©shrm 2014 bhavna dave, phr director of talent shrm member since 2005 understanding your...

©SHRM 2014©SHRM 2014

Bhavna Dave, PHRDirector of Talent

SHRM member since 2005

Understanding Your Membership:Key To Retention & Growth

Phyllis Shurn-Hannah, SHRM-SCP Scott D. Ferrin, SHRM-SCPField Services DirectorsApril 22, 2015


Today’s Agenda

1. Analyzing the Membership Report

2. Membership Calculations

3. Best Practice Sharing


Kristine HofmannMembership Operations Coordinator

Our Special Guest Presenter!


[email protected] 703-535-6082 (W)

mailto:[email protected]



A Closer Look at SHRM’s Monthly

Membership Report


D

Bhavna DaveDirector of Talent


Who is Who? Let’s define the SHRM terms!


SHRM TermsAt-large Members

•At-large member is a SHRM member who is not affiliated with a local chapter.

Local Members Only (LMOs)•A LMO is a local chapter member who is not a SHRM member.

Primary Members•Member of more than one chapter (multi-member) who designates one chapter as the primary chapter (this chapter receives CFSP for the member).


SHRM TermsMulti-Members

•Member of SHRM who maintains membership in multiple chapters. Primary chapter affiliation is with another SHRM affiliate chapter. A chapter would receive credit for chapter affiliation percentage purposes for multi-members but not for CFSP.

Expired Members•Former SHRM Members whose SHRM membership has lapsed.

Student Members•A SHRM member who is currently enrolled in a degree seeking program at a college or university and has joined SHRM as a student member


SHRM Terms

CFSP (Chapter Financial Support Payments)

•This is the money that is paid to the eligible chapters for the primary SHRM members in their chapter

Coding•In order for a chapter to receive CFSP for a particular SHRM member, the SHRM member must have designated that chapter as their primary chapter. Please send membership updates and/or signed Primary Designation Forms to your Member Engagement Associate (MEA) to have the person coded to your chapter.


Monthly SHRM Membership Report

Bruce ElliotManager, Compensation & Benefits



SHRM In-Chapter Membership Growth


Represents 1 moment in time! It can change in a day’s time.

Is only about SHRM members! SHRM has only their members in

their database


Does not count student members or those coded to another chapter

as their “primary”

Compares the number of SHRM members coded to the chapter

this year to previous months and to December of last year


Shows which chapters are trending positively and which have gained Star or Superstar

status

The report includes terms you may or may not know. These are important to understanding any

report from SHRM. Check the definitions pages at the beginning

of this webinar.


Scorecard Information


SHRM In-Chapter & At-Large Per State


Roll-Up Page

Region Roll-up is by state


Contact us!

www.shrm.org/vlrc

Your Member Engagement Associate and Field Services

Director can help answer additional questions.

©SHRM 2014

Member Retention

Membership retention encompasses how you engage your members and

how you execute your renewal programs to keep members over time.

WHAT IS MEMBERSHIP RETENTION?

©SHRM 2014

Key Membership Calculations

•Response Rate•Cost to Obtain a Member•Renewal Rate•Average Tenure•Lifetime Value•Maximum Acquisition Cost•Steady State Analysis

Poll

©SHRM 2014

Response Rate

Measures the number of prospects who responded to a marketing effort.

Response Rate = Total number of responses / Total number of prospects contacted X 100.

©SHRM 2014

Response Rate - Example

ABC Association Direct Mail Acquisition Campaign:

Package A:• 1,000 prospects mailed• Through promo code tracking, we see 9 new members join • The response rate from this mailing is: 9/1,000 *100 = .90%

Package B (testing a different message):• 1,000 prospects mailed• Through promo code tracking, we see 12 new members join • The response rate from this mailing is: 12/1,000 *100 = 1.20%

Response rates help us create a learning system!

©SHRM 2014

Cost to Obtain a Member

Cost to obtain a member = costs of acquisition / # of total members acquired

Let’s tie this into the previous example. Both packages used the same components with only the messages varying, so the production costs were the same. Let’s assume each piece cost $0.60 to produce and mail.

What is your cost to obtain a member for package A and B?

What’s the financial difference between and ?

A B

©SHRM 2014

Package A cost = $.60 X 1,000 = $600

Package A new members = 9

Package A Cost to Obtain a Member = $66.67

Package B cost = $.60 X 1,000 = $600

Package B new members = 12

Package B Cost to Obtain a Member = $50.00

A

B

Cost to Obtain a Member

©SHRM 2014

Renewal Rate = (# of members today – new members over the past 12 months) / # of members 1 year ago today.

Example: We have 1,000 members today. 280 new members came in over the past 12 months. One year ago today we had 900 members. What is our renewal rate:

(1,000-280)/900 = 720/900 = 80%

Renewal Rate

TIME TO RENEW

©SHRM 2014

Avg. Tenure defines how long on average members stay with an association. We need to know our renewal rate to find this.

Average Tenure = 1/(Inverse of renewal rate)

Inverse of Renewal Rate = 1 – renewal rate (also known as lapse rate)

If we have a renewal rate of 80% how long on average do members stay with our organization?

Average Tenure = 1 / (1 - .80) = 1 / .2 = 5 years

Average Tenure

©SHRM 2014

Lifetime Value (LTV)

Using our average tenure, we can understand the economic value of a member over time.

1. Lifetime Value = (Average annual dues revenue + average annual non-dues revenue per member) * Average Tenure

2. With annual dues of $50 and average annual non-dues of $25 what is the lifetime value of our members?

3. Lifetime Value = ($50+ $25) * 5 = ($75 * 5) = $375

Knowing that on average we will receive $375 per member we bring in, we can spend more than the $50 1st-year dues amount to invest in more members and greater long term revenues. Getting new members is an INVESTMENT.

©SHRM 2014

THINK OF YOUR MEMBERSHIP AS A LEAKY BUCKET

Steady State Analysis

The water you put into the bucket each year is new members

But your bucket leaks. Each year a certain percentage of members do not renew

How full the bucket is represents your total membership level.

©SHRM 2014

Member Engagement

POLL

Let’s hear from you…

In a few words; what are you currently doing to get your members involved/engaged with your organization?

©SHRM 2014

SHRM Affiliation Requirements

SHRM Chapter Membership Requirements as of January 1, 2012

Applies to all existing and new chapters - no grandfathering. Chapters not currently meeting new affiliation requirements will have a five-year period to do so (by December 31, 2016).

100%-Chapters

• Minimum of 25 SHRM members AND

• 100% SHRM membership

Non-100%-Chapters

• Minimum of 25 SHRM members

AND• 51% SHRM membership

1 year, 9 monthsto meet the requirements

©SHRM 2014

Why is Affiliation Percentage a Concern?

• Do members play a role in the success

of the chapter?

• Where do chapter leaders come from?

• What community programs or initiatives

are you able to effectively run?

• Can you attract top quality speakers?


SHRM Support Resources


Coming 2015 Membership MeetingAll Webinars are at 3 pm Eastern Time

– July 16, 2015– September 10, 2015

In-Person Membership Summit at VLS:– November 19 to 21, 2015 –

Washington DC!

We are here to help….stay in touch

with US!

Save The Date


What are you doing?

• 2015 Membership Initiatives?

• How have you gotten members

involved?

• What have been some of your

challenges?

• 2015 Successes so far?

Best Practice Sharing


(Please note that these slides are copyrighted material and may only be distributed to an audience at a SHRM speaker presentation. Further distribution is not allowed, except with permission by SHRM.)

©shrm 2014 bhavna dave, phr director of talent shrm member since 2005 understanding your...

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