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It is impossible to make informed decisions regarding your membership strategy without knowing your membership statistics. At the most basic level you should know your Retention Rate, Growth Rate, Loss Rate and Average Tenure – by each membership segment. If you don’t know how to work out these statistics, please download&nbsp;<a href="https://uploads.commoninja.com/pdf_gallery/1698638591568_EBOOK_-_Membership_Managers_Handbook_2018_Edition.pdf" target="_blank" aria-label=" (opens in a new tab)" data-mce-href="https://uploads.commoninja.com/pdf_gallery/1698638591568_EBOOK_-_Membership_Managers_Handbook_2018_Edition.pdf" data-mce-selected="inline-boundary">The Membership Managers’ Handbook</a>&nbsp;to get more information on how to do it.

Do You Know Your Member Retention Rate?

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I have worked with a number of associations recently who have wonderfully high retention rates but very low growth rates. After investigating further, it became apparent that all these associations have a wonderful range of services, many very happy members, and absolutely no sales function whatsoever. To fix this situation, and to effectively recruit new members, you need the have the following processes in place:A process for generating leads into your organisation.&nbsp;To create new members, you need prospective members. This means developing strategies for generating leads. This can include attending trade fairs, viral campaigns, and strong internal policies around the collection of opt-ins from prospective members with whom staff and volunteers come in contact with.A process for building a relationship with prospective members.&nbsp;Recruiting and retaining members is a bit like dating. Just because you are ready for them to join doesn’t mean they are ready to make that commitment. Having some regular non-member engagement is a great way to enable prospective members to get a feel for the organisation. This can include issuing free e-newsletter and enabling non-members to register to attend your events (at a much higher fee).&nbsp;A process for converting someone from a non-member to a member.&nbsp;There are many great sales channels for membership including direct mail, e-mail, outbound telephone calls, and/or an on-the-ground sales team. Associations who are growing the most strongly use a mix of all of these. After a heavy swing to email over the past 7 years, we are now seeing associations generating an excellent return from sending a well-crafted direct mail piece followed up by a phone call.It is vitally important that every prospective member enquiry or outbound campaign is followed up with a phone call. This is an absolutely critical element to member recruitment success. With the advent of cost-effective, outbound call centres specialising in associations (such as&nbsp;<a href="http://www.optimumcontact.com.au/about-us/" data-mce-href="http://www.optimumcontact.com.au/about-us/">Optimum Contact</a>) there is no excuse for these calls not being made. &nbsp;

You Can’t Grow Your Member Numbers if Noone Is Selling Your Membership …

I was sitting in an association board meeting recently and a discussion on the topic of “how much should we be charging sponsors” was underway.The discussion became quite robust and when I heard one person argue that they shouldn’t raise the sponsors fee because “we don’t have thousands of members” I had to step in.&nbsp;&nbsp;The conversation went something like this …<ul><li>Me:&nbsp; How many you are currently using the services of your current investments partner?</li><li>Board:&nbsp;&nbsp;Almost all of us.</li><li>Me:&nbsp; Of those using his services, how much in total do you have invested with them?</li><li>Board:&nbsp;&nbsp;[After a quick consultation around the table] Almost a billion dollars.</li><li>Me:&nbsp; Wow, that’s a seriously large amount of money. How much would that be worth in fee income to that partner?</li><li>Board:&nbsp;&nbsp;Not sure. At least a million per annum. Probably more.</li><li>Me:&nbsp; And how much are you charging them per annum for the partnership?</li><li>Board:&nbsp;&nbsp;Around $10,000 … and it’s exclusive.</li><li>Me:&nbsp; Hmmm … Do you think you might want to edge up that partnership fee just a touch?&nbsp;</li></ul>While the size of the investment was somewhat stunning in this instance, this situation is not uncommon in the association sector. Few organisations devote much time to measuring the return on investment the sponsor is gaining from the arrangement. This invariably leads to a situation where you either:a)&nbsp; Lose the sponsor because they aren’t receiving value (and you haven’t cared enough about the partnership to make sure they are); orb)&nbsp; Lose out on income because you are providing value to your sponsor that is way out of proportion to what they are investing.Talk to your sponsors. You need to know how THEY define the success of the partnership. Once you know how they are measuring success, you can track and report against those variables. I guarantee you this information will be invaluable. It will become the focus of discussions when renewing or on-boarding sponsors. And, in our exceptionally competitive sponsorship industry, it will set you apart from the competition in a very positive way.

Are You Undercharging Your Sponsors?

When selling membership, the fee you charge is not the most important factor. Instead it is the value the membership fee represents and how effectively that value is communicated.Many associations struggle to articulate the true value of membership because it is generally intangible and therefore somewhat challenging to explain. So people default to speaking about the tangible aspects of the membership. Unfortunately, these are generally just features of membership (E.g. websites, magazines, events) which aren’t very compelling without being put into the context of a value proposition. &nbsp;A prospective member is not making a donation to the organisation. They are making an investment. To get them to join you need to start the conversation by articulating how the member will realise a successful return on their investment. Some broad examples of how you might begin include:For a&nbsp;business owner&nbsp;seeking to join an industry or professional association&nbsp;– When you join our association you are making an investment into the success of your business. By joining us you will increase your opportunities to generate new business, reduce your expenses, raise your profile, and gain a competitive advantage over those who aren’t members.For an&nbsp;individual&nbsp;joining a professional association&nbsp;– When you join our association you are making an investment into the success of your career. We will provide you with the tools, skills and networks to help fast track your way up the career and salary ladder. As a member you can access opportunities to raise your profile, reduce your outgoings and advance your career that simply aren’t readily available to non-members.The most compelling value statements are highly targeted towards the specific member segment you are communicating with. For example, a student entering into a new career may be focused on ensuring they get the information and support to get the best possible start in their career. However, someone nearing retirement may be more interested in legacy building and succession planning. &nbsp;

Are You Effectively Conveying the Value of Your Membership?

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Securing new, high-value partnerships is NOT about selling your organisation.&nbsp;When you send your proposal, the purpose of your proposal is&nbsp;not&nbsp;to tell the potential sponsor everything about your organisation. The proposal is a teaser whose role is to excite the reader into wanting to learn more.&nbsp;&nbsp;When you follow up your proposal on the phone, the purpose of the call is&nbsp;not&nbsp;to tell the potential sponsor everything about your organisation. The purpose of that call is to secure a face to face meeting to discuss things further.And when you do get that meeting, the purpose of the meeting is&nbsp;not&nbsp;to tell the potential sponsor everything about your organisation. The purpose of the meeting is to ask questions to learn more about what the sponsor is trying to achieve, what marketing channels work most comfortably for them, and what their idea of a “successful” partnership looks like. It is your opportunity to build a genuine relationship with the individuals in the other organisation and seriously evaluate whether they are the right partner for your organisation.With the information you have gathered, you can tailor your sponsorship package to effectively achieve the outcomes your potential sponsor is seeking in a manner both organisations are comfortable with.&nbsp;Now&nbsp;is your opportunity to make a compelling, high value, offer with measurable, tangible outcomes for all parties.&nbsp;

Blog

Do You Know Your Member Retention Rate?

You Can’t Grow Your Member Numbers if Noone Is Selling Yo...

Are You Undercharging Your Sponsors?

Are You Effectively Conveying the Value of Your Membership?

Are You Effectively Conveying the Value of Your Membership?

Securing New, High-Value Partners is Not About Selling Yo...