 Membership Marketing Benchmarking Report is that for the ninth consecutive year, many more associations ARE REPORTING AN INCREASE IN THEIR MEMBERSHIP compared to those citing a membership decline. membership organizations (IMOs) led the way with sharing that membership increased over the past year. MEMBERSHIP CHANGE IN PAST YEAR (n = 1,005) (n = 460) (n = 312) (n = 233) Increased Decreased 2 Remained the same 2 2 Not sure < 2% In fact, many associations report substantial growth rates. of those organizations that showed increases in overall membership, one-quarter report increases of to 10%, while 1 report increases in membership over the past year of more than 10%. PERCENTAGE INCREASED IN MEMBERSHIP OVER PAST YEAR (n = 447) (n = 213) (n = 130) (n = 104) Mean % Increased* Median % Increased Increased to 5 Increased to 10% 2 Increased 1 to Increased more than 2% 2% 2% *Means are influenced by high and low numbers in the data set. 3

4 EXECUTIVE SUMMARY Similarly, associations are maintaining membership growth over the longer term. Again this year, of associations report that their membership over the past five years has increased. And if we look back over the historical trend from our very first benchmarking report, associations have consistently reported an ongoing trend of increasing membership counts. Increased CHANGE IN MEMBERSHIP OVER PAST FIVE YEARS Decreased Remained the Same Not Sure % % These outcomes challenge the narrative put forth by some that membership as a product and professional and trade associations as a category are in decline. In addition to the increases reported in total membership counts, the 2017 Membership Marketing Benchmarking Report also highlights continuing strong data on other key membership statistics. Similar to 2016, of associations report renewal rates of 80% or higher. The median membership renewal rate is 8 overall. associations have a higher median renewal rate (8) compared to IMos (80%) and combination associations (82%). OVERALL MEMBERSHIP RENEWAL RATE (n = 810) (n = 346) (n = 269) (n = 195) Mean Median 8 80% 8 82% Renewal rates from our benchmarking research have remained remarkably stable over the years, meaning the engine for membership growth continues to be new member acquisition. This does not in any way indicate that maintaining a high renewal rate is not important, but it does show that growth depends on continued new member acquisition. 4

5 EXECUTIVE SUMMARY And strong membership acquisition results have continued for associations. over the past year, 4 of associations report increases in their new member acquisitions, with IMos showing the most growth ( vs. 4 for trade associations and for combination associations). CHANGE IN NEW MEMBER ACQUISITION OVER PAST YEAR (n = 956) (n = 440) (n = 293) (n = 223) Increased 4 4 Decreased Remained the same 3 4 Not sure Some organizations are seeing substantial levels of new member input. For those associations reporting increases in new members, the median increase in new members is. one-third of associations () report new member growth rates of 1 to. However, all of this positive data does not mean that associations are not facing significant challenges. Respondents report some major external challenges to their association. For IMos the cost of membership and competing associations or sources of information are the top two challenges. associations are most likely to struggle with declining member/employer budgets (). For trade organizations, the biggest external challenge is industry consolidation/shrinkage (). one participant shared in the comments section of the research, our market is shrinking and certain leaders are averse to opening up our member categories to expand opportunities. TOP TWO BIGGEST EXTERNAL CHALLENGES TO GROWING MEMBERSHIP (n = 776) (n = 341) (n = 241) (n = 194) Economy/cost of membership 3 2 Competitive association(s) or sources of information Lack of brand awareness Declining member/employer budgets 2 22% Perception of the association and/or its culture (i.e., old boy's network, not specialized enough, etc.) 2 22% Industry consolidation/industry shrinkage 1 10% 1 Changing demographics of industry/fewer young people in industry Market saturation Other 5

6 EXECUTIVE SUMMARY Internal challenges were also identified in our research. IMos are significantly more likely to be challenged in attracting and maintaining younger members (), while trade organizations struggle more with proving that their membership provides a tangible RoI (). And combination associations find it more difficult to meet the needs of a diverse membership (2). Small IMOs (under 5,000 members) struggle significantly more with insufficient staff and the lack of a strategy or plan, compared to larger IMOs. one participant shared her challenges in the comments section of the research very concisely, Too little staff, no cohesive marketing plan, lack of a real marketing leader or manager. TOP THREE BIGGEST INTERNAL CHALLENGES TO GROWING MEMBERSHIP (n = 775) (n = 339) (n = 241) (n = 195) Difficulty in communicating value or benefits Insufficient staff Membership too diverse, difficulty meeting needs of different segments % 2 2 Difficulty in proving ROI % Difficulty identifying/contacting prospects 2 22% 20% 2 Difficulty attracting and/or maintaining younger members 1 20% Inadequate association management database Insufficient budget Lack of a strategy or plan Weak product or service offerings % 1 Difficulty in converting student memberships to regular memberships Lack of marketing expertise % 10% 1 Inadequate research to understand market 1 Lack of integration between national and chapters 1 1 Misalignment of goals between board and executive staff 2% Other 10% But the good news is that the analysis of this year s data also highlights signs of vibrancy helping to drive membership growth. For example, it appears that associations especially those that are experiencing membership growth are more effectively reaching out to upcoming generations of members. In fact, associations estimate that about 2 of members are Millennials or Gen Z. And associations reporting an increase in membership over the past year, the past five years, and an increase in overall renewals are significantly more likely to have a higher percentage of Millennials. 6

7 EXECUTIVE SUMMARY GENERATION GROUPS (n =267) Generation Z (born 1996 or later) Millennial (born 1980 to 1995) 1 Generation X (born 1965 to 1979) 2 Baby Boomers (born 1946 to 1964) Born 1945 or earlier 1 New technology is also helping associations market more broadly and effectively. Specifically, there has been a rapid adoption of online digital marketing including Facebook paid advertising, search engine ads (pay-per-click), lead generation content marketing (white papers), and paid banners on other websites. Many participants highlighted the use of these tools in the comments section of our research noting, for example, Facebook remarketing has been successful, especially when specifically targeted to a specific audience such as our Young Professionals. And, Using content (which is not gated, but is behind lead gen), to both capture leads and demonstrate the quality of our product. DIGITAL MARKETING TOOLS THAT GET MOST NEW MEMBERS (n = 240) (n =115) (n = 58) (n = 67) Association-sponsored social networking websites (e.g., Facebook, LinkedIn) Search engines (organic) 4 Facebook Paid Advertising 2 2 Search engine ads (pay-per-click) % 2 Lead generation content marketing (White Papers) Paid banners on other websites % 10% LinkedIn Paid Advertising 10% 7

8 EXECUTIVE SUMMARY Finally, another driver building more vibrant memberships has been engaging members with new products and services that deliver what members want, when they want it. Participation in your public social network 71 % 2 2% Participation in your private social network Attendance of webinars Number of members who acquire or maintain a certification with your organization Participation in your young professional program Attendance at your annual conference/trade show 1 Number of visits to members-only section of website 4 Donations to your association foundation or PAC 1 Participation in your mentoring program Attendance at your professional development meetings 1 0% Number of membership upgrades Non-dues product purchases (other than previously checked) 1 0% Volunteerism with your organization 31 % 6 Non-dues service purchases (other than previously checked) 2 Purchase or maintain insurance through your organization 6 1 Book or directory purchases 2 1 Increased Stayed the Same Decreased 8

9 EXECUTIVE SUMMARY In the case of IMos, for example, when looking at the products and services that are reported as showing stable or decreasing engagement, one finds many of the traditional and long-term association offerings like volunteerism, the purchase or maintenance of insurance, or book or directory purchases. However, when looking at what is reported as showing increasing engagement and participation, we find activities like participation in the public social network of the association, or participation in the private social network. other increasing engagements for associations are attendance at webinars, increasing professional credentials by acquiring or maintaining a certification, or participation in a young professional program. In other words, increasing engagement has been driven by change and innovation and not relying on the services of the past. For 2017, the Membership Marketing Benchmarking Report continues to highlight growth and resilience for membership associations. But as you will see in the comments section of the report, our respondents do not pull any punches. Maintaining growth is challenging, taxing, and requires hard work and constant innovation. As one participant commented, Membership marketing should be pervasive to the organization all staff; all volunteers are responsible for membership marketing all year long and in every encounter with a member or potential member. We hope that you find this year s report helpful, challenging, and encouraging as you serve the members of your association. 9

10 INTRODUCTION SURVEY OBJECTIVE For the ninth consecutive year, MGI has conducted its annual Membership Marketing Benchmarking Survey. As in past years, the report highlights the strategies and tactics that membership organizations find most useful in recruitment, engagement, renewal, and reinstatement of members. Each year, we review the questions from the previous survey to ensure that the content we provide is relevant and on trend. We evaluate the usefulness and success of questions and determine which will be removed, what questions will be added, and which will be retained for further analysis. Additionally, we always include some suggested questions offered by previous survey participants. METHODOLOGY The 2017 Membership Marketing Benchmarking Survey was conducted online. It was launched on January 9, 2017, and remained open until February 20, invitations were sent to association executives who subscribe to MGI s monthly newsletter, the Tipster; had downloaded the 2016 Membership Marketing Benchmarking Report; or had completed the 2016 survey. A link to the survey was also available on the MGI website. Finally, those who requested to participate but had not been included on any of the lists were sent a link to the survey. RESPONSE RATE invitations were sent to 18,692 individuals. of those, 1,311 s bounced, bringing the total to 17,381. A total of 870 executives completed the survey and 300 partially completed the survey, totaling 1,170 participants. The response rate is approximately. ANALYSES our practice is to include only one response per association, so as to not duplicate data. If more than one person from an association completes the survey, we use the data that was most complete, and/or the data from the individuals whose responsibilities most closely relate to membership marketing. We require that each association or company name be provided for this reason. If no association name or company is included, the data is not used. Net duplicate association submissions, a total of 1,005 unique associations participated in the current research. This represents the highest level of participation ever for this association research. 10

11 REPORT LAYOUT The data in this report will be segmented by type of association: Membership organization (IMo), Association (), or association with a combination of both individual and organizational types of membership (). A total segment will be included in all charts and tables to show data relevant to all associations. We are continuing our inclusion of the Participant Comments Highlights, which provide verbatim insights and recommendations shared by participants in the survey. THE SECTIONS INCLUDED IN THIS REPORT ARE: 1 6 SECTION 1: Association Statistics SECTION 6: Challenges and Goals 2 SECTION 2: Member Recruitment (Acquisition) 7 SECTION 7: Dues and Membership Structure 3 SECTION 3: Member Engagement 8 SECTION 8: Managing Your Association 4 SECTION 4: Member Renewal and Reinstatement (Retention) 9 SECTION 9: The Demographics of Your Association 5 10 SECTION 5: Social Media SECTION 10: Words of Wisdom 11

12 SECTION 1 1 ASSOCIATION STATISTICS How has your membership changed in the past one year period? MEMBERSHIP CHANGE IN PAST YEAR (n = 1,005) (n = 460) (n = 312) (n = 233) Increased Decreased 2 Remained the same 2 2 Not sure < 2% overall, close to half of associations report increases in membership over the past year (4). This trend is visible across the board, as all types of organizations are most likely to report that membership has increased. This represents a slight decline from the previous year (), but still demonstrates an overall trend of growth in association membership. In comparison to the 2016 research, the percentage of organizations showing increases has declined; the percentage of IMos showing increases has dropped from to, the proportion of trade organizations has dropped from to 4, and the percentage of combination associations citing increases has dropped from to 4. one-quarter of associations are reporting losses in membership (), with combination associations reporting the highest percentage of membership declines (). This represents an increase in losses for combination associations (up from 22% in 2016). Similar to the previous research, trade organizations are the most likely to indicate their membership numbers have remained stable (). Associations reporting increases in membership over one year are significantly more likely to also report increases in membership over the past five years, in new members, and in renewals. Associations with operating budgets over $5 million are significantly more likely to report increases in members over the past year. QUICK STAT Associations reporting INCREASES in membership over one year are significantly more likely to also report increases in membership over the past five years, in new members, and in renewals. 12

13 1 ASSOCIATION STATISTICS PERCENTAGE INCREASED IN MEMBERSHIP OVER PAST YEAR (n = 447) (n = 213) (n = 130) (n = 104) Mean % Increased* Median % Increased Increased to 5 Increased to 10% 2 Increased 1 to Increased more than 2% 2% 2% *Means are influenced by high and low numbers in the data set. of associations reporting an increase in membership, report increases of to. The median percentage for associations reporting an increase in membership for the past year is. The percentages are slightly higher for IMos () and slightly lower for combination associations (5). one-quarter of associations report increases of to 10%, while 1 report increases in membership over the past year of more than 10%. associations are more likely to report increases of to 10% compared to IMos or combination associations. 2 of combination associations indicate their membership has increased by more than 10% over the past year. PERCENTAGE DECREASED IN MEMBERSHIP OVER PAST YEAR (n = 248) (n = 112) (n = 71) (n = 65) Mean % Decreased* Median % Decreased Decreased to 7 Decreased to 10% 1 22% 20% 1 Decreased 1 to 1 10% 10% 1 Decreased more than < - - *Means are influenced by high and low numbers in the data set. of the associations reporting declines in membership over the past year, cite decreases of up to. The median percentage of membership decline is. IMos and trade organizations are more likely than combination associations to indicate membership declines of to 10% (IMo: 22%, : 20% vs. : 1). More than two thirds of all association types indicate their membership has declined by up to. 13

14 1 ASSOCIATION STATISTICS Over the past five years, how has the total percentage of your membership changed? of associations report that their membership over the past five years has increased, on par with findings from 2016 (5). About half of IMos (), trade associations (), and combination associations () report increases of up to. About of associations indicate that their membership over the past five years has declined, similar to 2016 results (3). associations are most likely to report declines () compared to IMos or trade associations. Associations whose membership renewal rate is at 80% or higher are significantly more likely to indicate that their membership has increased in the past five years ( vs. 4 for associations with less than 80% renewal rate). Associations reporting increases in their five year membership are significantly more likely to also have increases in membership in the past year, increases in new members, and increases in overall renewals. Associations with the largest operating budgets ($20 million or more) are significantly more likely to have increases in membership over the past five years. QUICK STAT OF ASSOCIATIONS report that their membership over the past five years has increased. 14

15 1 ASSOCIATION STATISTICS STAT The median increase over the PAST FIVE YEARS IS 1. PERCENTAGE INCREASED IN MEMBERSHIP OVER PAST FIVE YEARS (n = 461) (n = 210) (n = 145) (n = 106) Mean % Increased* 2 Median % Increased 1 12% 12% 1 Increased to 2 Increased to 10% 20% Increased 1 to 4 Increased more than 12% 12% 10% 1 *Means are influenced by high and low numbers in the data set. of associations reporting an increase in membership over the past five years, report that their membership has increased by 1 to. This represents a slight decline from 2016 (). The median increase over the past five years is 1, slightly lower than in 2016 (1). associations are most likely to report increases of more than in their five year membership (1). PERCENTAGE DECREASED IN MEMBERSHIP OVER PAST FIVE YEARS (n = 287) (n = 134) (n = 79) (n = 74) Mean % Decreased* 12% 1 12% 1 Median % Decreased 10% 10% Decreased to 3 Decreased to 10% 3 Decreased 1 to Decreased more than < - - *Means are influenced by high and low numbers in the data set. of the associations reporting declines in membership over the last five years, mention that their membership has dropped by 1 to. The median decrease in membership over the past five years is 10%, the same as in About one-third of associations report declines of up to (), and another 3 report declines of to 10%. 15

16 1 ASSOCIATION STATISTICS In the past one year, how has your new member acquisition changed? CHANGE IN NEW MEMBER ACQUISITION OVER PAST YEAR (n = 956) (n = 440) (n = 293) (n = 223) Increased 4 4 Decreased Remained the same 3 4 Not sure 4 of associations report increases in their new member acquisitions over the past year, with IMos showing the most growth ( vs. 4 for trade associations and for combination associations). This, however, represents a decline, as 5 of associations reported increases in their new members in All association types show declines in new member acquisition (IMos: vs. in 2016; : 4 vs. in 2016; : vs. 5 in 2016). over one-third of associations report that their new member acquisitions remained the same over the past year (). Associations reporting increases in new members over the past year are also significantly more likely to show increases in overall membership over the past year, increases in their five year membership numbers, and increases in their member renewals. As trade associations grow in membership size, they are less likely to show increases in new member acquisitions. QUICK STAT Associations reporting INCREASES IN NEW MEMBERS over the past year are also significantly more likely to show increases in overall membership over the past year, increases in their five year membership numbers, and increases in their member renewals. 16

17 1 ASSOCIATION STATISTICS PERCENTAGE INCREASED IN NEW MEMBER ACQUISITION OVER PAST YEAR (n = 399) (n = 193) (n = 117) (n = 89) Mean % Increased* 1 22% 20% 1 Median % Increased Increased to 4 4 Increased to 10% % Increased 1 to Increased more than *Means are influenced by high and low numbers in the data set. For those associations reporting increases in new members, 4 indicate their membership has grown by up to. The median increase in new members is. one-third of associations () report growth of 1 to. IMo and trade organizations are more likely to demonstrate new member growth of up to ( and 4, respectively), while combination associations are most likely to report growth of 1 to in new members (). PERCENTAGE DECREASED IN NEW MEMBER ACQUISITION OVER PAST YEAR (n = 115) (n = 57) (n = 30) (n = 28) Mean % Decreased* 12% 1 1 Median % Decreased Decreased to 4 Decreased to 10% Decreased 1 to Decreased more than 2% - - *Means are influenced by high and low numbers in the data set. of the associations that report declines in new members (1), almost four in ten report a drop of 1 to in new members (). Just over one-third of associations report smaller declines in new members: report a drop of up to. The median decrease in new members is. 17

18 1 ASSOCIATION STATISTICS QUICK STAT Associations reporting INCREASES IN OVERALL RENEWALS are significantly more likely to report increases in membership over the past year and increases in membership over the past five years. In the past one year, how has your member renewal rate changed? For a large percentage of associations, renewal rates have remained stable over the past year (4). This is true for all types of organizations: IMo, 5, and. one-quarter of associations have seen an increase in renewals () and a similar percentage have witnessed a decline in renewals (2). IMos are more likely than other association types to have increases in renewals (2 vs. 2 for and 2 for ). associations are more likely to report declines in renewals (2 vs. 2 for IMos and 2 for ). Associations reporting increases in overall renewals are significantly more likely to report increases in membership over the past year and increases in membership over the past five years. IMos with more than 5,000 members and trade associations with more than 500 members are significantly more likely to report increases in renewals over the past year. 18

19 1 ASSOCIATION STATISTICS Three-quarters of associations (7) reporting increases in renewals indicate an uptick of up to over the past year. For all types of associations, the majority report increases of up to (IMo: 7, : 70%, : 72%). The median percentage increase in renewals is about. PERCENTAGE DECREASED IN MEMBER RENEWAL RATE OVER PAST YEAR (n = 211) (n = 89) (n = 63) (n = 59) Mean % Decreased* Median % Decreased Decreased to 72% 7 70% 7 Decreased to 10% Decreased 1 to 1 Decreased more than 2% 2% *Means are influenced by high or low numbers in the data set. of the associations reporting declines in renewals, 72% report a drop of no more than over the past year. The median decline in renewals for associations is. At least seven in ten associations of all types report declines of no more than (IMo: 7, : 70%, : 7). 1 of associations, however, report a drop in renewals of between and 10%. 19

20 1 ASSOCIATION STATISTICS STAT The median membership renewal rate is 8 OVERALL. What is your overall membership renewal rate? OVERALL MEMBERSHIP RENEWAL RATE (n = 810) (n = 346) (n = 269) (n = 195) Mean Median 8 80% 8 82% Similar to 2016, of associations report renewal rates of 80% or higher. The median membership renewal rate is 8 overall. associations have a higher median renewal rate (8) compared to IMos (80%) and combination associations (82%). Associations reporting renewal rates below 80% are significantly more likely to show declines in overall membership over the past year, declines in membership over the past five years, and decreases in their new member acquisitions. Associations with new member renewals at or above 80% are also significantly more likely to report overall renewal rates at or above 80%. IMos with up to 1,000 members are more likely to report renewal rates at or above 80% (6) compared to larger associations. 20

21 1 ASSOCIATION STATISTICS What is your renewal rate for first year members? RENEWAL RATE FOR FIRST-YEAR MEMBERS (n = 562) (n = 224) (n = 209) (n = 129) Mean % Median % The median overall renewal rate for new members is 7, the same as in associations report lower new member renewal rates this year compared to last (70% vs. 7). associations are significantly more likely to report new member renewal rates at or above 80% (6) compared to IMos () or combination associations (). Associations with an overall member renewal rate at 80% or higher are significantly more likely to have new member renewals at that same rate (). Associations with new member renewals at less than are significantly more likely to have overall renewals less than 80%, to show declines in new members overall, and to show declines in their five year membership numbers. Associations with new member renewals at or above 80% are significantly more likely to report overall increases in their five year membership numbers and increases in their new member acquisitions. The smaller associations (IMos up to 1,000 members and trade associations up to 500 members) are significantly more likely to report new member renewal rates at or above 80%. New member renewal rate for IMos with more than 5,000 members is significantly more likely to be less than. associations with 500+ members are significantly more likely to have new member renewal rates of less than 80%. QUICK STAT The median percentage for associations reporting an INCREASE IN MEMBERSHIP FOR THE PAST YEAR IS. 21

22 1 ASSOCIATION STATISTICS Please indicate what percentage of your membership belongs to each of the following generation groups. should add to 100%. GENERATION GROUPS (n =267) Generation Z (born 1996 or later) Millennial (born 1980 to 1995) 1 Generation X (born 1965 to 1979) 2 Baby Boomers (born 1946 to 1964) Born 1945 or earlier 1 IMos estimate that nearly four in ten members are Baby Boomers (), and about three in ten are Gen X-ers (2). Associations estimate that only about 2 of members are Millennials or Gen Z. Associations reporting an increase in membership over the past year, the past five years, and an increase in overall renewals are significantly more likely to have a higher percentage of Millennials. Associations with an 80+% new member renewal rate also have the highest percentage of Millennials. As operating budgets for an association increase, so does the percentage of Millennials in an association. Conversely, as the operating budget for an association increases, the percentage of Baby Boomers decreases. IMos with at least 20,000 members are the most likely to have members born in 1945 or earlier. QUICK STAT Associations reporting an increase in membership over the past year, the past five years, and an increase in overall renewals are significantly more likely to have a HIGHER PERCENTAGE OF MILLENNIALS. 22

23 SECTION 2 2 MEMBER RECRUITMENT Which recruitment marketing channels get your organization the most new members? You may select up to five answer choices. CHANNELS THAT GET MOST NEW MEMBERS (n = 889) (n =386) (n = 285) (n = 218) Word-of-mouth recommendations 6 70% 7 Cross-sell to non-members who buy your products or attend your conferences Promotion to/at your own conferences/trade shows Digital Marketing 3 2 Direct mail Local events/meetings 2 2 Association-sponsored events Personal sales calls 2 10% 20% Chapters % 1 Exhibiting at other conferences Free membership offered with a non-member meeting registration Advertising in your own publications 10% % 12% 10% Public relations Accreditation promotion Content marketing (white papers) Advertising in outside publications 12% Telemarketing Radio or TV Other 10% Similar to 2016 and 2015, the top two recruitment methods for new members are word-of-mouth recommendations () and (). These are the top two recruitment channels for all types of associations. New within the top three recruitment methods is cross-selling to non-members who buy products or attend your conferences (). This is one of the top three recruitment methods for combination associations (4). continued on following page 23

24 2 MEMBER RECRUITMENT QUICK STAT For IMos, DIRECT MAIL IS ONE OF THE TOP THREE RECRUITMENT CHANNELS for new members (), while personal sales calls are highly productive for trade associations (). For IMos, direct mail is one of the top three recruitment channels for new members (), while personal sales calls are highly productive for trade associations (). These findings mirror those from 2016 and Associations reporting increases or no change in their new member acquisitions are significantly more likely to employ associationsponsored events as a recruitment tool. Associations indicating increases in overall renewals are significantly more likely to use digital marketing techniques for recruitment. Local events and meetings are employed significantly more often by associations with new member renewals rates above. IMos with more than 20,000 members are significantly more apt to use direct mail and digital marketing, while smaller IMos (under 5,000 members) tend to use local events/meetings and association-sponsored events significantly more effectively. associations with more than 100 members find personal sales calls to be significantly more productive in recruiting new members. Associations with operating budgets under $5 million are significantly more likely to find wordof-mouth recommendations and local events and meetings to be significantly more effective, while those with operating budgets at $5 million or more are significantly more apt to employ direct mail as an effective recruitment tool. On average, how much do you spend to acquire each new member? AMOUNT SPENT TO ACQUIRE EACH NEW MEMBER (MEDIAN) (n = 593) (n = 259) (n = 200) (n = 134) $41 $24 $95 $24 The median amount spent to acquire each new member is $41. For both IMos and combination associations, the median amount is $24, and for trade associations, the median amount is $95. 24

25 2 MEMBER RECRUITMENT You indicated that you use digital marketing recruitment tools. Which of the following provide the most new members? Please select up to two responses. DIGITAL MARKETING TOOLS THAT GET MOST NEW MEMBERS (n = 240) (n =115) (n = 58) (n = 67) Association-sponsored social networking websites (e.g., Facebook, LinkedIn) Search engines (organic) 4 Facebook Paid Advertising 2 2 Search engine ads (pay-per-click) % 2 Lead generation content marketing (White Papers) Paid banners on other websites % 10% LinkedIn Paid Advertising 10% The two most effective digital marketing recruitment tools remain the same as in 2016: association-sponsored social networking websites (e.g., Facebook, LinkedIn) () and organic search engines (). The percentage of associations that rate the association-sponsored websites as a top digital marketing recruitment tool has dropped from 6 in 2016 to in The third most effective digital marketing method, Facebook paid advertising, has increased in effectiveness for many associations (, up from 20% in 2016). This is especially true for trade associations (2, up from in 2016) and combination associations (2, up from 1 in 2016). Associations with renewal rates at 80% or higher are significantly more likely to report that association-sponsored social networking websites are highly effective for recruiting new members (). 25

26 2 MEMBER RECRUITMENT How effective are the following offers for recruiting new members? EFFECTIVENESS OF OFFERS FOR RECRUITING NEW MEMBERS (VERY EFFECTIVE/EFFECTIVE) Conference or convention discount 5 6 Dues discount for first year 6 Online registration discount 4 5 Product discount, coupons or voucher 4 Multiple-year dues discount Free trial Member-referral incentives (given to members) 3 2 Free gifts or premiums 2 No risk/dues back guarantee (refundable dues) Drawing or contests overall, conference or convention discounts are considered the most effective offer for recruiting new members (). This is true for trade and combination associations ( and 6, respectively). For IMos, the most effective offer is a dues discount for the first year of membership (6). For associations reporting increases in overall membership, five year membership, and new members, conference discounts, first-year dues discounts, and online registration discounts are significantly more effective. A free trial membership is considered significantly more effective or very effective for associations reporting renewal rates at or above 80%. As the operating budget for an association increases, it is more likely to find that the first year dues discount is highly effective. IMos with the most members (20,000 or more) are significantly more apt to find that free gifts or premiums are effective or very effective for recruiting new members, compared to smaller IMos. 26

27 2 MEMBER RECRUITMENT What do you believe are the top three reasons members join your organization? TOP REASONS MEMBERS JOIN ORGANIZATION (n = 843) (n =364) (n = 267) (n = 212) Networking with others in the field 5 5 Continuing education 1 2 Access to specialized and/or current information Learning best practices in their profession 22% 2 22% 22% 2 2 Advocacy Conferences/trade shows 20% 1 1 To support the mission of the association Discounts on product or meeting purchases Prestige of belonging to the association 20% 22% 20% % 1 Association publications 12% 1 1 Accreditation or certification 10% 1 1 Access to industry thought leaders 12% 1 Advancing their position 1 Members-only education 10% Required to gain or maintain professional certification Access to industry benchmark studies Affinity programs (insurance, rental cars, retail discounts, etc.) 1 Downloadable content Job board 2% 2% Other For all associations, networking with others in the field is considered the top reason that members join the organization (). This mirrors the findings from 2016 and Continuing education and access to specialized/current information (each ) have supplanted best practices (22%) in the top three reasons for joining. continued on following page 27

28 2 MEMBER RECRUITMENT IMos and combination associations report that continuing education ( and 2, respectively) is one of the top reasons that members join, while trade associations indicate that advocacy is a greater membership driver (). associations are significantly more likely to believe that members join for conferences and trade shows, while IMos and combination associations are significantly more likely to consider association publications and certification to be membership drivers. According to associations with fewer than 20,000 members and those with under $5 million in their operating budget, networking is a top reason for joining the organization. Associations reporting renewal rates of 80% or higher indicate that access to specialized information and advocacy are significant membership drivers. Compared to associations with at least in new member renewals, those with less than consider association publications and supporting the mission of the association to be reasons members join the association. Associations with fewer than 5,000 members are significantly more inclined to report that members join to have access to industry thought leaders. PARTICIPANT COMMENTS MEMBER RECRUITMENT Describe an acquisition or recruitment strategy that your association has employed that has been very successful, and/or from which you learned something valuable. Provide details so that others may learn from your experience. 90-day free trial has been very successful - after the 90-days participants are offered 20% discount on first year dues. () Telemarketing has significantly increased conversion rates. We have a ready database of potential members, available every month, and have refined and streamlined our contact with them. We start with an edm (where we have addresses) to convert the easy wins, then send a DM approx. 4 weeks later to any non-converted, and follow up with a phone call approx. 4 weeks later to any still outstanding. Conversion rates for TM are around 1. () 3 years for price of 2 promotions - only available onsite at events. Improved both retention and acquisition locking in members for 3 years at current prices. (IMo) our best performing acquisition has been offering an extra 3 months for the price of 12. We offer it via a mailed campaign as well as a looka-like campaign on Facebook. () Facebook remarketing has been successful, especially when specifically targeted to a specific audience such as our Young Professionals. (IMo) Direct mail, following up with an still works. () Using content (which is not gated, but is behind lead gen), to both capture leads and demonstrate the quality of our product. () We invite our members to bring guests to our Member Mixers, and we then invite those guests to attend one of the events in our monthly series as our guest. This allows people to become familiar with our organization and the work we do. We also add them to our invites/newsletters/alerts (with their permission) to increase our contact with them. () 28

29 SECTION 3 3 MEMBER ENGAGEMENT Do you have a separate strategic initiative or tactical plan to increase engagement? 6 (n = 839) (n = 364) (n = 265) 4 (n = 210) Yes No Not sure The majority of associations have a strategic initiative or tactical plan to increase engagement (). associations are significantly more likely to have a strategic initiative or tactical plan (6). Among associations that saw their renewal rate increase, have a strategic initiative or tactical plan to increase engagement. This is compared to who saw a renewal decrease and who saw no change. IMos with 20,000 members or more are significantly more likely to have a strategic initiative or tactical plan to increase engagement than smaller organizations (7 vs. 5). QUICK STAT associations are significantly more likely to believe that MEMBERS JOIN for conferences and trade shows, while IMos and combination associations are significantly more likely to consider association publications and certification to be membership drivers. 29

30 3 MEMBER ENGAGEMENT QUICK STAT 5 OF ASSOCIATIONS SEND A MAILED WELCOME KIT; this is down from 8 in Which of the following communication methods do you use to help onboard or engage new members in the association? (Check all that apply.) COMMUNICATION METHODS TO ONBOARD NEW MEMBERS (n = 825) (n = 360) (n = 259) (n = 206) welcome % Mailed welcome kit 5 5 Membership card or certificate 5 Invite to use members-only website sections New-member engagement series 4 Invitation to join the online community 2 Invite to follow/like association's social media (public or private) page(s) 3 2 Volunteer or staff welcome phone call 1 Invitation to volunteer 2 In-person new-member reception or orientation Invite to chapter meeting New-member survey % 1 New-member newsletter (mail or electronic) % New-member webinars New-member gift (e.g., gift card, calendar, or notepad) % Special new-member discounts on purchases % Telemarketing welcome phone call 10% Custom new-member renewal series 10% Invite to download mobile apps Early or 'at-birth' renewal Text messaging specific to new members 2% 2% 2% Other No special communication 2% 2% An welcome is the most common method used to help onboard or engage new members. Mailed welcome kits continue to be a distant second choice method, while membership cards or certificates are the third most popular method. 5 of associations send a mailed welcome kit; this is down from 8 in An invite to use the members-only website section is a popular method of onboarding new members of trade associations (). Associations with an operating budget of $20 million or more are significantly more likely to mail out a membership card or certificate to new members (6 vs. ). 30

31 31 In the past fiscal year, how has member engagement and participation changed within each of the following areas? Please indicate N/A if a particular item is not offered or not relevant to your association % % % % % % % % % % % % % % 1 8 % % % % 1 7 % % % % 1 7 % % % % 1 8 % % % % 1 7 % % % % % % % % % % % % Participation in your public social network Participation in your private social network Participation in your young professional program Attendance of webinars Attendance at your annual conference/trade show Number of members who acquire or maintain a certification with your organization Donations to your association foundation or PAC Number of visits to members-only section of website Attendance at your professional development meetings Participation in your mentoring program Number of membership upgrades Non-dues product purchases (other than previously checked) Non-dues service purchases (other than previously checked) Volunteerism with your organization Purchase or maintain insurance through your organization Book or directory purchases Increased Stayed the Same Decreased of associations saw an increase in participation in their public social network. The use of private social networks continues to increase rapidly. of associations saw an increase, down slightly from 6 in MEMBER ENGAGEMENT 3

32 3 MEMBER ENGAGEMENT Participation in your public social network 71 % 2 2% Participation in your private social network Attendance of webinars Number of members who acquire or maintain a certification with your organization Participation in your young professional program Attendance at your annual conference/trade show 1 Number of visits to members-only section of website 4 Donations to your association foundation or PAC 1 Participation in your mentoring program Attendance at your professional development meetings 1 0% Number of membership upgrades Non-dues product purchases (other than previously checked) 1 0% Volunteerism with your organization 31 % 6 Non-dues service purchases (other than previously checked) 2 Purchase or maintain insurance through your organization 6 1 Book or directory purchases 2 1 Increased Stayed the Same Decreased A majority of associations () saw an increase in webinar attendance, down slightly from in For individual member and trade associations, saw an increase in webinar attendance, while of combination associations experienced an increase in webinar attendance. 32

33 % % % % % % % Participation in your public social network Participation in your young professional program Participation in your private social network Number of members who acquire or maintain a certification with your organization Donations to your association foundation or PAC Attendance of webinars Attendance at your professional development meetings Attendance at your annual conference/trade show Number of visits to members-only section of website Number of membership upgrades Participation in your mentoring program Non-dues service purchases (other than previously checked) Volunteerism with your organization Non-dues product purchases (other than previously checked) Purchase or maintain insurance through your organization Book or directory purchases Increased Stayed the Same Decreased only 1 of associations saw a decrease in attendance at their annual conference/trade show. This is up from 12% in of associations with a five-year membership increase also saw growth in attendance at their annual conference/trade show last year. This compares to among those who have a fiveyear decrease in membership. MEMBER ENGAGEMENT 3

34 3 MEMBER ENGAGEMENT of trade associations and 5 of combination associations saw attendance growth in professional development opportunities. By contrast, professional development meetings saw somewhat slower growth among individual membership associations, with only seeing an increase in attendance in the past year. 6 of organizations that experienced increased new member growth in the past year also saw an increase in attendance at their annual conference/trade show. only of those with negative growth and with no new member growth saw increased attendance. 34

35 3 MEMBER ENGAGEMENT Do you offer certification? (n = 800) (n = 347) 6 6 (n = 252) (n = 201) 4 3 Yes of associations offer certification, up from in of combination associations offer certification, compared to of IMos and 3 of trade associations. In 2016, only of combination associations offered certification. No Large trade associations are significantly more likely to offer certification. 4 of those with 500+ members offer certification, compared to of all smaller trade associations. offering certification has a positive effect on renewal rates. 4 of associations that saw a renewal increase offer certification. only of those that saw a decrease offer certification. What service do you use for your online community? ONLINE COMMUNITY SERVICE (n = 759) (n = 332) (n = 235) (n = 192) Higher Logic % YourMembership (YM) Socious 2% - MemberFuse Small World Labs < Kavi Workspace < - Causeway < - < CareHubs < < - - Other We don t offer an online community of associations do not use an online community. At, trade associations are significantly more likely not to use an online community. only of IMos and 4 of combination associations forego an online community. 35