Mgi benchmarking report_2010

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MEMBERSHIP M ARKETING
BENCHMARKING REPORT

RESEARCH CONDUCTED BY:
Marketing General Inc.

UNDER THE SUPERVISION OF:
Adina Wasserman, PhD,
Director of Research, and
Tony Rossell, Senior Vice President

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MEMBERSHIP M ARKETING
BENCHMARKING REPORT

EXECUTIVE SUMMARY
The 2010 Membership Marketing Benchmarking The comparison of practices and
Report marks the second year that Marketing outcomes in membership provides
General Inc. (MGI) has surveyed associations to
strong directional information on
better understand the strategies and tactics they
use to recruit members, engage new members,
what tactics and strategies might be
renew existing members and reinstate former added or dropped to help improve
members. a membership program.
Over 400 associations participated in the survey However, there is an important disclaimer that
and shared their membership practices and their one should be aware of as a result of this report.
opinions on what works best for each stage of the Because an activity or practice has a statistical
2 membership lifecycle. The report includes data correlation with a growing or declining
on what social media are used by associations, membership or better renewal rates, we are not
how prospective members find out about the claiming that any one behavior in and of itself
association, what acquisition marketing channels causes this outcome. There are literally
and offers are used, and how many renewal thousands of variables that impact membership
contacts are sent out. results.
Besides cataloging membership practices, this Nevertheless, if as a marketer one sees that
Benchmarking Report also takes these practices organizations with certain behaviors or practices
and cross-tabulates them with the membership tend to be doing better, one at least will want to
results that associations are experiencing. Are explore the issue and see if there is something
new member counts up or down? Are renewal that can be applied to another organization.
rates above or below average? Has membership
grown in the past year? How about in the past The report includes dozens of key findings that
five years? can provide insights and direction for
membership marketing programs. Here are some
highlights of the key trends that came out of this
year’s research.

www.marketinggeneral.com

MEMBERSHIP GROWTH TRENDS
One benefit of conducting the Membership Clearly, when renewal rates are down and new
Marketing Benchmarking research for a second member input is declining, it will come as no
year is the opportunity to measure trends. surprise that total membership for associations
is also reported to be down from 2009.
The trend that jumps out more than any other
between the 2009 and 2010 study is how However, membership still shows a strong
challenging a year it has been to get and keep resiliency. This year, 57 percent of associations
members. Associations reported that they were reported that membership was up over the past
having trouble acquiring new members, renewing five years and 36 percent said that membership
the members that they had and growing the numbers were up for the past year.
overall membership count compared to last year.
Percentage Change in Entire Membership
The most significant drop-off for membership Over Past FIVE Years
organizations appears to be in renewals. In 2009, 2010 2009
31 percent of responding associations reported Percentage Increased Overall 57% 60%
that renewal rates for their organization had
Percentage Unchanged Overall 8% 8%
decreased in the previous year. In 2010, 44
percent of associations reported a decline in Percentage Declined Overall 30% 27%
renewal rates.

Percentage Change in Member RENEWALS Percentage Change in Entire Membership
Over Past ONE Year Over Past ONE Year
2010 2009 2010 2009
Percentage Increased Overall 21% 22% Percentage Increased Overall 36% 45%

Percentage Unchanged Overall 27% 39% Percentage Unchanged Overall 14% 16%
Percentage Declined Overall 48% 35% 3
Percentage Declined Overall 44% 31%

On the positive side, 62 percent of associations
reported that new member input in 2010 has
either increased or remained the same from the
previous year. But this is still lower than the 71
percent of associations who reported this in 2009.

Percentage Change in NEW Member
Acquisition Over Past ONE Year
2010 2009
Percentage Increased Overall 42% 49%


TRADE ASSOCIATIONS
COMPARED TO INDIVIDUAL
MEMBERSHIP ASSOCIATIONS
In our 2010 Membership Marketing When we cross-tabulated structure with our
Benchmarking study, we asked respondents to membership growth question, we found that
identify their association by what membership 43 percent of individual membership associations
structure they operated under: trade or had experienced membership growth in the
organizational, individual, or both. past year, but only 26 percent of trade
associations saw growth.
In a number of areas this provided useful data.
In particular, it highlighted that trade associations
have had a much tougher membership year than
have individual membership associations.

58%

48%
43% 45%

35%
26%

16% 17%
4 12%

Increased Remained the Same Decreased

Individual (N=215) Organizational/ Trade (N=112) Both (N=65)


MEMBERSHIP GROWTH STRATEGY
If membership is going down in an association, Then we cross-tabulated these answers with
is there anything that the study showed can be reported membership growth rates over
done to turn around the trend? The answer is one year and five years to see which strategy
yes, from what we found; it appears there are correlated with increased membership growth.
numerous practices that can help to grow
Interestingly, those organizations that placed a
membership.
priority on membership acquisition compared
One of the most interesting is that membership to a retention strategy or a balanced strategy
growth may depend on what the membership directionally were more likely to experience
goal is the association has targeted. growth in membership.
In the study this year, we asked participants to
tell us their membership growth strategy. We
offered three options:
1. A greater priority on acquisition than retention.
2. A greater priority on retention than acquisition.
3. An equal priority on acquisition and retention.

Percentage Change in Growth Based on Growth Goals
One Year Change Five Year Change New Member Change Renewal Rate Change
Priority
Over 1% Over 11% Over 1% Over 11% Over 1% Over 11% Over 1% Over 11%
Acquisition 38% 18% 60% 38% 51% 24% 24% 0%
Retention 33% 4% 57% 27% 39% 7% 24% 3% 5
Equally on both 37% 9% 58% 34% 43% 16% 16% 3%


ASSOCIATIONS REPORT BROAD
ARRAY OF ASSOCIATION GOALS
We also sought to gain a better understanding increase net revenue. These goals can conflict
of the overall goals for associations through our since typically membership growth requires
research this year. re-investing net revenue in marketing. It is very
hard to increase volume and profits at the
The goal question arose out of conversations
same time.
the author of the study has had with a number
of associations over the past year where there The responses to the goal question suggest
seems to be a lack of clarity in what the that indeed there is remarkably little consensus
association is attempting to accomplish. In fact, among associations on strategic goals.
stated association goals are often in conflict with
Here is a breakdown on how respondents
each other. An association may set a goal to
ranked various association goals.
significantly grow membership and also to

Ranked Percentages On Definitions Of Association Success

Rank 1 2 3 4 5 6 7 8 9 10 11
Growth in member counts 22% 17% 20% 9% 6% 7% 6% 4% 4% 3% 2%
Growth in revenue 21% 16% 10% 10% 6% 7% 7% 5% 7% 7% 4%
Growth in net revenue 21% 16% 11% 8% 6% 6% 6% 8% 8% 6% 3%
Growth in participation 6% 7% 6% 15% 13% 11% 13% 12% 10% 7% 2%
6
Growth in attendance 4% 7% 9% 15% 17% 15% 11% 9% 4% 8% 2%
Increase in new members 4% 10% 13% 16% 16% 15% 10% 8% 6% 2% 1%
Increase in renewal rates 3% 7% 13% 13% 18% 13% 15% 7% 6% 4% 1%
Increase in organization visibility 5% 6% 11% 10% 8% 10% 15% 19% 11% 4% 2
Increase in visibility for industry 6% 9% 7% 6% 7% 6% 8% 15% 21% 14% 3%
Increase in advocacy
10% 8% 4% 4% 5% 6% 5% 10% 14% 25% 9%
effectiveness
Other 19% 2% 0% 0% 0% 1% 1% 0% 4% 3% 70%


THE VALUE OF MEMBERSHIP EFFECTIVENESS OF SOCIAL MEDIA
One apparent change that has come about as a On a final note, we of course had to add social
result of the challenges faced by membership media questions to this year’s survey.
organizations is an increased focus on the value
Not surprisingly, only 8 percent of respondents
of membership.
said that their association does not use any
Our 2010 Membership Marketing Benchmarking officially-sponsored social media. So the spread
Survey confirms the heightened concern around of social media into associations is nearly
this issue. complete.
For a second year, we asked association What was more interesting was the rankings
executives what was the top reason that their respondents gave various social media
members did not renew. Last year the answers applications. When asked to rank the social
focused on cost with the top two reasons given as media that was most effective in helping their
“the employer would not pay for membership” or association achieve their membership goals
the membership was “too expensive.” the highest-rated applications were Association
Listservs and Association Private Social Networks.
However, for 2010, the top reason given for non-
This in spite of the fact that the most widely
renewal was a “lack of value.” A total of 36
used social media were reported as Facebook,
percent of respondents cited value as the key
Twitter and LinkedIn.
issue, an 80% leap over last year.

Comparison of 2010 to 2009
Reported Reason for Non-Renewal
TOP Reason for Reported in Reported in
Member Non-Renewal 2010 2009
7
Lack of Value 36% 20%
Employer Won’t Pay 25% 22%
Dues WE WANT TO THANK the 407 associations
Too Expensive 11% 22% that took the time to participate in the
Forgot Renewal 6% 11% 2010 Membership Marketing Benchmarking
Lost Job 4% 3% research. You have provided your association
Retirement 4% 4% colleagues with valuable data that will help all
MGI 2010 Membership
Benchmarking Survey Results
of us better serve members and prospective
members, and do our jobs more effectively.
Is there any good news in this change of
There is an ancient proverb that describes
perspective? We think so. When we believe
the impact of our sharing so well. It says,
members lapse because dues are too expensive,
it does not leave much room for fixing the "Without counsel plans fail, but with many
problem. However, if we think members leave advisers they succeed."
for value issues, we can do research and member
interviews to better understand what they are
looking to receive and make changes to
communications or the products themselves to
enhance the value.
Asking how we can deliver more value to our
members is a very productive question when we
put actions behind it to discover the answer.


INTRODUCTION
SURVEY OBJECTIVE What is the margin of error? Since it is virtually
impossible to survey all association executives,
The 2010 Membership Marketing Benchmarking statisticians rely on a random sample of
Report is the second annual edition of this individuals from the “universe” of association
tracking study. The original survey was executives to estimate what the results of the
conducted in March and April, 2009. The purpose entire specified population would be. The results
of this follow-up study is to gain perspective on from the randomly-generated sample can be
the tactics and strategies that organizations use seen as a “snapshot” of the universe. The margin
to recruit new members, renew existing members of error, or standard error, is a statistical term
and reinstate former members, and to used to measure the random fluctuations inherent
understand which tactics and strategies in samples. The smaller the standard error, the
association executives perceive as the most more accurate the measurement of the
effective in reaching their goals. Some questions population, or universe.
from the previous study were removed for
2010, and some new questions were added to This study’s significance level of .05 carries with
this study. it a 95% confidence interval, meaning that if
this study were conducted 100 times, the same
results, plus or minus the margin of error (in
METHODOLOGY this case 5%), would occur 95 out of 100 times.
The confidence interval is established as the
The Second Annual Membership Marketing
likelihood that the same results would be
Benchmarking Study was conducted online and
achieved and that it would not be due to
was launched on February 12, 2010. It was left
chance or random fluctuations.
open to respondents through March 8, 2010.
8
Email invitations were sent to approximately 3,250
association professionals. Additionally, a link was RESPONSE RATE
set up on a blog site allowing people to access
the survey without a formal invitation. More than As indicated above, email invitations were sent
400 association professionals responded to the to 3,250 association professionals, yielding
survey providing data and information regarding responses from 312 individual association
their membership marketing experiences. executives. A link was also set up on a blog
website allowing people access to the survey
To ensure that each association’s responses were who did not receive an email invitation. This
calculated only once, we removed “duplicate” link provided another 117 respondents, bringing
responses from an association. For instance, if the total to 429, and yielding a response rate
more than one person from a single association of 13%. However, after removing the duplicate
completed the survey, the responses of the association responses, findings from a net of
individual most closely associated with the 407 respondents are included in this study.
marketing aspect of the association were used.
Twenty-two duplicate association respondents
were removed from the final results of this study,
leaving the total number of respondents for this
study at 407, with a margin of error of
approximately +/- 5%.


Which types of social media does your organization
officially use?
Facebook 75%

Twitter 66%

LinkedIn 59%

YouTube 35%

Association Listserv 31%

Association Blog 30%

Private Association Social Network 17%

Wikis 13%

Ning/Groupsite 6%

MySpace 4%

Second Life 3%

No social media tools used 8%

Other 6% 2010 (N=405)

The top three social media Results also indicate that Associations offering individual
tools used by associations associations using Facebook, memberships are significantly
9
include Facebook (75%), Twitter and/or their private more likely to use Facebook
Twitter (66%) and LinkedIn association social networking compared to organizational/
(59%). After that, about one are significantly more likely to trade associations (81%:
third of associations use have renewal rates under 80%. individual vs. 65%:
YouTube (35%), their Furthermore, those using organizational/trade).
association listserv (31%) LinkedIn are significantly more
Scientific/engineering
and/or their association blog likely to show a decrease in
associations are more likely to
(30%). their overall membership over
use Facebook than other types
the past year. Associations
Approximately 8% of of associations. LinkedIn is
using Twitter and/or YouTube
associations do not use any predominantly used by
are significantly more likely to
social media tools. While this associations in building/
show declines in new members
represents only a small construction, finance/
over the past year.
percentage of associations, accounting and scientific/
findings indicate that of these Facebook is the most engineering industries.
associations, those with a commonly used social media Twitter is most often used by
renewal rate of 80% or higher outlet. Twitter, YouTube and/or associations in the education
are significantly less likely to the association blog are most and building/construction
use social media tools. often used by associations industries.
with 5,000 members or more.
Associations with fewer than
1,000 members are
significantly less likely to use
any social media outlets.


Of the social media outlets your organization uses, which two
are most effective in achieving your membership goals?

Most Effective Social Media Outlets in Reaching Membership Goals

N % Rank 1 % Rank 2
Association Listserv 125 50% 14%
Private association social network 70 39% 27%
LinkedIn 242 33% 23%
Facebook 307 30% 28%
Association Blog 123 19% 16%
Ning/Groupsite 23 13% 9%
Twitter 267 10% 26%
Wikis 55 9% 13%
YouTube 141 6% 16%
MySpace 15 0% 0%
Second Life 10 0% 0%
Other 25 24% 4%

While Facebook, Twitter and Facebook is ranked most often Facebook is considered most
LinkedIn are the most as the second most effective effective by associations
10 commonly used social media social media tool, with 28% of offering individual
tools, they are not necessarily the users ranking it second. memberships (33%), while
considered the most effective However, for those who offer a LinkedIn is considered most
in reaching membership goals private social network effective by
by association executives. In experience within their organizational/trade
fact, the most effective social member base, this private associations (31%) and those
networking tools are network is ranked as second offering both organizational
considered to be those that most effective for achieving and individual memberships
are basically housed within the membership goals by 27% of (30%).
association itself, namely the its users.
association listserv (50%)
and/or a private association
social network (39%).


How often do you use the following special recruitment
incentives to acquire NEW members?

Special Recruitment Incentives
Never Not often Occasionally Frequently Very often Always
(0%) (1%-20%) (21%-50%) (51%-80%) (81%-99%) (100%)
Conference or convention 2010 24% 12% 11% 10% 13% 32%
discount 2009 29% 11% 13% 9% 10% 28%
Product discount, coupons 2010 41% 15% 15% 10% 7% 12%
or vouchers 2009 44% 16% 17% 8% 6% 8%
Member-referral incentives 2010 44% 18% 13% 8% 4% 14%
(given to member) 2009 44% 23% 11% 8% 6% 9%
2010 50% 14% 13% 8% 7% 8%
Dues discount for first year
2009 38% 11% 13% 7% 11% 20%
Drawings or contests
2010 55% 22% 12% 5% 3% 2%
2009 52% 19% 18% 7% 3% 2%
Free gifts or premiums
2010 57% 20% 11% 7% 4% 2%
2009 54% 16% 15% 10% 4% 3%
Online registration discount
2010 65% 10% 8% 4% 4% 9%
2009 63% 8% 10% 7% 5% 8%
Free trial
2010 68% 18% 6% 3% 2% 4%
2009 66% 18% 8% 4% 2% 2%
2010 69% 9% 6% 4% 3% 9%
Multiple-year dues discount
2009 68% 8% 7% 2% 3% 12%
No risk/dues back guarantee 2010 83% 6% 2% 1% 2% 6%
(refundable dues) 2009 82% 8% 3% 1% 2% 5% 11
2010 78% 5% 5% 2% 2% 9%
Other
2009 41% 14% 0% 17% 14% 14%
No special offers
2010 55% 15% 7% 7% 10% 7%
2009 51% 16% 9% 6% 11% 6%

A majority of associations use An increased number of Notably, of the associations
conference or convention associations indicate they use that offer a first-year dues
discounts, product discounts, conference or convention discount incentive, those with
coupons or vouchers, and/or discounts very often or all the renewal rates of 80% or more
member-referral incentives. time, compared to findings are significantly more likely to
About one-half of the from the 2009 study (45% in offer it less often, only up to
associations indicate they use 2010 vs. 38% in 2009). 20% of the time, suggesting
new member dues discounts, that using this incentive too
The percentage of
a decline from the previous frequently may diminish its
associations that use first-year
study (50% in 2010 vs. 56% in value.
dues discounts more than 80%
2009).
of the time, the second most
used incentive in 2009, has
dropped by about one-half
(15% in 2010 vs. 31% in 2009).


How do prospective members learn about or become aware
of your organization?
Member word-of-mouth recommendations 91%
77%

Association website 88%
85%

Email to prospects 67%
61%

Co-worker/colleague recommendations 67%
54%
66%
Direct mail to prospects 76%

Promotion to/at your own conferences/conventions 66%
65%
Cross-sell to non-members who buy your products or attend your 59%
conferences 52%

Advertising in your own publications 56%
51%

Association-sponsored events 56%
37%
Association-sponsored social networking websites (e.g., Facebook, 56%
LinkedIn) 35%

Exhibiting at other conferences 51%
53%

Recommendations/ connections with other associations 50%
40%

12 Search engines (organic) 47%
34%

Chapters 46%
39%

Public relations 39%
29%

Employer recommendations 37%
30%
32%
Faculty recommendations
35%

Advertising in outside publications 31%
28%

Job board 23%
23%

Personal sales calls 22%
24%

Accreditation promotion 20%
14%

Search engines (paid or pay-per-click) 20%
8%

Telemarketing to prospects 18%
18%

Paid banners on other websites 13%
12%

Radio or TV 5%
7%

Other 3%
2010 (N=405) 3%
2009 (N=599) 0%
Do not know
1%


Similar to the 2009 study, member word-of- Associations relying on paid banners, paid
mouth recommendations (91%) and search engines, advertising in outside
association website (88%) are the two most publications, and/or their own chapters are
common methods by which prospective significantly more likely to show renewal rates
members become aware of an association; less than 80%.
however, the order is switched and member
Association-sponsored events has shown not
word-of-mouth takes the top spot this year and
only to be increasing in its effectiveness for
association website ranks as second. Both of
creating association awareness, but is one of
these methods have shown increases over the
the few methods in which the associations that
previous study.
use it are more likely to show increases in
About two-thirds of association executives overall membership after one year and
indicate that prospective members become significant increases in membership after five
aware of their association through email (67%), years. This is not surprising because an
co-workers or colleagues (67%), direct mail association-sponsored event creates a positive,
(66%) and/or promotion to/at your own proactive and socially-engaging impression
conference/convention (66%). Email upon the attendee.
promotions and co-worker recommendations
Aside from the top two channels from which
appear to be effective in generating
prospective members learn of an association,
association awareness, while direct mail and
findings indicate that trade associations are
promotion to/at own conference seem to have
significantly more likely to rely on personal
lost some effectiveness in building awareness
sales calls and public relations. Associations
over the past year.
offering individual memberships and those
Other methods for generating association offering both individual and organizational
awareness that have gained momentum memberships are significantly more likely to
include: rely on paid search engines, faculty, employer
and/or co-worker recommendations and their 13
• Association-sponsored events
chapters. Associations offering individual and
(56% in 2010 vs. 37% in 2009)
organizational memberships are significantly
• Association-sponsored social more likely to also depend on organic search
networking websites engines, promotion to/at their own
(56% in 2010 vs. 35% in 2009) conferences and advertising in their own
publications.
• Recommendations/connections
with other associations
(50% in 2010 vs. 40% in 2009)
• Search engines (organic)
(47% in 2010 vs. 34% in 2009)
• Chapters
(46% in 2010 vs. 39% in 2009)
• Public relations
(39% in 2010 vs. 29% in 2009)
• Employer recommendations
(37% in 2010 vs. 30% in 2009)
• Search engines (paid or pay-per-click)
(20% in 2010 vs. 8% in 2009)


What are the two most effective membership recruitment
marketing channels you have used?

Most Effective Recruitment Channels
N % Rank 1 % Rank 2
Member word-of-mouth recommendations 371 27% 19%
Direct mail to prospects 268 27% 17%
Personal sales calls 90 23% 16%
Co-worker or colleague recommendations 270 13% 13%
Promotion to/at your own conferences/conventions 266 11% 8%
Email to prospects 272 10% 14%
Chapters 188 10% 9%
Association website 359 8% 11%
Employer recommendations 150 8% 5%
Telemarketing to prospects 73 7% 7%
Cross-sell to non-members who buy your products or attend your
238 6% 12%
conferences
Faculty recommendations 128 6% 7%
Accreditation promotion 82 6% 4%
Exhibiting at other conferences 208 3% 5%
Public relations 158 3% 3%
Association-sponsored events 226 2% 8%
Recommendations/connections with other associations 202 2% 5%
14 Advertising in outside publications 128 2% 3%
Search engines (organic) 192 1% 5%
Advertising in your own publications 226 0% 1%
Association-sponsored social networking websites (e.g., Facebook,
226 0% 0%
LinkedIn)
Job board 94 0% 0%
Search engines (paid or pay-per-click) 80 0% 0%
Paid banners on other websites 51 0% 0%
Radio or TV 19 0% 0%
Other 13 15% 0%

Association professionals indicate These two channels are also
that member word-of-mouth considered the second most
recommendations and direct mail effective, indicating that where
to prospects are the two most one was chosen as most effective,
effective channels for membership the other was chosen as second
marketing, with just over one- most effective.
quarter of those who have used
these channels indicating they are
the most effective.


Those Ranked Most Effective by Year
2010 2009
(N=395) (N=363)
Member word-of-mouth recommendations 27% 32%
Direct mail to prospects 27% 46%
Personal sales calls 23% 11%
Co-worker or colleague recommendations 13% 6%
Promotion to/at your own conferences/conventions 11% 15%
Email to prospects 10% 24%
Chapters 10% 8%

Compared to the 2009 findings, The perceived effectiveness of The perceived effectiveness of
member word-of-mouth personal sales has jumped into co-workers or colleagues has
recommendations and direct the top three, increasing from increased, more than doubling
mail are still the top two most 11% in 2009 to 23% in 2010. its rating of being the most
effective recruitment methods. effective recruitment channel
Additionally, the perceived
However, perceptions as to the (13% in 2010 vs. 6% in 2009).
effectiveness of email to
effectiveness of both of these
prospects, which was in the
marketing channels have
top three in the previous study,
declined. Perceived
has declined from 24% in 2009
effectiveness of word-of-mouth
to 10% in 2010, a drop of
recommendations has dropped
almost 60%.
from 32% to 27% and direct
mail has dropped from 46%
to 27%. 15

Those Ranked Most Effective by Organization Size
Most Effective Second Most Effective
Association Member Size
(N=395) (N=392)
Up to 1,000 Word of Mouth Email
1,001 to 5,000 Word of Mouth Direct Mail
5,001 to 20,000 Direct Mail Word of Mouth
Over 20,000 Direct Mail Word of Mouth

For smaller associations, word- For associations with over and/or member word-of-
of-mouth marketing is the 5,000 members, direct mail is mouth (22%). For
most effective method of new considered the most effective organizational/trade
member recruitment. It is channel for new member associations, as well as those
ranked as second most recruitment. offering both types of
effective for associations with membership, the most
For associations offering
members numbering over effective recruitment method
individual memberships, the
5,000. is member word-of-mouth
most effective recruitment
(27% each).
channel is direct mail (22%)


What do you believe is the ONE TOP reason members
JOIN your organization?

Network with others in the field 24%
22%

Access to specialized information 13%
23%

Continuing education 11%
5%

Advocacy 11%
Not asked in 2009

Learn best practices in their profession 9%
8%

Obtain discounts on products or meeting purchases 6%
9%

Monthly publication(s) 6%
3%

Accreditation 4%
2%

Access to career resources 3%
16 1%

Advance their position 2%
4%

Access to industry benchmark studies 1%
Not asked in 2009

Not sure 2%
Not asked in 2009

2010 (N=400) 9%
Other
2009 (N=303) 10%


In the current study, about one-quarter of Obtaining discounts on products or meeting
association executives feel that members are purchases is no longer one of the top three
most likely to join their organization to network reasons why respondents say members join
with others in the field. their association, having dropped from 9% to
6%. Furthermore, findings indicate that
Only 13% of respondents indicate that
associations having less than 80% renewal rates
members join their association for access to
and/or decreases in their renewal figures are
specialized information. This represents an
significantly more likely to report that members
almost 50% drop from the previous study (13%
join specifically to obtain these discounts.
in 2010 vs. 23% in 2009).
For associations in the healthcare industry,
Just over one in ten association executives
advocacy is more often considered the main
report that members join their association for
reason members join. Associations offering
the continuing education (up from 5% in 2009
organizational/trade memberships are
to 11% in 2010) or advocacy (also 11%).
significantly more likely to report that advocacy
Associations with greater than 80% renewal
is a main reason as well, compared to
rates and overall increases in membership over
associations offering only individual
the past year are significantly more likely to
memberships or both.
indicate that their members join because of
the advocacy aspect of the association. Associations offering individual memberships
are significantly more inclined to indicate that
continuing education and monthly publications
are main drivers for joining, compared to
associations offering other types of
membership.

17


Which of the offers was most effective in recruiting the
most members?

Most Effective Offers for Recruiting New Members
Most effective in getting Most effective in attracting
the most members new members cost-effectively
2010 2009 2010 2009
Conference or convention discount 24% 17% 25% 21%
Dues discount for first year 18% 25% 18% 11%
Product discount, coupons or vouchers 11% 6% 11% 6%
Member-referral incentives (given to member) 11% 8% 11% 8%
Free trial 7% 9% 7% 4%
Online registration discount 7% 4% 7% 3%
Multiple-year dues discount 6% 4% 6% 3%
Free gifts or premiums 5% 7% 5% 5%
Drawings or contests 3% 2% 3% 3%
No risk/dues back guarantee (refundable dues) 1% 1% 1% 3%
Other 1% 6% 1% 2%
18 No special offers 7% 4% 6% 10%

Whereas the first-year dues First-year dues discounts are significantly more likely to
discount was previously seen considered the second most show increases in new
as the most effective effective recruitment strategy members and in renewals
recruitment method for both for recruiting the most over the past year.
getting the most new members and recruiting
Associations relating to
members, conference or members cost-effectively.
professional services,
convention discounts are
Associations with less than education and healthcare are
currently viewed as the most
80% renewal rates are more likely to indicate that
effective method for gaining
significantly more likely to discounts on conferences are
the most members.
indicate their most effective most effective for bringing in
Discounts on recruitment tactic for gaining new members, whereas
conferences/conventions are the most members is through associations in the
also considered the most multiple-year dues discounts finance/accounting and
effective recruitment tactic for (9% vs. 4%). building/construction
attracting members cost- industries report that first-year
Association executives that
effectively. dues discounts are most
indicate a free trial is most
effective for recruiting the
effective in recruiting members
most new members.
and most cost-effective are


What is your overall membership renewal rate?

40%
2010 (N=403) 37%
2009 (N=337)

29%

21%
18%
16%

11%

7%
4% 4% 4%
3% 3%
2%

Under 50% 50% to 59% 60% to 69% 70% to 79% 80% to 89% 90% or higher Not sure

Close to 60% of association Associations indicating a One-quarter of the largest
executives indicate that they renewal rate at 90% or higher associations (those with over
have a renewal rate of 80% or are significantly more likely to 20,000 members) have a
higher. What is noticeable, report overall association renewal rate less than 70%. 19
however, is that the membership increases over
Organizational/trade
percentage of associations the past year.
associations are significantly
whose renewal rate of 90% or
While the majority of more likely to report renewal
higher has dropped
associations report renewal rates of 90% or higher,
dramatically. While this may be
rates between 80% and 90%, compared to associations
a function of the sample this
smaller associations (fewer offering individual or both
year, there are increases in the
than 1,000 members) are types of memberships (31%:
percentage of associations
significantly more likely to organizational/trade vs. 15%:
reporting lower renewal rates
report renewal rates at 90% or individual and 9%: both).
overall.
higher, compared to
associations with more
members.

Renewal Rate by Association Member Size
0% to 70% to 80% to Over
Association Member Size N Not sure
69% 79% 89% 90%
Up to 1,000 97 13% 11% 44% 29% 2%
1,001 to 5,000 106 19% 29% 31% 17% 4%
5,001 to 20,000 105 17% 24% 39% 16% 4%
Over 20,000 88 23% 19% 47% 11% 0%


Which of the following communications methods do you use
to help onboard or engage new members in the association?

72%
Email welcome
62%

68%
Mailed welcome kit
83%

Membership card or 59%
certificate 58%

Volunteer or staff 32%
welcome phone call 26%

New member introductory 27%
email series 14%

25%
Invite to chapter meeting
23%

Special discounts on 23%
purchases 17%

In-person new member 20%
reception 19%

20 New member newsletter 20%
(mail or electronic) 11%

18%
New member survey
20%

Custom new member 11%
renewal series 7%

Telemarketing welcome 10%
phone call 4%

4%
Early or "at-birth" renewal
2%

No special 2%
communication 2%
2010 (N=402)
5%
Other 2009 (N=337)
8%


Seventy-two percent of association executives Organizational/trade associations are
indicate they use an email welcome kit to help significantly more likely to use volunteer or
onboard or engage new members, an increase staff welcome phone calls and in-person
over the previous study (72% in 2010 vs. 62% in member receptions to onboard new members
2009). compared to associations offering individual or
both types of membership.
Approximately two-thirds of respondents
report using mailed welcome kits, a decrease On the other hand, associations that use
from the 2009 study of 15 percentage points telemarketing welcome phone calls, where
(68% in 2010 vs. 83% in 2009). However, there is little personal shared experience, are
findings indicate that associations with greater significantly more likely to have demonstrated
than 80% renewal are significantly more likely declines or no change in membership numbers
to use the mailed welcome kits (75% vs. 58%). over the past year.
About 59% of association executives indicate Interestingly, the smaller associations (those
they provide a membership card or certificate with 5,000 or fewer members) are significantly
to help onboard or engage new members. more likely to engage or onboard new
Results show, however, that associations members using the more personal tactics such
providing these membership documents as volunteer or staff welcome phone calls
are significantly more likely to have had and/or in-person new member receptions.
decreases in overall new member growth
Association executives from
over the past year.
building/construction and manufacturing
Another communication tactic that is indicate their associations are still more likely
correlated with renewal rates of 80% or higher to use mailed welcome kits than an email
is a volunteer or staff welcome phone call. welcome (85% and 92%, respectively) to help
Furthermore, associations showing increases in engage or onboard new members.
overall membership over the past year are 21
significantly more likely to use this “personal
service” in the form of an in-person new
member reception.


How many membership renewal CONTACTS do you make
before a membership expires with your organization (such as
mailings, emails, phone calls)?
46%
44%

2010 (N=404)
22%
21% 20%
2009 (N=337)
19%

7%
6%

3%
22 2% 2% 2% 2% 2%
1% 1% 1% 1%

None 1 to 3 4 to 6 7 to 9 10 to 12 13 to 15 16 to 18 More than Not sure
18

The number of membership professionals report that their renewal rates higher than 80%,
renewal contacts made before association makes fewer than are more likely to attempt
a membership expires with an four (22%: one to three more renewal contacts before
organization has not varied contacts) or greater than six a membership expires. These
much since the previous study. but fewer than ten (20%: seven increases in renewal rates
The majority of association to nine contacts). appear after seven contacts.
executives indicate that their
Directionally, findings
association attempts four to six
demonstrate that associations
contacts before the
with overall increases in
membership expires (44% in
membership over the past
2010 vs. 46% in 2009). About
year, as well as those with
two in ten association


When do you start the renewal effort?

Immediately after 6%
welcoming 10%

Prior to 6 months of 8%
expiration 8%

At 6 months prior to 5%
expiration 7%

5 months prior to 3%
expiration 5%

expiration 13%

expiration 33%

expiration 13%

1 month prior to 7% 23
expiration 5%

The month of 3%
expiration 4%

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

Statistically, there are few One-third of associations still Results indicate that
differences between the begin the renewal efforts at associations with renewal rates
findings from the current study about three months prior to of 80% or higher, as well as
and the previous study with membership expiration, on par those that have shown
regard to when associations with the previous study. membership increases over
begin the renewal effort. the past five years are
Directionally, however, it seems significantly more likely to wait
that associations are a bit less until about two months prior
likely, compared to the 2009 to membership expiration to
findings, to begin the renewal begin their renewal efforts.
effort until four months prior to
membership expiration.


When do you end renewal efforts (stop renewal contacts to
the member)?

1%
At the month of expiration
2%

9%
1 month after expiration
9%

14%
2 months after expiration
13%

23%
21%

7%
13%

Not asked in 2010
More than 4 months after expiration 17%

2%
Not asked in 2009

6 months after expiration 8%
Not asked in 2009
24
14%
More than 6 months after expiration
Not asked in 2009

19%
We don't stop contact
21%

2010 (N=404) 3%
Not sure
2009 (N=336) 4%

Similar to the 2009 findings, Directionally, associations that While organizational/trade
about one-quarter of the boast renewal rates of 80% or associations and those offering
association executives indicate higher are more likely to both types of membership are
they end renewal efforts up to indicate they do not stop significantly more likely to end
two months after a contacting members after they their renewal efforts after three
membership expires (24%). An lapse (16% vs. 20%). months, associations offering
additional one-quarter of Interestingly, association individual memberships are
associations continue their executives indicate they are significantly more inclined not
renewal efforts until three slightly less likely to continue to end until more than six
months after expiration (23%). contact indefinitely with lapsed months after expiration.
members compared to those
from the 2009 study.


Do you offer any of the following renewal options?

46%
2010 (N=246)

33%

28%

22%
19%

10%

Installment renewal Multi-year renewals Renewal bill-me Automatic annual Early-renewal Automatic annual
payments credit card renewal discounts Electronic Funds
(monthly, quarterly) Transfer (EFT)
renewals

Almost one-half of the Associations showing an Individual membership
association executives indicate increase in renewals over the associations are significantly 25
their association offers some past year are significantly more more inclined to offer
sort of installment plan for likely to offer automatic credit automatic annual credit card
renewal payments (i.e., card renewals, compared to renewal than
monthly, quarterly, etc.) (46%). associations with declines in organizational/trade
One-third of the associations renewals (29% vs. 17%). associations (28% vs. 9%),
offer multi-year renewals, while organizational/trade
The smallest associations (up
presumably at a discounted associations are significantly
to 1,000 members) are
price. more likely to offer installment
significantly more likely to offer
payments (67% vs. 41%).
Associations with renewal rates installment renewal payments.
of 80% or higher are The largest associations (over Associations in the education
significantly more likely to offer 20,000 members) are and scientific/engineering
EFT renewals (14% vs. 3%) as significantly more likely to offer industries are most likely to
well as installment payment automatic annual credit card offer multi-year renewals, while
plans (55% vs. 35%). renewal and/or multi-year those associations pertaining
Associations with renewal rates renewals. to professional services or
less than 80% are significantly healthcare are more likely to
more inclined to offer multi- offer payment installments as
year renewals (54% vs. 18%). renewal options.


Which of the following marketing channels do you use for
membership renewals?

88%
Email marketing
83%

85%
Direct mail
91%

49%
Staff phone calls
56%

24%
Peer member contacts
31%

23%
Telemarketing
27%

15%
Board phone calls
28%

Chapter phone calls 14%
15%

11%
Fax 17%
26
7%
Employer contact
4%
2010 (N=405)

Other 3% 2009 (N=333)
4%


Greater than eight in ten association Telemarketing is used significantly more by
executives use email marketing and/or direct those associations reporting new member
mail marketing channels for membership declines as well.
renewals. Interestingly, the percentage of those
Larger associations (those with 5,000 or more
using email marketing has increased in nearly
members) are significantly more likely to utilize
the same proportion as the decline in the
marketing channels such as email marketing,
percentage of respondents using direct mail
direct mail, telemarketing and chapter phone
from the 2009 study, suggesting that email
calls compared to associations with fewer than
marketing may be replacing direct mail
5,000 members. The smaller associations are
marketing for some associations.
significantly more likely to employ the more
Almost one-half of the association “personal” marketing channels such as staff
professionals report using staff phone calls as a and board member phone calls and peer
membership renewal channel. This percentage member contacts.
has also declined slightly since the previous
Trade/organizational associations are
study.
significantly more likely to rely on staff phone
In fact, the proportion of association calls and board phone calls than individual
executives indicating what channels they use member associations for renewals, utilizing the
for renewals has declined for almost every more “personal approach” for their renewal
category, with the exception of email efforts. Individual member associations and
marketing and employer contact. For board those offering both types of membership are
phone calls, the percentage of executives significantly more likely to depend on email
using this channel for renewals has dropped by marketing, telemarketing and chapter phone
almost half. calls for their renewal efforts, compared to
trade/organizational associations.
Personal contact, however, appears to be a key
ingredient for increasing renewals, as 27
associations with renewal rates of 80% or
higher are significantly more likely to use
personal approaches such as staff phone calls
(56% vs. 38%) and/or peer member contacts
(28% vs. 19%). Interestingly, chapter phone
calls do not have the same “personal” effect,
as associations with renewal rates below 80%,
as well as those indicating declines in overall
new member growth, are significantly more
likely to utilize chapter calls as a renewal
marketing channel.


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

Perceived lack of 36%
value 20%

Employer won't pay or 25%
stopped paying dues 22%

11%
Too expensive
22%

6%
Forgot to renew
11%

4%
Retirement
4%

4%
Lost job
3%

1%
Switch to competitor
0%

1%
28 Customer service
0%

2%
Not sure
4%
2010 (N=400)
12% 2009 (N=333)
Other
14%


Unlike in the previous study, price is not the While the forgetfulness aspect is considered a
top driver responsible for non-renewals; in fact, leading cause of non-renewal by only 6% of the
one-third of the association executives indicate association executives, associations with 80%
that they believe members do not renew renewal rates or higher, overall increases in
because they perceive a lack of value in the membership over the past year and/or the past
organization. This is an increase of about 80%. five years, increases in new members and/or
renewals are significantly more likely to
One-quarter of association professionals
indicate that membership lapses are due to
indicate they believe members do not renew
the fact that members simply forgot to renew.
because employers have stopped or will not
pay for membership dues (25%). This Respondents indicating a decline in
represents only a small increase from the 2009 membership after five years are significantly
findings. Individual member associations as more likely than associations showing growth
well as those offering both individual and to indicate that members do not renew
organizational memberships are significantly because of a perceived lack of value (45%:
more likely to report this as the reason for decline after 5 years vs. 32%: growth after 5
members not renewing, compared to years). This may suggest that an association’s
associations offering only organizational/trade value proposition should be enhanced or
memberships (32%: individual and 22%: both reviewed to help retain members.
vs. 11%: organizational/trade).
Trade associations are significantly more likely
Only 11% of association executives indicate to report that members do not renew because
that members do not renew because the dues of a perceived lack of value (50%: trade vs.
are too expensive, a drop of 50% from the 29%: individual and 37%: both).
previous study (11% in 2010 vs. 22% in 2009).
Associations indicating declines in overall
Furthermore, only about 6% feel that members
membership figures and/or member renewals
simply forget to renew, also a decline by
almost 50% (6% in 2010 vs. 11% in 2009).
are significantly more likely to believe 29
members do not renew because their
employers will not pay or have stopped paying
the dues.


How long after a membership expires do you continue to
“grace” members with services?

Services stop at 22%
membership expiration 20%

19%
1 month
16%

16%
2 months
14%

27%
3 months
25%

5%
4 months
11%

8%
More than 4 months
10%
30
Services continue 1%
indefinitely 0%

2% 2010 (N=404)
Not sure
4% 2009 (N=334)


Twenty-two percent of association Furthermore, associations reporting
professionals indicate that services stop when membership increases over the past year
the membership expires, on par with findings and/or the past five years are significantly more
from 2009 (22% in 2010 vs. 20% in 2009). likely to have extended a grace period for
services of at least four months to lapsed
One-third of association executives report that
members.
services stop within two months of
membership expiration (35%). This represents The largest associations (over 20,000 members)
a somewhat higher percentage of associations are significantly more inclined to terminate all
compared to the previous study, indicating that services at the point of membership expiration,
associations are not “gracing” former while the smaller associations (up to 5,000
members with services for as long as they may members) are significantly more likely to
have in the past. extend services for more than four months to
lapsed members.
About one-quarter of respondents indicate
their associations stop all member services Associations offering organizational/trade
three months after the membership has memberships are significantly more likely to
expired. report they provide services for more than four
months, compared to individual membership
Only 14% continue to “grace” members with
associations or those offering both
services for four months or longer, down from
membership types (14%: trade vs. 6%:
21% in 2009.
individual and 4%: both).
Findings indicate that associations with
renewal rates of 80% or more are more likely to
“grace” their lapsed members with services for
at least four months after their membership
has expired. Associations with renewal rates
31
under 80% are significantly more likely to stop
services at the point of membership expiration.


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

We don't contact lapsed 10%
members 8%

24%
1 year after expiration
25%

15%
2 years after expiration
13%

6%
3 years after expiration
6%

6%
4 to 5 years after expiration
5%

1%
6 to 9 years after expiration
1%
32

10 years or more after 1%
expiration 0%

We continue indefinitely to 24%
contact lapsed members 30%

7%
Not sure
7%

2010 (N=403)
7%
Other 2009 (N=333)
6%


Overall, the percentages from the 2010 Not surprisingly, associations that do not
findings are very similar to those of 2009 with contact lapsed members to reinstate
regard to how long associations continue to membership are significantly more likely to
contact lapsed members to reinstate their indicate the association goals are focused
membership. The marked difference is that a more on acquiring new members than on
smaller percentage of associations indicate retaining current members (19% vs. 9%).
they continue indefinitely to contact lapsed
The largest associations (over 20,000 members)
members, dropping from 30% in 2009 to 24%
are significantly more likely to stop contact
in 2010.
with lapsed members after 2 years, whereas
Ten percent of association executives indicate the smallest associations (under 1,000
they do not contact lapsed members to invite members) are significantly more inclined to
them to reinstate their membership, a slight maintain contact with lapsed members
increase over the 2009 findings. indefinitely.
About one-quarter of association professionals Trade/organizational membership associations
report that they contact lapsed members for are significantly more likely to continue to
up to one year after membership expiration to contact lapsed members indefinitely (39%:
reinstate membership, on par with findings trade vs. 19%: individual and 18%: both).
from the 2009 study.
Findings illustrate those associations with
renewal rates of 80% or higher are significantly
more likely to continue indefinitely to contact
lapsed members (28% vs. 20%). This finding
replicates the 2009 results.

33


What was the percentage change in your entire membership
over the past ONE YEAR period?
Increased by more than 1%
50% 2010 (N=405)
0%
2009 (N=331)
2%
Increased 26% to 50%
1%

5%
7%

7%
Increased 6% to 10%
10%

21%
Increased 1% to 5%
27%

Remained the same 14%
16%

26%
Declined by 1% to 5%
19%

13%
9%

8%
6%
34 1%
1%
Percentage Change in Entire Membership
Declined by more than 0% Over Past ONE Year
50% 0% 2010 2009
Percentage Increased Overall 36% 45%
Not sure 3%
5% Percentage Unchanged Overall 14% 16%

One-third of associations Associations did not Associations offering individual
report increases in overall total experience radical changes in memberships were more likely
membership over the past year membership numbers over the to report increases in
(36%), a drop from 45% in past year. The largest membership over the past year
2009. Additionally, while only percentage of increases or (42%: individual vs. 25%: trade
one-third of associations declines in membership and 34%: both).
reported overall declines in ranged from 1% to 5% of the
Fewer associations reported
membership (35%) in 2009, previous year’s total.
that they were unsure of their
current findings indicate that
On par with the 2009 findings, change in membership
close to half of the
just over 10% of associations numbers (3% in 2010 vs. 5% in
associations experienced
reported no change in overall 2009).
member loss over the past
membership numbers (14% in
year (48%).
2010 vs. 16% in 2009).


Over the past FIVE YEAR period, what do you estimate has
been the total percentage change in your membership?
Increased by more than 7% 2010 (N=405)
50% 3% 2009 (N=332)

7%
7%

17%
16%

14%
Increased 6% to 10%
18%

13%
Increased 1% to 5%
16%

8%
Remained the same
8%

11%
7%

8%
9%

8%
9%
35
2%
Declined by 26% to 50% Percentage Change in Entire Membership
2%
Over Past FIVE Years
Declined by more than 1% 2010 2009
50% 0% Percentage Increased Overall 57% 60%

Not sure
5% Percentage Unchanged Overall 8% 8%
5%

Compared to the 2009 About one-quarter of Eight percent of associations
numbers, the change in associations have grown by up (both in 2010 and in 2009)
membership over the past five to 10% (27%), while about 19% report that their membership
years varies little, as about six of associations have declined numbers remained
in ten associations report by up to 10%. A greater unchanged.
overall increases in percentage of small declines
membership (57% in 2010 vs. (up to 5%) occurred in 2010
60% in 2009) and about three compared to 2009, while a
in ten report membership smaller percentage of
declines (30% in 2010 vs. 27% increases (up to 10%) occurred
in 2009). in 2010 compared to 2009.


In the past year, what was the percentage change in your
NEW member acquisition?
50% 1% 2009 (N=325)

2%
4%

10%
7%

9%
Increased 6% to 10%
12%

20%
Increased 1% to 5%
25%

20%
Remained the same
22%

10%
10%

6%
5%

25% 3%

36 Declined by 26% to 3%
50% 2%
Percentage Change in NEW Member
Declined by more than 1% Acquisition Over Past ONE Year
50% 1%
2010 2009
Not sure
12% Percentage Increased Overall 42% 49%
10%

Forty-two percent of About 30% of associations Just over 10% of associations
associations report increases in indicate their new members are unsure of the percentage
new members, a slight have increased by up to 10%, change in new members.
decrease from the 2009 study. compared to 16% of
Associations with individual
Conversely, a slightly higher associations reporting declines
memberships are slightly more
percentage of associations are in membership of the same
likely to report increases in
reporting declines in new proportion.
new members compared to
members over the past year
Twenty percent of associations trade/organizational
compared to findings from
indicate that new member associations or associations
2009.
figures have not changed over offering both types of
the past year. membership (45%: individual
vs. 40%: trade and 38%: both).


In the past year, what was the percentage change in
your RENEWAL rate?
50% 0% 2009 (N=326)

1%
1%

1%
2%

5%
Increased 6% to 10%
4%

14%
Increased 1% to 5%
15%

27%
Remained the same
39%

Declined by 1% to 5% 29%
18%

10%
9%

5%
3%

1% 37
1%
Percentage Change in Member RENEWALS
Declined by more than 0% Over Past ONE Year
50% 0% 2010 2009
8% Percentage Increased Overall 21% 22%
Not sure
9%

Results indicate that the executives report no change in reporting declines of up to 5%
percentage of association the percentage of renewals in renewals over the past year
executives reporting renewals over the past year, a 31% (29% in 2010 vs. 18% in 2009).
over the past year has basically downward difference from the
Trade/organizational
remained the same as previous study (27% in 2010 vs.
associations are less likely to
reported in the previous study 39% in 2009).
report increases in renewal
(21% in 2010 vs. 22% in 2009).
Overall, 44% of associations rates, however, they are more
The largest differences are report declines in renewals, an likely to enjoy renewal rates
seen in the percentage of increase from 31% in the 2009 over 90%, as shown previously.
associations claiming no study. There appears to be a
change in renewals; one- 40% increase in the
quarter of association percentage of associations


How does your organization’s leadership define success?

Ranked Percentages On Definitions Of Association Success

Rank 1 2 3 4 5 6 7 8 9 10 11
Growth in member counts 22% 17% 20% 9% 6% 7% 6% 4% 4% 3% 2%
Growth in revenue 21% 16% 10% 10% 6% 7% 7% 5% 7% 7% 4%
Growth in net revenue 21% 16% 11% 8% 6% 6% 6% 8% 8% 6% 3%
Growth in participation 6% 7% 6% 15% 13% 11% 13% 12% 10% 7% 2%
Growth in attendance 4% 7% 9% 15% 17% 15% 11% 9% 4% 8% 2%
Increase in new members 4% 10% 13% 16% 16% 15% 10% 8% 6% 2% 1%
Increase in renewal rates 3% 7% 13% 13% 18% 13% 15% 7% 6% 4% 1%
Increase in organization visibility 5% 6% 11% 10% 8% 10% 15% 19% 11% 4% 2
Increase in visibility for industry 6% 9% 7% 6% 7% 6% 8% 15% 21% 14% 3%
Increase in advocacy
10% 8% 4% 4% 5% 6% 5% 10% 14% 25% 9%
effectiveness
Other 19% 2% 0% 0% 0% 1% 1% 0% 4% 3% 70%

38
Association executives are These results suggest that the Although only about 10% of
most likely to rank growth in tangible and operationally associations ranked an
member counts (22%), revenue defined definitions are most increase in the effectiveness
growth (21%), and net revenue often used to define, calculate of their advocacy as their top
growth (21%) as their primary and track the success of definition of success, these
definition of success. membership marketing efforts. associations were significantly
more likely to indicate a
Definitions such as growth in Associations that rank growth
renewal rate at 80% or higher
participation and increase in in member counts as their top
(13% vs. 5%).
new members are most often definition of success are
ranked fourth behind the top significantly more likely to have While individual membership
three listed above (15% and shown increases in renewal associations and those offering
16%, respectively). over the past year (33% vs. both individual and
21%). Associations that rank organizational membership are
Increased visibility, either for
growth in net revenue as their significantly more likely to rank
the association itself or the
second definition of success growth in net revenue as the
profession (industry), an
are also significantly more top definition of success, trade
increase in advocacy
likely to report increases in organizations are more likely
effectiveness or other
renewals over the past year to consider growth in member
definitions are most often
(26% vs. 15%). counts as their primary
ranked last in the pecking
definition.
order for definitions of
success.


How would you characterize your membership growth goals?

52%
2010 (N=403)
45%
2009 (N=325)
37%
33%

16%
13%

2% 3%

Greater priority on Greater priority on Equal priority on Not sure
acquisition than on retention than on acquisition and retention
retention acquisition

The majority of association Similarly, there has been a Associations with renewal rates
executives indicate that their slight increase in the below 80% are significantly
association places an equal percentage of association more likely to indicate their
emphasis on acquisition of professionals indicating that goals are focused more on
new members and retention their organization places acquisition, compared to
of current members; however, greater priority either on those with higher renewal
compared to the previous retention (37% in 2010 vs. 33% rates (21% vs. 12%). 39
study, this figure has declined in 2009) or on acquisition (16%
somewhat (45% in 2010 vs. in 2010 vs. 13% in 2009).
52% in 2009).

Percentage Change in Growth Based on Growth Goals
One Year Change Five Year Change New Member Change Renewal Rate Change
Priority
Over 1% Over 11% Over 1% Over 11% Over 1% Over 11% Over 1% Over 11%
Acquisition 38% 18% 60% 38% 51% 24% 24% 0%
Retention 33% 4% 57% 27% 39% 7% 24% 3%
Equally on both 37% 9% 58% 34% 43% 16% 16% 3%

Interestingly, findings indicate acquisition vs. 4%: retention and Associations in most industries
a more marked difference in 9%: both), the five year change in indicate they focus equally
membership growth of over membership (38%: acquisition vs. on acquisition and retention.
11% for those focused on 27%: retention and 34%: both), However, associations in
acquisition than on retention and the change in new members finance/accounting and
or on a balanced strategy (24%: acquisition vs. 7%: retention building/construction report
when examining the one year and 16%: both). they focus more on retention
change in membership (18%: for membership growth.


What do you estimate is your current market penetration?

Up to 20% of the available 28%
membership 25%

21% to 40% of the 22%
available membership 14%

41% to 60% of the 18%

61% to 80% of the 12%

More than 80% of the 4%

40
16%
Not sure 2010 (N=401)
12% 2009 (N=326)

Compared to the previous Results illustrate that there has below 80% are significantly
study, it appears as though the been a marked decline in the more apt to have a market
market penetration for percentage of associations penetration of up to 20% of
participating associations has that have a market penetration the available market, or be
declined. A greater above 60% (18% in 2010 vs. unsure of their market
percentage of association 33% in 2009). penetration percentage.
executives indicate that their
Associations with renewal rates Trade associations are
market penetration is below
above 80% are significantly significantly more likely to
61% of the available market
more likely to indicate their report current market
(68% in 2010 vs. 54% in 2009).
market penetration is above penetration rates of more than
40% of the available members. 80% of the available market.
Associations with renewal rates


What type of membership offering best describes your
organization?
64%

54%
2010 (N=404)
2009 (N=326)

28%
22%
17%
14%

1% 1%

Individual Organizational/Trade Both Other

About two-thirds of the association There was a slight increase in the
executives indicate their percentage of organizational/trade
organization offers individual associations, as well as associations
memberships, a decline from the that offer both types of
previous study (54% in 2010 vs. membership compared to the
64% in 2009). previous year.

41
58%

48%
43% 45%

35%
26%

16% 17%
12%

Increased Remained the Same Decreased

Individual (N=215) Organizational/ Trade (N=112) Both (N=65)

Organizational/trade associations Associations with renewal rates of
are significantly more likely to 80% or higher are significantly
indicate a decline in overall more likely to be organizational or
membership over the past year, trade associations, and those with
even with higher renewal rates, lower renewal rates are significantly
while individual membership more likely to be individual
associations are significantly more membership organizations.
likely to report overall membership
growth even though their renewal
rates tend to be lower.


How would you define the scope of your association?

41%
40%

34% 34% 2010 (N=403)
2009 (N=326)

14% 14%

9%

5%
3%
2% 2% 2%

International National Regional (Multi- State Local Other
state)

Compared to the previous study, Conversely, there has been an
there has been an increase in the equal decline in the percentage of
42 percentage of international (41% in state (9% in 2010 vs. 14% in 2009)
2010 vs. 34% in 2009) and national and local (5% in 2010 vs. 14% in
(40% in 2010 vs. 34% in 2009) 2009) associations represented.
associations included in this study.


What membership categories does your association offer?

Individual Basic 69%

Student 59%

Company or institution 55%

Retired 50%

Lifetime 33%

Vendor 21%

Multi-year 20%

Individual Plus (added benefits to basic membership) 16%

Group 16%

Unemployed 16%

Online 14%

43
Freemium (no-cost membership) 8%

Other 10% 2010 (N=403)

Almost seven in ten About one-third of Only 16% of associations in
associations offer individual associations offer a lifetime this study offer a group
basic membership (69%) and membership (33%) and membership. Results illustrate
more than half provide student approximately two in ten that associations
(59%), company or institution provide a vendor membership demonstrating an overall
(55%) and/or retired member (21%) and/or a multi-year increase in membership over
categories (50%). membership option (20%). the past five years are
significantly more likely to
offer a group membership,
compared to associations
showing declines in
membership (20% vs. 11%).


How many paid members are in your association?

3% 2010 (N=403)
1 to 100
4%
2009 (N=325)

3%
101 to 250
3%

9%
251 to 500
7%

10%
501 to 1,000
12%

26%
1,001 to 5,000
30%

12%
5,001 to 10,000
13%

15%
10,001 to 20,000
9%

5%
20,001 to 30,000
5%

5%
30,001 to 40,000
6%
44 2%
40,001 to 50,000
2%
Number of Paid Members
5% 2010 2009
50,001 to 100,000
4%
Up to 1,000 24% 26%
6% 1,001 to 5,000 26% 30%
More than 100,000
4%
5,001 to 20,000 26% 22%
1%
Not sure
1% More than 20,000 22% 21%

The sizes of the associations in this The fluctuations compared to the
study seem to be more evenly previous study are minimal, with
distributed. One-quarter of the a slightly lower percentage of
associations report up to 1,000 associations reporting 1,001 to
paid members (24%), 1,001 up to 5,000 members (26% in 2010 vs.
5,000 members (26%), 5,001 up to 30% in 2009) and a slightly higher
20,000 members (26%) or more percentage reporting between
than 20,000 members (22%). 5,001 and 20,000 members
(26% in 2010 vs. 22% in 2009).


How much are your basic annual membership dues?

6% 2010 (N=401)
Under $50
4% 2009 (N=324)

12%
$50 to $99
7%

14%
$100 to $149
11%

12%
$150 to $199
12%

11%
$200 to $299
16%

10%
$300 to $399
13%

5%
$400 to $499
9%

4%
$500 to $749
11%
45
3%
$750 to $999
3%

6%
$1,000 and over
7%

Varies by company 19%
size 9%

About one-third of the study (39% in 2010 vs. 59% in Not surprisingly, trade
associations indicate their 2009). This also represents associations are significantly
annual dues are up to $150 about a 34% decline from the more likely to have dues rates
(32%). This represents a benchmark study. that are $750 or higher, or to
34% increase over the 2009 have dues that vary by the size
Interestingly, a much greater
study (22%). of the member company.
percentage of associations
The percentage of associations indicate that their dues
in this study charging more structure varies by company
than $200 in annual fees has size (19% in 2010 vs. 9%
declined from the previous in 2009).


Over the course of a year, and excluding staff costs, how
much do you spend on the following marketing programs?

Awareness and branding $118,789

Membership recruitment $109,633

Member renewals $53,485

New member engagement
$27,520
and onboarding

Membership reinstatement
$19,644 Means
or win-back

46 On average, over $100,000 is Associations spend, on Not surprisingly, as association
spent on awareness and average, the least amount on size grows, so does the
branding and membership member engagement and amount spent on various
recruitment marketing plans membership reinstatement. member marketing
(Means = $118,789 and Findings indicate, however, campaigns.
$109,633, respectively). that associations that showed
Individual membership
overall member increases over
About half of the amount associations spend
the past five years were
spent on membership significantly more on every
significantly more likely to
recruitment is used for type of marketing program
spend more on new member
member renewal campaigns compared to organizational/
engagement, compared to
(Mean = $53,485). trade associations.
associations demonstrating a
five year decline in membership
(Means = $31,456 vs. $18,058).


What best describes your job function?

Membership 40%

Marketing 21%

Executive Director 17%

Communications 4%

Administration/finance 3%

Education 2% Forty percent of the respondents in
1%
this study indicate their job function
Computer/IT
includes Membership responsibilities.
Conventions/Meetings 1% About 21% of the association
executives are in Marketing and
Government Relations 0%
17% report they are the Executive
Human Resources 0% Director for their association.

Legal 0%

Publications 0%
2010 (N=399)

Other 10%

47
What best describes your association’s industry?

Healthcare 21%

Education 16%

Professional Services 13%

Scientific/Engineering 10% The industries most represented
in this study include: healthcare
Finance/Accounting 4%
(21%), education (16%),
Building/Construction 3% professional services (13%) and
scientific/engineering (10%).
Philanthropic 3%

Manufacturing 3% 2010 (N=382)

Government 2%

Other 26%


ABOUT MARKETING GENERAL INC.
Marketing General Inc. is the nation’s largest marketing agency working exclusively
with membership associations. During the past 30 years, MGI has helped hundreds
of associations increase their membership, improve retention, enhance member
engagement, grow revenue, and gain new insights through member and 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
Senior Vice President, Director of Market Research,
Marketing General Inc. Marketing General Inc.
Tony Rossell is Senior Vice President of Marketing Adina W. Wasserman, Ph.D. is Director of Market
General Inc. in Alexandria, Virginia. A frequent Research at Marketing General Inc. Dr. Wasserman
writer and speaker on marketing topics, he is a is renowned for pioneering the concept of
contributing author to two books, Membership Indispensability Measurement for associations. In
Marketing (ASAE 2000) and Membership addition, she has created engagement measurements
Essentials (ASAE 2008). He has over 25 years of including the Customer Relationship Index and the
experience in helping organizations grow their Communications Effectiveness Index. She earned her
membership. undergraduate degree at the University of Michigan,
Ann Arbor. She completed her master's and Ph.D.
Tony can be reached at 703-706-0360 or at
in social psychology at Florida State University.
Tony@marketinggeneral.com.
Adina can be reached at 703-706-0373 or at
AWasserman@marketinggeneral.com.

209 Madison Street, Third Floor, Alexandria, Virginia 22314
© 2010 Marketing General Incorporated

703-739-1000 www.marketinggeneral.com

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