Membership Marketing Summit June 25, 2011 SHRM 2011 Annual Conference & Exposition ©SHRM 2010 1 Today’s Presenters • Teresa Sullivan, Senior Account Director – Marketing General Inc. • Jason Gudenius, Account Supervisor – Marketing General Inc. • Lisa Diener, Director, Membership Marketing – SHRM • Tracy Liaw, Membership Acquisition Coordinator – SHRM • Will Taliaferro, Partner - GMMB ©SHRM 2010 2 Topics We’ll Cover • 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 ©SHRM 2010 3 What We Want You to Get Out of This • The ability to get a better understanding of the membership marketing process • The chance to ask questions of people that do this for a living • The chance to spend more time on the things that are important to you • Other areas you would like to cover? ©SHRM 2010 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 1 that produces measurable results Direct Marketing Association ©SHRM 2010 5 An Overview of Marketing Channels Face-to-face Events Telephone E-Mail and Text Messaging Search Engine Marketing Marketing Channels Online Advertising Radio Direct Mail Social Media ©SHRM 2010 6 How SHRM Recruits and Engages Members Direct Mail •101+ lists •5.4MM + 130M pieces •90-100 unique packages •Join+ Reinstate •Drive to landing pages Print Advertising •National and local publications •4 main message points •Drive to microsite Interactive Marketing •Enhance microsite •Leverage Presentation maker •Word of mouth / Viral campaigns (MGAM, YouTube, Facebook) JOIN ENGAGE RENEW Online Advertising •Banner ads on HR web sites & e-newsletters, Facebook, LinkedIn, etc. •Acquisition/lead generation •SEM •Drive to microsite ©SHRM 2010 Email •> 60 acquisition messages to 670M non-unique recipients •> 320+ retention messages to 8.2MM nonunique recipients •> 55+ expiration messages to 97M nonunique recipients Live Events •23 national events (including SHRM’s) •65 state/chapter events* •Regional town hall meetings* •Chapter meetings* * Managed solely by Member Engagement 7 SHRM Chapter Recruitment Methods Which of the following do you use for recruitment? Responses 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 1% Source: SHRM Chapter Survey, Nov 2010 ©SHRM 2010 8 Chapter Recruitment Methods • “Other” Answers Included: > > > > > > Exhibiting at Trade Shows, State council events Members bring a guest to free meetings, lunches, etc Free prospective member receptions or other special events Free first year membership to newly certifieds Free first year membership to SHRM National members Host certification study groups ©SHRM 2010 9 Where Do We Start? 1. Identify your goals - Number of new members? Renewal rate? Growth percentage? 2. Develop a Budget – How much can you spend? 3. Develop a marketing plan – What are you hoping to accomplish? What tactics are you going to use? How and what you are going to measure? > If you don’t have the resources to do the above, AT LEAST create a marketing calendar to identify tactics and timing 4. Define Market – Who do you want to talk to? Who is likely to listen? 5. Establish Value Proposition – What is your benefit to them? 6. Identify Offer – What enticement do you want to give? 7. Create Message & Call to Action 8. Determine the Media – How are you going to reach them? 9. Implement Campaign 10. Track Responses – How did we do? ©SHRM 2010 10 Determine the Budget • Membership is an investment for multiple year revenue stream • Spend money to make money • What does success look like? • Expectations should be reasonable • What can you afford to spend to get a member? • What investment can you afford to make? • How do you budget today? ©SHRM 2010 11 Sample Marketing Calendar ©SHRM 2010 12 MGI Membership Lifecycle The five key membership life stages: 1. Awareness 2. Recruitment 3. Engagement 4. Renewal 5. Reinstatement ©SHRM 2010 13 Lifecycle Stage #1: Awareness • Does every HR person in your area know about SHRM and your chapter? • What is the reputation of the brand? • 6 touches before you reach level of consciousness • You don’t know what is important to them • You don’t know where they are ©SHRM 2010 14 Trends from MGI’s 2010 Membership Research Top Ways Prospects Become Aware of Associations As Reported in 2010 Member recommendations 91% Association Website 88% Email to prospects 67% Co-worker recommendations 67% Direct Mail to Prospects 66% Promotion at your events 66% ©SHRM 2010 15 ASAE’s Decision to Join • The three most important benefits in the decision to join: Opportunities to network with other professionals in the field Access to the most up-to-date information available in the field Professional development or education program offerings • Entry-level people have always been slow to appreciate the value that associations offer. • Private sector employees have the highest proportion of memberships in professional associations at 49.9%, while those employed in government have the lowest at 10.6%. • 56.2% of those who have never joined say that their employers do not pay dues. When employers pay dues, only 17.2% of respondents are never members. • A member’s perception of “value” from an association increases directly with involvement. ©SHRM 2010 16 Lifecycle Stage #2: 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 ©SHRM 2010 17 A. Define the Market • Who are your prospective members? > What are the industries that dominate your locality? > Size of Companies? > White Collar? Blue Collar? Pink Collar? > Union Shops? > Other Defining Characteristics? • Other Research > Bureau of Labor Statistics > States’ Dept of Commerce > Chamber of Commerce > Current SHRM members by title ©SHRM 2010 18 Membership Recruitment Questions • Membership Recruitment Analysis: Questions to Ask • • • • Who is my current audience? • Age range, average age? • Male vs. female? • What company sizes are represented? • What is the experience level? • What industries are represented? • What are current HR challenges? • What is their career focus? • What do they value about their membership? Who is my prospective audience? What is my message? • Value proposition of joining a chapter or attending meetings? • What can you offer that others don’t or can’t? (convenience, local content/programs, etc.) What are the most effective and/or cost-effective marketing options? • Cost vs. return ©SHRM 2010 19 What are the Elements? Creative Design & Copy Offer!! Which is Most Important… …and Why?? Target Audience (List) ©SHRM 2010 20 The Hierarchy of Importance Lists Offer & Call to Action Design & Copy 50% of the success or failure of a marketing program depends on who you market to ©SHRM 2010 21 Prospect Source Ideas • Prospect Sources • • • • • • • • SHRM’s at-large members Your lapsed members Non-member event attendees • Encourage current members to bring a friend • Invite local businesses to an educational session or coffee break/networking reception Member-get-a-Member campaigns (reward current members for referrals) Visitors to your website (offer free content in exchange for their contact info) Rented Lists (book buyers, seminar attendees, etc) Local business groups (Chamber of Commerce, small /independent business associations) Exhibit at state or chapter SHRM conferences or other HR / business tradeshows 22 ©SHRM 2010 Prospect Source Ideas • Prospect Sources (con’t) • • • • Social media/online groups (LinkedIn, Facebook, Twitter, etc) • Encourage your members to “Like” your chapter or posting to help spread your company name Local advertising that drives to a landing page Let prospects sign up for your chapter’s newsletter Student Members from Local Colleges/Universities • Good feeder pool into your chapter, and they know other students or recent graduates! 23 ©SHRM 2010 Where to get prospect data – Mail, Email, Phone WWW.NEXTMARK.COM ©SHRM 2010 24 A. Define the Value Proposition “Extemporaneous speaking should be practiced and cultivated. It is the lawyers avenue to the public. However able and faithful he may be in other respects, people are slow to bring him business if he cannot make a speech.” From Lincoln’s notes for a lecture intended to advise younger lawyers how to best succeed (July 1, 1850) ©SHRM 2010 25 Define the Value Proposition What is the VISION? What is the VALUE? What is the CONNECTION? What lines of business does your chapter provide? Education Professional Development Information/Knowledge Government Advocacy Publishing Public Relations Networking Standards & Certification Convention & Exhibition Research ©SHRM 2010 26 Developing Your Value Proposition ► What are the Key Strengths of your chapter? ► What adjectives come to mind to describe your chapter? ► What does your chapter have to offer? ► What problem can your chapter solve for the HR professional? ► Call to Action. What should the listener do as a result of hearing this? ©SHRM 2010 27 What Is a Good “Elevator Speech”? The 30 second speech (aka elevator speech) is several things: > a communication tool; it will help you articulate your chapter’s message > a sales tool; it will help you recruit members or customers > Most importantly, it is a teaching tool Does it elicit questions from your audience Have you “hooked” them? Did you “close the deal” ©SHRM 2010 28 Elements of a Good Value Proposition • • • • Never use a long word when a short word will do If it’s possible to cut a word, cut it Use the active voice not use the passive voice Never use: • a foreign phrase (depending on audience and context) • a scientific word • acronyms without also using the spelled out name • jargon ©SHRM 2010 29 Exercise #1 Breakout session What is the value of SHRM chapters? What would the difference be if recruiting at both chapter & national level? ©SHRM 2010 30 B. Messaging Value Proposition • Messaging to at-large members • Chapter Strengths: • Conferences, Meetings, etc. • Local networking • Accessibility • State specific information • SHRM’s Strengths: • National/global information • Website access/information • Broad-based professional development offerings • Resources (worldwide networks, research, etc) • Brand awareness • Knowledge Center • Depth of content through webcasts, online chats, etc. • Global research and publications ©SHRM 2010 31 Reasons to Join a Chapter • Provides a network of professional peers you can turn to for support • Helps you establish relationships and contacts with your local HR community • Excellent way to gain valuable information on state and local labor market conditions and issues • Unique opportunity to develop leadership skills 32 ©SHRM 2010 32 C. Determine the Offer The offer is the product you're presenting to the prospect with a call-to-action The to ”sweeten the deal” to get individuals to try your product, you can offer: buy one get one free introductory price of $9.95 free white paper or research premium with purchase extended membership period – 13 months for 12 The most important thing to an offer is that it be clear and concise. An offer is best when it has a deadline A confused mind always says "no" -- KISS Direct-mail.org ©SHRM 2010 33 Determine the Offer • Messaging Offer • • • • • • • • Use a deadline – create a sense of urgency Try discounts or promotional giveaways as extra incentive Offering more helps (15 months for 12) Payment methods: • Credit cards will increase response rates • Bill-me options increases up-front response rates Offer First and Multiple Year Discounts Negative messaging often works- what will they miss, not accomplish, not be aware of, etc Local legislative/compliance issues are a good draw Track responses and return on investment by initiative 34 ©SHRM 2010 Offers Currently Used by Chapters • • • • • Discounted dues (ie, $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 Source: SHRM Chapter Survey, Nov 2010 ©SHRM 2010 35 D. 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 …..” ©SHRM 2010 36 Copy – Looks Easy…Really Hard Direct mail copy is very easy to write. Good direct mail copy is just plain hard... Knowledge of the audience Knowledge of the subject Sincerity of purpose One-to-one communication Touch an Emotion Testimonial Campaign – talk to your members and ask them why they belong to your chapter. WIIFM- “What’s in it for me” is more relevant than stating all of the benefits to prospects. Customize as much as possible Always be testing! Test different messages and designs and measure success. "Effective Direct Advertising" by Robert Ramsay. 1921 ©SHRM 2010 37 Custom Landing Pages Copy Elements •Refined value proposition (current control message) •Personal appeal (i.e., Pam’s sig. – “one former HR practitioner to another” and a known Officer •Legislative / compliance •Issues determined monthly in conjunction with Gov’t Affairs team •Healthcare, EFCA, FMLA, immigration / I-9, and others •Regional / state non-leg issues (ex. natural disaster-related, etc.) •Industry-specific •Young professionals •Geography •HR function issues •Industry •Company size issue / small business •Title / career level positioning •Conduct concept testing with new messaging strategy (Copernicus direction) •Testing premiums with membership (books / SHRMStore discount / free HRCI practice test) •Offer discounts of $10 instead of $15 for some first-time members ©SHRM 2010 38 Exercise #2 Breakout session Using the value proposition statement and benefits, craft a recruitment message ©SHRM 2010 39 E. Design – 9 Essential Rules Rules to Remember 1. 2. 3. 4. 5. 6. 7. 8. 9. Plain Jane can win Photos must support copy and convey benefits Copy is king in direct response letters Every component must sell Good design in direct response is not achieved by whim Use action colors Every design feature must sell A direct mail letter should be computer-produced The more items in a direct mail package, often the more responsive it is www.entrepreneurs.about.com ©SHRM 2010 40 Which Brought in More Members? • A. ©SHRM 2010 41 Which Brought in More Members? Plain Jane Wins Again! ©SHRM 2010 42 Direct Mail 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) ©SHRM 2010 43 E-mail • E-mail Formats • 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 16-20 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 44 ©SHRM 2010 E-mail •When possible, use e-mail 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 •Try not to send attachments, as those e-mails are often blocked by recipients’ ISPs. Post files on your website and provide links instead. •Continuallly test! •Subject line •Message content and appearance •Date, time sent •Email blasts must have an opt-out •Be as specific as possible on the opt-out and make a phone, reply e-mail and address available • CAN-SPAM compliance – REALLLY IMPORTANT!! 45 ©SHRM 2010 Sample acquisition e-mails ©SHRM 2010 46 Best Practices - Landing Page • 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. • Content – Give it to them straight. > Make it clear and to the point, but give your prospects a reason to give you 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 bullet points - they are easier to read ©SHRM 2010 47 Sample Landing Pages ©SHRM 2010 48 Landing Pages • Call to Action – Forms – Remember not to ask too many questions up front. > You don't need everything the first time a prospect engages with you. Remember you are building a relationship. Collect more information as the prospect continues on the journey with you. • Confirmation/ Thank You – > 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. ©SHRM 2010 49 Google Analytics • • • Free tool to use to track emails, links, webpages, etc Tutorials can be found on youtube Track your emails and links online to see what people are clicking on and going to with G.A. URL builder ©SHRM 2010 50 Track the Results • Know how you did, so you can do better next time • The role of Testing > > > > Audiences Offer Timing Media • Add in the Jan OE Test • Keep track of your expenses vs. revenue or # members recruited per campaign type (discount versus promo item, etc) ©SHRM 2010 51 Trends from MGI’s 2010 Membership Research Most Effective Recruitment Channels As reported in 2010 Member recommendations 27% Direct Mail to Prospects 27% Personal Sales Calls 23% Co-worker recommendations 13% Promotion to/at your events 11% Email to Prospects 10% ©SHRM 2010 52 Telephone • Telemarketing • Personalized communication • Testimonial-type script called by board members • Be aware of Do-Not-Call requirements in the states you are calling into ©SHRM 2010 53 Advertising Channels – Baltimore • • • • • • • • • • • Baltimore Business Journal Baltimore Sun Capital‐Gazette Newspapers Annapolis Capital/Sun Maryland Gazette Catonsville Times Columbia Flier Howard Co. Times Laurel Leader Owings Mills Times Towson Times Urbanite • • • • • • • • • ©SHRM 2010 ABC2news.com Baltimorebizjournals.com BaltimoreSun.com Citybizlist.com Citypaper.com Washingtonpost.com (Baltimore DMA) WBALTV.com Weather.com (Baltimore DMA) WJZ.com 54 Lifecycle Stage #3 - 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 ©SHRM 2010 55 Trends from MGI’s 2010 Membership Research Most used Methods for Engaging New Members As reported in 2010 Email Welcome 72% Mailed Welcome Kit 68% Membership Card/Certificate 59% Volunteer/staff welcome call 32% Introductory Email Series 27% Invite to Chapter Meeting 25% ©SHRM 2010 56 Member Engagement Which of the following do you utilize to welcome and engage new chapter members? Responses Email welcome Introduction or announcement to new members at chapter meetings Other 32% Mailed welcome letter or member kit 11% Welcome phone call 10% 28% 12% Membership card or certificate 3% Special discounts 1% None 1% New member webcast or online chat 1% Source: SHR Chapter Survey, Nov 2010 ©SHRM 2010 57 A Sample SHRM Engagement Plan JOIN New Member Kit Member Card Invitation to view Member Benefits webcast New Member Cover Tip on HR Magazine HR Research Promo Knowledge Center Promo Retention Email Retention Email Knowledge Center Promo 1 & 2 Year Benefit email Knowledge Center Promo Retention Email Knowledge Center Promo Telemarketing Survey (sample) 1 & 2 Year Retention Email Retention Email Research Promo Knowledge Center promo 1 & 2 Year Benefit Email Knowledge Center promo (email,’postcard) Retention Email Address /Demo Update ©SHRM 2010 58 Ideas for Welcoming New Members Ideas for welcoming new members • • • • • • • • Welcome e-mail to new members Mailed welcome letter or member kit Membership card or certificate Welcome phone call, with follow up information by email 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 59 ©SHRM 2010 Exercise #3 Breakout session Create an engagement plan for the first year of membership ©SHRM 2010 60 Lifecycle Stage #4 - Renewal • In 2010, 6% 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 nobrainer? ©SHRM 2010 61 Trends from MGI’s 2010 Membership Research Top Reason for Member NonRenewal As reported in 2010 Lack of Value 36% Employer Won’t Pay Dues 25% Too Expensive 11% Forgot Renewal 6% Lost Job 4% Retirement 4% How would you overcome these objections? ©SHRM 2010 62 A Sample Renewal Series Renewal Effort # Communication Channel Date 1 Email 120 days before expire 2 Direct Mail 90 days before expire 3 Direct Mail 60 days before expire 4 Email 45 days before expire 5 Direct Mail 30 days before expire 6 Email Day before expire 7 Telephone Call Day of expire 8 Direct Mail 15 days after expire 9 Telephone Call 60 days after expire 10 Email Exit Survey 75 days after expire ©SHRM 2010 63 Renewal Series used by Chapters How many times do you reach out to expiring members with the following methods? 0 1 2 3 Phone 32.1% 41% 14.1% 12.8% Email 4.3% 6.8% 28.2% 31.6% 29.1% 57.5% 27.4% 8.2% 4.1% Mail 4+ 2.7% Source: SHRM Chapter Survey, Nov 2010 ©SHRM 2010 64 Exercise #4 Breakout session Create a renewal program for your chapter using multiple marketing channels ©SHRM 2010 65 Lifecycle Stage #5. Reinstatement • “Look not where you fell, but where you slipped”- Chinese proverb • 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 ©SHRM 2010 66 Economics of Membership • Response rate – measures the number of prospects who responded to a marketing effort > Total # responses / total number of prospects contacted x 100 • Average tenure – how long on average do members stay > Reciprocal of renewal rate > Divide reciprocal into 1 • Renewal Rate – the number of members kept over a given period of time > Total # of members today - 12 month new members) / total number of members in previous year • Lifetime Value (LTV) – the economic value produced by a typical member > Dues amt + amount spent in non-dues revenue x average tenure ©SHRM 2010 67 Free Resources Download a free copy of the full report at: www.MarketingGeneral.com 2011 report to be released August 2011 ©SHRM 2010 68 FREE Marketing Resources •Visit the Direct Marketing Association website for good marketing resources at www.the-dma.org •Privacy information can be found at www.the-dma.org/privacy. •Sites with good marketing tips include •MGI Tipster, www.marketinggeneral.com – free newsletter •Marketing Profs, www.marketingprofs.com – free newsletter •MarketingSherpa www.marketingsherpa.com – free newsletter •membershipmarketing.blogspot.com •Email Institute www.emailinstitute.com – free newsletter •Smartbrief on Social Media www.smartbrief.com – free newsletter • Additional Information is on the VLRC – Membership section 69 ©SHRM 2010 Next Steps? What will you take back to your chapter or state council? 70 ©SHRM 2010 Speaker Contact Info Lisa Diener Lisa.Diener@shrm.org Tracy Liaw Tracy.Liaw@shrm.org Jason Gudenius jgudenius@marketinggeneral.com Teresa Sullivan Tsullivan@marketinggeneral.com 71 ©SHRM 2010 Social Media used by Chapters Which of the following does your chapter utilize? Responses LinkedIn 36% None. My chapter does not use Social Media sites. 24% Facebook 20% Twitter 8% SHRMConnect 8% Other 2% Youtube 2% Flickr 1% Source: SHRM Chapter Survey, Nov 2010 ©SHRM 2010 72