2       0       1           1
MEMBERSHIP M ARKETING
        BENCHMARKING REPORT




                       SURVEY CONDUCTED BY:
                       Marketing General Incorporated

                       UNDER THE SUPERVISION OF:
                       Tony Rossell, Senior Vice President
                       Adina Wasserman, PhD,
                       Director of Research, and
                       Erik Schonher, Vice President
2    0    1     1
    MEMBERSHIP M ARKETING
        BENCHMARKING REPORT




                                       EXECUTIVE SUMMARY
     Membership organizations reported            and membership renewals—all showed
     a triple play in membership growth           substantial improvements from the
     based on survey results gathered for         previous year’s benchmarking report.
     the 2011 Membership Marketing
     Benchmarking Report.                         A total of 49% of respondents said that
                                                  they had recorded an overall increase in
     From this year’s survey, which included      members over the previous 12 months.
     650 participating associations, the major    This is a substantial jump over the 36%
2    indicators of membership health—total        who reported membership growth the
     membership, new members acquired,            previous year.



                          Percentage Change in Entire Membership
                                    Over Past ONE Year
                                                    2011      2010     2009
                   Percentage Increased Overall     49%       36%      45%
                   Percentage Unchanged Overall     16%       14%      16%
                   Percentage Declined Overall      34%       48%      35%
                   Not Sure                          2%        3%       5%




                                www.marketinggeneral.com
Growth in new member recruitment              Finally, the survey results show that
appears to be the big driver in               membership renewals had a more
membership growth. Of responding              positive outcome this past year, with 32%
association executives, 57% report the        of respondents saying that they have had
acquisition of new members increased          an increase in overall renewal rates.
over the past year. These results are
significantly better compared to both
2010 and 2009.



                  Percentage Change in NEW-Member Acquisition
                                 Over Past Year
                                                 2011      2010     2009
               Percentage Increased Overall      57%       42%      49%
               Percentage Unchanged Overall      21%       20%      22%
               Percentage Declined Overall       16%       26%      21%
               Not Sure                           8%       12%      10%


                     Percentage Change in Member RENEWALS
                                  Over Past Year
                                                 2011      2010     2009
                                                                                          3
               Percentage Increased Overall      32%       21%      22%
               Percentage Unchanged Overall      37%       27%      39%
               Percentage Declined Overall       24%       44%      31%
               Not Sure                           7%        8%       9%




                          www.marketinggeneral.com
THE BIGGEST CHALLENGES TO                                        The data indicates that if an organization
    MEMBERSHIP GROWTH                                                reported weak product and service
                                                                     offerings, insufficient budget, or a lack of
    But even with improving numbers,                                 marketing expertise as their biggest
    challenges still exist for many groups                           challenge, then membership growth was
    in growing their membership. To gain                             less likely to have been achieved.
    a better understanding of these
    challenges, this year we asked association                       On the other hand, if an organization said
    executives to tell us what they perceived                        that its biggest challenge was the lack of
    as the biggest impediments to growth.                            a strategy or plan, then membership was
                                                                     more likely to have remained static.
    We then took their answers and cross-
    tabulated them with the reported                                 However, there may be hope for
    membership performance for their                                 membership growth even if an
    organizations over the past five years.                          organization is faced with insufficient
                                                                     staff, market saturation, an inadequate
    What we wanted to discover was which                             association management database, or
    challenges hurt membership growth the                            inadequate research to understand the
    most and which were painful, but tended                          market they serve. Organizations
    not to impede growth. Here is what we                            reporting these problems were more
    found:                                                           likely to have seen membership growth
4
                                                                     over the past five years.


                                     Challenges Faced by Five Year Membership Growth
                                                         Five Year        Five Year     Five Year
                Challenge                               Membership       Membership    Membership
                                                         Increased       Unchanged     Decreased
                Insufficient staff
                Weak product or service offering
                Insufficient budget
                Lack of strategy or plan
                Market saturation
                Inadequate association management
                database
                Lack of marketing expertise
                Inadequate research




                                           www.marketinggeneral.com
ENGAGING MEMBERS WITH                                                      in an activity, the higher the likelihood of
PRODUCTS AND SERVICES                                                      increased renewals for that organization.

Engaging members is also a critical                                        Specifically, organizations with members in
component of building a strong                                             the following activities were more likely to
membership. So our research this year                                      have renewal rates over 80% compared to
included a question to try and gauge the                                   organizations that did not offer these
participation level that organizations have                                programs: attendance at an annual
achieved in a variety of programs and                                      convention, attendance at a professional
services that are commonly provided by                                     development meeting, attendance at a
membership organizations.                                                  webinar, volunteering, participation in the
                                                                           private social network, participation in a
Beyond just the proportion of                                              young professionals program, purchase of a
membership using an association’s                                          book or directory, certification, purchasing
products and services, the data                                            insurance, and purchase of a miscellaneous
highlighted that organizations that had at                                 non-dues product or service.
least some members involved in almost
all of these activities were more likely to                                Participation in a public social network
enjoy higher renewal rates than those                                      and upgrading a membership were the
organizations not offering a specific                                      only activities that did not correlate with
program. And in general, the higher the                                    renewal rates over 80%.
                                                                                                                                        5
proportion of members who participated

                                       Percentage of Members Engaged With Each Type of Activity
                                                                         1% -   6% -    11%    16%    21%    31%    41%   Over
                                                             N     0%
                                                                          5%    10%    -15%   -20%   -30%   -40%   -50%   50%
                                                                                                                                 Mean

            Attend your annual convention                    592   7%    15%    14%    10%    13%    14%    8%     8%     12%    22%

            Attend at least one of your professional                                                                             19%
                                                             540   10%   18%    12%    9%     14%    13%    9%     7%     8%
            development meetings
            Acquire or maintain a certification with
                                                             480   47%   14%    9%     6%     7%     4%     2%     3%     8%     11%
            your organization

            Attend at least one of your webinars             519   25%   27%    14%    10%    7%     7%     6%     3%     3%     11%

            Participate in your public social network        539   12%   35%    23%    9%     7%     7%     3%     2%     2%     10%

            Purchase a non-dues product
            (other than previously checked)                  494   29%   25%    16%    10%    5%     5%     4%     1%     4%     10%

            Volunteer with your organization                 581   8%    39%    25%    10%    9%     5%     2%     1%     1%     9%


            Purchase a book or directory                     505   34%   24%    16%    8%     6%     5%     3%     2%     4%     9%

            Participate in your private social network       511   34%   24%    16%    8%     5%     4%     4%     2%     3%     9%

            Purchase a non-dues service
                                                             473   36%   27%    13%    8%     5%     3%     2%     2%     4%     9%
            (other than previously checked)
            Purchase or maintain insurance
                                                             479   52%   22%    8%     7%     3%     3%     2%     1%     4%     7%
            through your organization

            Upgrade their membership                         472   48%   24%    12%    4%     3%     4%     2%     1%     2%     6%


            Participate in your young professional program   447   57%   25%    9%     4%     3%     1%     0%     0%     0%     3%




                                            www.marketinggeneral.com
RAISING DUES LEVELS
    Another new area that we added to our                   What we found is that 30% of
    research this year was the practices                    organizations report that they have or
    around raising membership dues.                         will raise their membership dues in 2011
                                                            and 71% will increase dues rates between
    We asked: “How often does your                          1% and 10%. The majority of associations
    association raise membership dues?”,                    raise dues on an as-needed basis and
    “When was the last time your association                do not have a regular dues increase
    raised membership dues?”, and “What                     schedule.
    was the average percentage of your last
    membership dues increase across all
    membership categories?”



                   How often does your asso
                       o                  ociation raise membership due
                                                             e        es?
    How often does your association raise membership dues?


                               12%                   17%
              9%                                                            4%         Annually
                                                                                       A
6
                                                                                       Every other yea
                                                                                       E             ar
                                                                                       As
                                                                                       A needed
                                        58%                                            Never
                                                                                       N
                                                                                       Other
                                                                                       O
                                                                                      201 (N=644)
                                                                                        11




     * The dues increase questions in the 2011 Benchmarking Research mirror questions from the 2007 Marketing
       General Incorporated study titled, Membership Dues Increase Study: Best Practices in the Why, How, and
       Outcomes of Raising Membership Dues. Despite the dramatic economic events of recent years, the
       frequency and amount of dues increases vary only slightly from the findings of our 2007 report.




                                     www.marketinggeneral.com
REPORT BACKGROUND                               declining membership or better renewal
                                                rates, we are not claiming that any one
The 2011 Membership Marketing
                                                behavior in and of itself causes this outcome.
Benchmarking Report marks the third year
                                                There are literally thousands of variables that
that Marketing General Incorporated (MGI)
                                                impact membership results.
has surveyed associations to better
understand the strategies and tactics they      Nevertheless, if as a marketer one sees that
use to recruit members, engage new              organizations with certain behaviors or
members, renew existing members, and            practices tend to be doing better, one at
reinstate former members.                       least will want to explore the issue and see if
                                                there is something that can be applied to his
However, beyond cataloging membership
                                                or her organization.
practices, this Benchmarking Report also
takes these practices and cross-tabulates       The report includes dozens of key findings
them with the membership results                that can provide insights and direction for
associations are experiencing.                  membership marketing programs. We hope
                                                that you find it of help as you seek to
The comparison of practices and outcomes in
                                                maximize the membership results for your
membership provides strong directional
                                                organization.
information on what tactics and strategies
might be added or dropped to help improve       If you have questions or need assistance
a membership program.                           with your membership marketing, the team
                                                at Marketing General Incorporated is
There is an important disclaimer that readers                                                     7
                                                pleased to be of help. Our website is:
should be aware of as they evaluate this
                                                www.MarketingGeneral.com. Please find
report. Because an activity or practice has a
                                                our individual contact information on the
statistical correlation with a growing or
                                                back panel of this report.




                             www.marketinggeneral.com
INTRODUCTION
    SURVEY OBJECTIVE                                       What is the margin of error? The margin of error is
                                                           a statistical measurement used to assess the
    The 2011 Membership Marketing Benchmarking             accuracy of the data compared to the universe of
    Report is the third installment of our annual          respondents. Since it is impossible to survey all
    tracking study. Our tracking research continues to     association executives, statisticians rely on a
    provide perspective on the tactics and strategies      random sample of individuals from the “universe”
    that organizations use to recruit new members,         of association executives to estimate what the
    engage and renew existing members, and                 results of the entire population would be. In
    reinstate former members. Additionally, we             essence, a randomly-generated sample provides
    compare the effectiveness of different tactics and     a statistical “snapshot” of the universe. The
    strategies from year to year and assess changes in     margin of error, therefore, measures the random
    association membership levels. While some              fluctuations or changes inherent in any sample.
    questions from the 2010 study were removed,            The smaller the margin of error means the more
    new questions were added to the study as various       accurate the measurement of the universe.
    other issues and queries were brought to light.
                                                           This study’s significant level of .05 carries with it a
                                                           95% confidence interval, meaning that if this
    METHODOLOGY                                            study was conducted 100 times, the same results,
                                                           plus or minus the margin of error (3.8%, in this
    The 2011 Membership Marketing Benchmarking             case) would occur 95 out of 100 times. The
    Study was conducted online and was launched on         confidence interval is established as the
    February 14, 2011, and was accessible to               likelihood that the same results would be
    respondents through March 7, 2011. Email               replicated, and that differences are not due to
    invitations were sent to approximately 5,719           chance or random fluctuations.
8   association professionals. In addition,
    respondents had access to the survey through our
    company blog site, if they did not receive a           RESPONSE RATE
    formal invitation. Close to 700 association
    professionals responded to this year’s survey          Email invitations were sent to 5,719 association
    providing data and information about their             professionals. There were 196 email addresses
    membership marketing efforts and experiences.          that “bounced,” resulting in a total of 5,523
                                                           delivered emails. 663 individual association
    To ensure that only one response per association       executives responded to the online survey
    was included, “duplicate” association responses        invitation, and another 29 completed the survey
    were removed. For example, if more than one            via the survey link on the blog post, resulting in
    person from the same association completed the         692 completed surveys. The survey produced a
    survey, the responses of the individual most           13% response rate overall, the same as the 2010
    closely associated with the membership                 study. After removing the duplicate associations,
    marketing responsibilities were used. Forty-two        findings from a net of 650 respondents are
    duplicate association responses were removed           included in this report.
    from the final results of this study, resulting in a
    total of 650 respondents for this study, with a
    margin of error of +/- 3.8%.




                                      www.marketinggeneral.com
Which social media does your organization officially use?
(Please check all that apply.)

                                  Faceboo
                                        ok                                                91%
                                                                                    75%

                                    TwiƩe
                                        er                                        71%
                                                                                66%                            2011 (N=641)

                           LinkedIn (Public
                                          c)                                53%                                2010 (N=405)
                                                                              59%

                                  YouTub
                                       be                                   %
                                                                          45%
                                                                       35%

        LinkedIn (AssociaƟon Members Only
               n                        y)                           28%
                                                Not asked in 201
                                                               10

                                                                    27%
                           AssociaƟon Blo
                           A            og                           30%
                                                                    24%
                        Asso
                           ociaƟon Listser
                                         rv                           31%

          Private AssociaƟon Social Networ
                                         rk                 18
                                                             8%
                                                             7%
                                                            17

                                      Flick
                                          kr               15%
                                                             %
                                               Not asked in 2010


                                      Wikis            9%
                                                        13%
                                                          %

                                        te
                            Ning/Groupsit           4%
                                                     6%

                                Second Lif
                                         fe       2%
                                                  3%

                                  MySpac
                                       ce         1%                                                                               9
                                                   4%

                                      None           6%
                                                      8%
                                                                                           2011 (N=641)
                                        er
                                     Othe           4%
                                                     6%                                    2010 (N=405)



  Similar to the previous study,               Social media declines are seen                   Associations showing an
  the top social media platforms               with the use of Association                      increase in membership overall
  officially used by associations              Blogs and Listservs, and the                     and an increase in renewals
  include Facebook (91%),                      use of Wikis.                                    over the past year are
  Twitter (71%), and LinkedIn                                                                   significantly more likely to use
                                               Only 4% of individual
  (53%), although there has been                                                                an association blog and a
                                               membership associations and
  a slight drop in the percentage                                                               private association social
                                               9% of organizational/trade
  of LinkedIn use by                                                                            network, compared to
                                               associations report that they
  associations, compared to an                                                                  associations showing no
                                               do not officially use social
  increase in the use of                                                                        change or declines in
                                               media platforms.
  Facebook and Twitter.                                                                         membership and renewals.
                                               Interestingly, associations with
  There has also been an
                                               an 80% or higher renewal rate
  increase in associations’ use of
                                               are significantly more likely to use
  YouTube over the past year
                                               a Members-Only LinkedIn site.
  (45% in 2011 vs. 35% in 2010).




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Of the social media your association uses, which has been
     the most effective in achieving your membership goals?


                    Most EffecƟve Social Media Outlets in Reaching Membership Goals?
                                                                      N             % Rank 1           % Rank 2
                                                               2011 2010          2011   2010        2011   2010
      Facebook                                                  329       307     29%     30%         22%        28%
      LinkedIn (Public)                                         161       242     15%     33%         10%        23%
      AssociaƟon Listserv                                        91       125     11%     59%          3%        14%
      LinkedIn (AssociaƟon Members Only)                         89       NA       8%      NA          6%         NA
      TwiƩer                                                    175       267      7%     10%         20%        26%
      Private AssociaƟon Social Network                          58        70      5%     39%          4%        27%
      AssociaƟon Blog                                            57       123      5%     19%          4%        16%
      YouTube                                                    55       141      3%      6%          6%        16%
      Ning/Groupsite                                            13*       23*      1%     13%          1%         9%
      Wikis                                                      6*        55       --     9%          1%        13%
      Flickr                                                     6*       NA        --     NA          1%         NA
      Second Life                                                1*       10*       --      --          --         --
      MySpace                                                    0        15*       --      --          --         --
10    Other                                                     10*       25*      1%     24%           --        4%
     * Small cell sizes can result in inflated percentages.




       Facebook is now considered                     LinkedIn (public access) is also   rated as an effective outlet by
       the most effective media                       rated one of the top two most      a higher percentage of
       outlet for reaching specified                  effective social media outlets,    association professionals in the
       membership goals. While the                    but by far fewer respondents,      last study (20% vs. 26% in
       percentage of respondents                      compared to the previous           2010). Private association
       rating it first has not changed                study (15% vs. 33% in 2010).       social networks are not
       much from the previous study                   This may be because we             considered as effective as they
       (29% vs. 30% in 2010), other                   added a second LinkedIn            were in the prior research (4%
       outlets that were previously                   option in the 2011 survey.         vs. 27% in 2010).
       considered most effective
                                                      Facebook is also rated as the      Associations with renewal rates
       (association listserv and private
                                                      second most effective media        less than 80%, and those with
       association social network) are
                                                      outlet, but at a slightly lower    individual memberships, are
       perceived as significantly less
                                                      percentage than in the 2010        significantly more likely to
       effective than reported in the
                                                      study (22% vs. 28% in 2010).       consider Facebook their most
       previous study.
                                                                                         effective social network outlet.
                                                      Twitter is considered one of
                                                      the top two most effective
                                                      social media outlets. It was




                                              www.marketinggeneral.com
How do prospective new members learn about or
become aware of your organization?

                        How ProspecƟve Members Learn or Become Aware of Your OrganizaƟon
                                                                            2011      2010      2009
                                                                           (N=638)   (N=405)   (N=599)
              Member word-of-mouth recommendaƟons                            90%       91%       77%
              AssociaƟon website                                             87%       88%       85%
              Email to prospects                                             71%       67%       61%
              PromoƟon to/at your own conference/convenƟon                   65%       66%       65%
              Co-worker or colleague recommendaƟons                          64%       67%       54%
              Direct mail to prospects                                       62%       66%       76%
              AssociaƟon-sponsored events                                    57%       56%       37%
              Cross-sell to non-members who buy your products or aƩend
                                                                             56%      59%       52%
              your conferences
              Local events/meeƟngs                                           53%       NA        NA
              AssociaƟon-sponsored social networking websites
                                                                             51%      56%       35%
              (e.g., Facebook, LinkedIn)
              ExhibiƟng at other conferences                                50%       51%       53%
              AdverƟsing in your own publicaƟons                            48%       56%       51%
              RecommendaƟons from/connecƟons with other associaƟons         47%       50%       40%
              Search engines (organic)                                      45%       47%       34%
              Public relaƟons                                               40%       39%       29%
              Chapters                                                      38%       46%       39%
              Employer recommendaƟons                                       33%       37%       30%
              AdverƟsing in outside publicaƟons                             31%       31%       28%
              Faculty recommendaƟons                                        28%       32%       35%
              Personal sales calls                                          25%       22%       24%
              Job board                                                     24%       23%       23%
              AccreditaƟon promoƟon                                         18%       20%       14%
              TelemarkeƟng to prospects                                     16%       18%       18%                     11
              Search engine ads (paid or pay-per-click)                     14%       20%        8%       Upward
              Paid banners on other websites                                12%       13%       12%        Trend
              Radio or TV                                                    7%        5%        7%
              Other                                                          4%        3%        3%      Downward
              Do not know                                                    0%        0%        1%        Trend



 Continuing the trend from the previous two studies,                 • Chapters (38% in 2011 vs. 46% in 2010)
 member word-of-mouth recommendations (90%), an                      • Employer recommendation (33% in 2011 vs.
 association website (87%), and email to prospects                     37% in 2010)
 are the three most common means by which                            • Association-sponsored social networking
 prospective members learn of an organization.                         websites (51% in 2011 vs. 56% in 2010)
 However, email to prospects is the only method of
                                                                     • Advertising in own publications (48% in 2011
 the top three that has shown a continued increasing
                                                                       vs. 56% in 2010)
 trend over the three studies.
                                                                     • Search engines (paid or pay-per-click) (14% in
 More than 60% of association professionals indicate                   2011 vs. 20% in 2010)
 that prospects learn of their organization through
 promotion to/at their conferences (65%), through a co-              Associations with an 80% renewal rate or higher
 worker or colleague (64%), or through direct mail (62%).            are more likely to rely on member word-of-
 However, direct mail is the only method of these three              mouth recommendations or personal sales calls,
 showing a continuous decline from year to year.                     compared to those with a lower renewal rate.

 Recommendations through faculty members have also                   Those associations that rely on email to
 showed a declining trend over the past three years.                 prospects, local meetings or events, and/or
                                                                     association-sponsored networking sites to
 Other methods that show a decrease in generating                    increase association awareness are significantly
 association awareness from the 2010 study include:                  more likely to show increases in renewal rates
                                                                     over the previous year.



                                     www.marketinggeneral.com
What are the two most effective membership recruitment
     marketing channels you have used?

                                     Most EffecƟve Membership Recruitment Channels
                                                                       N              % Rank 1       % Rank 2
                                                                   2011 2010         2011 2010      2011 2010
              Member word-of-mouth recommendaƟons                   222    371       22%     27%     13%    19%
              Direct mail to prospects                              171    268       15%     27%     11%    17%
              Email to prospects                                    125    272       10%     10%      9%    14%
              PromoƟon to/at your own conference/convenƟon           84    266        8%     11%      5%     8%
              Co-worker or colleague recommendaƟons                  92    270        7%     13%      7%    13%
              Personal sales calls                                   70     90        7%     23%      4%    16%
              AssociaƟon website                                     94    359        5%      8%      9%    11%
              Cross-sell to non-members who buy your products or
                                                                    85     238       5%       6%     8%     12%
              aƩend your conferences
              AssociaƟon-sponsored events                           94     226       3%       2%     5%     8%
              Employer recommendaƟons                               29     150       3%       8%     2%     5%
              Faculty recommendaƟons                                27     128       2%       6%     2%     7%
              Chapters                                              34     188       2%      10%     3%     9%
              ExhibiƟng at other conferences                        32     208       1%       3%     4%     5%
              AdverƟsing in your own publicaƟons                    7      226       1%       0%     1%     1%
              RecommendaƟons from/connecƟons with other
                                                                    16     202       1%       2%     2%     5%
              associaƟons
              Search engines (organic)                              19     192       1%       1%     2%     5%
              Public relaƟons                                       9      158       1%       3%     1%     3%
              AssociaƟon-sponsored social networking websites
12            (e.g., Facebook, LinkedIn)
                                                                    16     226       1%       0%     2%     0%
              Local events/meeƟngs                                  29     NA        1%       NA     4%     NA
              AccreditaƟon promoƟon                                 9       82       1%       6%     1%     4%
              TelemarkeƟng to prospects                             18      73       1%       7%     2%     7%
              AdverƟsing in outside publicaƟons                     7      128        --      2%     1%     3%
              Radio or TV                                           4       19        --       --    1%      --
              Job board                                             2       94        --       --     --     --
              Search engine ads (paid or pay-per-click)             4       80        --       --     --     --
              Paid banners on other websites                        0       51        --       --     --     --
              Other                                                 15      13       2%      15%     1%      --



      While the percentages have              A significantly higher                       A significantly higher
      fallen somewhat, the top two            proportion of individual                     percentage of larger
      most effective recruitment              member associations rank                     associations (5,000 or more
      channels are still considered           direct mail to prospects as the              members) consider direct mail
      member word-of-mouth                    most effective membership                    to be the most effective
      recommendations and direct              recruitment channel,                         recruitment channel,
      mail to prospects.                      compared to trade                            compared to smaller
                                              associations (19% vs. 12%),                  associations. Small
                                              while association executives from            associations (up to 1,000
                                              trade associations are significantly         members) are significantly
                                              more likely to rate personal sales           more likely to rate personal
                                              calls as most effective for                  sales calls as the most effective
                                              recruitment (16% vs. 2%).                    recruitment channel.




                                       www.marketinggeneral.com
What do you believe is the ONE TOP reason members
JOIN your organization?

                                                                                                             25%
                  Networking wit others in the field
                  N            th                                                                          24%
                                                                                                     22%

                 Ac             alized and/or current
                  ccess to specia                                                              14%
                                                                                                4
                                                                                              13%
                             info
                                ormaƟon                                                                23%
                                                                                                                                 2011 (N=641)
                                                                                                                                            )
                                                                                    10%
                                             vocacy
                                           Adv                                        11%                                        2010 (N=400)
                                                                                                                                            )
                                                        Not asked in 2009
                                                                                                                                 2009 (N=303)
                                                                                                                                            )
                                                                             7%
                               ConƟnuing educaƟon
                               C                                                        11%
                                                                        5%
                                                                             7%
            Learning best pracƟce in their profession
                                es                                                 9%
                                                                                 8%
                                                                                 8

                   Discounts on products or me
                                             eeƟng                      5%
                                                                          6%
                               urchases
                              pu                                                  9%

                                                                        5%
              Prest of belongin to the assoc
                  tige        ng           ciaƟon       Not asked in 2009/2010


                                                                        5%
                               erences/trade shows
                           Confe                        Not asked in 2009/2010


                                                                     4%
                                aƟon or cerƟficaƟon
                        Accredita                                    4%
                                                               2%
                                                                  3%
                                ociaƟon publicaƟons
                             Asso                                           6%
                                                                  3%
                                                               2%
                             Adva
                                ancing their po
                                              osiƟon           2%
                                                                     4%
                                                            1%
                                                             %
                          Access to career reso
                               s              ources              3%
                                                            1%
                                                             %

                                                            1%
                                                             %
                Acc to industry benchmark studies
                  cess        y                             1%
                                                             %
                                                        Not asked in 2009


                        Insurance (Affinity prog
                                e            grams)
                                                            1%
                                                             %                                                                                      13
                                                        Not asked in 2009/2010


                                                            1%
                                                             %
                   Access to industry thought le
                   A                           eaders
                                                        Not ask in 2009/2010
                                                              ked

                                                            1%
                                                             %
                                            No sure
                                             ot               2%                                     2011 (N=641)
                                                                                                                )
                                                        Not aske in 2009
                                                               ed
                                                                                                     2010 (N=400)
                                                                                                                )
                                                                                 8%
                                                                                 8
                                               Other                               9%                2009 (N=303)
                                                                                                                )
                                                                                     10%




 One-quarter of respondents                             the main reason members join                                vs. 10% showing no change,
 indicate that the top reason                           their association. This                                     and 6% showing declines).
 they joined was to network                             percentage did not shift much
                                                                                                                    There is a downward trend in
 with others in the field (25%).                        from the 2010 study (up from
                                                                                                                    the percentage of respondents
 This represents a continued                            13%), but still represents a
                                                                                                                    who believe that discounts on
 trend upward, suggesting that                          substantial decline from the
                                                                                                                    products and meeting
 networking events and                                  result in 2009 (23%).
                                                                                                                    purchases are a strong
 opportunities are becoming
                                                        Advocacy is considered a                                    membership driver.
 increasingly more important
                                                        strong membership driver by                                 Respondents are also less
 for members. This is
                                                        about 10% of association                                    likely to believe that
 specifically evident for smaller
                                                        professionals, on par with the                              continuing education, best
 associations, those with fewer
                                                        2010 findings. This is especially                           practices, association
 than 5,000 paid members.
                                                        true for associations with                                  publications, and career
 Fourteen percent of                                    renewal rates at or above 80%                               resources are strong
 association professionals                              (14% vs. 5%) and those with an                              membership motivators.
 believe access to specialized                          increase in membership counts
 and/or current information is                          over the past five years (13%



                                            www.marketinggeneral.com
Who is most likely to pay the dues for your membership?



                             8%         4%

                                                                                    Employyer/Company
                                                                                Employyer/Company
                                                                  51%
                                                                    %               Member
                                                                                Member
              37%
               7                                                                    Both (p
                                                                                          parƟal reimburrsement)
                                                                                Both (p
                                                                                      parƟal reimburrsement)
                                                                                    Not sure
                                                                                Not sure
                                                                                   2011 (N
                                                                                         N=643)
                                                                               2011 (N
                                                                                     N=643)




      About half of the respondents          associations with renewal rates      Looking at industry,
      indicate that dues are most            below 80% are significantly          associations more likely to
      likely paid by a member’s              more likely to report dues are       have employer/company
      employer or company (51%),             paid by the member, partially        financial backing include:
      and 37% report that the                or in full.
                                                                                  • Finance/Accounting (68%)
      member pays the dues
                                             However, associations where
      themselves. Only 8% of                                                      • Professional Services (63%)
14                                           the member pays his or her
      association professionals                                                   • Building/Construction (90%)
                                             own dues are more likely to
      indicate that members
                                             have seen membership growth          • Manufacturing (68%)
      typically receive a partial
                                             in the past year (53% vs. 46%)
      reimbursement for their                                                     • Travel/Hospitality (74%)
                                             and are more likely to have
      membership.
                                             seen membership growth               Associations, by industry, most
      Associations that indicate that        in the past five years               likely to have members paying
      an employer/company are                (53% vs. 47%).                       their own dues include:
      most likely to pay membership
                                             Organizational/trade                 • Philanthropic (52%)
      dues realized a greater
                                             associations are more likely to
      decrease in renewal rates than                                              • Healthcare (52%)
                                             have employer/company
      associations that indicate that
                                             financial support for                • Scientific/Engineering (47%)
      the individual member pays
                                             membership dues (80% vs.
      the dues for themselves (50%
                                             32% for individual membership
      vs. 38%).
                                             associations). Conversely,
      Associations with renewal rates        individual membership
      at or above 80% are                    organizations are significantly
      significantly more likely to           more likely to have members
      report that the                        who pay their own dues,
      employer/company pays                  compared to trade
      membership dues, while                 associations (52% vs. 16%).




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Which of the following communication methods do you use
to help onboard or engage new members in the association?
                                                                                                  71%
                                   Email welco
                                             ome                                                   72%
                                                                                           62%
                                                                                                67%
                              Mailed welcome kit
                                           e                                                     68%                              2011 (N
                                                                                                                                        N=643)
                                                                                                         83%
                                                                                                                                  2010 (N
                                                                                                                                        N=402)
                                                                                   51%
                   Membership card or cerƟfic
                              c            cate                                          599%                                     2009 (N
                                                                                                                                        N=337)
                                                                                         58%

                                                                            30%
             Volunt             elcome phone call
                  teer or staff we                                            32%
                                                                               %
                                                                          26%
                                                                          25%
                 ember introductory email series
            New-me                                                         27%
                                                                  14%

              In-pe
                  erson new-mem mber recepƟon or
                                            n                           23%
                                                                      20%
                          orienta
                                aƟon                                 19%
                                                                      23%
                   Special discou on purcha
                                unts      ases                        23%
                                                                   17%
                                                                    18%
                         Invite to chapter meet
                                 o            ting                       25%
                                                                        23%
                                                                   17%
                             New
                               w-member sur
                                          rvey                     18%
                                                                     20%

                 Ne
                  ew-member ne
                             ewsleƩer (Mai or
                                         il                       15%
                                                                    20%
                         elect
                             tronic)                          1
                                                              11%
                                                               12%
                Tele          elcome phone call
                   emarkeƟng we                               10%
                                                        4%

                  New-member giŌ (i.e., giŌ ca
                  N                          ard,             1
                                                              11%
                                                      0%
                      calendar, or notepad)           0%
                                                             10%
              Custo new-memb renewal series
                  om       ber                                1
                                                              11%
                                                            7%
                                                         5%
                        Early or "at birth" renewal
                                 "                      4%
                                                       2%                                                                                            15
                                                       2%                                          2011 (N
                                                                                                         N=643)
                        No specia communicat
                                al         tion        2%
                                                       2%
                                                                                                   2010 (N
                                                                                                         N=402)
                                                           5%
                                            Ot
                                             ther          5%                                      2009 (N
                                                                                                         N=337)
                                                            8%%


 The most commonly used                               from the previous years (59% in                             those with less than 80%
 methods for onboarding or                            2010 and 58% in 2009).                                      renewal rates are significantly
 engaging new members are an                                                                                      more likely to use membership
                                                      The use of in-person new-
 email welcome (71%) and a                                                                                        cards/certificates (57% vs. 47%)
                                                      member reception or
 mailed welcome kit (67%).                                                                                        and/or new-member gifts (15%
                                                      orientation has increased
 Neither shows shifts in                                                                                          vs. 9%).
                                                      slightly from the previous
 percentage of usage from the
                                                      studies (23% vs. 20% in 2010                                Furthermore, associations
 2010 study, but the percentage
                                                      and 19% in 2009).                                           showing an overall increase in
 of associations that use an
                                                                                                                  membership over the past five
 email welcome continues to                           However, the popularity of
                                                                                                                  years are significantly more
 remain above the initial 2009                        invitations to chapter meetings
                                                                                                                  likely to include a custom new-
 benchmark (62%), while the                           and new-member newsletters
                                                                                                                  member renewal series as an
 percentage of associations                           has shown a decline from the
                                                                                                                  onboarding tool (12% vs. 6%).
 using a mailed welcome kit                           previous findings.
 remains below the 2009                                                                                           Associations reporting
 benchmark (83%).                                     Associations with 80% renewal
                                                                                                                  increases in renewal rates are
                                                      or higher are significantly more
                                                                                                                  significantly more likely to
 About half of association                            likely to include a volunteer or
                                                                                                                  incorporate an email welcome
 professionals provide a                              staff welcome phone call as
                                                                                                                  into their engagement tool kit
 membership card or certificate                       part of their onboarding
                                                                                                                  (80% vs. 71%).
 to members (51%), a decline                          methods (34% vs. 24%), while




                                          www.marketinggeneral.com
What proportion of your members do you estimate engage
     with your organization in the following areas EACH YEAR?

                         Percentage of Members Engaged With Each Type of AcƟvity
                                               1% -   6% -   11% -   16% -   21% -   31% -   41% -   Over
                                  N      0%                                                                 Mean
                                                5%    10%     15%     20%     30%     40%     50%    50%
     AƩend your annual
                                  592    7%    15%    14%    10%     13%     14%      8%      8%     12%    22%
     convenƟon
     AƩend at least one of your
     professional development     540    10%   18%    12%     9%     14%     13%      9%      7%     8%     19%
     meeƟngs
     Acquire or maintain a
     cerƟficaƟon with your         480    47%   14%    9%      6%      7%      4%      2%      3%     8%     11%
     organizaƟon
     AƩend at least one of your
                                  519    25%   27%    14%    10%      7%      7%      6%      3%     3%     11%
     webinars
     ParƟcipate in your public
                                  539    12%   35%    23%     9%      7%      7%      3%      2%     2%     10%
     social network
     Purchase a non-dues
     product (other than          494    29%   25%    16%    10%      5%      5%      4%      1%     4%     10%
     previously checked)
     Volunteer with your
                                  581    8%    39%    25%    10%      9%      5%      2%      1%     1%     9%
     organizaƟon
16   Purchase a book or
                                  505    34%   24%    16%     8%      6%      5%      3%      2%     4%     9%
     directory
     ParƟcipate in your private
                                  511    34%   24%    16%     8%      5%      4%      4%      2%     3%     9%
     social network
     Purchase a non-dues
     service (other than          473    36%   27%    13%     8%      5%      3%      2%      2%     4%     9%
     previously checked)
     Purchase or maintain
     insurance through your       479    52%   22%    8%      7%      3%      3%      2%      1%     4%     7%
     organizaƟon
     Upgrade their
                                  472    48%   24%    12%     4%      3%      4%      2%      1%     2%     6%
     membership
     ParƟcipate in your young
                                  447    57%   25%    9%      4%      3%      1%      0%      0%     0%     3%
     professional program




                                        www.marketinggeneral.com
The two most engaging activities (by mean) are    Greater than one-third of associations report that
the annual conventions (22%) and the              up to 5% of their members either volunteer
professional development meetings (19%).          within the organization (39%) and/or participate
                                                  in the association’s public social network (35%).
20% of association professionals indicate that
more than 40% of their members attend their       Findings indicate that associations with more
annual convention.                                than 80% in renewals and those with increases in
                                                  membership over the past year are significantly
Greater than 10% of respondents report that
                                                  more likely to have over 50% of their members
more than 40% of their members attend at least
                                                  attend the annual conference.
one of their association’s professional
development meetings and/or acquire or            Associations with renewal rates at 80% or higher
maintain a certification with the organization.   are significantly more likely to have about 11% to
                                                  15% of their members volunteer within the
More than half of the associations report that
                                                  organization, compared to associations with
none of their members engage with their
                                                  lower renewals (12% vs. 7%).
association through a young professionals
program (57%) and/or purchase insurance
through the association (52%).




                                                                                                       17




                              www.marketinggeneral.com
What is your overall membership renewal rate?


                              3%
                              3
               Unde 50%
                  er          3%
                              3
                             2%
                              %                                                 2011 (N=643)
                                                                                2010 (N=403)
                                 6%
               50% t 59%
                   to          4%                                               2009 (N=337)
                               4%

                                          10%
               60% t 69%
                   to                        %
                                           11%
                                     7%

                                                         23
                                                          3%
               70% t 79%
                   to                                  21%
                                                 16%

                                                                      4%
                                                                     34
               80% t 89%
                   to                                                     40%
                                                                       37%
18
                                                        23
                                                         3%
             90% or h
                    higher                        18%
                                                               29%

                             2%
                              %
                 No sure
                  ot          3%
                              3
                                4%




                             www.marketinggeneral.com
In the current study, there is an   Small associations with up to      Association industries most
increase in the percentage of       1,000 members are                  likely to show renewal rates at
associations reporting overall      significantly more likely to       90% or higher include:
renewal rates of 90% or higher.     report renewal rates above
This percentage shows a             90%, while associations with       • Finance/Accounting (41%)
substantial rebound from the        more than 1,000 paid               • Manufacturing (43%)
precipitous drop between the        members are significantly
                                                                       • Education (23%)
2009 and 2010 study.                more likely to indicate renewal
                                    rates between 70% to 79%.
There is a decrease in the                                             Association industries most
percentage of associations          Organizational/trade               likely to show renewal rates
reporting renewal rates             associations are significantly     between 80% and 89%
between 80% to 89%,                 more likely to report renewal      include:
suggesting that some of the         rates above 90% compared to        • Building/Construction (45%)
associations reporting an 80%-      individual member
                                                                       • Scientific/Engineering (44%)
89% renewal rate in the 2010        associations or those with both
research may have been able         types of members (36%: trade       • Healthcare (37%)
to increase their renewal rates     vs. 16%: individual; 14%: both).   • Professional Services (31%)
past 90%.
                                                                       • Philanthropic (30%)
There is an increasing trend in
the number of associations
reporting renewal rates
between 70%-79%.


                                                                                                         19




                               www.marketinggeneral.com
Renewal Rates by AssociaƟon Member Size
                                 Under        50% to      60% to       70% to      80% to         90% or
                          N
                                  50%          59%         69%          79%         89%           higher
     Up to 1,000         190       4%           5%          6%          15%         34%            33%
     1,001 to 5,000      179       2%           6%         10%          27%         34%            20%
     5,001 to 20,000     159       3%           6%         11%          26%         33%            19%
     Over 20,000         109       1%           6%         12%          28%         38%            15%

      Associations with more than 1,000 members are        trade/organizational associations are significantly
      significantly more likely to report renewal rates    more likely to show renewal rates above 90%, it
      between 70% to 79%, compared to the small-           is highly probable that the small-sized
      sized associations. Considering that                 associations are trade associations.




                           Renewal Rates by Percentage of Last Dues Increase
                                 Under        50% to      60% to       70% to      80% to         90% or
                          N
                                  50%          59%         69%          79%         89%           higher
     1% to 10%           423       2%           6%          9%          23%         34%            25%
     11% to 20%          112       2%           5%         10%          29%         34%            20%
     21% or more          59       9%           5%         15%          20%         36%            12%

20
      Associations whose last dues increase was            higher, compared to associations whose dues
      between 1% and 10% are also significantly            increase was more than 10%.
      more likely to show renewal rates at 90% or




                                    www.marketinggeneral.com
How many membership renewal CONTACTS (such as mailings,
emails, phone calls) do you make before a membership expires
with your organization?

                                        2%
                            None        2%
                                       1%

                                                               23%
                            1 to 3
                              t                               22%
                                                             21%

                                                                                     44%
                            4 to 6
                              t                                                      44%
                                                                                       46%

                                                          18%
                            7 to 9
                              t                             20%
                                                           19%

                                               7%
                          10 to 12
                              o               6%
                                               7%

                                       1%
                          13 to 15
                              o         2%
                                        2%

                                       1%
                          16 to 18
                              o        1%                                                             21
                                       1%

                                        2%
                     More than 18
                             n          2%
                                       1%                                          2011 ( (
                                                                                        (N=642)
                                                                                    2011 (N=642)
                                                                                   2010 ( (
                                                                                        (N=404)
                                                                                    2010 (N=404)
                                       1%
                         Not sure
                             s          2%                                         2009 ( (
                                                                                        (N=337)
                                                                                    2009 (N=337)
                                          %
                                         3%




 Overall, there is very little       Fewer than 10% of associations   Associations with more than
 change from the previous            make 10 or more membership       1,000 members are
 studies in the number of            renewal contacts before a        significantly more likely to
 renewal contacts made before        membership expires.              make from four to six renewal
 a membership expires. More                                           contacts compared to those
                                     Organizations with 10 or more
 than 40% of associations make                                        with 1,000 members or fewer.
                                     renewal contacts are slightly
 four to six contacts before a
                                     more likely to have renewal
 membership expires (44%).
                                     rates over 80% (11% to 9%).
 About one-quarter of
                                     Organizations with nine or
 associations only make one to
                                     fewer renewal contacts are
 three contact attempts, while
                                     slightly more likely to have
 close to 20% make seven to
                                     renewal rates less than 80%
 nine contact attempts.
                                     (87% to 84%).




                             www.marketinggeneral.com
When do you start the renewal effort?


                                                                8%
                  Im
                   mmediately aft welcoming
                                ter                        6%
                                                                     10%
                                                                                                     2011 (N=6
                                                                                                             641)
                                                           6%                                        2010 (N=4
                                                                                                             405)
             Prior to 6 months befo expiraƟon
                                  ore                           8%
                                                                8%                                   2009 (N=3
                                                                                                             336)

                                                               7%
                 At 6 months prior to expiraƟon
                                 r                        5%
                                                           %
                                                               7%

                                                      4%
                   5 months prior to expiraƟon
                                r                    3%
                                                         %
                                                        5%

                                                                       12%
                   4 months prior to expiraƟon
                                r                                        14%
                                                                           %
                                                                        13%

                                                                                                    33%
                                                                                                    3
                   3 months prior to expiraƟon
                                r                                                                     35%
                                                                                                    33%
                                                                                                    3

                                                                               16%
                   2 months prior to expiraƟon
                                r                                            15%
                                                                           13%

22                                                              8%
                    1 month prior to expiraƟon
                                r                              7%
                                                          5%
                                                           %

                                                     3%
                       The month of expiraƟon
                               h                     3%
                                                      4%                                    2011 (N=6
                                                                                                    641)

                                                     3%                                     2010 (N=4
                                                                                                    405)
                                      Not sure       3%
                                                                                            2009 (N=3
                                                                                                    336)
                                                          5%
                                                           %


      Compared to the two previous studies, there are                  Associations with renewal rates below 80% are
      basically no changes with regard to when                         significantly more likely to begin renewal efforts at
      associations begin their renewal effort. About one-              three months prior to membership expiration (39%
      third of associations begin their renewal effort three           vs. 29%).
      months prior to membership expiration.
                                                                       Associations with renewal rates at 80% or higher are
      Just over 10 percent of associations either begin                more likely to begin renewal efforts from
      their renewal effort at four months prior to expiration          “immediately after welcoming a member” to the
      (12%) or two months prior to expiration (16%).                   six months prior to expiration (24% to 19%).
      There is a slight upward trend to start renewal                  Organizational/trade associations are significantly
      efforts closer to the date of membership expiration              more likely to start renewal efforts at two months,
      (one or two months prior to expiration).                         compared to individual membership associations
                                                                       (22% vs. 13%: individual), and as noted earlier, trade
                                                                       associations have higher renewal rates compared to
                                                                       individual membership associations.




                                        www.marketinggeneral.com
When do you end renewal efforts
(stop renewal contacts to the member)?

                                              2%
              At the mon of expiraƟo
                       nth         on        1%
                                              2%                                                 2011 (N=639)
                                                                                                    1
                                                               8%                                2010 (N=404)
                                                                                                    0
                1 month aŌer expiraƟo
                                    on                          9%
                                                                9%                               2009 (N=336)
                                                                                                    9

                                                                          13%
               2 months aŌer expiraƟo
                                    on                                     14%
                                                                          13%

                                                                                             24%
               3 months aŌer expiraƟo
                                    on                                                      23%
                                                                                         21%

                                                              7%
               4 months aŌer expiraƟo
                                    on                        7%
                                                                          13%

                                                 3%%
               5 months aŌer expiraƟo
                                    on          2%
                                          Not asked in 2
                                                       2009


                                                               8%
               6 months aŌer expiraƟo
                                    on                         8%                                                           23
                                          Not asked in 2
                                                       2009


                                                                       11
                                                                        1%
     More t
          than 6 months aŌer expiraƟo
                                    on                                       14%
                                          Not asked in 2
                                                       2009


                                                                                         22%
                  We do stop contact
                      on't                                                           19%
                                                                                        21%

                                                   3%
                                                                                               2011 (N=639)
                                                                                                  1
                               Not sur
                                     re            3%
                                                    %
                                                    4%
                                                    4                                          2010 (N=404)
                                                                                                  0
                                                                                               2009 (N=336)
                                                                                                  9
 About one-quarter of association professionals                    after membership expiration (23% vs. 20%).
 indicate they end renewal efforts three months                    Additionally, associations with an increase in
 after membership expiration (24%). This                           membership over the past five years are
 represents a continued upward trend.                              significantly more likely than associations with five-
                                                                   year declines in membership to report that they
 22% of associations indicate they do not stop
                                                                   do not stop contact for renewals (25% vs. 16%).
 contact for renewal efforts, a slight increase over
 the previous year’s decline.                                      Associations with dues increases up to 20% are
                                                                   significantly more likely to indicate they do not
 Directionally, associations with renewal rates at
                                                                   stop contacting lapsed members compared to
 80% or higher are more likely to report they do
                                                                   those with dues increases above 20%.
 not stop contacting members for renewal even




                                www.marketinggeneral.com
Which of the following marketing channels do you use
     for membership renewals?

                                                                                                         88%
                              Email markeƟng                                                             88%
                                                                                                      83%
                                                                                                      82%
                                                                                                        %
                                   Direct mail
                                        t                                                               85%
                                                                                                        8
                                                                                                              91%

                                                                                        52%
                             Staff phone calls
                                      e                                               49%
                                                                                          56%

                                                                          24
                                                                           4%
                               TelemarkeƟng                              23%
                                                                           %
                                                                            27%
                                                                   20%
                        Pee member con
                          er         ntacts                          24
                                                                      4%
                                                                             31%
                                                                 18%
                            Board phone calls
                                      e                        15%
                                                                            28%

                                                               15%
                        Magazine cover wraps
                                       w         Not aske in 2010/2009
                                                        ed


                                                              14%
                          Chapter phone calls
                          C           e                       14%
                                                               15%

                                                             13%
                         Social media con
                                        ntacts   Not aske in 2010/2009
                                                        ed


                                                          10%
                                          Fax              11%
                                                                 17%
                                                                                                                    2011 (N=644)
24                         Employer con
                                      ntacts
                                                        8%
                                                       7%
                                                       7                                           2011 (N=644)     2010 (N=405)
                                                      %
                                                     4%
                                                                                                   2010 (N=405)     2009 (N=333)
                                                    3%
                                        Other
                                        O           3%                                             2009 (N=333)
                                                     4%
                                                      %



      Email marketing and direct mail are still the most                           Associations reporting increases in overall
      common marketing channels for membership                                     membership over the past year are significantly
      renewals, although direct mail shows a                                       more likely to use social media contacts
      continued drop in usage for renewals.                                        compared to associations showing declines in
                                                                                   membership (16% vs. 8%).
      Staff phone calls are used by more than half of
      the associations (52%), showing a slight increase                            Associations with increases in renewals are
      over the previous year’s drop.                                               significantly more likely to use email compared
                                                                                   to associations showing declines in their
      About 2 in 10 association professionals indicate
                                                                                   renewals over the past year (92% vs. 84%).
      that their organization uses peer member
      contacts for renewal marketing, although this                                Individual membership associations are
      channel has also shown steady declines in usage.                             significantly more inclined to use email
                                                                                   marketing and direct mail compared to trade
      Associations with an 80% renewal rate or higher
                                                                                   associations. However, the trade associations
      are significantly more likely to use staff phone
                                                                                   show a significantly higher percentage of use for
      calls for renewal marketing (60% vs. 40%) and
                                                                                   channels such as staff phone calls, peer member
      directionally are more likely to also use peer
                                                                                   contacts, and board member phone calls.
      member contacts (22% vs. 18%).




                                         www.marketinggeneral.com
Do you offer any of the following renewal options?


 Installm
        ment renewal payments (mon
                                 nthly,                                       46%
                     erly)
                quarte                                                        46%


                                                                      32%
                    MulƟ-year rene
                    M            ewals
                                                                       33%


                                                                    28%
                       Renewal bil
                                 ll-me
                                                                    28%


                                                                2
                                                                25%
                      eƟme membership
                   Life
                                          Not aske in 2010
                                                 ed



                                                               24%
                                                               2
                   credit card renewal
   AutomaƟc annual c
                                                              22%


                                                              21%
                                                                %
                Early-renewal disco
                                  ounts
                                                             19%
                                                                                    20112011 (N
                                                                                        (N N=440)
                                                                                         N=440)
      Au
       utomaƟc annual Electronic Funds                 15%                                                    25
                                                                                    20102010 (N
                                                                                        (N N=246)
                                                                                         N=246)
          Transfer (E renewals
                    EFT)                            10%




 Across all renewal options,         More than half of associations          Associations with 5,000
 there is virtually no change        with renewal rates over 80%             members or fewer are
 from the results of the 2010        offer an installment renewal            significantly more likely to
 study.                              payment option, compared to             offer an installment renewal
                                     associations with less than 80%         payment plan and/or a
 46% of associations offer an
                                     renewal (54% vs. 35%), a                renewal bill-me plan,
 installment renewal payment
                                     statistically significant               compared to associations with
 plan and about one-third offer
                                     difference. Associations with           more than 5,000 members.
 multi-year renewals (32%).
                                     less than 80% renewals are              Larger associations (more than
 Close to one-quarter of             significantly more likely to offer      5,000 members) offer the
 associations offer a renewal        multi-year renewals (50% vs.            multi-year renewals, lifetime
 bill-me plan (28%), a lifetime      20%) and/or early-renewal               memberships, and/or an
 membership (25%), and/or an         discounts (27% vs. 17%).                automatic annual credit card
 automatic annual credit card                                                renewal at a significantly
 renewal (24%).                                                              higher percentage than the
                                                                             smaller organizations.




                                  www.marketinggeneral.com
What do you believe is the ONE TOP reason members
     DO NOT renew membership in your organization?

                                                                                     24
                                                                                      4%
                     Perceived lack of value                                                       36%
                                                                               20%

       Employe won't pay or stopped payi
             er                        ing                               15%
                                                                         1
                                                                                   25%
                                                                                   2
                     dues                                                       22%
                                                                        14
                                                                         4%
                             Too expensi
                                       ive                       11%
                                                                                22%
                                                                   12%
                    LeŌ the field or indust
                          e              try
                                               Not asked in 2009/2010

                                                          7%
                           Forgot to rene
                                        ew               6%
                                                                11%

                                                           7%
                 Company closed or merg
                         c            ged      Not asked in 2009/2010

                                                    3%
                                    Lost job          %
                                                     4%
                                                    3%
                                                1%
                       Switch to compeƟt
                                       tor      1%
26                                             0%
                                                   2%
                                ReƟreme
                                      ent             %
                                                     4%
                                                      %
                                                     4%
                                               0%
                          Customer service
                          C                     1%
                                               0%
                                                         6%                                2011 (N==639)
                                                                                            2011 (N=
                                                                                                  =639)
                                        ure
                                   Not su          2%
                                                       %
                                                      4%                                   2010 (N==400)
                                                                                            2010 (N=
                                                                                                  =400)
                                                              9%
                                      Oth
                                        her                        12%                     2009 (N==333)
                                                                                            2009 (N=
                                                                                                  =333)
                                                                     14%
                                                                      4




                                    www.marketinggeneral.com
Similar to the previous two         12% of respondents indicate         Associations with 80% or
studies, the top reasons            that renewals drop because          higher renewals are
association professionals           members have left the industry      significantly more apt to report
believe members do not              (not due to retirement).            that members do not renew
renew is a perceived lack of                                            because it is too expensive
                                    7% of association professionals
value (24%), the members’                                               (17% vs. 11%) or the company
                                    indicate that people just forget
employer is not paying dues                                             merged or closed (10% vs. 1%).
                                    to renew or that the company
(15%), or the association dues
                                    the member was working for          Directionally, associations with
are too expensive overall
                                    has closed or merged with           dues increases above 20% are
(14%). It is interesting to note,
                                    another company.                    more likely to cite lack of value
however, that there has been
                                                                        as a reason members do not
at least a 10% drop for lack of     Associations with declines in
                                                                        renew (31% vs. 23%: up to 10%
value (24% in 2011 vs. 36% in       overall membership over the
                                                                        increase; 26%: 11%-20%
2010) and lack of employer          past year, and the past five
                                                                        increase).
financial support (15% in 2011      years, are significantly more
vs. 25% in 2010). The               inclined to indicate that lack of   Smaller associations (up to
percentage of association           renewal is due to a perceived       5,000 members) are the only
professionals citing expense        lack of value. Additionally,        associations indicating that
has increased slightly from         associations reporting a            company closings have
11% to 14%, but does not            decrease over the past year in      affected their membership
reach the initial 2009              new members and renewals            rolls. This primarily affects
benchmark of 22%.                   are also significantly more         trade/organizational
                                    likely to cite lack of value as     associations.
It is important to note that the
                                    the main reason why members
top three reasons for non-
                                    do not renew.
renewal can be seen as
related; a perceived lack of        Additionally, association                                               27
value can make the                  professionals indicating that
membership dues seem too            member acquisition is their
expensive, i.e., not worth the      primary focus are significantly
money. Furthermore, if the          more likely to report that lack
dues are perceived as too           of value is the main reason
expensive (to pay on one’s          members do not renew (40%
own) and the employer will not      vs. 22%).
pay the dues, the member
does not renew. This analysis
underscores the fact that
perceived value drives the
perception of “expensive.”




                                www.marketinggeneral.com
After a membership lapses or expires, how long do you
     continue to contact the member to invite them to reinstate
     their membership?

                                                                          11%
              We don't contact lapsed members                            10%
                                                                    8%
                                                                                         22%
                                                                                           %
                          1 year aft expiraƟon
                                   ter                                                     24%
                                                                                             25%
                                                                              14%
                         2 years aft expiraƟon
                                   ter                                         1
                                                                               15%
                                                                               %
                                                                             13%

                                                                        9%                           2011 (N=641)
                         3 years aft expiraƟon
                                   ter                         6%
                                                               6%                                    2010 (N=403)
                                                          4%                                         2009 (N=333)
                     4 to 5 years aft expiraƟon
                                    ter                        6%
                                                               %
                                                              5%

                                                    1%
                     6 to 9 years aft expiraƟon
                                    ter             1%
                                                    1%

                                                    1%
                10 years or more aft expiraƟon
                                   ter              1%
                                                   0%

                    tinue indefinitely to contact
              We cont                                                                               30%
                                                                                            2
                                                                                            24%
28                    lapsed members                                                                30%
                                                               %
                                                              5%
                                       Not sure                    7%
                                                                   7%                               2011 (N=641)
                                                         3%                                         2010 (N=403)
                                          Other                 7%
                                                               6%                                   2009 (N=333)


      Surprisingly, 11% of associations do not contact                   Interestingly, associations reporting a decline in
      lapsed members. This finding continues an                          renewals over the past year are significantly
      upward trend for the percentage of associations                    more likely to continue contacting their lapsed
      that do not reach out to lapsed members.                           members indefinitely as well.
      About one-quarter of associations end contact                      Not surprisingly, a significantly higher
      one year after a member’s expiration (22%). This                   percentage of associations focused on
      represents a continued declining trend for the                     acquisition do not contact lapsed members at all
      number of associations that stop contact after                     after expiration, compared to those focused on
      one year.                                                          retention (18% vs. 8%).
      30% of associations indicate they continue to                      A significantly higher percentage of individual
      contact lapsed members indefinitely, an increase                   member organizations stop contact after two
      over the previous study, and a return to 2009                      years (19% vs. 9%: trade organization), compared
      benchmark levels.                                                  to trade associations, which are significantly
                                                                         more likely to contact lapsed members
      Directionally, associations with 80% renewal rates
                                                                         indefinitely (38% vs. 23%: individual).
      or higher are more likely to continue contact with
      lapsed members indefinitely (32% vs. 27%).




                                       www.marketinggeneral.com
How often does your association raise membership dues?


 A majority of association professionals indicate    Organizations that say they “never” raise dues
 they raise dues as needed (58%). 17% raise dues     are more likely to have increased membership
 annually and 4% raise dues every other year.        over the past year, to have increased
                                                     membership over the past five years, and to
 Almost one in ten associations never raises
                                                     have had an increase in new members over
 dues (9%).
                                                     the past year.
 While most associations only raise dues as
                                                     When we asked this same question in a 2007
 necessary, associations with at least an 80%
                                                     survey, 17% said they raise dues annually,
 renewal rate are significantly more likely
                                                     3% said every other year, 65% said as needed,
 to raise dues annually (21% vs. 11%).
                                                     4% said never, and 10% said other.
 A significantly higher percentage of trade
 associations raise dues annually compared
 to individual membership associations (21%
 vs. 14%).


                            12%                     17%
         9%                                                                4%         Annually
                                                                                      Every other year
                                                                                      As needed
                                                                                                         29
                                      58%                                             Never
                                                                                      Other
                                                                                    2011 (N=644)




                               www.marketinggeneral.com
When was the last time your association raised
     membership dues?

      One in three associations has raised or plans to          Associations that raise dues by up to 10% are
      raise dues this year (30%).                               significantly more likely to raise dues annually
                                                                (35% vs. 22%: 11% to 20% and 21%+).
      15% of association professionals indicate they
      last raised membership dues in 2010 or 2009.              Associations that raised dues by over 20% are
                                                                significantly more likely to indicate they have not
      Fewer than 10% of associations indicate the last
                                                                raised dues since 2008, compared to
      time they raised dues was before 2009.
                                                                associations that raised dues by up to 10% (17%
      In line with the findings regarding the frequency         vs. 7%).
      of dues increases, associations with renewal rates
                                                                When we asked this same question in a 2007
      at 80% or higher are also significantly more likely
                                                                survey, 34% said 2007, 19% said 2006, 15% said
      to have raised (or will raise) dues this year.
                                                                2005, 10% said 2004, 16% said previous to 2004,
      A significantly higher proportion of trade                and 6% said they did not know.
      associations indicate that they have raised or will
      raise dues this year compared to individual
      membership associations (35% vs. 26%).


           30
            0%
                                                                                                2011 (N=625)

30

                          15%
                          1              15%                                                          16%


                                                         9%                             8%
                                                                         7%




       2011 (o plan
              or         2010
                         2              2009             2008           2007           2006        Other year
        to this year)
              s


                                                                                               2011 (N=625)




                                     www.marketinggeneral.com
What was the average percentage of your last membership
dues increase across all membership categories?

 About seven in ten                   Directionally, associations that   When we asked this same
 associations raised their dues       report renewal rates at 80% or     question in a 2007 survey, 59%
 by up to 10%, the last time          above are more likely to raise     said 1% to 10%, 21% said 11%
 they raised membership dues          dues up to 10%, while those        to 20%, 10% said 21% to 30%,
 (71%).                               with lower renewal rates tend      4% said over 30%, and 6% said
                                      to have higher dues increases.     they did not know.
 Almost 20% raised dues by
 11% to 20% and 10% raised
 dues more than 20%.


                                  2% 2%

                            6%

             19%                                                               1% to 10%
                                                                                     10%
                                                                                     1
                                                                               1% to 1
                                                                               11% to 20%
                                                                                    o
                                                                               11% to 20%
                                                                                    o
                                                                               21% to 30%
                                                                                    o
                                                                               21% to 30%
                                                                                    o
                                                             71%               31% to 40%
                                                                                    o
                                                                               31% to 40%
                                                                                    o
                                                                               More tt
                                                                               More than 40%
                                                                                     than 40%

                                                                              2011 (N=
                                                                                     =594)
                                                                              2011 (N=
                                                                                     =594)                31




                                  www.marketinggeneral.com
What was the percentage change in your entire membership
     over the past ONE YEAR period?


                                       1%
           Increase more than 50%
                  ed          5        1%
                                     0%
                                         %
                                        2%
              Incre
                  eased 26% to 5
                               50%       %
                                        2%
                                      1%
                                                             9%
              Incre
                  eased 11% to 2
                               25%               5%
                                                       7%

                                                                  11%
               Increased 6% to 10%
                               1                       7%
                                                                 10%

                                                                                                     %
                                                                                                   26%
                 ncreased 1% to 5%
                In            o                                                            21%
                                                                                                     27%
                                                                                                     2

                                                                               16%
                Re
                 emained the sa
                              ame                                        14%
                                                                               16%
                                                                                     19%
                 Declined 1% to 5%
                 D            o                                                                      %
                                                                                                   26%
                                                                                     19%
32                                                                11%
                De
                 eclined 6% to 10%
                               1                                        13%
                                                             9%
                                             4%
               Dec
                 clined 11% to 25%
                               2                            8%
                                                             %
                                                      6%
                                     0%
               Dec
                 clined 26% to 50%
                               5       1%
                                       1%

                                     0%                                                          2011 (N=642)
                                                                                                 2011 (N=642)
            Decline more than 50%
                  ed          5      0%
                                     0%                                                          2010 (N=405)
                                                                                                 2010 (N=405)
                                          2%
                                           %                                                     2009 (N=331)
                          Not sure
                              s             3%                                                   2009 (N=331)
                                                 5%




                               www.marketinggeneral.com
Overall, membership numbers         One-quarter of associations          About two in ten associations
seem to be rebounding, with         report that their overall            (19%) report declines in
the percentage of associations      membership has increased 1%          membership by 1% to 5%, a
reporting increases in              to 5% over the past year. This       drop from the previous year
membership almost doubling,         is an increase over the              (down from 26%), and back on
compared to 2010. In fact, the      previous study and represents        par with the 2009 benchmark
overall percentages of              a return to the 2009                 percentage.
associations that are showing       benchmark.
                                                                         There was also a decline in the
increases, declines, and no
                                    Around 10% of associations           percentage of associations
change almost mirror those
                                    report that their association        indicating drops in
from the 2009 benchmark (see
                                    membership has grown by              membership of 6% to 10%
table).
                                    either 6% to 10% (11%) or 11%        (11%, down from 13% in 2010)
On average, associations saw        to 25% (9%) over the past year.      and declines from 11% to 25%
total membership grow by 2%         Both of these findings are           (4%, down from 8% in 2010).
this past year. A total of 49% of   increases over the 2010
                                                                         Small associations (up to 1,000
associations saw membership         findings and also represent a
                                                                         members) are significantly
growth in the past year, while      return to the 2009 benchmark
                                                                         more likely to report no
16% reported no change, and         numbers.
                                                                         change in membership
34% reported a decline in
                                    About 16% of associations            numbers over the past year,
membership. Only 2% of
                                    indicate their membership            compared to associations with
association professionals were
                                    numbers have remained the            more members.
unaware as to whether their
                                    same over the past year, on
one year membership                                                      Over 60% of individual
                                    par with the previous studies.
numbers had changed or                                                   membership organizations and
remained the same, a                                                     over 63% of trade
continued drop from the                                                  organizations reported that       33
previous research.                                                       their membership increased or
                                                                         remained the same over the
                                                                         past year.



                       Percentage Change in Entire Membership
                                 Over Past ONE Year
                                                        2011          2010     2009
              Percentage Increased Overall              49%           36%      45%
              Percentage Unchanged Overall              16%           14%      16%
              Percentage Declined Overall               34%           48%      35%
              Not Sure                                   2%            3%       5%




                               www.marketinggeneral.com
Over the past FIVE YEARS, what do you estimate
     has been the total percentage change in your membership?

                                                               6%
       Increase more than 50%
              ed          5                                         7%
                                                3%
                                                                                                                         2011 (N=639)
                                                                    7%
          Incre
              eased 26% to 5
                           50%                                      7%                                                   2010 (N=405)
                                                                    7%
                                                                                                                         2009 (N=332)
                                                                                          13%
                                                                                            %
          Incre
              eased 11% to 2
                           25%                                                                        17%
                                                                                                   16%
                                                                                          13%
           Increased 6% to 10%
                           1                                                                 14%
                                                                                             1
                                                                                                         18%
                                                                                                         1
                                                                                      12%
             ncreased 1% to 5%
            In            o                                                              13%
                                                                                                   16%
                                                                              9%
            Re
             emained the sa
                          ame                                            8%
                                                                         8%

                                                                                       12%
             Declined 1% to 5%
             D            o                                                         11%
                                                                    7%

                                                                                    11%
            De
             eclined 6% to 10%
                           1                                             8%
                                                                              9%

                                                                                    11%
           Dec
             clined 11% to 25%
                           2                                             8%
                                                                              9%

34         Dec
             clined 26% to 50%
                           5               2%
                                                3%
                                           2%
                                                                              Percentage Change in EnƟre Membership Over Past FIVE Years
                                      1%                                                            2011 (N=639)      2011      2010    2009
        Decline more than 50%
              ed          5           1%
                                 0%                                           Percentage Increased 2010 (N=405)
                                                                                                   Overall            51%       57%     60%
                                                     4%                       Percentage Unchanged Overall
                                                                                                   2009 (N=332)        9%        8%      8%
                      Not sure
                          s                               5%
                                                          5%                  Percentage Declined Overall             38%       30%     27%
                                                                              Not Sure                                 4%        5%      5%


      While current findings indicate                     51% of associations saw                              It is interesting to note that
      that a greater percentage of                        membership growth over this                          associations reporting declines
      associations showed increases                       five-year period, while 9%                           over the past year are also
      in membership (rather than                          report no change, and 38%                            more likely to report declines
      declines) over the past five                        report a decline in                                  in membership over the past
      years, there is a continued                         membership. 4% of association                        five years, while those
      decline in the percentage of                        executives were unsure if their                      indicating a rise in
      associations reporting                              membership numbers had                               membership over the past year
      increases in membership                             shifted over the past five years.                    are more likely to have had
      overall, especially those                                                                                increasing member numbers
                                                          The percentage of
      reporting increases up to 25%.                                                                           for the past five years.
                                                          associations reporting declines
      On average, associations saw                        in membership over the past
      membership grow by 5% over                          five years has continued to
      the past five years. A total of                     increase.




                                            www.marketinggeneral.com
In the past year, what was the percentage change in your
NEW-member acquisition?

                                 2%
                                  %
    Increase more than 50%
           ed          5          %
                                 2%
                               1%                                                                    2011 (N=638)

                                          5%                                                         2010 (N=402)
       Incre
           eased 26% to 5
                        50%      2%
                                  %
                                      4%                                                             2009 (N=325)

                                                        11%
       Incre
           eased 11% to 2
                        25%                           10%
                                               7%
                                                                  14%
        Increased 6% to 10%
                        1                           9%
                                                            12%
                                                                                      25%
         In
          ncreased 1% to 5%
                       o                                                    20%
                                                                                      25%
                                                                              21%
                                                                              2
        Re
         emained the sa
                      ame                                                   20%
                                                                              %
                                                                                22%
                                                    9%
          Declined 1% to 5%
          D            o                              10%
                                                      10%
                                     3%
         De
          eclined 6% to 10%
                        1                   6%
                                          5%
                                     3%                           Percentage Change in NEW-Member Acquisition
       Dec
         clined 11% to 25%
                       2                       7%                                Over Past Year
                                     3%
                                                                                                     2011       2010   2009
                               1%                           Percentage Increased Overall             57%        42%    49%
       Dec
         clined 26% to 50%
                       5           3%
                                 2%
                                  %                         Percentage Unchanged Overall             21%        20%    22%    35
                              0%                            Percentage Declined Overall              16%        26%    21%
                                                                                  2011 (N=638)
    Decline more than 50%
          ed          5         1%                          Not Sure                                  8%        12%    10%
                                1%                                                    2010 (N=402)
                                                  %
                                                 8%                                   2009 (N=325)
                   Not sure
                       s                                    12%
                                                      10%




 Over 60% of associations report an increase in                         Change in new-member acquisition seems to be
 new members, a significant increase over the                           positively correlated with overall membership
 previous studies, and a corresponding decrease                         change for the past year. Associations reporting
 in the percentage of associations reporting a                          increases in membership overall are more likely
 decline in new members.                                                to show increases in new members, while those
                                                                        reporting overall membership declines are more
 Findings demonstrate a 5% increase in the
                                                                        likely to have a decreasing new member pool.
 percentage of associations reporting a new
 member increase of up to 5% and from 6%
 to 10%.




                                     www.marketinggeneral.com
In the past year, what was the percentage change in
     your member RENEWAL rate?
                                   0%
         Increase more than 50%
                ed          5       1%
                                   0%
                                   1%                                                               2011 (N=638)
            Incre
                eased 26% to 5
                             50%   1%
                                   1%                                                               2010 (N=403)
                                      %
                                     3%                                                             2009 (N=326)
            Incre
                eased 11% to 2
                             25%   1%
                                    2%
                                            7%
             Increased 6% to 10%
                             1            5%
                                         4%
                                                              21%
               ncreased 1% to 5%
              In            o                          4%
                                                      14
                                                       15%
                                                                               37%
              Re
               emained the sa
                            ame                                      27%
                                                                                  39%
                                                        17%
               Declined 1% to 5%
               D            o                                          29%
                                                         18%
                                         5%
              De
               eclined 6% to 10%
                             1                  10%
                                               9%
                                    2%                              Percentage Change in Member RENEWALS
             Dec
               clined 11% to 25%
                             2            5%                                     Over Past Year
                                        3%
                                         %                                                       2011          2010   2009
                                   0%                        Percentage Increased Overall        32%           21%    22%
             Dec
               clined 26% to 50%
                             5      1%                       Percentage Unchanged Overall        37%           27%    39%
                                    1%
36                                                           Percentage Declined Overall         24%           44%    31%
                                   0%                        Not Sure               2011 (N=638) 7%             8%     9%
          Decline more than 50%
                ed          5      0%
                                   0%                                                2010 (N=403)
                                           7%                                        2009 (N=326)
                        Not sure
                            s               8%
                                             9%


      Overall, there was a significant increase in the                There is a correlation between the percentage
      percentage of associations reporting increases in               change in renewals and the overall change in
      renewal rates compared to the previous studies                  membership, such that associations reporting
      (35% vs. 21% in 2010; 22% in 2009). There was                   increases in membership over the past year also
      also a substantial increase in the percentage of                show increases in renewals, and those
      associations reporting no change in their                       demonstrating declines in overall membership
      renewal rate over the past year, returning to the               are more likely to report declines in renewals.
      2009 benchmark level.
                                                                      Associations with more than 5,000 members are
      On average, associations saw an increase in                     significantly more likely to report increases in
      renewal rates of about 1% this past year.                       renewals up to 5%. Directionally, associations
                                                                      with up to 1,000 members are more likely to
      There was also a substantial drop in the
                                                                      report no change in the percentage of renewals
      percentage of associations reporting a decline in
                                                                      compared to associations that are larger.
      renewal rates from the previous studies.




                                         www.marketinggeneral.com
What is your organization’s single biggest challenge
to growing membership?

                                        Insufficient sta
                                                     aff                                                 16%

              Wea product or s
                ak           service offering
                                           gs                                                     %
                                                                                                13%

                                   Insufficient budge
                                                  et                                       12%

                            Lack of strategy or pla
                                                  an                                      11%

                                   Market saturaƟo
                                                 on                                9%

  Ina
    adequate assoc
                 ciaƟon manage
                             ement databas
                                         se                                     8%
                                                                                 %

                      Lack of markeƟng experƟs
                                             se                               7%

     Inadequate re
                 esearch to und
                              derstand marke
                                           et                                 7%
                                                                                                      2011 (N=631)
                                               Econom
                                                    my             3%
                                                                   3

                                                 Othe
                                                    er                                                  16%

                                                                                                 2011 (N=631)
 Approximately 16% of associations report that                      Small associations (those with fewer than 1,000
 their biggest challenge to growing their                           members) are significantly more likely to indicate
 membership is insufficient staff and 12% indicate                  that their biggest challenges center around
 an insufficient budget.                                            insufficient staff or lack of a strategy or plan.
                                                                                                                           37
 13% of associations report they have weak product                  As illustrated by the table below, findings
 or service offerings and 11% indicate a lack of                    indicate that some challenges have a more
 strategy or plan for growing the membership.                       significant impact on long-term membership
                                                                    growth than other challenges. It appears that
 Directionally, associations with renewal rates
                                                                    weak product and service offerings, insufficient
 under 80% are more likely to indicate that
                                                                    budget, and lack of marketing expertise
 insufficient staff or weak product/service
                                                                    correlate with decreasing membership over time.
 offerings are their biggest challenge.
                                                                    However, organizations that noted their biggest
 Associations reporting a decrease in their new                     challenges as insufficient staff, market saturation,
 members over the past year are significantly                       inadequate association management database,
 more likely to indicate that their biggest                         and inadequate research were best able to
 challenge is the association’s weak product or                     overcome these challenges and produce
 service offerings.                                                 membership growth.

                                        Challenges Faced by Five Year Membership Growth
                                                            Five Year        Five Year           Five Year
             Challenge                                     Membership       Membership          Membership
                                                            Increased       Unchanged            Decreased
             Insufficient staff
             Weak product or service offering
             Insufficient budget
             Lack of strategy or plan
             Market saturaƟon
             Inadequate associaƟon management
             database
             Lack of markeƟng experƟse
             Inadequate research




                                         www.marketinggeneral.com
How does your organization’s leadership define success?


                             Ranked Percentages on DefiniƟons of AssociaƟon Success
     Rank                                       1     2     3     4      5      6     7      8      9     10     11
     Growth in members counts                  26%   16%   19%   9%     8%     8%     5%    5%     2%     3%    3%

     Growth in net revenue                     23%   16%   11%   8%     7%    10%     6%    7%     7%     4%    3%

     Growth in gross revenue                   16%   15%   10%   8%     8%     7%     9%    6%     9%    10%    6%

     Increase in new members                    6%   10%   13%   18%    14%   13%     8%    7%     6%     4%    1%

     Growth in member parƟcipaƟon               5%   8%    8%    15%    10%   13%    11%    11%    8%    10%    7%

     Growth in aƩendance                        2%   7%    10%   13%    15%   11%    13%    9%    10%     8%    3%

     Increase in renewal rates                  3%   7%    10%   11%    17%   15%    14%    9%     9%     6%    5%

     Increase in visibility of organizaƟon      5%   8%    9%    8%     8%    11%    16%    20%   11%     4%    5%
     Increase in visibility of industry or
                                                5%   5%    5%    5%     6%     7%    11%    15%   25%    18%    7%
     field
     Increase in advocacy effecƟveness           8%   7%    5%    4%     6%     5%     6%    11%   12%    31%    18%
38
     Other                                      2%   1%    1%     --    1%     1%     1%     --    2%     4%    43%



      Association professionals rank growth in                   An increase in the visibility of the organization,
      member counts (26%), growth in net revenue                 increase in visibility of industry or field, and an
      (23%), and growth in gross revenue (16%) as their          increase in the effectiveness of advocacy efforts
      primary definition of association success.                 tend to not be considered strong definitions of
                                                                 success.
      An increase in new members (18%) and growth in
      member participation (15%) are most often                  Association executives from organizations
      ranked fourth as definitions of success.                   showing increases in renewal over the past year,
                                                                 and those associations with more than 1,000
                                                                 members, are significantly more likely to rank
                                                                 growth in net revenue as the primary definition
                                                                 of success compared to associations with
                                                                 declines in renewals.




                                             www.marketinggeneral.com
How would you characterize your membership growth goals?


                                                                          52%
                                                              48
                                                               8%
                                                                    45%

                                           37%
                                                 33%
                                                   %
                                     31%
                                     3


         17% 16%
                    1 3%
                    1

                                                                                       3%     2%       3%


       Greater priorit on
                     ty          Gr
                                  reater priority on        Equal priority on               Not sure
    acquisiƟon than re
                     etenƟon retenƟon than acqu uisiƟon acquisi
                                                              iƟon and retennƟon

                           2011 (N=642)
                           2011 (N=642)           2010 (N=403)
                                                  2 010 (N=403)
                                                  2                  2009 (N= 325)
                                                                            =325)
                                                                     2009 (N=
                                                                            =



 There has been a decline in               The percentage of                    year. Associations reporting a
 the percentage of associations            associations prioritizing            membership strategy with an
 indicating they are focusing on           acquisition over retention has       equal priority on both             39
 retention rather than                     remained basically unchanged         acquisition and retention
 acquisition since the previous            since the 2010 study.                showed an average total
 study (31% vs. 37% in 2010;                                                    membership growth of 2%
                                           Associations reporting a
 33% in 2009).                                                                  over the past year.
                                           membership strategy with a
 There is a slight increase in the         priority on new member               Directionally, associations
 percentage of associations                acquisition had an average           who raised their dues by up
 putting equal priority on                 total membership growth of           to 10% are more likely to place
 acquisition and retention (48%            4% over the past year.               a greater priority on retention,
 vs. 45% in 2010). This is still           Associations reporting a             while those who raised their
 lower than the initial 2009               membership strategy with a           dues by more than 20% are
 benchmark finding (52%).                  priority on retention had an         more likely to place an equal
                                           average total membership             priority on acquisition and
                                           growth of 1% over the past           retention.




                                www.marketinggeneral.com
What do you estimate is your current market penetration?


                                                                                            31%
         Up to 20% of the available market
          p             e                                                             28%
                                                                                   25%

                                                                           20%
        21% to 40% of the available market
          %             e                                                    22%
                                                                               %
                                                                 14%

                                                                 15%
        41% to 60% of the available market
          %             e                                              18%
                                                                 15%

                                                             10%
        61% to 80% of the available market
          %             e                                        %
                                                               12%
                                                                                   25%

                                                        7%
     More th 80% of the available market
           han        e                             %
                                                   4%
                                                        8%
                                                                                             201 (N=636)
                                                                                               11
                                                                                            201 (N=636)
                                                                                              11
                                                                     16%                     201 (N=401)
                                                                                               10
                                                                                            201 (N=401)
                                                                                              10
                                 Not sure                            16%
40                                                              %
                                                              12%
                                                                                             200 (N=326)
                                                                                               09
                                                                                            200 (N=326)
                                                                                              09



      There appears to be an                 Associations with renewal rates         Association industries most
      increasing trend in the number         above 80% are significantly             likely to have a market
      of associations reporting a            more likely to have market              penetration between 21% and
      market share of 20% or less.           penetration above 40%.                  40% include:
      Two-thirds of association              Association industries most             • Healthcare (28%)
      executives report market               likely to have a market
                                                                                     • Retail (36%)
      penetration below 60% of the           penetration up to 20% include:
      available market (66%).                                                        Manufacturing industry
                                             • Philanthropic (53%)
      Numbers from the current                                                       associations are most likely to
      study are more similar to those        • Professional services (41%)           have a market penetration
      of 2010 than 2009.                                                             between 61% and 80%.
                                             • Educational (37%)
                                             • Government (40%)
                                             • Travel/Hospitality (37%)




                                     www.marketinggeneral.com
What type of membership offering best
describes your organization?
                             64%

                       54%
                 49%
                   %


                                      36%

                                            28%
                                            2
                                                   22%
                                                                        17%
                                                                          %
                                                                13%            14%


                                                                                           2%     1%     1%

                  Individual
                  I                 Trade/Or
                                           rganizaƟonal                 Bot
                                                                          th                     Other


                                    2011 (N=643)
                                            6            2010 (N=404)
                                                            0              2009 (N=326)



 About half of the participating        About one-third of the                              A significantly higher
 associations are individual            participating associations are                      percentage of individual
 member associations (49%).             trade/organizational                                organizations have renewal
 However, this represents a             associations (36%),                                 rates below 80% (59% vs. 42%),
 continued drop in survey               representing a continued                            while a significantly higher     41
 participation from individual          increase in the percentage of                       percentage of
 member organizations.                  trade associations                                  trade/organizational
                                        participating in this research.                     associations have renewal
                                                                                            rates above 80% (46% vs. 22%).



                   Comparisons of Percentages of Change in Overall Membership by Study Year
                                                                  Remained the
                                            Increased                                      Decreased
                                                                      Same
                                        2011        2010         2011     2010            2011      2010
                Individual              52%         43%          16%       12%            32%       45%
                Trade/OrganizaƟonal     47%         26%          18%       16%            35%       58%
                Both                    44%         35%          14%       17%            42%       48%

 All organization types show increases in overall membership from the previous study and lower
 percentages of declines.




                                   www.marketinggeneral.com
How would you define the scope of your association?

                     41%
                       %
               39%                38
                                   8%
                           34%            34%




                                                                                    14%                14%
                                                    12%
                                                                               9
                                                                               9%
                                                                         7%
                                                                                                  5%
                                                              %
                                                          2% 2%                             3
                                                                                            3%                  2% 3% 2
                                                                                                                      2%


               Internat
                      tional       NaƟonal        Regional (muulƟ-            Sta
                                                                                ate              Local            Other
                                                       state)

                                         2011 (NN=643)
                                          2011N=643)
                                               (N               2010 (N=403)
                                                               2010 (N=403)            2009 (N=326)
                                                                                      2009 (N=326)


      Compared to the previous                   However, there is a significant                   There is a continued decline in
      studies, there is a slight                 increase in the percentage of                     the percentage of state and
      decline in the percentage of               regional associations                             local associations represented
      international and national                 participating this year,                          in the study.
      associations participating in              compared to previous years.
      the current study.
42

     Does your association have chapters?
                                                                                                         51%




                            30%


                                                  17%



                                                                               2%
                                                                                %


                    Yes, chapter              Yes, chapter           Our organiz
                                                                               zaƟon is a                No
                     ership is opƟonal
                 membe             n         memb bership is               chapter
                                               manndatory                                                2011 (N=640)
                                                                                                               2011 (N=640)


      More than half of the participating associations                    Of the remaining associations, 47% do have
      indicate they do not have chapter affiliates.                       chapters, of which 30% have optional
                                                                          membership and 17% have mandatory
                                                                          membership.




                                         www.marketinggeneral.com
What percentage of your members belongs to a chapter?


          21%
          2
                                                                         20%

                         16%
                                         15%                                              15%
                                                         13
                                                          3%




      Up to 20% of
          o          21% to 40% of   41% to 60% of
                                              %      61% to 80% of More than 80% of
                                                                      e                 Not sure
      memmbership     membership
                      m               membershhip     membbership   membership
                                                                                        2011 (N=188)
                                                                                              1 1
                                                                                      2011 (N=188)


Of the associations in which chapter                   20% of associations report that more than 80%
membership is optional, about one-third report         of their members belong to a chapter affiliate.
that up to 40% of their membership belongs to a
chapter (36%) and about 28% indicate that
between 41% and 80% of their membership
belongs to a chapter.                                                                                    43




                               www.marketinggeneral.com
What membership categories does your association offer?


                                                                                                          64%
                                                                                                           4
                                    Individual Ba
                                                asic
                                                                                                             69%

                           Compan or InsƟtuƟonal
                                ny                                                                  55%
                                                                                                    55%

                                                                                                    54%
                                           Stude
                                               ent
                                                                                                       59%

                                                                                            43%
                                                                                              %
                                            ReƟr
                                               red
                                                                                                  50%

                                                                                    29%
                                           LifeƟme
                                                                                      33%

                                            Vend
                                               dor                            22%
                                                                             21%

                                Yo
                                 oung Professional                          18%
                                                       Not asked in 2010
                                                                  n

                                                                           17%
                                         MulƟ-ye
                                               ear
                                                                             20%

                        Group (mulƟple individua
                                               als)                         17%
                                                                           16%

              Individu Plus (added benefits to ba
                     ual         d             asic                    15%
44                       members ship)                                  16%

                                                                       15%
                                             yed
                                      Unemploy
                                                                        16%

                                                                    12%
                                             Online
                                                                     14%

                                                                8%
                   Fr
                    reemium (no-c membersh
                                cost     hip)
                                                                8%                                 2011 (N=6
                                                                                                           636)

                                                                   12%                             2010 (N=4
                                                                                                           403)
                                             Oth
                                               her
                                                                  10%


      The most common                         There has been a decline in                     Associations offering group
      membership categories are               almost all of the membership                    memberships are significantly
      individual basic (64%),                 categories, most likely                         more likely to report overall
      company/institutional (55%),            because of the addition of the                  increases in membership over
      and student (54%).                      young professional                              the past year (23% vs. 12%).
                                              membership category, which
                                              18% of associations offer.




                                      www.marketinggeneral.com
How many paid members are in your association?


                                                                                  30%
                Up to 1,000                                            24%
                                                                          26%


                                                                              28%
                                                                              2
             1,00 to 5,000
                01                                                         26%
                                                                                 30%


                                                                          25%
            5,001 to 20,000
                1                                                           26%
                                                                   22%

                                                                                        2011 (N=642)
                                                                                           1
                                                          17%
                                                                    22%                 2010 (N=403)
                                                                                           0
         More th 20,000
               han
                                                                  21%
                                                                  2                     2009 (N=325)
                                                                                           9




 There is an increase in the percentage of small              study, with a corresponding decline in
 associations (up to 1,000 members and 1,001 to               participation for the larger associations.
 5,000 members) participating in the current

                                                                                                               45

What is your organization’s annual operation budget?


         $1 mi
             illion to $4.9 million
                            m                                                                 56%



         $5 mi
             illion to $9.9 million
                            m                           20%



       $10 mill
              lion to $19.9 million
                            m                       %
                                                  13%



        $20 m
            million to $50 million
                           m                 9%



            Mo than $50 million
             ore        m               3%
                                                                                  2011 (N
                                                                                        N=613) =613)
                                                                                        2011 (N
                                                                                              N


 A majority of associations report an operating               About 20% of associations have an operating
 budget of $1 million up to $4.9 million (56%).               budget from $5 million to $9.9 million and 25%
                                                              have an operating budget above $10 million.




                                      www.marketinggeneral.com
How much are your basic annual membership dues?


                                                           7%
                                Under $50                6%
                                                  4%
                                                                      11%
                                $50 to $99                              12%
                                                          7%
                                                                      11%
                             $100 to $149                                     14%
                                                                      11%
                                                                           13%
                             $150 to $199                                12%
                                                                         12%
                                                                        12%
                             $200 to $299                             11%
                                                                                    16%
                                                          7%
                             $300 to $399                          10%
                                                                    0
                                                                            13%
                                                      6%
                             $400 to $499           5%
                                                    5
                                                                 9%
                                                    5%
                                                    5
                             $500 to $749         4%                                              2011 (N=641
                                                                                                            1)
                                                                      11%
                                                                                                  2010 (N=401
                                                                                                            1)
                                             2%
                             $750 to $999      3%                                                 2009 (N=324
                                                                                                            4)
46                                             3%
                                                         6%
                           $100 and over
                              00                         6%
                                                           7%
                                                                                              %
                                                                                            20%
              Other Varies by com
                  r:            mpany size                                                19%
                                                                 9%



      Almost three in ten associations indicate their           On par from the 2010 study, 20% of associations
      membership dues are up to $150 annually (29%),            report that dues vary by company size.
      a slight decrease from the 2010 study (32%), but
                                                                Over 64% of individual membership associations
      an increase over the 2009 findings (22%).
                                                                offer their basic annual dues between $50
      Approximately one-quarter of associations                 and $299.
      report basic annual membership dues between
      $150 to $299 (25%) and one-quarter have annual
      dues between $300 and $999 (27%).




                                      www.marketinggeneral.com
Over the course of a year, excluding staff costs, how much do you
spend on the following membership marketing programs?

                Mean Amount Spent on Membership MarkeƟng Programs by Year
                                                         2011                  2010
      Membership recruitment                            $92,543              $109,633
      Awareness and branding                            $56,705              $118,789
      Member renewals                                   $43,401               $53,485
      New-member engagement and onboarding              $24,943               $27,520
      Membership reinstatement or win-back              $14,048               $19,644


 The amount of money spent           Associations still spend the      Individual membership
 on all programs this year is less   least amount on new-member        associations spend
 than in the previous study.         engagement and membership         significantly more on
 Additionally, more was spent        reinstatement/win-back.           membership recruitment than
 on membership recruitment                                             trade associations (Means:
                                     Associations reporting
 than on awareness and                                                 $137,489 vs. $51,370).
                                     increases in overall
 branding. This is an opposite
                                     membership over the past year     As expected, the amount
 finding from the previous
                                     spend more of their budget on     spent on marketing programs
 research, suggesting that
                                     all areas of membership           is directly correlated with
 associations, even while
                                     marketing, with the exception     the size of the association,
 spending less overall, put
                                     of membership recruitment, in     such that larger associations
 more resources toward new-                                                                            47
                                     which they spend less than        spend more.
 member acquisition than
                                     associations showing overall
 toward awareness and
                                     membership declines (Means:
 branding.
                                     $77,093 vs. $125,001).



              Mean Amount Spent on Membership MarkeƟng Programs by Growth Goals
                                                  AcquisiƟon      RetenƟon       Equal
     Membership recruitment                        $124,698        $71,876      $95,304
     Awareness and branding                        $82,289         $45,777      $54,645
     Member renewals                                $54,344        $50,065      $35,353
     New-member engagement and onboarding           $33,937        $19,790      $25,134
     Membership reinstatement or win-back          $16,821         $18,496      $10,087


 Associations with growth goals focused on           amount they spend on acquisition, awareness,
 acquisition are also more likely to spend a         and new-member engagement is substantially
 greater amount of money on all marketing            higher than what they spend on member
 programs; however, the difference between the       renewals and reinstatement.




                                www.marketinggeneral.com
What best describes your personal job function?


                    Membership
                    Membershi                                                                42 %
                                                                                             42%
                                                                                           40%
                                                                                           40%
                                                                 19%
                                                                 19%
                                                                   21%
                                                                   21%

              Exe
              Exe       Director
                        Director                                18%
                                                                18%
                                                               17%
                                                               17%
                                           3%
                                           3%
                                            4%
                                            4%

                               n           3%
                                           3%
                                           3%
                                           3%

                                s        2%
                                         2%
                                    Not asked in 2010
                                    Not asked in 2010
                                                  0

                                        %
                                       1%
                         Finance         3%
                                         3%
                                       1%
                                       1%
                               n        2%
                                        2%

                    Computer/ IT
                    Computer/          1%
                                       1%
                                       1%
                                       1%
                                     0%
                                     0%
          Convent
          Convent               s
                                      1%
                                      1%

48        Govern
          Government            s    0%
                                     0%
                                     0%
                                     0%

              Human Resources
                man Resource         0%
                                     0%
                                     0%
                                     0%

                           L al
                             al      0%
                                     0%
                                     0%
                                     0%

                                s    0%
                                     0%
                                     0%
                                     0%                                                   2011 (N=639)
                                                                                          2011 (N=639)
                                                                                                N
                                                        9%
                                                        9%                                2010 (N=399)
                                                                                          2010 (N=399)
                                                                                                N
                           Other
                              e
                           Other                         10%
                                                         10%

       * Computer and Finance were originally combined in the 2010 study.
         They have subsequently been separated into individual categories.



      There are few changes from the 2010 study in                     As in the previous research, the majority of
      the breakdown of respondent job functions.                       participating association professionals are
                                                                       membership executives (42%), marketing
                                                                       executives (19%), or executive directors (18%).




                                            www.marketinggeneral.com
What best describes your association’s industry?


            Profes
                 ssional Services
                                s                                                                    %
                                                                                                   24%
                                                                          13%

                      Healthcare
                               e                                                        %
                                                                                      19%
                                                                                            21%

                       EducaƟon
                              n                                           13%
                                                                                16%

            ScienƟf
                  fic/Engineering
                                g                                 9%
                                                                  9
                                                                    10%

                  Manufacturing
                              g                              7%
                                               3%

                    Philanthropic
                                c                       5%
                                               3%

             Finance/AccounƟng
                             g                      5%
                                                  4%

               Travel/Hospitality
                                y                  4%
                                    Not asked in 20
                                                  010


                   g/ConstrucƟon
            Building           n               3%
                                                %
                                               3%
                                                %

                                            2%
                    Government
                             t
                                            2%                                                                          49

                           Retail           2%
                                    Not asked in 20
                                                  010


                      Real Estate
                                e           2%
                                    Not asked in 20
                                                  010
                                                                                                  2011 (N=639)
                      Agriculture
                                e       1%                                                        2010 (N=382)
                                    Not asked in 20
                                                  010


                           Other
                               r               3%
                                                %
                                                                                                         26%


 There is a substantially greater percentage of                     There was a drop in the percentage of
 professional service associations participating in                 healthcare, education, and scientific/engineering
 the current study, compared to the 2010                            associations that participated in the current
 research.                                                          research.
 There is also an increase in the percentage of                     Based on “other” responses from last year’s
 manufacturing, philanthropic, and                                  research, additional categories of associations
 finance/accounting associations that                               were included: travel/hospitality, retail, real
 participated in this research compared to 2010.                    estate, and agriculture.




                                    www.marketinggeneral.com
What best describes your association’s industry?



                Five-Year Percentage Change in Membership by Industry
                                                           Average Percent Change
                 Industry or Field Served                      in Membership
                                                               Over Five Years
               Healthcare                                           12.6%
               Manufacturing                                         7.2%
               Professional Services                                 6.7%
               Philanthropic                                         5.3%
               Real Estate                                          5.1%
               Other                                                 2.5%
               Travel/Hospitality                                    1.8%
               Science/Engineering                                   1.2%
               EducaƟon                                              1.1%
50             Finance/AccounƟng                                     0.1%
               Building/ConstrucƟon                                  0.1%
               Agriculture                                          -0.8%
               Government                                           -2.4%
               Retail                                              -12.4%

      Industry associations that have done well with        Some industry associations have basically
      membership over the past five years include           remained unchanged, such as those in
      healthcare, manufacturing, professional services,     finance/accounting, building/construction,
      and real estate, as all have gained at least 5% in    and agriculture.
      membership.
                                                            Government and retail-based industry
      Industry associations that have achieved modest       associations have seen the largest losses in
      gains in membership include travel/hospitality,       membership, with retail dropping over 12%
      science/engineering, and education.                   over the last five years.




                                    www.marketinggeneral.com
THE MGI

                                                              MEMBERSHIP
                                                                LIFECYCLE
                                                                                                                                     TM




                                                                      What it is…how it works.
                                                                                                                                          51
                                                                      Since Marketing General opened its doors more than
   The MGI Membership Lifecycle
                                                                      30 years ago, we have helped hundreds of associations
   segments the membership
   experience into 5 successive steps:                                add and keep tens of thousands of members and earn
                                                                      tens of millions of dollars in dues and non-dues revenue.
           awareness
           When prospects first discover you.                         We have applied our experience to construct the
                                                                      Membership Lifecycle, a five-step marketing model that
           recruitment
           When prospects choose to try you.                          identifies the fundamental building blocks of sustainable
                                                                      membership growth.
           engagement
           When new members feel they                                 The Membership Lifecycle begins with AWARENESS.
           belong with you.
                                                                      Increased awareness facilitates new member
           renewal                                                    RECRUITMENT. ENGAGEMENT strengthens member
           When lapsing members decide
           whether to keep you.                                       ties and improves RENEWAL rates. REINSTATEMENT of
                                                                      former members completes the cycle.
           reinstatement
           When former members agree
           to return to you.                                          Used singly, severally, or altogether, Marketing General’s
                                                                      five-step Membership Lifecycle has proven to be an effective
                                                                      model for designing membership growth strategies.


                                                                      To FIND OUT MORE about how the MGI Membership
                                                                      Lifecycle can work for your organization, telephone us
                                                                      and ask to speak with Rick Whelan at 703-706-0350.


209 Madison Street, Third Floor, Alexandria, Virginia 22314           www.marketinggeneral.com        info@marketinggeneral.com



                                                         www.marketinggeneral.com
ABOUT MARKETING GENERAL INCORPORATED
Marketing General Incorporated is the nation’s largest marketing agency working
exclusively with membership associations. During the past 30 years, MGI has helped
hundreds of associations and relationship-based organizations increase their
membership, improve retention, enhance member engagement, grow revenue, and
gain new insights through market research and analysis. Additional information can
be found at www.MarketingGeneral.com or by contacting us at 703-739-1000.




Tony Rossell                                Adina W. Wasserman, PHD                      Erik Schonher
Senior Vice President,                      Director of Market Research,                 Vice President
Marketing General Incorporated              Marketing General Incorporated               Marketing General Incorporated
Tony Rossell is Senior Vice President of    Adina W. Wasserman, Ph.D. is Director of     Erik Schonher is Vice President of Marketing
Marketing General Incorporated in           Market Research at Marketing General         General Incorporated. He is an experienced
Alexandria, VA. A frequent writer and       Incorporated. Dr. Wasserman is renowned      strategic planner and a seasoned tactician
speaker on membership marketing topics,     for pioneering the concept of                who mixes direct marketing, media
he is a contributing author to two books,   Indispensability Measurement for             placement, branding, creative design, and
Membership Marketing (ASAE 2000) and        associations. In addition, she has created   web marketing into multi-channel
Membership Essentials (ASAE 2008). He       engagement measurements including the        campaigns. Mr. Schonher regularly presents
also writes the “Membership Marketing       Customer Relationship Index and the          at meetings and conferences, including the
Blog” and has over 25 years of experience   Communications Effectiveness Index. She      ASAE Annual Conference and the ASAE
in helping organizations grow their         earned her undergraduate degree at the       Marketing and Membership Conference.
membership.                                 University of Michigan, Ann Arbor and        He is the author of many professional
                                            completed her master's and Ph.D. in social   articles and MGI white papers, and hosts
Tony can be reached at 703-706-0360
                                            psychology at Florida State University.      “Erik’s Experts in Membership Marketing,”
or at Tony@MarketingGeneral.com.
                                                                                         a blog that examines membership
                                            Adina can be reached at 703-706-0373 or
                                                                                         marketing best practices, research and
                                            at AWasserman@MarketingGeneral.com.
                                                                                         analysis, communication theories, and
                                                                                         sales techniques.

                                                                                         Erik can be reached at 703-706-0358 or
                                                                                         at ESchonher@MarketingGeneral.com.




                                                          209 Madison Street, Third Floor, Alexandria, Virginia 22314
                                                          © 2011 Marketing General Incorporated



                          703-739-1000              www.marketinggeneral.com

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2011 benchmarkingrprt

  • 1. 2 0 1 1 MEMBERSHIP M ARKETING BENCHMARKING REPORT SURVEY CONDUCTED BY: Marketing General Incorporated UNDER THE SUPERVISION OF: Tony Rossell, Senior Vice President Adina Wasserman, PhD, Director of Research, and Erik Schonher, Vice President
  • 2. 2 0 1 1 MEMBERSHIP M ARKETING BENCHMARKING REPORT EXECUTIVE SUMMARY Membership organizations reported and membership renewals—all showed a triple play in membership growth substantial improvements from the based on survey results gathered for previous year’s benchmarking report. the 2011 Membership Marketing Benchmarking Report. A total of 49% of respondents said that they had recorded an overall increase in From this year’s survey, which included members over the previous 12 months. 650 participating associations, the major This is a substantial jump over the 36% 2 indicators of membership health—total who reported membership growth the membership, new members acquired, previous year. Percentage Change in Entire Membership Over Past ONE Year 2011 2010 2009 Percentage Increased Overall 49% 36% 45% Percentage Unchanged Overall 16% 14% 16% Percentage Declined Overall 34% 48% 35% Not Sure 2% 3% 5% www.marketinggeneral.com
  • 3. Growth in new member recruitment Finally, the survey results show that appears to be the big driver in membership renewals had a more membership growth. Of responding positive outcome this past year, with 32% association executives, 57% report the of respondents saying that they have had acquisition of new members increased an increase in overall renewal rates. over the past year. These results are significantly better compared to both 2010 and 2009. Percentage Change in NEW-Member Acquisition Over Past Year 2011 2010 2009 Percentage Increased Overall 57% 42% 49% Percentage Unchanged Overall 21% 20% 22% Percentage Declined Overall 16% 26% 21% Not Sure 8% 12% 10% Percentage Change in Member RENEWALS Over Past Year 2011 2010 2009 3 Percentage Increased Overall 32% 21% 22% Percentage Unchanged Overall 37% 27% 39% Percentage Declined Overall 24% 44% 31% Not Sure 7% 8% 9% www.marketinggeneral.com
  • 4. THE BIGGEST CHALLENGES TO The data indicates that if an organization MEMBERSHIP GROWTH reported weak product and service offerings, insufficient budget, or a lack of But even with improving numbers, marketing expertise as their biggest challenges still exist for many groups challenge, then membership growth was in growing their membership. To gain less likely to have been achieved. a better understanding of these challenges, this year we asked association On the other hand, if an organization said executives to tell us what they perceived that its biggest challenge was the lack of as the biggest impediments to growth. a strategy or plan, then membership was more likely to have remained static. We then took their answers and cross- tabulated them with the reported However, there may be hope for membership performance for their membership growth even if an organizations over the past five years. organization is faced with insufficient staff, market saturation, an inadequate What we wanted to discover was which association management database, or challenges hurt membership growth the inadequate research to understand the most and which were painful, but tended market they serve. Organizations not to impede growth. Here is what we reporting these problems were more found: likely to have seen membership growth 4 over the past five years. Challenges Faced by Five Year Membership Growth Five Year Five Year Five Year Challenge Membership Membership Membership Increased Unchanged Decreased Insufficient staff Weak product or service offering Insufficient budget Lack of strategy or plan Market saturation Inadequate association management database Lack of marketing expertise Inadequate research www.marketinggeneral.com
  • 5. ENGAGING MEMBERS WITH in an activity, the higher the likelihood of PRODUCTS AND SERVICES increased renewals for that organization. Engaging members is also a critical Specifically, organizations with members in component of building a strong the following activities were more likely to membership. So our research this year have renewal rates over 80% compared to included a question to try and gauge the organizations that did not offer these participation level that organizations have programs: attendance at an annual achieved in a variety of programs and convention, attendance at a professional services that are commonly provided by development meeting, attendance at a membership organizations. webinar, volunteering, participation in the private social network, participation in a Beyond just the proportion of young professionals program, purchase of a membership using an association’s book or directory, certification, purchasing products and services, the data insurance, and purchase of a miscellaneous highlighted that organizations that had at non-dues product or service. least some members involved in almost all of these activities were more likely to Participation in a public social network enjoy higher renewal rates than those and upgrading a membership were the organizations not offering a specific only activities that did not correlate with program. And in general, the higher the renewal rates over 80%. 5 proportion of members who participated Percentage of Members Engaged With Each Type of Activity 1% - 6% - 11% 16% 21% 31% 41% Over N 0% 5% 10% -15% -20% -30% -40% -50% 50% Mean Attend your annual convention 592 7% 15% 14% 10% 13% 14% 8% 8% 12% 22% Attend at least one of your professional 19% 540 10% 18% 12% 9% 14% 13% 9% 7% 8% development meetings Acquire or maintain a certification with 480 47% 14% 9% 6% 7% 4% 2% 3% 8% 11% your organization Attend at least one of your webinars 519 25% 27% 14% 10% 7% 7% 6% 3% 3% 11% Participate in your public social network 539 12% 35% 23% 9% 7% 7% 3% 2% 2% 10% Purchase a non-dues product (other than previously checked) 494 29% 25% 16% 10% 5% 5% 4% 1% 4% 10% Volunteer with your organization 581 8% 39% 25% 10% 9% 5% 2% 1% 1% 9% Purchase a book or directory 505 34% 24% 16% 8% 6% 5% 3% 2% 4% 9% Participate in your private social network 511 34% 24% 16% 8% 5% 4% 4% 2% 3% 9% Purchase a non-dues service 473 36% 27% 13% 8% 5% 3% 2% 2% 4% 9% (other than previously checked) Purchase or maintain insurance 479 52% 22% 8% 7% 3% 3% 2% 1% 4% 7% through your organization Upgrade their membership 472 48% 24% 12% 4% 3% 4% 2% 1% 2% 6% Participate in your young professional program 447 57% 25% 9% 4% 3% 1% 0% 0% 0% 3% www.marketinggeneral.com
  • 6. RAISING DUES LEVELS Another new area that we added to our What we found is that 30% of research this year was the practices organizations report that they have or around raising membership dues. will raise their membership dues in 2011 and 71% will increase dues rates between We asked: “How often does your 1% and 10%. The majority of associations association raise membership dues?”, raise dues on an as-needed basis and “When was the last time your association do not have a regular dues increase raised membership dues?”, and “What schedule. was the average percentage of your last membership dues increase across all membership categories?” How often does your asso o ociation raise membership due e es? How often does your association raise membership dues? 12% 17% 9% 4% Annually A 6 Every other yea E ar As A needed 58% Never N Other O 201 (N=644) 11 * The dues increase questions in the 2011 Benchmarking Research mirror questions from the 2007 Marketing General Incorporated study titled, Membership Dues Increase Study: Best Practices in the Why, How, and Outcomes of Raising Membership Dues. Despite the dramatic economic events of recent years, the frequency and amount of dues increases vary only slightly from the findings of our 2007 report. www.marketinggeneral.com
  • 7. REPORT BACKGROUND declining membership or better renewal rates, we are not claiming that any one The 2011 Membership Marketing behavior in and of itself causes this outcome. Benchmarking Report marks the third year There are literally thousands of variables that that Marketing General Incorporated (MGI) impact membership results. has surveyed associations to better understand the strategies and tactics they Nevertheless, if as a marketer one sees that use to recruit members, engage new organizations with certain behaviors or members, renew existing members, and practices tend to be doing better, one at reinstate former members. least will want to explore the issue and see if there is something that can be applied to his However, beyond cataloging membership or her organization. practices, this Benchmarking Report also takes these practices and cross-tabulates The report includes dozens of key findings them with the membership results that can provide insights and direction for associations are experiencing. membership marketing programs. We hope that you find it of help as you seek to The comparison of practices and outcomes in maximize the membership results for your membership provides strong directional organization. information on what tactics and strategies might be added or dropped to help improve If you have questions or need assistance a membership program. with your membership marketing, the team at Marketing General Incorporated is There is an important disclaimer that readers 7 pleased to be of help. Our website is: should be aware of as they evaluate this www.MarketingGeneral.com. Please find report. Because an activity or practice has a our individual contact information on the statistical correlation with a growing or back panel of this report. www.marketinggeneral.com
  • 8. INTRODUCTION SURVEY OBJECTIVE What is the margin of error? The margin of error is a statistical measurement used to assess the The 2011 Membership Marketing Benchmarking accuracy of the data compared to the universe of Report is the third installment of our annual respondents. Since it is impossible to survey all tracking study. Our tracking research continues to association executives, statisticians rely on a provide perspective on the tactics and strategies random sample of individuals from the “universe” that organizations use to recruit new members, of association executives to estimate what the engage and renew existing members, and results of the entire population would be. In reinstate former members. Additionally, we essence, a randomly-generated sample provides compare the effectiveness of different tactics and a statistical “snapshot” of the universe. The strategies from year to year and assess changes in margin of error, therefore, measures the random association membership levels. While some fluctuations or changes inherent in any sample. questions from the 2010 study were removed, The smaller the margin of error means the more new questions were added to the study as various accurate the measurement of the universe. other issues and queries were brought to light. This study’s significant level of .05 carries with it a 95% confidence interval, meaning that if this METHODOLOGY study was conducted 100 times, the same results, plus or minus the margin of error (3.8%, in this The 2011 Membership Marketing Benchmarking case) would occur 95 out of 100 times. The Study was conducted online and was launched on confidence interval is established as the February 14, 2011, and was accessible to likelihood that the same results would be respondents through March 7, 2011. Email replicated, and that differences are not due to invitations were sent to approximately 5,719 chance or random fluctuations. 8 association professionals. In addition, respondents had access to the survey through our company blog site, if they did not receive a RESPONSE RATE formal invitation. Close to 700 association professionals responded to this year’s survey Email invitations were sent to 5,719 association providing data and information about their professionals. There were 196 email addresses membership marketing efforts and experiences. that “bounced,” resulting in a total of 5,523 delivered emails. 663 individual association To ensure that only one response per association executives responded to the online survey was included, “duplicate” association responses invitation, and another 29 completed the survey were removed. For example, if more than one via the survey link on the blog post, resulting in person from the same association completed the 692 completed surveys. The survey produced a survey, the responses of the individual most 13% response rate overall, the same as the 2010 closely associated with the membership study. After removing the duplicate associations, marketing responsibilities were used. Forty-two findings from a net of 650 respondents are duplicate association responses were removed included in this report. from the final results of this study, resulting in a total of 650 respondents for this study, with a margin of error of +/- 3.8%. www.marketinggeneral.com
  • 9. Which social media does your organization officially use? (Please check all that apply.) Faceboo ok 91% 75% TwiƩe er 71% 66% 2011 (N=641) LinkedIn (Public c) 53% 2010 (N=405) 59% YouTub be % 45% 35% LinkedIn (AssociaƟon Members Only n y) 28% Not asked in 201 10 27% AssociaƟon Blo A og 30% 24% Asso ociaƟon Listser rv 31% Private AssociaƟon Social Networ rk 18 8% 7% 17 Flick kr 15% % Not asked in 2010 Wikis 9% 13% % te Ning/Groupsit 4% 6% Second Lif fe 2% 3% MySpac ce 1% 9 4% None 6% 8% 2011 (N=641) er Othe 4% 6% 2010 (N=405) Similar to the previous study, Social media declines are seen Associations showing an the top social media platforms with the use of Association increase in membership overall officially used by associations Blogs and Listservs, and the and an increase in renewals include Facebook (91%), use of Wikis. over the past year are Twitter (71%), and LinkedIn significantly more likely to use Only 4% of individual (53%), although there has been an association blog and a membership associations and a slight drop in the percentage private association social 9% of organizational/trade of LinkedIn use by network, compared to associations report that they associations, compared to an associations showing no do not officially use social increase in the use of change or declines in media platforms. Facebook and Twitter. membership and renewals. Interestingly, associations with There has also been an an 80% or higher renewal rate increase in associations’ use of are significantly more likely to use YouTube over the past year a Members-Only LinkedIn site. (45% in 2011 vs. 35% in 2010). www.marketinggeneral.com
  • 10. Of the social media your association uses, which has been the most effective in achieving your membership goals? Most EffecƟve Social Media Outlets in Reaching Membership Goals? N % Rank 1 % Rank 2 2011 2010 2011 2010 2011 2010 Facebook 329 307 29% 30% 22% 28% LinkedIn (Public) 161 242 15% 33% 10% 23% AssociaƟon Listserv 91 125 11% 59% 3% 14% LinkedIn (AssociaƟon Members Only) 89 NA 8% NA 6% NA TwiƩer 175 267 7% 10% 20% 26% Private AssociaƟon Social Network 58 70 5% 39% 4% 27% AssociaƟon Blog 57 123 5% 19% 4% 16% YouTube 55 141 3% 6% 6% 16% Ning/Groupsite 13* 23* 1% 13% 1% 9% Wikis 6* 55 -- 9% 1% 13% Flickr 6* NA -- NA 1% NA Second Life 1* 10* -- -- -- -- MySpace 0 15* -- -- -- -- 10 Other 10* 25* 1% 24% -- 4% * Small cell sizes can result in inflated percentages. Facebook is now considered LinkedIn (public access) is also rated as an effective outlet by the most effective media rated one of the top two most a higher percentage of outlet for reaching specified effective social media outlets, association professionals in the membership goals. While the but by far fewer respondents, last study (20% vs. 26% in percentage of respondents compared to the previous 2010). Private association rating it first has not changed study (15% vs. 33% in 2010). social networks are not much from the previous study This may be because we considered as effective as they (29% vs. 30% in 2010), other added a second LinkedIn were in the prior research (4% outlets that were previously option in the 2011 survey. vs. 27% in 2010). considered most effective Facebook is also rated as the Associations with renewal rates (association listserv and private second most effective media less than 80%, and those with association social network) are outlet, but at a slightly lower individual memberships, are perceived as significantly less percentage than in the 2010 significantly more likely to effective than reported in the study (22% vs. 28% in 2010). consider Facebook their most previous study. effective social network outlet. Twitter is considered one of the top two most effective social media outlets. It was www.marketinggeneral.com
  • 11. How do prospective new members learn about or become aware of your organization? How ProspecƟve Members Learn or Become Aware of Your OrganizaƟon 2011 2010 2009 (N=638) (N=405) (N=599) Member word-of-mouth recommendaƟons 90% 91% 77% AssociaƟon website 87% 88% 85% Email to prospects 71% 67% 61% PromoƟon to/at your own conference/convenƟon 65% 66% 65% Co-worker or colleague recommendaƟons 64% 67% 54% Direct mail to prospects 62% 66% 76% AssociaƟon-sponsored events 57% 56% 37% Cross-sell to non-members who buy your products or aƩend 56% 59% 52% your conferences Local events/meeƟngs 53% NA NA AssociaƟon-sponsored social networking websites 51% 56% 35% (e.g., Facebook, LinkedIn) ExhibiƟng at other conferences 50% 51% 53% AdverƟsing in your own publicaƟons 48% 56% 51% RecommendaƟons from/connecƟons with other associaƟons 47% 50% 40% Search engines (organic) 45% 47% 34% Public relaƟons 40% 39% 29% Chapters 38% 46% 39% Employer recommendaƟons 33% 37% 30% AdverƟsing in outside publicaƟons 31% 31% 28% Faculty recommendaƟons 28% 32% 35% Personal sales calls 25% 22% 24% Job board 24% 23% 23% AccreditaƟon promoƟon 18% 20% 14% TelemarkeƟng to prospects 16% 18% 18% 11 Search engine ads (paid or pay-per-click) 14% 20% 8% Upward Paid banners on other websites 12% 13% 12% Trend Radio or TV 7% 5% 7% Other 4% 3% 3% Downward Do not know 0% 0% 1% Trend Continuing the trend from the previous two studies, • Chapters (38% in 2011 vs. 46% in 2010) member word-of-mouth recommendations (90%), an • Employer recommendation (33% in 2011 vs. association website (87%), and email to prospects 37% in 2010) are the three most common means by which • Association-sponsored social networking prospective members learn of an organization. websites (51% in 2011 vs. 56% in 2010) However, email to prospects is the only method of • Advertising in own publications (48% in 2011 the top three that has shown a continued increasing vs. 56% in 2010) trend over the three studies. • Search engines (paid or pay-per-click) (14% in More than 60% of association professionals indicate 2011 vs. 20% in 2010) that prospects learn of their organization through promotion to/at their conferences (65%), through a co- Associations with an 80% renewal rate or higher worker or colleague (64%), or through direct mail (62%). are more likely to rely on member word-of- However, direct mail is the only method of these three mouth recommendations or personal sales calls, showing a continuous decline from year to year. compared to those with a lower renewal rate. Recommendations through faculty members have also Those associations that rely on email to showed a declining trend over the past three years. prospects, local meetings or events, and/or association-sponsored networking sites to Other methods that show a decrease in generating increase association awareness are significantly association awareness from the 2010 study include: more likely to show increases in renewal rates over the previous year. www.marketinggeneral.com
  • 12. What are the two most effective membership recruitment marketing channels you have used? Most EffecƟve Membership Recruitment Channels N % Rank 1 % Rank 2 2011 2010 2011 2010 2011 2010 Member word-of-mouth recommendaƟons 222 371 22% 27% 13% 19% Direct mail to prospects 171 268 15% 27% 11% 17% Email to prospects 125 272 10% 10% 9% 14% PromoƟon to/at your own conference/convenƟon 84 266 8% 11% 5% 8% Co-worker or colleague recommendaƟons 92 270 7% 13% 7% 13% Personal sales calls 70 90 7% 23% 4% 16% AssociaƟon website 94 359 5% 8% 9% 11% Cross-sell to non-members who buy your products or 85 238 5% 6% 8% 12% aƩend your conferences AssociaƟon-sponsored events 94 226 3% 2% 5% 8% Employer recommendaƟons 29 150 3% 8% 2% 5% Faculty recommendaƟons 27 128 2% 6% 2% 7% Chapters 34 188 2% 10% 3% 9% ExhibiƟng at other conferences 32 208 1% 3% 4% 5% AdverƟsing in your own publicaƟons 7 226 1% 0% 1% 1% RecommendaƟons from/connecƟons with other 16 202 1% 2% 2% 5% associaƟons Search engines (organic) 19 192 1% 1% 2% 5% Public relaƟons 9 158 1% 3% 1% 3% AssociaƟon-sponsored social networking websites 12 (e.g., Facebook, LinkedIn) 16 226 1% 0% 2% 0% Local events/meeƟngs 29 NA 1% NA 4% NA AccreditaƟon promoƟon 9 82 1% 6% 1% 4% TelemarkeƟng to prospects 18 73 1% 7% 2% 7% AdverƟsing in outside publicaƟons 7 128 -- 2% 1% 3% Radio or TV 4 19 -- -- 1% -- Job board 2 94 -- -- -- -- Search engine ads (paid or pay-per-click) 4 80 -- -- -- -- Paid banners on other websites 0 51 -- -- -- -- Other 15 13 2% 15% 1% -- While the percentages have A significantly higher A significantly higher fallen somewhat, the top two proportion of individual percentage of larger most effective recruitment member associations rank associations (5,000 or more channels are still considered direct mail to prospects as the members) consider direct mail member word-of-mouth most effective membership to be the most effective recommendations and direct recruitment channel, recruitment channel, mail to prospects. compared to trade compared to smaller associations (19% vs. 12%), associations. Small while association executives from associations (up to 1,000 trade associations are significantly members) are significantly more likely to rate personal sales more likely to rate personal calls as most effective for sales calls as the most effective recruitment (16% vs. 2%). recruitment channel. www.marketinggeneral.com
  • 13. What do you believe is the ONE TOP reason members JOIN your organization? 25% Networking wit others in the field N th 24% 22% Ac alized and/or current ccess to specia 14% 4 13% info ormaƟon 23% 2011 (N=641) ) 10% vocacy Adv 11% 2010 (N=400) ) Not asked in 2009 2009 (N=303) ) 7% ConƟnuing educaƟon C 11% 5% 7% Learning best pracƟce in their profession es 9% 8% 8 Discounts on products or me eeƟng 5% 6% urchases pu 9% 5% Prest of belongin to the assoc tige ng ciaƟon Not asked in 2009/2010 5% erences/trade shows Confe Not asked in 2009/2010 4% aƟon or cerƟficaƟon Accredita 4% 2% 3% ociaƟon publicaƟons Asso 6% 3% 2% Adva ancing their po osiƟon 2% 4% 1% % Access to career reso s ources 3% 1% % 1% % Acc to industry benchmark studies cess y 1% % Not asked in 2009 Insurance (Affinity prog e grams) 1% % 13 Not asked in 2009/2010 1% % Access to industry thought le A eaders Not ask in 2009/2010 ked 1% % No sure ot 2% 2011 (N=641) ) Not aske in 2009 ed 2010 (N=400) ) 8% 8 Other 9% 2009 (N=303) ) 10% One-quarter of respondents the main reason members join vs. 10% showing no change, indicate that the top reason their association. This and 6% showing declines). they joined was to network percentage did not shift much There is a downward trend in with others in the field (25%). from the 2010 study (up from the percentage of respondents This represents a continued 13%), but still represents a who believe that discounts on trend upward, suggesting that substantial decline from the products and meeting networking events and result in 2009 (23%). purchases are a strong opportunities are becoming Advocacy is considered a membership driver. increasingly more important strong membership driver by Respondents are also less for members. This is about 10% of association likely to believe that specifically evident for smaller professionals, on par with the continuing education, best associations, those with fewer 2010 findings. This is especially practices, association than 5,000 paid members. true for associations with publications, and career Fourteen percent of renewal rates at or above 80% resources are strong association professionals (14% vs. 5%) and those with an membership motivators. believe access to specialized increase in membership counts and/or current information is over the past five years (13% www.marketinggeneral.com
  • 14. Who is most likely to pay the dues for your membership? 8% 4% Employyer/Company Employyer/Company 51% % Member Member 37% 7 Both (p parƟal reimburrsement) Both (p parƟal reimburrsement) Not sure Not sure 2011 (N N=643) 2011 (N N=643) About half of the respondents associations with renewal rates Looking at industry, indicate that dues are most below 80% are significantly associations more likely to likely paid by a member’s more likely to report dues are have employer/company employer or company (51%), paid by the member, partially financial backing include: and 37% report that the or in full. • Finance/Accounting (68%) member pays the dues However, associations where themselves. Only 8% of • Professional Services (63%) 14 the member pays his or her association professionals • Building/Construction (90%) own dues are more likely to indicate that members have seen membership growth • Manufacturing (68%) typically receive a partial in the past year (53% vs. 46%) reimbursement for their • Travel/Hospitality (74%) and are more likely to have membership. seen membership growth Associations, by industry, most Associations that indicate that in the past five years likely to have members paying an employer/company are (53% vs. 47%). their own dues include: most likely to pay membership Organizational/trade • Philanthropic (52%) dues realized a greater associations are more likely to decrease in renewal rates than • Healthcare (52%) have employer/company associations that indicate that financial support for • Scientific/Engineering (47%) the individual member pays membership dues (80% vs. the dues for themselves (50% 32% for individual membership vs. 38%). associations). Conversely, Associations with renewal rates individual membership at or above 80% are organizations are significantly significantly more likely to more likely to have members report that the who pay their own dues, employer/company pays compared to trade membership dues, while associations (52% vs. 16%). www.marketinggeneral.com
  • 15. Which of the following communication methods do you use to help onboard or engage new members in the association? 71% Email welco ome 72% 62% 67% Mailed welcome kit e 68% 2011 (N N=643) 83% 2010 (N N=402) 51% Membership card or cerƟfic c cate 599% 2009 (N N=337) 58% 30% Volunt elcome phone call teer or staff we 32% % 26% 25% ember introductory email series New-me 27% 14% In-pe erson new-mem mber recepƟon or n 23% 20% orienta aƟon 19% 23% Special discou on purcha unts ases 23% 17% 18% Invite to chapter meet o ting 25% 23% 17% New w-member sur rvey 18% 20% Ne ew-member ne ewsleƩer (Mai or il 15% 20% elect tronic) 1 11% 12% Tele elcome phone call emarkeƟng we 10% 4% New-member giŌ (i.e., giŌ ca N ard, 1 11% 0% calendar, or notepad) 0% 10% Custo new-memb renewal series om ber 1 11% 7% 5% Early or "at birth" renewal " 4% 2% 15 2% 2011 (N N=643) No specia communicat al tion 2% 2% 2010 (N N=402) 5% Ot ther 5% 2009 (N N=337) 8%% The most commonly used from the previous years (59% in those with less than 80% methods for onboarding or 2010 and 58% in 2009). renewal rates are significantly engaging new members are an more likely to use membership The use of in-person new- email welcome (71%) and a cards/certificates (57% vs. 47%) member reception or mailed welcome kit (67%). and/or new-member gifts (15% orientation has increased Neither shows shifts in vs. 9%). slightly from the previous percentage of usage from the studies (23% vs. 20% in 2010 Furthermore, associations 2010 study, but the percentage and 19% in 2009). showing an overall increase in of associations that use an membership over the past five email welcome continues to However, the popularity of years are significantly more remain above the initial 2009 invitations to chapter meetings likely to include a custom new- benchmark (62%), while the and new-member newsletters member renewal series as an percentage of associations has shown a decline from the onboarding tool (12% vs. 6%). using a mailed welcome kit previous findings. remains below the 2009 Associations reporting benchmark (83%). Associations with 80% renewal increases in renewal rates are or higher are significantly more significantly more likely to About half of association likely to include a volunteer or incorporate an email welcome professionals provide a staff welcome phone call as into their engagement tool kit membership card or certificate part of their onboarding (80% vs. 71%). to members (51%), a decline methods (34% vs. 24%), while www.marketinggeneral.com
  • 16. What proportion of your members do you estimate engage with your organization in the following areas EACH YEAR? Percentage of Members Engaged With Each Type of AcƟvity 1% - 6% - 11% - 16% - 21% - 31% - 41% - Over N 0% Mean 5% 10% 15% 20% 30% 40% 50% 50% AƩend your annual 592 7% 15% 14% 10% 13% 14% 8% 8% 12% 22% convenƟon AƩend at least one of your professional development 540 10% 18% 12% 9% 14% 13% 9% 7% 8% 19% meeƟngs Acquire or maintain a cerƟficaƟon with your 480 47% 14% 9% 6% 7% 4% 2% 3% 8% 11% organizaƟon AƩend at least one of your 519 25% 27% 14% 10% 7% 7% 6% 3% 3% 11% webinars ParƟcipate in your public 539 12% 35% 23% 9% 7% 7% 3% 2% 2% 10% social network Purchase a non-dues product (other than 494 29% 25% 16% 10% 5% 5% 4% 1% 4% 10% previously checked) Volunteer with your 581 8% 39% 25% 10% 9% 5% 2% 1% 1% 9% organizaƟon 16 Purchase a book or 505 34% 24% 16% 8% 6% 5% 3% 2% 4% 9% directory ParƟcipate in your private 511 34% 24% 16% 8% 5% 4% 4% 2% 3% 9% social network Purchase a non-dues service (other than 473 36% 27% 13% 8% 5% 3% 2% 2% 4% 9% previously checked) Purchase or maintain insurance through your 479 52% 22% 8% 7% 3% 3% 2% 1% 4% 7% organizaƟon Upgrade their 472 48% 24% 12% 4% 3% 4% 2% 1% 2% 6% membership ParƟcipate in your young 447 57% 25% 9% 4% 3% 1% 0% 0% 0% 3% professional program www.marketinggeneral.com
  • 17. The two most engaging activities (by mean) are Greater than one-third of associations report that the annual conventions (22%) and the up to 5% of their members either volunteer professional development meetings (19%). within the organization (39%) and/or participate in the association’s public social network (35%). 20% of association professionals indicate that more than 40% of their members attend their Findings indicate that associations with more annual convention. than 80% in renewals and those with increases in membership over the past year are significantly Greater than 10% of respondents report that more likely to have over 50% of their members more than 40% of their members attend at least attend the annual conference. one of their association’s professional development meetings and/or acquire or Associations with renewal rates at 80% or higher maintain a certification with the organization. are significantly more likely to have about 11% to 15% of their members volunteer within the More than half of the associations report that organization, compared to associations with none of their members engage with their lower renewals (12% vs. 7%). association through a young professionals program (57%) and/or purchase insurance through the association (52%). 17 www.marketinggeneral.com
  • 18. What is your overall membership renewal rate? 3% 3 Unde 50% er 3% 3 2% % 2011 (N=643) 2010 (N=403) 6% 50% t 59% to 4% 2009 (N=337) 4% 10% 60% t 69% to % 11% 7% 23 3% 70% t 79% to 21% 16% 4% 34 80% t 89% to 40% 37% 18 23 3% 90% or h higher 18% 29% 2% % No sure ot 3% 3 4% www.marketinggeneral.com
  • 19. In the current study, there is an Small associations with up to Association industries most increase in the percentage of 1,000 members are likely to show renewal rates at associations reporting overall significantly more likely to 90% or higher include: renewal rates of 90% or higher. report renewal rates above This percentage shows a 90%, while associations with • Finance/Accounting (41%) substantial rebound from the more than 1,000 paid • Manufacturing (43%) precipitous drop between the members are significantly • Education (23%) 2009 and 2010 study. more likely to indicate renewal rates between 70% to 79%. There is a decrease in the Association industries most percentage of associations Organizational/trade likely to show renewal rates reporting renewal rates associations are significantly between 80% and 89% between 80% to 89%, more likely to report renewal include: suggesting that some of the rates above 90% compared to • Building/Construction (45%) associations reporting an 80%- individual member • Scientific/Engineering (44%) 89% renewal rate in the 2010 associations or those with both research may have been able types of members (36%: trade • Healthcare (37%) to increase their renewal rates vs. 16%: individual; 14%: both). • Professional Services (31%) past 90%. • Philanthropic (30%) There is an increasing trend in the number of associations reporting renewal rates between 70%-79%. 19 www.marketinggeneral.com
  • 20. Renewal Rates by AssociaƟon Member Size Under 50% to 60% to 70% to 80% to 90% or N 50% 59% 69% 79% 89% higher Up to 1,000 190 4% 5% 6% 15% 34% 33% 1,001 to 5,000 179 2% 6% 10% 27% 34% 20% 5,001 to 20,000 159 3% 6% 11% 26% 33% 19% Over 20,000 109 1% 6% 12% 28% 38% 15% Associations with more than 1,000 members are trade/organizational associations are significantly significantly more likely to report renewal rates more likely to show renewal rates above 90%, it between 70% to 79%, compared to the small- is highly probable that the small-sized sized associations. Considering that associations are trade associations. Renewal Rates by Percentage of Last Dues Increase Under 50% to 60% to 70% to 80% to 90% or N 50% 59% 69% 79% 89% higher 1% to 10% 423 2% 6% 9% 23% 34% 25% 11% to 20% 112 2% 5% 10% 29% 34% 20% 21% or more 59 9% 5% 15% 20% 36% 12% 20 Associations whose last dues increase was higher, compared to associations whose dues between 1% and 10% are also significantly increase was more than 10%. more likely to show renewal rates at 90% or www.marketinggeneral.com
  • 21. How many membership renewal CONTACTS (such as mailings, emails, phone calls) do you make before a membership expires with your organization? 2% None 2% 1% 23% 1 to 3 t 22% 21% 44% 4 to 6 t 44% 46% 18% 7 to 9 t 20% 19% 7% 10 to 12 o 6% 7% 1% 13 to 15 o 2% 2% 1% 16 to 18 o 1% 21 1% 2% More than 18 n 2% 1% 2011 ( ( (N=642) 2011 (N=642) 2010 ( ( (N=404) 2010 (N=404) 1% Not sure s 2% 2009 ( ( (N=337) 2009 (N=337) % 3% Overall, there is very little Fewer than 10% of associations Associations with more than change from the previous make 10 or more membership 1,000 members are studies in the number of renewal contacts before a significantly more likely to renewal contacts made before membership expires. make from four to six renewal a membership expires. More contacts compared to those Organizations with 10 or more than 40% of associations make with 1,000 members or fewer. renewal contacts are slightly four to six contacts before a more likely to have renewal membership expires (44%). rates over 80% (11% to 9%). About one-quarter of Organizations with nine or associations only make one to fewer renewal contacts are three contact attempts, while slightly more likely to have close to 20% make seven to renewal rates less than 80% nine contact attempts. (87% to 84%). www.marketinggeneral.com
  • 22. When do you start the renewal effort? 8% Im mmediately aft welcoming ter 6% 10% 2011 (N=6 641) 6% 2010 (N=4 405) Prior to 6 months befo expiraƟon ore 8% 8% 2009 (N=3 336) 7% At 6 months prior to expiraƟon r 5% % 7% 4% 5 months prior to expiraƟon r 3% % 5% 12% 4 months prior to expiraƟon r 14% % 13% 33% 3 3 months prior to expiraƟon r 35% 33% 3 16% 2 months prior to expiraƟon r 15% 13% 22 8% 1 month prior to expiraƟon r 7% 5% % 3% The month of expiraƟon h 3% 4% 2011 (N=6 641) 3% 2010 (N=4 405) Not sure 3% 2009 (N=3 336) 5% % Compared to the two previous studies, there are Associations with renewal rates below 80% are basically no changes with regard to when significantly more likely to begin renewal efforts at associations begin their renewal effort. About one- three months prior to membership expiration (39% third of associations begin their renewal effort three vs. 29%). months prior to membership expiration. Associations with renewal rates at 80% or higher are Just over 10 percent of associations either begin more likely to begin renewal efforts from their renewal effort at four months prior to expiration “immediately after welcoming a member” to the (12%) or two months prior to expiration (16%). six months prior to expiration (24% to 19%). There is a slight upward trend to start renewal Organizational/trade associations are significantly efforts closer to the date of membership expiration more likely to start renewal efforts at two months, (one or two months prior to expiration). compared to individual membership associations (22% vs. 13%: individual), and as noted earlier, trade associations have higher renewal rates compared to individual membership associations. www.marketinggeneral.com
  • 23. When do you end renewal efforts (stop renewal contacts to the member)? 2% At the mon of expiraƟo nth on 1% 2% 2011 (N=639) 1 8% 2010 (N=404) 0 1 month aŌer expiraƟo on 9% 9% 2009 (N=336) 9 13% 2 months aŌer expiraƟo on 14% 13% 24% 3 months aŌer expiraƟo on 23% 21% 7% 4 months aŌer expiraƟo on 7% 13% 3%% 5 months aŌer expiraƟo on 2% Not asked in 2 2009 8% 6 months aŌer expiraƟo on 8% 23 Not asked in 2 2009 11 1% More t than 6 months aŌer expiraƟo on 14% Not asked in 2 2009 22% We do stop contact on't 19% 21% 3% 2011 (N=639) 1 Not sur re 3% % 4% 4 2010 (N=404) 0 2009 (N=336) 9 About one-quarter of association professionals after membership expiration (23% vs. 20%). indicate they end renewal efforts three months Additionally, associations with an increase in after membership expiration (24%). This membership over the past five years are represents a continued upward trend. significantly more likely than associations with five- year declines in membership to report that they 22% of associations indicate they do not stop do not stop contact for renewals (25% vs. 16%). contact for renewal efforts, a slight increase over the previous year’s decline. Associations with dues increases up to 20% are significantly more likely to indicate they do not Directionally, associations with renewal rates at stop contacting lapsed members compared to 80% or higher are more likely to report they do those with dues increases above 20%. not stop contacting members for renewal even www.marketinggeneral.com
  • 24. Which of the following marketing channels do you use for membership renewals? 88% Email markeƟng 88% 83% 82% % Direct mail t 85% 8 91% 52% Staff phone calls e 49% 56% 24 4% TelemarkeƟng 23% % 27% 20% Pee member con er ntacts 24 4% 31% 18% Board phone calls e 15% 28% 15% Magazine cover wraps w Not aske in 2010/2009 ed 14% Chapter phone calls C e 14% 15% 13% Social media con ntacts Not aske in 2010/2009 ed 10% Fax 11% 17% 2011 (N=644) 24 Employer con ntacts 8% 7% 7 2011 (N=644) 2010 (N=405) % 4% 2010 (N=405) 2009 (N=333) 3% Other O 3% 2009 (N=333) 4% % Email marketing and direct mail are still the most Associations reporting increases in overall common marketing channels for membership membership over the past year are significantly renewals, although direct mail shows a more likely to use social media contacts continued drop in usage for renewals. compared to associations showing declines in membership (16% vs. 8%). Staff phone calls are used by more than half of the associations (52%), showing a slight increase Associations with increases in renewals are over the previous year’s drop. significantly more likely to use email compared to associations showing declines in their About 2 in 10 association professionals indicate renewals over the past year (92% vs. 84%). that their organization uses peer member contacts for renewal marketing, although this Individual membership associations are channel has also shown steady declines in usage. significantly more inclined to use email marketing and direct mail compared to trade Associations with an 80% renewal rate or higher associations. However, the trade associations are significantly more likely to use staff phone show a significantly higher percentage of use for calls for renewal marketing (60% vs. 40%) and channels such as staff phone calls, peer member directionally are more likely to also use peer contacts, and board member phone calls. member contacts (22% vs. 18%). www.marketinggeneral.com
  • 25. Do you offer any of the following renewal options? Installm ment renewal payments (mon nthly, 46% erly) quarte 46% 32% MulƟ-year rene M ewals 33% 28% Renewal bil ll-me 28% 2 25% eƟme membership Life Not aske in 2010 ed 24% 2 credit card renewal AutomaƟc annual c 22% 21% % Early-renewal disco ounts 19% 20112011 (N (N N=440) N=440) Au utomaƟc annual Electronic Funds 15% 25 20102010 (N (N N=246) N=246) Transfer (E renewals EFT) 10% Across all renewal options, More than half of associations Associations with 5,000 there is virtually no change with renewal rates over 80% members or fewer are from the results of the 2010 offer an installment renewal significantly more likely to study. payment option, compared to offer an installment renewal associations with less than 80% payment plan and/or a 46% of associations offer an renewal (54% vs. 35%), a renewal bill-me plan, installment renewal payment statistically significant compared to associations with plan and about one-third offer difference. Associations with more than 5,000 members. multi-year renewals (32%). less than 80% renewals are Larger associations (more than Close to one-quarter of significantly more likely to offer 5,000 members) offer the associations offer a renewal multi-year renewals (50% vs. multi-year renewals, lifetime bill-me plan (28%), a lifetime 20%) and/or early-renewal memberships, and/or an membership (25%), and/or an discounts (27% vs. 17%). automatic annual credit card automatic annual credit card renewal at a significantly renewal (24%). higher percentage than the smaller organizations. www.marketinggeneral.com
  • 26. What do you believe is the ONE TOP reason members DO NOT renew membership in your organization? 24 4% Perceived lack of value 36% 20% Employe won't pay or stopped payi er ing 15% 1 25% 2 dues 22% 14 4% Too expensi ive 11% 22% 12% LeŌ the field or indust e try Not asked in 2009/2010 7% Forgot to rene ew 6% 11% 7% Company closed or merg c ged Not asked in 2009/2010 3% Lost job % 4% 3% 1% Switch to compeƟt tor 1% 26 0% 2% ReƟreme ent % 4% % 4% 0% Customer service C 1% 0% 6% 2011 (N==639) 2011 (N= =639) ure Not su 2% % 4% 2010 (N==400) 2010 (N= =400) 9% Oth her 12% 2009 (N==333) 2009 (N= =333) 14% 4 www.marketinggeneral.com
  • 27. Similar to the previous two 12% of respondents indicate Associations with 80% or studies, the top reasons that renewals drop because higher renewals are association professionals members have left the industry significantly more apt to report believe members do not (not due to retirement). that members do not renew renew is a perceived lack of because it is too expensive 7% of association professionals value (24%), the members’ (17% vs. 11%) or the company indicate that people just forget employer is not paying dues merged or closed (10% vs. 1%). to renew or that the company (15%), or the association dues the member was working for Directionally, associations with are too expensive overall has closed or merged with dues increases above 20% are (14%). It is interesting to note, another company. more likely to cite lack of value however, that there has been as a reason members do not at least a 10% drop for lack of Associations with declines in renew (31% vs. 23%: up to 10% value (24% in 2011 vs. 36% in overall membership over the increase; 26%: 11%-20% 2010) and lack of employer past year, and the past five increase). financial support (15% in 2011 years, are significantly more vs. 25% in 2010). The inclined to indicate that lack of Smaller associations (up to percentage of association renewal is due to a perceived 5,000 members) are the only professionals citing expense lack of value. Additionally, associations indicating that has increased slightly from associations reporting a company closings have 11% to 14%, but does not decrease over the past year in affected their membership reach the initial 2009 new members and renewals rolls. This primarily affects benchmark of 22%. are also significantly more trade/organizational likely to cite lack of value as associations. It is important to note that the the main reason why members top three reasons for non- do not renew. renewal can be seen as related; a perceived lack of Additionally, association 27 value can make the professionals indicating that membership dues seem too member acquisition is their expensive, i.e., not worth the primary focus are significantly money. Furthermore, if the more likely to report that lack dues are perceived as too of value is the main reason expensive (to pay on one’s members do not renew (40% own) and the employer will not vs. 22%). pay the dues, the member does not renew. This analysis underscores the fact that perceived value drives the perception of “expensive.” www.marketinggeneral.com
  • 28. After a membership lapses or expires, how long do you continue to contact the member to invite them to reinstate their membership? 11% We don't contact lapsed members 10% 8% 22% % 1 year aft expiraƟon ter 24% 25% 14% 2 years aft expiraƟon ter 1 15% % 13% 9% 2011 (N=641) 3 years aft expiraƟon ter 6% 6% 2010 (N=403) 4% 2009 (N=333) 4 to 5 years aft expiraƟon ter 6% % 5% 1% 6 to 9 years aft expiraƟon ter 1% 1% 1% 10 years or more aft expiraƟon ter 1% 0% tinue indefinitely to contact We cont 30% 2 24% 28 lapsed members 30% % 5% Not sure 7% 7% 2011 (N=641) 3% 2010 (N=403) Other 7% 6% 2009 (N=333) Surprisingly, 11% of associations do not contact Interestingly, associations reporting a decline in lapsed members. This finding continues an renewals over the past year are significantly upward trend for the percentage of associations more likely to continue contacting their lapsed that do not reach out to lapsed members. members indefinitely as well. About one-quarter of associations end contact Not surprisingly, a significantly higher one year after a member’s expiration (22%). This percentage of associations focused on represents a continued declining trend for the acquisition do not contact lapsed members at all number of associations that stop contact after after expiration, compared to those focused on one year. retention (18% vs. 8%). 30% of associations indicate they continue to A significantly higher percentage of individual contact lapsed members indefinitely, an increase member organizations stop contact after two over the previous study, and a return to 2009 years (19% vs. 9%: trade organization), compared benchmark levels. to trade associations, which are significantly more likely to contact lapsed members Directionally, associations with 80% renewal rates indefinitely (38% vs. 23%: individual). or higher are more likely to continue contact with lapsed members indefinitely (32% vs. 27%). www.marketinggeneral.com
  • 29. How often does your association raise membership dues? A majority of association professionals indicate Organizations that say they “never” raise dues they raise dues as needed (58%). 17% raise dues are more likely to have increased membership annually and 4% raise dues every other year. over the past year, to have increased membership over the past five years, and to Almost one in ten associations never raises have had an increase in new members over dues (9%). the past year. While most associations only raise dues as When we asked this same question in a 2007 necessary, associations with at least an 80% survey, 17% said they raise dues annually, renewal rate are significantly more likely 3% said every other year, 65% said as needed, to raise dues annually (21% vs. 11%). 4% said never, and 10% said other. A significantly higher percentage of trade associations raise dues annually compared to individual membership associations (21% vs. 14%). 12% 17% 9% 4% Annually Every other year As needed 29 58% Never Other 2011 (N=644) www.marketinggeneral.com
  • 30. When was the last time your association raised membership dues? One in three associations has raised or plans to Associations that raise dues by up to 10% are raise dues this year (30%). significantly more likely to raise dues annually (35% vs. 22%: 11% to 20% and 21%+). 15% of association professionals indicate they last raised membership dues in 2010 or 2009. Associations that raised dues by over 20% are significantly more likely to indicate they have not Fewer than 10% of associations indicate the last raised dues since 2008, compared to time they raised dues was before 2009. associations that raised dues by up to 10% (17% In line with the findings regarding the frequency vs. 7%). of dues increases, associations with renewal rates When we asked this same question in a 2007 at 80% or higher are also significantly more likely survey, 34% said 2007, 19% said 2006, 15% said to have raised (or will raise) dues this year. 2005, 10% said 2004, 16% said previous to 2004, A significantly higher proportion of trade and 6% said they did not know. associations indicate that they have raised or will raise dues this year compared to individual membership associations (35% vs. 26%). 30 0% 2011 (N=625) 30 15% 1 15% 16% 9% 8% 7% 2011 (o plan or 2010 2 2009 2008 2007 2006 Other year to this year) s 2011 (N=625) www.marketinggeneral.com
  • 31. What was the average percentage of your last membership dues increase across all membership categories? About seven in ten Directionally, associations that When we asked this same associations raised their dues report renewal rates at 80% or question in a 2007 survey, 59% by up to 10%, the last time above are more likely to raise said 1% to 10%, 21% said 11% they raised membership dues dues up to 10%, while those to 20%, 10% said 21% to 30%, (71%). with lower renewal rates tend 4% said over 30%, and 6% said to have higher dues increases. they did not know. Almost 20% raised dues by 11% to 20% and 10% raised dues more than 20%. 2% 2% 6% 19% 1% to 10% 10% 1 1% to 1 11% to 20% o 11% to 20% o 21% to 30% o 21% to 30% o 71% 31% to 40% o 31% to 40% o More tt More than 40% than 40% 2011 (N= =594) 2011 (N= =594) 31 www.marketinggeneral.com
  • 32. What was the percentage change in your entire membership over the past ONE YEAR period? 1% Increase more than 50% ed 5 1% 0% % 2% Incre eased 26% to 5 50% % 2% 1% 9% Incre eased 11% to 2 25% 5% 7% 11% Increased 6% to 10% 1 7% 10% % 26% ncreased 1% to 5% In o 21% 27% 2 16% Re emained the sa ame 14% 16% 19% Declined 1% to 5% D o % 26% 19% 32 11% De eclined 6% to 10% 1 13% 9% 4% Dec clined 11% to 25% 2 8% % 6% 0% Dec clined 26% to 50% 5 1% 1% 0% 2011 (N=642) 2011 (N=642) Decline more than 50% ed 5 0% 0% 2010 (N=405) 2010 (N=405) 2% % 2009 (N=331) Not sure s 3% 2009 (N=331) 5% www.marketinggeneral.com
  • 33. Overall, membership numbers One-quarter of associations About two in ten associations seem to be rebounding, with report that their overall (19%) report declines in the percentage of associations membership has increased 1% membership by 1% to 5%, a reporting increases in to 5% over the past year. This drop from the previous year membership almost doubling, is an increase over the (down from 26%), and back on compared to 2010. In fact, the previous study and represents par with the 2009 benchmark overall percentages of a return to the 2009 percentage. associations that are showing benchmark. There was also a decline in the increases, declines, and no Around 10% of associations percentage of associations change almost mirror those report that their association indicating drops in from the 2009 benchmark (see membership has grown by membership of 6% to 10% table). either 6% to 10% (11%) or 11% (11%, down from 13% in 2010) On average, associations saw to 25% (9%) over the past year. and declines from 11% to 25% total membership grow by 2% Both of these findings are (4%, down from 8% in 2010). this past year. A total of 49% of increases over the 2010 Small associations (up to 1,000 associations saw membership findings and also represent a members) are significantly growth in the past year, while return to the 2009 benchmark more likely to report no 16% reported no change, and numbers. change in membership 34% reported a decline in About 16% of associations numbers over the past year, membership. Only 2% of indicate their membership compared to associations with association professionals were numbers have remained the more members. unaware as to whether their same over the past year, on one year membership Over 60% of individual par with the previous studies. numbers had changed or membership organizations and remained the same, a over 63% of trade continued drop from the organizations reported that 33 previous research. their membership increased or remained the same over the past year. Percentage Change in Entire Membership Over Past ONE Year 2011 2010 2009 Percentage Increased Overall 49% 36% 45% Percentage Unchanged Overall 16% 14% 16% Percentage Declined Overall 34% 48% 35% Not Sure 2% 3% 5% www.marketinggeneral.com
  • 34. Over the past FIVE YEARS, what do you estimate has been the total percentage change in your membership? 6% Increase more than 50% ed 5 7% 3% 2011 (N=639) 7% Incre eased 26% to 5 50% 7% 2010 (N=405) 7% 2009 (N=332) 13% % Incre eased 11% to 2 25% 17% 16% 13% Increased 6% to 10% 1 14% 1 18% 1 12% ncreased 1% to 5% In o 13% 16% 9% Re emained the sa ame 8% 8% 12% Declined 1% to 5% D o 11% 7% 11% De eclined 6% to 10% 1 8% 9% 11% Dec clined 11% to 25% 2 8% 9% 34 Dec clined 26% to 50% 5 2% 3% 2% Percentage Change in EnƟre Membership Over Past FIVE Years 1% 2011 (N=639) 2011 2010 2009 Decline more than 50% ed 5 1% 0% Percentage Increased 2010 (N=405) Overall 51% 57% 60% 4% Percentage Unchanged Overall 2009 (N=332) 9% 8% 8% Not sure s 5% 5% Percentage Declined Overall 38% 30% 27% Not Sure 4% 5% 5% While current findings indicate 51% of associations saw It is interesting to note that that a greater percentage of membership growth over this associations reporting declines associations showed increases five-year period, while 9% over the past year are also in membership (rather than report no change, and 38% more likely to report declines declines) over the past five report a decline in in membership over the past years, there is a continued membership. 4% of association five years, while those decline in the percentage of executives were unsure if their indicating a rise in associations reporting membership numbers had membership over the past year increases in membership shifted over the past five years. are more likely to have had overall, especially those increasing member numbers The percentage of reporting increases up to 25%. for the past five years. associations reporting declines On average, associations saw in membership over the past membership grow by 5% over five years has continued to the past five years. A total of increase. www.marketinggeneral.com
  • 35. In the past year, what was the percentage change in your NEW-member acquisition? 2% % Increase more than 50% ed 5 % 2% 1% 2011 (N=638) 5% 2010 (N=402) Incre eased 26% to 5 50% 2% % 4% 2009 (N=325) 11% Incre eased 11% to 2 25% 10% 7% 14% Increased 6% to 10% 1 9% 12% 25% In ncreased 1% to 5% o 20% 25% 21% 2 Re emained the sa ame 20% % 22% 9% Declined 1% to 5% D o 10% 10% 3% De eclined 6% to 10% 1 6% 5% 3% Percentage Change in NEW-Member Acquisition Dec clined 11% to 25% 2 7% Over Past Year 3% 2011 2010 2009 1% Percentage Increased Overall 57% 42% 49% Dec clined 26% to 50% 5 3% 2% % Percentage Unchanged Overall 21% 20% 22% 35 0% Percentage Declined Overall 16% 26% 21% 2011 (N=638) Decline more than 50% ed 5 1% Not Sure 8% 12% 10% 1% 2010 (N=402) % 8% 2009 (N=325) Not sure s 12% 10% Over 60% of associations report an increase in Change in new-member acquisition seems to be new members, a significant increase over the positively correlated with overall membership previous studies, and a corresponding decrease change for the past year. Associations reporting in the percentage of associations reporting a increases in membership overall are more likely decline in new members. to show increases in new members, while those reporting overall membership declines are more Findings demonstrate a 5% increase in the likely to have a decreasing new member pool. percentage of associations reporting a new member increase of up to 5% and from 6% to 10%. www.marketinggeneral.com
  • 36. In the past year, what was the percentage change in your member RENEWAL rate? 0% Increase more than 50% ed 5 1% 0% 1% 2011 (N=638) Incre eased 26% to 5 50% 1% 1% 2010 (N=403) % 3% 2009 (N=326) Incre eased 11% to 2 25% 1% 2% 7% Increased 6% to 10% 1 5% 4% 21% ncreased 1% to 5% In o 4% 14 15% 37% Re emained the sa ame 27% 39% 17% Declined 1% to 5% D o 29% 18% 5% De eclined 6% to 10% 1 10% 9% 2% Percentage Change in Member RENEWALS Dec clined 11% to 25% 2 5% Over Past Year 3% % 2011 2010 2009 0% Percentage Increased Overall 32% 21% 22% Dec clined 26% to 50% 5 1% Percentage Unchanged Overall 37% 27% 39% 1% 36 Percentage Declined Overall 24% 44% 31% 0% Not Sure 2011 (N=638) 7% 8% 9% Decline more than 50% ed 5 0% 0% 2010 (N=403) 7% 2009 (N=326) Not sure s 8% 9% Overall, there was a significant increase in the There is a correlation between the percentage percentage of associations reporting increases in change in renewals and the overall change in renewal rates compared to the previous studies membership, such that associations reporting (35% vs. 21% in 2010; 22% in 2009). There was increases in membership over the past year also also a substantial increase in the percentage of show increases in renewals, and those associations reporting no change in their demonstrating declines in overall membership renewal rate over the past year, returning to the are more likely to report declines in renewals. 2009 benchmark level. Associations with more than 5,000 members are On average, associations saw an increase in significantly more likely to report increases in renewal rates of about 1% this past year. renewals up to 5%. Directionally, associations with up to 1,000 members are more likely to There was also a substantial drop in the report no change in the percentage of renewals percentage of associations reporting a decline in compared to associations that are larger. renewal rates from the previous studies. www.marketinggeneral.com
  • 37. What is your organization’s single biggest challenge to growing membership? Insufficient sta aff 16% Wea product or s ak service offering gs % 13% Insufficient budge et 12% Lack of strategy or pla an 11% Market saturaƟo on 9% Ina adequate assoc ciaƟon manage ement databas se 8% % Lack of markeƟng experƟs se 7% Inadequate re esearch to und derstand marke et 7% 2011 (N=631) Econom my 3% 3 Othe er 16% 2011 (N=631) Approximately 16% of associations report that Small associations (those with fewer than 1,000 their biggest challenge to growing their members) are significantly more likely to indicate membership is insufficient staff and 12% indicate that their biggest challenges center around an insufficient budget. insufficient staff or lack of a strategy or plan. 37 13% of associations report they have weak product As illustrated by the table below, findings or service offerings and 11% indicate a lack of indicate that some challenges have a more strategy or plan for growing the membership. significant impact on long-term membership growth than other challenges. It appears that Directionally, associations with renewal rates weak product and service offerings, insufficient under 80% are more likely to indicate that budget, and lack of marketing expertise insufficient staff or weak product/service correlate with decreasing membership over time. offerings are their biggest challenge. However, organizations that noted their biggest Associations reporting a decrease in their new challenges as insufficient staff, market saturation, members over the past year are significantly inadequate association management database, more likely to indicate that their biggest and inadequate research were best able to challenge is the association’s weak product or overcome these challenges and produce service offerings. membership growth. Challenges Faced by Five Year Membership Growth Five Year Five Year Five Year Challenge Membership Membership Membership Increased Unchanged Decreased Insufficient staff Weak product or service offering Insufficient budget Lack of strategy or plan Market saturaƟon Inadequate associaƟon management database Lack of markeƟng experƟse Inadequate research www.marketinggeneral.com
  • 38. How does your organization’s leadership define success? Ranked Percentages on DefiniƟons of AssociaƟon Success Rank 1 2 3 4 5 6 7 8 9 10 11 Growth in members counts 26% 16% 19% 9% 8% 8% 5% 5% 2% 3% 3% Growth in net revenue 23% 16% 11% 8% 7% 10% 6% 7% 7% 4% 3% Growth in gross revenue 16% 15% 10% 8% 8% 7% 9% 6% 9% 10% 6% Increase in new members 6% 10% 13% 18% 14% 13% 8% 7% 6% 4% 1% Growth in member parƟcipaƟon 5% 8% 8% 15% 10% 13% 11% 11% 8% 10% 7% Growth in aƩendance 2% 7% 10% 13% 15% 11% 13% 9% 10% 8% 3% Increase in renewal rates 3% 7% 10% 11% 17% 15% 14% 9% 9% 6% 5% Increase in visibility of organizaƟon 5% 8% 9% 8% 8% 11% 16% 20% 11% 4% 5% Increase in visibility of industry or 5% 5% 5% 5% 6% 7% 11% 15% 25% 18% 7% field Increase in advocacy effecƟveness 8% 7% 5% 4% 6% 5% 6% 11% 12% 31% 18% 38 Other 2% 1% 1% -- 1% 1% 1% -- 2% 4% 43% Association professionals rank growth in An increase in the visibility of the organization, member counts (26%), growth in net revenue increase in visibility of industry or field, and an (23%), and growth in gross revenue (16%) as their increase in the effectiveness of advocacy efforts primary definition of association success. tend to not be considered strong definitions of success. An increase in new members (18%) and growth in member participation (15%) are most often Association executives from organizations ranked fourth as definitions of success. showing increases in renewal over the past year, and those associations with more than 1,000 members, are significantly more likely to rank growth in net revenue as the primary definition of success compared to associations with declines in renewals. www.marketinggeneral.com
  • 39. How would you characterize your membership growth goals? 52% 48 8% 45% 37% 33% % 31% 3 17% 16% 1 3% 1 3% 2% 3% Greater priorit on ty Gr reater priority on Equal priority on Not sure acquisiƟon than re etenƟon retenƟon than acqu uisiƟon acquisi iƟon and retennƟon 2011 (N=642) 2011 (N=642) 2010 (N=403) 2 010 (N=403) 2 2009 (N= 325) =325) 2009 (N= = There has been a decline in The percentage of year. Associations reporting a the percentage of associations associations prioritizing membership strategy with an indicating they are focusing on acquisition over retention has equal priority on both 39 retention rather than remained basically unchanged acquisition and retention acquisition since the previous since the 2010 study. showed an average total study (31% vs. 37% in 2010; membership growth of 2% Associations reporting a 33% in 2009). over the past year. membership strategy with a There is a slight increase in the priority on new member Directionally, associations percentage of associations acquisition had an average who raised their dues by up putting equal priority on total membership growth of to 10% are more likely to place acquisition and retention (48% 4% over the past year. a greater priority on retention, vs. 45% in 2010). This is still Associations reporting a while those who raised their lower than the initial 2009 membership strategy with a dues by more than 20% are benchmark finding (52%). priority on retention had an more likely to place an equal average total membership priority on acquisition and growth of 1% over the past retention. www.marketinggeneral.com
  • 40. What do you estimate is your current market penetration? 31% Up to 20% of the available market p e 28% 25% 20% 21% to 40% of the available market % e 22% % 14% 15% 41% to 60% of the available market % e 18% 15% 10% 61% to 80% of the available market % e % 12% 25% 7% More th 80% of the available market han e % 4% 8% 201 (N=636) 11 201 (N=636) 11 16% 201 (N=401) 10 201 (N=401) 10 Not sure 16% 40 % 12% 200 (N=326) 09 200 (N=326) 09 There appears to be an Associations with renewal rates Association industries most increasing trend in the number above 80% are significantly likely to have a market of associations reporting a more likely to have market penetration between 21% and market share of 20% or less. penetration above 40%. 40% include: Two-thirds of association Association industries most • Healthcare (28%) executives report market likely to have a market • Retail (36%) penetration below 60% of the penetration up to 20% include: available market (66%). Manufacturing industry • Philanthropic (53%) Numbers from the current associations are most likely to study are more similar to those • Professional services (41%) have a market penetration of 2010 than 2009. between 61% and 80%. • Educational (37%) • Government (40%) • Travel/Hospitality (37%) www.marketinggeneral.com
  • 41. What type of membership offering best describes your organization? 64% 54% 49% % 36% 28% 2 22% 17% % 13% 14% 2% 1% 1% Individual I Trade/Or rganizaƟonal Bot th Other 2011 (N=643) 6 2010 (N=404) 0 2009 (N=326) About half of the participating About one-third of the A significantly higher associations are individual participating associations are percentage of individual member associations (49%). trade/organizational organizations have renewal However, this represents a associations (36%), rates below 80% (59% vs. 42%), continued drop in survey representing a continued while a significantly higher 41 participation from individual increase in the percentage of percentage of member organizations. trade associations trade/organizational participating in this research. associations have renewal rates above 80% (46% vs. 22%). Comparisons of Percentages of Change in Overall Membership by Study Year Remained the Increased Decreased Same 2011 2010 2011 2010 2011 2010 Individual 52% 43% 16% 12% 32% 45% Trade/OrganizaƟonal 47% 26% 18% 16% 35% 58% Both 44% 35% 14% 17% 42% 48% All organization types show increases in overall membership from the previous study and lower percentages of declines. www.marketinggeneral.com
  • 42. How would you define the scope of your association? 41% % 39% 38 8% 34% 34% 14% 14% 12% 9 9% 7% 5% % 2% 2% 3 3% 2% 3% 2 2% Internat tional NaƟonal Regional (muulƟ- Sta ate Local Other state) 2011 (NN=643) 2011N=643) (N 2010 (N=403) 2010 (N=403) 2009 (N=326) 2009 (N=326) Compared to the previous However, there is a significant There is a continued decline in studies, there is a slight increase in the percentage of the percentage of state and decline in the percentage of regional associations local associations represented international and national participating this year, in the study. associations participating in compared to previous years. the current study. 42 Does your association have chapters? 51% 30% 17% 2% % Yes, chapter Yes, chapter Our organiz zaƟon is a No ership is opƟonal membe n memb bership is chapter manndatory 2011 (N=640) 2011 (N=640) More than half of the participating associations Of the remaining associations, 47% do have indicate they do not have chapter affiliates. chapters, of which 30% have optional membership and 17% have mandatory membership. www.marketinggeneral.com
  • 43. What percentage of your members belongs to a chapter? 21% 2 20% 16% 15% 15% 13 3% Up to 20% of o 21% to 40% of 41% to 60% of % 61% to 80% of More than 80% of e Not sure memmbership membership m membershhip membbership membership 2011 (N=188) 1 1 2011 (N=188) Of the associations in which chapter 20% of associations report that more than 80% membership is optional, about one-third report of their members belong to a chapter affiliate. that up to 40% of their membership belongs to a chapter (36%) and about 28% indicate that between 41% and 80% of their membership belongs to a chapter. 43 www.marketinggeneral.com
  • 44. What membership categories does your association offer? 64% 4 Individual Ba asic 69% Compan or InsƟtuƟonal ny 55% 55% 54% Stude ent 59% 43% % ReƟr red 50% 29% LifeƟme 33% Vend dor 22% 21% Yo oung Professional 18% Not asked in 2010 n 17% MulƟ-ye ear 20% Group (mulƟple individua als) 17% 16% Individu Plus (added benefits to ba ual d asic 15% 44 members ship) 16% 15% yed Unemploy 16% 12% Online 14% 8% Fr reemium (no-c membersh cost hip) 8% 2011 (N=6 636) 12% 2010 (N=4 403) Oth her 10% The most common There has been a decline in Associations offering group membership categories are almost all of the membership memberships are significantly individual basic (64%), categories, most likely more likely to report overall company/institutional (55%), because of the addition of the increases in membership over and student (54%). young professional the past year (23% vs. 12%). membership category, which 18% of associations offer. www.marketinggeneral.com
  • 45. How many paid members are in your association? 30% Up to 1,000 24% 26% 28% 2 1,00 to 5,000 01 26% 30% 25% 5,001 to 20,000 1 26% 22% 2011 (N=642) 1 17% 22% 2010 (N=403) 0 More th 20,000 han 21% 2 2009 (N=325) 9 There is an increase in the percentage of small study, with a corresponding decline in associations (up to 1,000 members and 1,001 to participation for the larger associations. 5,000 members) participating in the current 45 What is your organization’s annual operation budget? $1 mi illion to $4.9 million m 56% $5 mi illion to $9.9 million m 20% $10 mill lion to $19.9 million m % 13% $20 m million to $50 million m 9% Mo than $50 million ore m 3% 2011 (N N=613) =613) 2011 (N N A majority of associations report an operating About 20% of associations have an operating budget of $1 million up to $4.9 million (56%). budget from $5 million to $9.9 million and 25% have an operating budget above $10 million. www.marketinggeneral.com
  • 46. How much are your basic annual membership dues? 7% Under $50 6% 4% 11% $50 to $99 12% 7% 11% $100 to $149 14% 11% 13% $150 to $199 12% 12% 12% $200 to $299 11% 16% 7% $300 to $399 10% 0 13% 6% $400 to $499 5% 5 9% 5% 5 $500 to $749 4% 2011 (N=641 1) 11% 2010 (N=401 1) 2% $750 to $999 3% 2009 (N=324 4) 46 3% 6% $100 and over 00 6% 7% % 20% Other Varies by com r: mpany size 19% 9% Almost three in ten associations indicate their On par from the 2010 study, 20% of associations membership dues are up to $150 annually (29%), report that dues vary by company size. a slight decrease from the 2010 study (32%), but Over 64% of individual membership associations an increase over the 2009 findings (22%). offer their basic annual dues between $50 Approximately one-quarter of associations and $299. report basic annual membership dues between $150 to $299 (25%) and one-quarter have annual dues between $300 and $999 (27%). www.marketinggeneral.com
  • 47. Over the course of a year, excluding staff costs, how much do you spend on the following membership marketing programs? Mean Amount Spent on Membership MarkeƟng Programs by Year 2011 2010 Membership recruitment $92,543 $109,633 Awareness and branding $56,705 $118,789 Member renewals $43,401 $53,485 New-member engagement and onboarding $24,943 $27,520 Membership reinstatement or win-back $14,048 $19,644 The amount of money spent Associations still spend the Individual membership on all programs this year is less least amount on new-member associations spend than in the previous study. engagement and membership significantly more on Additionally, more was spent reinstatement/win-back. membership recruitment than on membership recruitment trade associations (Means: Associations reporting than on awareness and $137,489 vs. $51,370). increases in overall branding. This is an opposite membership over the past year As expected, the amount finding from the previous spend more of their budget on spent on marketing programs research, suggesting that all areas of membership is directly correlated with associations, even while marketing, with the exception the size of the association, spending less overall, put of membership recruitment, in such that larger associations more resources toward new- 47 which they spend less than spend more. member acquisition than associations showing overall toward awareness and membership declines (Means: branding. $77,093 vs. $125,001). Mean Amount Spent on Membership MarkeƟng Programs by Growth Goals AcquisiƟon RetenƟon Equal Membership recruitment $124,698 $71,876 $95,304 Awareness and branding $82,289 $45,777 $54,645 Member renewals $54,344 $50,065 $35,353 New-member engagement and onboarding $33,937 $19,790 $25,134 Membership reinstatement or win-back $16,821 $18,496 $10,087 Associations with growth goals focused on amount they spend on acquisition, awareness, acquisition are also more likely to spend a and new-member engagement is substantially greater amount of money on all marketing higher than what they spend on member programs; however, the difference between the renewals and reinstatement. www.marketinggeneral.com
  • 48. What best describes your personal job function? Membership Membershi 42 % 42% 40% 40% 19% 19% 21% 21% Exe Exe Director Director 18% 18% 17% 17% 3% 3% 4% 4% n 3% 3% 3% 3% s 2% 2% Not asked in 2010 Not asked in 2010 0 % 1% Finance 3% 3% 1% 1% n 2% 2% Computer/ IT Computer/ 1% 1% 1% 1% 0% 0% Convent Convent s 1% 1% 48 Govern Government s 0% 0% 0% 0% Human Resources man Resource 0% 0% 0% 0% L al al 0% 0% 0% 0% s 0% 0% 0% 0% 2011 (N=639) 2011 (N=639) N 9% 9% 2010 (N=399) 2010 (N=399) N Other e Other 10% 10% * Computer and Finance were originally combined in the 2010 study. They have subsequently been separated into individual categories. There are few changes from the 2010 study in As in the previous research, the majority of the breakdown of respondent job functions. participating association professionals are membership executives (42%), marketing executives (19%), or executive directors (18%). www.marketinggeneral.com
  • 49. What best describes your association’s industry? Profes ssional Services s % 24% 13% Healthcare e % 19% 21% EducaƟon n 13% 16% ScienƟf fic/Engineering g 9% 9 10% Manufacturing g 7% 3% Philanthropic c 5% 3% Finance/AccounƟng g 5% 4% Travel/Hospitality y 4% Not asked in 20 010 g/ConstrucƟon Building n 3% % 3% % 2% Government t 2% 49 Retail 2% Not asked in 20 010 Real Estate e 2% Not asked in 20 010 2011 (N=639) Agriculture e 1% 2010 (N=382) Not asked in 20 010 Other r 3% % 26% There is a substantially greater percentage of There was a drop in the percentage of professional service associations participating in healthcare, education, and scientific/engineering the current study, compared to the 2010 associations that participated in the current research. research. There is also an increase in the percentage of Based on “other” responses from last year’s manufacturing, philanthropic, and research, additional categories of associations finance/accounting associations that were included: travel/hospitality, retail, real participated in this research compared to 2010. estate, and agriculture. www.marketinggeneral.com
  • 50. What best describes your association’s industry? Five-Year Percentage Change in Membership by Industry Average Percent Change Industry or Field Served in Membership Over Five Years Healthcare 12.6% Manufacturing 7.2% Professional Services 6.7% Philanthropic 5.3% Real Estate 5.1% Other 2.5% Travel/Hospitality 1.8% Science/Engineering 1.2% EducaƟon 1.1% 50 Finance/AccounƟng 0.1% Building/ConstrucƟon 0.1% Agriculture -0.8% Government -2.4% Retail -12.4% Industry associations that have done well with Some industry associations have basically membership over the past five years include remained unchanged, such as those in healthcare, manufacturing, professional services, finance/accounting, building/construction, and real estate, as all have gained at least 5% in and agriculture. membership. Government and retail-based industry Industry associations that have achieved modest associations have seen the largest losses in gains in membership include travel/hospitality, membership, with retail dropping over 12% science/engineering, and education. over the last five years. www.marketinggeneral.com
  • 51. THE MGI MEMBERSHIP LIFECYCLE TM What it is…how it works. 51 Since Marketing General opened its doors more than The MGI Membership Lifecycle 30 years ago, we have helped hundreds of associations segments the membership experience into 5 successive steps: add and keep tens of thousands of members and earn tens of millions of dollars in dues and non-dues revenue. awareness When prospects first discover you. We have applied our experience to construct the Membership Lifecycle, a five-step marketing model that recruitment When prospects choose to try you. identifies the fundamental building blocks of sustainable membership growth. engagement When new members feel they The Membership Lifecycle begins with AWARENESS. belong with you. Increased awareness facilitates new member renewal RECRUITMENT. ENGAGEMENT strengthens member When lapsing members decide whether to keep you. ties and improves RENEWAL rates. REINSTATEMENT of former members completes the cycle. reinstatement When former members agree to return to you. Used singly, severally, or altogether, Marketing General’s five-step Membership Lifecycle has proven to be an effective model for designing membership growth strategies. To FIND OUT MORE about how the MGI Membership Lifecycle can work for your organization, telephone us and ask to speak with Rick Whelan at 703-706-0350. 209 Madison Street, Third Floor, Alexandria, Virginia 22314 www.marketinggeneral.com info@marketinggeneral.com www.marketinggeneral.com
  • 52. ABOUT MARKETING GENERAL INCORPORATED Marketing General Incorporated is the nation’s largest marketing agency working exclusively with membership associations. During the past 30 years, MGI has helped hundreds of associations and relationship-based organizations increase their membership, improve retention, enhance member engagement, grow revenue, and gain new insights through market research and analysis. Additional information can be found at www.MarketingGeneral.com or by contacting us at 703-739-1000. Tony Rossell Adina W. Wasserman, PHD Erik Schonher Senior Vice President, Director of Market Research, Vice President Marketing General Incorporated Marketing General Incorporated Marketing General Incorporated Tony Rossell is Senior Vice President of Adina W. Wasserman, Ph.D. is Director of Erik Schonher is Vice President of Marketing Marketing General Incorporated in Market Research at Marketing General General Incorporated. He is an experienced Alexandria, VA. A frequent writer and Incorporated. Dr. Wasserman is renowned strategic planner and a seasoned tactician speaker on membership marketing topics, for pioneering the concept of who mixes direct marketing, media he is a contributing author to two books, Indispensability Measurement for placement, branding, creative design, and Membership Marketing (ASAE 2000) and associations. In addition, she has created web marketing into multi-channel Membership Essentials (ASAE 2008). He engagement measurements including the campaigns. Mr. Schonher regularly presents also writes the “Membership Marketing Customer Relationship Index and the at meetings and conferences, including the Blog” and has over 25 years of experience Communications Effectiveness Index. She ASAE Annual Conference and the ASAE in helping organizations grow their earned her undergraduate degree at the Marketing and Membership Conference. membership. University of Michigan, Ann Arbor and He is the author of many professional completed her master's and Ph.D. in social articles and MGI white papers, and hosts Tony can be reached at 703-706-0360 psychology at Florida State University. “Erik’s Experts in Membership Marketing,” or at Tony@MarketingGeneral.com. a blog that examines membership Adina can be reached at 703-706-0373 or marketing best practices, research and at AWasserman@MarketingGeneral.com. analysis, communication theories, and sales techniques. Erik can be reached at 703-706-0358 or at ESchonher@MarketingGeneral.com. 209 Madison Street, Third Floor, Alexandria, Virginia 22314 © 2011 Marketing General Incorporated 703-739-1000 www.marketinggeneral.com