GUEST
ARTICLE - Denise Tarka
Members By The Dozen
Associations and other membership
organizations face the challenge of increasing
membership with limited resources available to
accomplish that goal. When approaching membership
development, organizations often adopt initiatives that
bring in new members one at a time. These initiatives
prove to be time consuming and costly and while they
sometimes achieve the desired results, more often than
not, they underachieve. By making slight changes in
their focus, associations can invest the same resource
and achieve greater results.
The well known pricing strategy of
“Cheaper by the Dozen”, actually applies equally to the
concept of building membership. The cost of recruiting a
new member can be reduced dramatically through the
selection of recruitment activities that are designed to
maximize the number of new members while minimizing the
resources (financial and human) expended in the process.
While a well-constructed marketing and
membership development plan is comprised of many different
activities, a strategic marketing and membership
development plan is one written with the primary goal of
maximizing outcomes (new members) with the minimal use of
resources (financial and human).
The following example demonstrates an
actual comparison of two membership development
initiatives completed by the same state-level trade
association with 330 members and a target market of 1009
prospective members. In the same calendar year, they
implemented both of the following initiatives.
Direct Mail: A single campaign
comprised of a one-color, tri-fold piece (self-mailer)
which identified the membership benefits and included a
membership application. The mailer was sent to 1009
prospective members.
Industry Trade Show: Hosted by the
industry’s leading publisher. The regional show was
marketed to industry participants over a five-state area.
In addition to the educational sessions, the show included
networking events and an exhibit hall. The association
was given a complimentary booth by the host. The
attendance at the show was over 3,000.
|
Direct
Mail
Campaign |
|
|
Industry Trade Show |
|
|
Graphic
Design |
$540 |
|
Booth
Space:
(Complimentary) |
$0 |
|
Printing/Folding |
$780 |
|
Giveaways: |
$150 |
|
Postage |
$270 |
|
Booth
Materials: |
$250 |
|
Return
Postage: |
$3 |
|
Exhibit: +donation of materials |
$35 |
|
Mailing
List: |
$183 |
|
Travel
Exp.: |
$493 |
|
|
|
|
Booth Staff
(volunteers) |
$0 |
|
|
|
|
|
|
| # of new members: |
6 |
|
# of new members: |
13 |
| Cost per new member: |
$296 |
|
Cost per new member: |
$71 |
Not only was the cost per member less, the
intangible results were many. By attending the trade
show, the Board President was able to walk the trade show
floor and meet with prospective Corporate Partners and
vendors that are able to provide benefits and services to
members through affiliate (non-dues revenue) programs.
The trade show was marketed across a five-state area
giving much greater exposure to the organization. Many of
the volunteers who worked in the booth were also attending
the show so travel costs were minimized. The Board
President received valuable feedback from show attendees
including information on how the association’s brand was
perceived by the industry. Over 3,000 people became aware
of the organization through the event and over 10,000 saw
the organization’s logo on the conference materials
increasing brand awareness.
The direct mail campaign enhanced the
awareness of the organization with 1009 people.
This example is not meant to promote one
specific marketing activity over another. It exemplifies
the need for associations and all membership organizations
to evaluate their strategies for recruiting new members to
determine if the resource can be better invested to
achieve a greater outcome.
Here’s are five (5) questions to consider
when developing strategic membership development plans
that increase the number of new members while minimizing
the resources invested:
Where can our organization build
strategic alliances that create regular referral streams?
There is no single answer to this question. When planning
annual membership development campaigns, give
consideration to the places where members are involved.
For example, a local organization comprised of 175 women
business owners began working with another for-profit
corporation that had been developed to help women launch
new businesses. A strategic alliance between the two
created a steady stream of no-cost referrals for the
association.
Who are the members of the future?
Consider where your industry will be in five years and
then again in ten years. The profile of your member will
no doubt change. Position your organization so that you
will be marketing to future members as well as current
members. Likewise, many associations have adopted student
chapters in order to target the “next generation” members
of the industry. This option creates a steady stream of
new members upon graduation.
Can the organization merge with a
competitor or a complimentary organization? In a time
where resources are scarce, the consolidation of two
competing or complimentary organizations can create a
single, solid entity. This will rapidly increase
membership.
What event participation will generate
the greatest number of new members? A state level
landscaping and horticultural organization increased its
membership by participating in the local annual Home and
Garden shows. Over 250,000 people attended the three
events increasing brand awareness of the association. In
addition to marketing to the prospective members in
attendance, the association promoted their consumer
services (referral of member landscaping companies and
plant information). This not only increased awareness of
the organization to consumers, it demonstrated to
prospective members one of the benefits of membership –
referral to consumers.
What marketing activities create the
greatest level of interaction with the organization?
Direct mail is more passive than interactive. A
prospective member will review and discard the piece if
they are not interested in the organization or if they
feel no need for membership. The most successful
relationships begin with interaction. Design marketing
activities that encourage involvement with the
organization. An example of this is an organization that
had produced a book of codes detailing industry
regulations for a particular geographic area. To launch
the sale of this product, the organization invited members
and prospective members to a breakfast program where the
revised regulations were discussed by a panel of industry
experts. There was a nominal fee to attend and the price
of the book was discounted for members. The prospective
members needed the information in the book to operate
their businesses. Prospective members were allowed to
purchase the book and received a discount if they became
members that morning. Thirty-six (36%) of the prospective
members in attendance at the event became members that
morning.
By being creative and focusing on how to
reach multiple members through a singe recruitment
activity, associations can maximize their membership
development accomplishments while using minimal resources
thereby adding members by the dozen.
Denise
A. Tarka is president of Association Growth Inc., a
strategic consulting firm located in Cleveland, Ohio. The
firm helps member-driven organizations improve retention
and recruitment of their members, enhance benefits and
services, and embrace membership diversity. She can be
reached at dtarka@associationgrowth.com.
© 2004 Association Growth Inc.
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