©SHRM 2010

Membership Marketing SummitJune 25, 2011

SHRM 2011 Annual Conference & Exposition

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©SHRM 2010

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

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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

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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?

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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

1 Direct Marketing Association

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 results5

What is Direct Marketing

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An Overview of Marketing Channels

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Face-to-face Events

Telephone

Direct Mail

E-Mail and Text Messaging

Social Media

Online Advertising

Marketing Channels

Search Engine Marketing

Radio

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How SHRM Recruits and Engages Members

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Direct Mail• 101+ lists• 5.4MM + 130M pieces• 90-100 unique

packages• Join+ Reinstate• Drive to landing pages

Interactive Marketing• Enhance microsite • Leverage

Presentation maker• Word of mouth / Viral

campaigns (MGAM, YouTube, Facebook)

Print Advertising• National and local

publications• 4 main message points• Drive to microsite

Online Advertising• Banner ads on HR web sites & e-newsletters, Facebook, LinkedIn, etc.• Acquisition/lead generation• SEM• Drive to microsite

Email• > 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

Live Events• 23 national events

(including SHRM’s)• 65 state/chapter events*• Regional town hall

meetings*• Chapter meetings*

JOINENGAGERENEW

* Managed solely by Member Engagement

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SHRM Chapter Recruitment Methods

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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

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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

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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 timing4. 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?10

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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?

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Sample Marketing Calendar

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The five key membership life stages:1. Awareness

2. Recruitment

3. Engagement

4. Renewal

5. Reinstatement

MGI Membership Lifecycle

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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

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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%

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Trends from MGI’s 2010 Membership Research

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ASAE’s Decision to Join

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• 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.

• 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

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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

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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

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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

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What are the Elements?

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CreativeDesign & Copy

Offer!!

Target Audience (List)

Which is Most Important…

…and Why??

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The Hierarchy of Importance

Lists

Offer & Call to Action

Desig n &

Copy

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50% of the success or failure of a marketing programdepends on who you market to

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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

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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!

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Where to get prospect data – Mail, Email, Phone

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WWW.NEXTMARK.COM

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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)

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Define the Value Proposition

What is the VISION?What is the VALUE?

What is the CONNECTION?

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What lines of business does your chapter provide?Education Professional Development

Information/Knowledge Government Advocacy

Publishing Public Relations

Networking Standards & Certification

Convention & Exhibition Research

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Developing Your Value Proposition

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► 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?

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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”

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• 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

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Elements of a Good Value Proposition

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Exercise #1

Breakout session What is the value of

SHRM chapters?

What would the difference be if recruiting at both chapter &

national level?30

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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

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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

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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

33Direct-mail.org

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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

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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

35Source: SHRM Chapter Survey, Nov 2010

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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 …..”

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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.

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"Effective Direct Advertising" by Robert Ramsay. 1921

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Copy Elements

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• 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

Cus

tom

Lan

ding

Pag

es

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Exercise #2

Breakout session Using the value proposition

statement and benefits, craft a recruitment message

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E. Design – 9 Essential Rules

Rules to Remember

1. Plain Jane can win2. Photos must support copy and convey benefits3. Copy is king in direct response letters4. Every component must sell 5. Good design in direct response is not achieved by whim6. Use action colors7. Every design feature must sell8. A direct mail letter should be computer-produced9. The more items in a direct mail package, often the more responsive it is

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www.entrepreneurs.about.com

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Which Brought in More Members?

• A.

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Plain Jane Wins Again!

Which Brought in More Members?

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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)

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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

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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!!

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Sample acquisition e-mails

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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

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Sample Landing Pages

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• 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.

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Landing Pages

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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

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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)

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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%

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Trends from MGI’s 2010 Membership Research

©SHRM 2010

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

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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

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• ABC2news.com • Baltimorebizjournals.com • BaltimoreSun.com • Citybizlist.com • Citypaper.com • Washingtonpost.com (Baltimore DMA) • WBALTV.com • Weather.com (Baltimore DMA) • WJZ.com

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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

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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%

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Member Engagement

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Which of the following do you utilize to welcome and engage

new chapter members?

Responses

Email 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 1%New member webcast or online chat 1%

Source: SHR Chapter Survey, Nov 2010

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A Sample SHRM Engagement Plan

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JOIN New Member Kit Member CardInvitation to view Member Benefits

webcast

New Member Cover Tip on HR

Magazine

Knowledge Center PromoRetention EmailRetention EmailKnowledge

Center PromoHR Research

Promo

1 & 2 Year Benefit email

Knowledge Center Promo Retention Email Knowledge

Center PromoTelemarketing

Survey (sample)

1 & 2 Year Benefit Email

Knowledge Center promoResearch PromoRetention Email1 & 2 Year

Retention Email

Knowledge Center promo

(email,’postcard)Retention Email Address /Demo

Update

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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

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Exercise #3

Breakout session

Create an engagement plan for the first year of membership

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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 no-brainer?

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Top Reason for Member Non-Renewal

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%

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Trends from MGI’s 2010 Membership Research

How would you overcome these objections?

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A Sample Renewal Series

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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

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Renewal Series used by Chapters

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How many times do you reach out to expiring

members with the following methods?

0 1 2 3 4+

Phone 32.1% 41% 14.1% 12.8%

Email 4.3% 6.8% 28.2% 31.6% 29.1%

Mail 57.5% 27.4% 8.2% 4.1% 2.7%

Source: SHRM Chapter Survey, Nov 2010

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Exercise #4

Breakout session Create a renewal program for your

chapter using multiple marketing channels

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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

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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

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Free Resources

Download a free copy of the full report at: www.MarketingGeneral.com

2011 report to be released August 2011

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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

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Next Steps?

What will you take back to your chapter or state council?

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Speaker Contact Info

Lisa DienerLisa.Diener@shrm.org

Tracy Liaw Tracy.Liaw@shrm.org

Jason Gudenius jgudenius@marketinggeneral.com

Teresa Sullivan Tsullivan@marketinggeneral.com

©SHRM 2010

Social Media used by Chapters

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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