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FEATURE
Enhancing The Board's Monitoring Role...Without Micro-Managing!
VIEWPOINT
The Association Sandwich
ASSOCIATE ARTICLE
Mission, Vision, Values
GUEST ARTICLE
The Not-So-Mysterious Benefits of Mystery Shopping Your Association

GUEST ARTICLE
Members By The Dozen


GUEST ARTICLE
Working with Knowledge: Guiding Principles for Association Leaders


GUEST ARTICLE
Ethical Guidelines for Board Members of Not-for-Profit Organizations


GUEST ARTICLE
Setting Up Your Reserves
REGULAR COLUMNS
Change Management with Peter de Jaeger

Customer Relationships with Paul Ward
TOOLS, TIPS AND RESOURCES
PAST ISSUES
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.

Association Xpertise Inc. (AXI) is a full-service company providing consulting and other services to associations and non-profits.    Details

 

MARCH 2004
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