1. MARKETING 101: MEMBER RECRUITMENT & RETENTION Alumni Leadership Connection June 11, 2011

2. GOALS FOR TODAY 2

3. Session Overview Membership Philosophy and Approach Membership Today The Decision to Join The Basics 10 Steps to Growing Your Program Idea Exchange/Q&A 3

4. PHILOSOPHY AND APPROACH 4

5. Membership Defined mem·ber·ship, n. A group of individuals who come together to support a common cause Membership should support the enduring values of your organization and the promise of your experience Access is easy … but membership is complex, diverse, and ever-changing 5 Membership = Engaged Communities

6. MEMBERSHIP TODAY 6

7. Key Trends Impacting Groups Members are in-charge More splintering and blurring of loyalty Convenience and ease are all-important Members are more self-directed Members are more critical, seeking guarantees Changing workforce dynamics, demographic, and consumption habits Time is currency 7

8. Today’s Media Landscape 8

9. Approach to Membership Development Membership development is a continuous process of testing new ideas and adjusting the variables that affect response and improve ROI – Monitor performance of segments, lists, media, offers, creative, message – Analyze membership data to unlock opportunities – Research to uncover trends – Apply learning and gained knowledge – Results through innovation Drive high-quality membership through strategic, integrated marketing campaigns 9

10. Why Join WHY JOIN

11. The Decision to Join “Membership” should answer four key questions 1.Why should I join? 2.What do I get? 3.What do you do with the money? 4.Why should I stay? Membership PrideBenefitsMission Affiliation/ Networking Obligation 11

12. THE BASICS 12

13. Key Considerations MissionOrganizational Goals DataMarket (Audience) Message/Offer/TimingMedia/Distribution ExperienceLevel of (Perceived) Risk Brand/RecognitionBudget

14. Before You Begin Membership is a process —not an event – Single appeals are no longer enough – Tactics/channels cannot operate in a vacuum – Cultivation and involvement are key – Not every communication is about asking for money Great programs provides a continuous outlet for individuals to support your organization or cause – Builds rewarding relationships – Allows you to communicate with lots of people over time

15. Features of Great Membership Marketing Strategic – Orientation has shifted from siloed to integrated Integrated – Across multiple channels – Within an organization – Throughout the member experience Specific and focused – Measurable – Scalable – Results-driven Data driven – Should generate a response – Both data-generating and data-collecting Frequent and Consistent

16. Engagement Channels Engagement 16 Events Publications Direct Mail Member Calls Social Media Email Welcome Kits Website

17. Factors Influencing Response Who are your best members today? How did they find you? What are they doing for you? Who do they know? What do you give them? Why do you need more? 17 Impact:A data driven approach can increase results by 10-30% and allow your organization to minimize risk and optimize investment

18. 10 STEPS TO GROWING YOUR MEMBERSHIP PROGRAM 18

19. Organizational Checklist 1.Take stock in your organization 2.Know your audience 3.Set goals 4.Start small 5.Create a plan 6.Make membership relevant 7.Be a broken record 8.Provide access and choice 9.Engage the right people 10.Rinse and repeat 19

20. 1. Take Stock in Your Organization Understand business priorities Internal review of marketing activities, results, and data assets External review of best practices across multiple verticals Illustrate concepts and financial impact of decisions Make short-term and long-term recommendations

21. 2. Know Your Audience Who are your best members today? How did they find you? What are they doing for you? Who do they know? What do you give them? Why do you need more? 21 Impact:A data driven approach can increase results by 10-30% and allow your organization to minimize risk and optimize investment

22. 3. Set Goals Net Growth 22

23. 4. Start Small 23

24. 5. Create a Plan Understand overall marketing objectives Understand historic direct marketing initiatives (media, frequency, spend levels, etc.) Identify various customer segments and review trends in customer behavior Review any key demographic, psychographic, and/or attitudinal information Part 1: Develop a strategic marketing program that provides profitable results Which segments are most responsive to direct mail or other channels What types of offers can be efficiently offered to whom What is the “right” communications frequency by segment Determine the impact of various offers by segment Part 2: Create a communications roadmap Customer value metrics Overall ROI by program and segment Results by campaign, segment and offer Part 3: Continually measure results and improve performance 24

25. Sample Plan Project Name Date of the effort Audience or segment Effort name Channel(s) or media used Quantity Project costs Response Members Revenue Net 25

26. Impact: Personalized communications can increase results by as much as 25% versus non-personalized communications 6. Make Membership Relevant

27. 7. Be a Broken Record 27 Announcement/ Launch Reminder Last Chance Impact: Frequency and consistent communications have a multiplier effect on overall results

28. 8. Provide Access and Choice 28 Impact: Multi-channel contact yields better results – adding a response channel can improve overall response by 20%- 30%

29. “Other” Choices Channels – Mail – Email – Phone – Social Messages – Benefit-driven – Mission-driven – Peer-driven – Industry-driven Member Types – Free – Basic – Enhanced – Discounted Billing & Payment – Auto renew – Bill Me – Installments – ACH/EFT Length of Membership – Partial – Annual – Multi-Year – Life Response Mechanisms – Online – BRE – Events – In Person

30. 9. Engage the Right People Motivate them with “why” membership is important – Help them understand the organization’s story Help them get in touch with their own story of how membership has influenced their life and success Tell them “how” they can be involved – Focus on the strengths of your volunteers Help them establish a plan of “what” to do – Create a written plan of action – Set specific goals

31. 10. Rinse and repeat 31

32. The Real #10 …. Ask for help

33. Remember…. Acquisition Tell a story and use specifics Ask early, ask often Test, test, test Frequency = success Use multiple channels Best Practices Programmatic programs (e.g. annual membership drive) Member-get-a-member Event-based recruitment Incentives/premiums 33 Retention Offer renewals early and often Try more efforts Renew in unexpected places/media Segment renewals to match acquisition strategies Best Practices Personalize (e.g. handwritten note) Call lapsed members Put it in an envelope Renewal incentive Multi‐year renewals

34. Final Thoughts Great membership programs are strategic, integrated, focused, data driven, and measurable Communicate with people when they want, how often they want, and in the manner that they are most comfortable Data contributes to the ongoing dialog with members and provides a foundation for greater interaction

35. Final Thoughts Identify characteristics of your best members and use that to find new members and markets not reached Engagement is not joining, so get members involved on Day 1 Start slow, but don’t be afraid to challenge convention

36. QUESTIONS 36

37. IDEAS TO GROW MEMBERSHIP 37

38. Idea Exchange Research – Conduct annual brief survey Programming – Develop programming and events based on members’ input – Segment or create new programming to attract specific segments and retain current members (family, young, career networking) Communications – Welcome e-mail to new members – Welcome phone call with follow up information by email – Announcement of new members at next chapter meeting – New member webcast or online chat – Send link to recorded welcome video from Chapter President 38

39. THANK YOU Joe Fiochetta Penn State Alumni Association 814-863-2307 jtf11@psu.edu 39

40. Membership is…. … a way to stay connected to Penn State and show your Penn State Pride … an investment in Penn State, the community … a vote for the enduring value of a Penn State education … a way to preserve the past and ensure a vibrant future … another way to give back to and support the University 40