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1 Presentation Title (24 point Arial; color = white)
Section Title (12 point Arial; color = white) Presentation Title (24 point Arial; color = white) Membership Marketing Summit November 17, 2011

2 Agenda Membership Lifecycle Direct Marketing Overview
Sources of Prospective Members Determining the Value Proposition, Offer and Message Marketing Mediums and Best Practices Member Engagement and Renewal Tracking and Budgeting

3 MGI Membership Lifecycle
the five key membership life stages: Awareness Recruitment Engagement Renewal Reinstatement

4 What is Direct Marketing?
Direct marketing is defined as an interactive process of addressable communication that uses one or more advertising media to effect, at any location, a measurable sale, lead, retail purchase, or charitable donation, with this activity analyzed on a database for the development of ongoing mutually beneficial relationships between marketers and customers, prospects, or donors. Along with mass advertising, direct marketing allows organizations to inform potential customers, create brand awareness, or spur immediate purchase behavior. In addition, direct marketing enjoys certain advantages over mass advertising such as measurability, accountability, efficiency, and higher return on investment.1 In Layman’s Terms: Methodically marketing to an individual by addressing his or her particular needs, using a specific call-to-action that produces measurable results

5 An Overview of Marketing Channels
Face-to-face Events Telephone Marketing Channels Search Engine Marketing Radio Online Advertising Direct Mail Social Media

6 How SHRM Recruits and Engages Members
Interactive Marketing Enhance microsite Leverage Presentation maker Word of mouth / Viral campaigns (MGAM, YouTube, Blogs) Leverage conference interactive work (where applicable) > 60 acquisition messages to 670M non-unique recipients > 320+ retention messages to 8.2MM non-unique recipients > 55+ expiration messages to 97M non-unique recipients Direct Mail 101+ lists 5.4MM + 130M pieces unique packages .49% response rate (up from .47%) Join+ Reinstate Drive to landing pages JOIN ENGAGE RENEW Live Events 23 national events (including SHRM’s) – down from 27 in 2009 65 state/chapter events* 5 regional town hall meetings* Chapter meetings* Online Advertising Banner ads on 6+ HR web sites & e-newsletters, Facebook, etc. Acquisition/prospecting SEM with 400+ word buys / mth Drive to microsite Print Advertising 6 publications 4 main message points Drive to microsite * Managed solely by Member Engagement ©SHRM 2011

7 The Hierarchy of Importance
Lists Offer & Call to Action Design & Copy Why is that? 50% of the success or Failure of a marketing program Depends on who you market to

8 1. Awareness Does every HR person in your area know about SHRM and your chapter??? Fact: 6 Touches before you reach level of consciousness You don’t know what is important to them You don’t know where to find them 50% of all advertising is a waste of money – you just don’t know which 50%... – move this between budgeting and tracking slides How many chapters just send out one or letter and expect the propsect to respond?

9 Trends from the 2011 Membership Research
Top Ways Prospects Become Aware of Associations Reported in 2011 Member recommendations 90% Association Website 87% to prospects 71% Promotion to/at your events 65% Co-worker recommendations 64% Direct mail to prospects 62% Association sponsored events 57%

10 Recruitment Membership is a push product that has to be asked for
Different ways to communicate and demonstrate value Testing your way to better results Value not features Replace control package example late on in the presentation with a legislative package that shows timeliness and relevance, rather than using the control which is a list of features. Which did better? This or this? Show two examples and then discuss the results. Look at OE tests. Use the 2009 price tests. Look at full ROI or tests.

11 To Do’s Define Market – Who do you want to talk to? Who is likely to listen? Establish Value Proposition – What is your benefit to them? Identify Offer – What enticement do you want to give? Create Message & Call to Action Develop a Budget – How much can you spend? Determine the Media – How are you going to reach them? Implement Campaign Build a Process to Track Responses – How did we do??? If you aren’t tracking, you aren’t learning

12 Define the Market What are the industries that dominate your locality?
Size of Companies? White Collar? Blue Collar? Pink Collar? Union Shops? Other Defining Characteristics? Seating by Geography so breakout can address commonalities of market Sample BLS data

13 Define the Value Proposition
Definition What is the vision? What is the value? What is the connection? What Business is your chapter in? Education Professional Development Information/Knowledge Government Advocacy Publishing Public Relations Networking Standards & Certification Convention & Exhibition Research Take answers from audience and flip chart at the national and chapter level

14 Determine the Offer The deal you're presenting to the prospect
The offer can be: “Buy one get one Free” Introductory price of $9.95“ The most important thing to an offer is that it be clear and concise. People really like free An offer is best when it has a deadline. Keep it simple: A confused mind always says "no” What SHRM Chapters are offering now Discounted dues (i.e. - $25 off or free first year for SHRM members) Free first meeting, lunch, etc 15 months for the price of 12 Drawing for large prize (iPad, etc.) Promotional Items

15 Create Message and Call-to-Action
Grab their attention Speak personally – from me to you Describe benefits and show the value to the recipient Ask for the join – tell the person what you want them to do Create a sense of urgency P.S. Recap the offer in a P.S. “Respond by <date> and get <benefit>” “Discount good through <date>” “Offer good while supplies last” “First 50 people get …..” Other offer ideas?

16 SHRM Chapter Recruitment Methods
Which of the following do you use for recruitment? Offer free attendance to chapter meetings for new people 26% Get involved in community groups (small business groups, chamber of commerce, etc) 21% Member Get a Member Campaigns 20% Other 15% Local advertising (print, online, radio) 11% SHRM At-large Lists (this option was a write-in as other) 5% Offer free sign-up to chapter newsletters 4% Utilize rented HR lists 1% Give away content in exchange for contact information to build prospect list Source: Chapter Survey, Nov 2010

17 Determine the Media What are the ways to connect with potential members?? It depends on what you want them to do Different methods are better for different actions What is it you want the person to do?? Join Come to a meeting Buy something Pay for a seminar Exchange contact info for valuable content Suggestions from the audience for all communication vehicles Paid and unpaid

18 Most Effective Recruitment Methods
Source: 2011 MGI Benchmarking Study

19 Direct Mail Components
Outside Envelope (OE) Getting them to open the envelope Letter Present the Offer, Make the Personal Ask (I am asking You), Clearly Show the Price Reply Card – the most important component! Affirmation (YES! I want to stay on top of HR changes) Repeat the offer, state the deadline Payment options Reply Envelope Business Reply Envelope (BRE) or Courtesy Reply Envelope (CRE) Make it easy to respond

20 Best Practices – Reply Cards & Landing Page
1. Focus on a single call to action, such as a download or a demo. 2. Content – Give it to them straight. 3. Call to Action – Forms – Don’t to ask too many questions up front. 4. Confirmation/ Thank You 1. Focus on a single call to action, such as a download or a demo. Distractions kill conversions. We are educating our prospects and highlighting pain points in bite size chunks. Warming leads up to better qualify them for Sales. 2. Content – Give it to them straight. Make it clear and to the point, give your prospects a reason to give their information. Setup the problem, talk about the solution (your offer) Deliver the goods (such as a white paper, video demo or webinar registration) Use bullets – much easier to read 3. Call to Action – Forms – Don’t to ask too many questions up front. You don't need everything the first time a prospect engages with you. Remember you’re building a relationship. Collect more information as the prospect continues on the journey with you. 4. Confirmation/ Thank Yous – It's just plain good manners to say thank you. Do you have something else they might be interested in? Make another offer. See if they bite. Taking you up on a second offer could be a sign of a cold lead moving to warm.

21 E-mail Advice Clear call to action at top and bottom
Include deadline for action (shorter deadlines create urgency) Design for text and html versions Personalize/segment “From” line : Limit to characters “Subject” line: Include organization name Limit to 45 characters Avoid spam alerts (Free, !!!, etc) Proofread, spell-check Clean layout Use professional design and/or copywriting when possible Try not to send attachments, as those s are often blocked by recipients’ ISPs. Post files on your website and provide links instead.

22 When possible, use software where you can download reports, such as delivery, open and click through by url. Metrics to track: Open Rates Click-through rates Response/conversion Rates Continually test! Subject line Message content and appearance Date, time sent blasts must have an opt-out Be as specific as possible on the opt-out and make a phone, reply and address available CAN-SPAM compliance – REALLY IMPORTANT!!

23 SHRM Samples

24 Social Media used by Chapters
Which of the following does your chapter utilize? Linked In 36% None. My chapter does not use Social Media sites. 24% Facebook 20% Twitter 8% SHRMConnect Other 2% Youtube Flickr 1% Take quick survey to see what is still valid…. Ideas to start using Youtube and Flickr – flickr: share photos from your chapter events so they are searchable by other professionals in the area, or your members can share them with their friends, colleagues, etc. Youtube- 4th most popular search engine- create a youtube channel and have your chapter president or membership director speak about why local professionals should join your chapter or about the value they’ll receive from upcoming events, etc. Interview current members about why they are members and post the testimonials. This can now be done with phones or flipcams, etc. Source: Chapter Survey, Nov 2010

25 Using LinkedIn Reach new influencers and acquire new members through online recommendations and word of mouth. Keep in touch with influencers who are engaged with your chapter. Build your industry network—online and in person. Grow influence by answering questions in your area of expertise. Network with peers in your industry to establish your chapter and you as HR professionals as thought leaders and influencers. Convince potential customers of your expertise by sharing unique content.

26 Media Planning – FREE!! Announce meetings in local business journals
Press releases to local newspapers

27 Engagement They Joined!! Now what??
Cultivate a one-to-one relationship A planned, methodical process of engaging a new member Remind them of how to access benefits What is important to them? Ask them…then remember what they told you Have new-member “radar” A 2-way conversation Db template in excel/ SHRM 1st year new member process Csi albequerque on-boarding process Know results of the survey Chantal provided

28 Member Engagement Which of the following do you utilize to welcome and engage new SHRM chapter members? welcome 32% Introduction or announcement to new members at chapter meetings 28% Other 12% Mailed welcome letter or member kit 11% Welcome phone call 10% Membership card or certificate 3% Special discounts 1% None New member webcast or online chat Other answers included: New member orientation session or reception Announcement on chapter blog, newsletter, website Board member greeting or other personal contact assigned at first meeting Source: Chapter Survey, Nov 2010

29 Ideas for Welcoming New Members
Welcome to new members Mailed welcome letter or member kit Membership card or certificate Welcome phone call With follow up information by Special discounts Announcement of new members at next chapter meeting New member webcast or online chat Send link to recorded welcome video from Chapter President

30 A Sample SHRM Engagement Plan
JOIN New Member Kit Member Card Invitation to view Member Benefits webcast New Member Cover Tip on HR Magazine Knowledge Center Promo Retention HR Research Promo 1 & 2 Year Benefit Telemarketing Survey (sample) 1 & 2 Year Benefit Knowledge Center promo Research Promo 1 & 2 Year Retention Knowledge Center promo ( ,’postcard) Address /Demo Update

31 Renewals In 2010, 7% of people who did not renew their association membership said their reason for not continuing was “I forgot.” First Year members renew from 45% - 55% Didn’t see the value? Didn’t take advantage of the benefits? No follow-up from SHRM chapter? Renewals are a function of the success of the Engagement process Have you cultivated the member so that their decision to renew is a no-brainer? Talk about most effective channels for renewal and reasons for putting some before others: mail, , phone, fax Add a slide with a sample renewal program showing touch points with dates, channel used and sample creative/script Additional approaches for calendar year renewals vs. anniversary date renewals -

32 Trends from the 2011 Membership Research
Top Reason for Member Non-Renewal Reported in 2011 Perceived Lack of Value 24% Employer Won’t Pay Dues 15% Too Expensive 14% Left the field or industry 12% Forgot Renewal 7%

33 A Sample Renewal Series
Renewal Effort # Communication Channel Date 1 120 days before expire 2 Direct Mail 90 days before expire 3 60 days before expire 4 45 days before expire 5 30 days before expire 6 Day before expire 7 Telephone Call Day of expire 8 15 days after expire 9 60 days after expire 10 Exit Survey 75 days after expire

34 Renewal Series used by Chapters
How many times do you reach out to expiring members with the following methods? 1 2 3 4+ Phone 32.1% 41% 14.1% 12.8% 4.3% 6.8% 28.2% 31.6% 29.1% Mail 57.5% 27.4% 8.2% 4.1% 2.7% Source: Chapter Survey, Nov 2010

35 Reinstatement Expires are your best prospects
How long after a member expires do you continue to let them receive benefits? In general, after the grace period the process is working to reinstate the former member Find out why they let their membership lapse Be sensitive that they were once a member when recruiting them back Two-way communication in between renewal and reinstatement Bring in some statistics from the benchmarking study on how long people contact members after they expire? Give away the economics of membership marketing presentation. Possible ending handout? Add a slide with trends from 2010 benchmarking report….then transition

36 Track the Results – Learn from the Past
Know how you did, so you can do better next time How to track? Include a promotion/source code field in your member database Have promotion code as part of your application process, online and in print Include promotion codes on s or other offers and if possible Have different promotion codes for each distinct audience and offer delivery method Show examples of keycodes and how the tracking can be done, and how decisions can then be made. Talk about: The role of Testing Audiences Offer Timing Media

37 Google Analytics Free tool to track emails, links, webpages, etc
Tutorials can be found on youtube Track your s and links online to see what people are clicking on and going to with G.A. URL builder

38 Google Analytics Data 3 buckets of traffic: Number of Visitors
How long visitors spend on your site Popular and problem pages Search engine keywords being used to find your site Referring website traffic Conversion data (how many visitors are becoming members) Traffic Sources: 3 buckets of traffic: DIRECT – Typed/Bookmarked, Signature, Direct Click REFERRING – From a 3rd party site: Facebook, Twitter, etc SEARCH ENGINES – From Google, Yahoo!, etc.; this includes paid or unpaid

39 Determine the Budget Members are multiple year revenue streams. The economics of membership. Think 2-3 year programs Spending to earn and justifying a budget. Lifetime Value ROI How much can you invest to get a member? What does success look like? Are your expectations reasonable?? Some organizations recruit members at a loss, long term income is the issue Insert the economics of membership

40 Economics of Membership
Steady state analysis Lifetime Value (LTV) Renewal Rate

41 Free Download Download a free copy of the full report at:

42 FREE Marketing Resources
Visit the Direct Marketing Association website for good marketing resources at Privacy information can be found at Sites with good marketing tips include Marketing Profs, – free newsletter MarketingSherpa – free newsletter Institute – free newsletter Smartbrief on Social Media – free newsletter Additional Information is on the VLRC – Membership section

43 Speaker Contact Info QUESTIONS??? Chantal Rotondo Tracy Liaw Teresa Sullivan Jason Gudenius

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