Membership Marketing 101: Developing an Effective Marketing Plan Lisa Diener Director, Marketing Technology & Analytics Scott D. Ferrin, SHRM-SCP, CAE Field Services Director

Agenda Introduction Marketing Fundamentals Elements of a Marketing Plan Q&A

4 Ps of Marketing TARGET MARKET - What features does it need to have? PRODUCT - What does the member want - What features does it need to have? - How will the customer use it? - How does it differ from competitors? - How will it be branded? PRICE - What is the value? - What are prices for similar products? - How will price compare to competitors? - How price sensitive are members? - What discounts should be offered? PLACE - Where do members look for the product? - How can they access it? - What do your competitors do and how can you learn or differentiate from that? PROMOTION - Where and when can you get your marketing messages to your audience? - What channels will you use? - When is the best time to promote? - How & where do your competitors promote? TARGET MARKET

Marketing Funnel

An Integrated Approach Social Media/Content Marketing Word of Mouth Inbound E-mail Direct Mail Telemarketing As you plan, there may be some who advocate doing away with direct mail and saving money by only communicating with email. Or they may want to solely use inbound or content marketing and stop sending messages to prospective and existing members through traditional outbound efforts. However, the integration of multiple marketing channels working together has proven to produce the best results in getting and keeping members. Word of Mouth – Sometime opportunities are handed to you that you can capitalize on quickly through Word of Mouth efforts. One client—the American Nurses Association—used a negative comment on a national television show to gain significant exposure and appreciation for defending their members’ professionalism through their social media Word of Mouth efforts. In fact, Word of Mouth and membership referrals are consistently reported as the most productive ways to recruit new members. The challenge is to consistently harness and motivate this people-driven channel. 2. Inbound Marketing – One of the fastest growing marketing channels used in membership is Inbound Marketing. This takes advantage of paid advertising with search engines, Facebook, LinkedIn, and other online opportunities to present free content or special offers to prospects. Inbound marketing offers free, valuable content in exchange for the respondent agreeing to opt-in to future communications. Those who show interest can then be followed up with through traditional “push” marketing efforts. And because they raised their hand and demonstrated interest in your materials, those who opt-in can respond to your other marketing efforts at five times the rate of “cold” prospects. Inbound efforts can even be effective in engaging and renewing current members who may not open an email, but will respond to an ad they see from you on Facebook. 3. Email – Once a prospect is added to the database after a lead is captured, a purchase is made, or someone joins the association, email becomes the most commonly used marketing channel. It makes sense because email is fast, inexpensive, and includes links back to the website where a sale can be completed. Email also allows you to read the behavior of the recipient. Did the email bounce? Did the recipient open the email? Did they click through a specific link? There are many tips and techniques that can help to optimize email for even better results. 4. Direct Mail – This channel remains one of the most effective and scalable methods to recruit and renew members because it is easily targeted, trackable, and tactile. In fact, our 2015 Membership Marketing Benchmarking Report highlighted that for organizations with budgets over $5 million or those that have over 20,000 members, direct mail is the most effective tactic for recruitment. And previous research shows that associations with renewal rates of 80% or higher are significantly more likely than those with lower renewal rates to say direct mail is the most effective membership renewal channel. 5. Telemarketing and Telephone Sales – With Caller ID, getting through to a prospect or members on the phone has become a more challenging task, but for a highly qualified prospect, like a lapsed member, telemarketing is very effective. The former member may have long since stopped reading your email or opening you mailings, but a call from another human on the end of the phone to answer questions or encourage a decision can make a difference. Phone calls from a peer or a staff person can be particularly effective. 6. Social Media – By 2015, 91% of individual membership associations have an official Facebook page, 87% use Twitter, 60% have a LinkedIn group, and 56% have a YouTube channel. Clearly social media has been almost completely integrated into associations’ marketing and communications mix. This low or no cost channel allows you to have a storefront on the main street of the internet. The trick is to get prospects and members to move from window shoppers into the store as buyers. This can be done by presenting regular value-laden content that demonstrates your relevance to prospects and members. Source: Marketing General Inc.

Components of a Membership Marketing Plan Vision & Strategic Direction Objectives / Goals Key Insights Audience Campaign Plan & Tactics Resource Requirements Risk Assessment RACI Tracking & Metrics

Components of a Membership Marketing Plan Vision & Strategic Direction Example: SHRM Chapter ABC strives to be the go-to resource for HR professionals in Any Town through networking, advocacy, and affordable and easy-to-access professional development. In order to attract and serve more young HR professionals, community involvement and career pathing and development topics will be a core focus. Here is an example of a VISION and Strategic Direction To recruit new members or reengage those that have lapsed so that SHRM can be a stronger, more powerful voice of the HR profession and continue serving the needs of HR professionals around the world. Objectives should list out goals and have specific tactics to reach them. Examples: Goal: Recruit 200 new members this year Tactics: - Continue to improve response rates for direct mail packages by optimizing mailing lists, package design, messaging and timing - Optimize membership acquisition e-mails by continuously testing messaging, timing, design and offers to increase the conversion rate - Create monthly email to prospective members - Respond to all membership inquiries within 72 hours Audience or Focus Segments- be clear on who you are going after. Anyone in HR? Targeting Generalists, HR departments of one? Local grad students. Resource Requirements- what will actually be needed to accomplish this? Volunteer’s time to followup with people and send emails. Email system to track opens and clicks, etc

Components of a Membership Marketing Plan Objectives Goal #1: Retain 80% (1,125) of members who were active 12/31/17 Goal #1.1: Increase retention rate of YPs by 1% Goal #1.2: Reduce renewal cost by updating mailing addresses & emails Goal #2: Recruit 300 new members in 2018 Goal #2.1: Of the 300 new members, 50 should be YPs Goal #2.2: Develop at least 2 new resources per quarter that align with career development Goal #2.3: Partner with local small businesses on HR mentor programs (submit for Pinnacle Award)

Components of a Membership Marketing Plan Key Insights 15% of new members last year joined during/after the conference 10% increase in the number of guests at meetings 40% of new members joined from an email request Renewal is down 10% in small organizations over last two years (look into offering discounts on dues) Based on survey data, members seem most interested in learning about 1) HR competencies, 2) upcoming legislation, 3) how to create succession plans SWOT Analysis

SWOT Analysis S W O T Strengths Weaknesses Opportunities Threats Advantages Experience, knowledge Unique caracteristics Resources Geographical advantage, location Competence, capabilities Quality, reputation Weaknesses Disadvantages Gap in experience, knowledge Financial aspects Reliability and trust Loss of key staff Geographical factors O T Opportunities Strategic alliances, partnerships Product development Import, export Innovation an technology development Threats This is an example text. Loss af alliances and partners Price infaltion/deflation Strong competition Competitors new products and innovation

Value Chart Example FEATURE BENEFITS AVOIDANCE EMOTIONAL DRIVERS Continuing Education Programs Keeps you knowledgeable and relevant as a professional Missing out on essential knowledge for professionals Gain confidence in your abilities Certification Programs Validates your capabilities Getting passed over for a higher position Becoming an authority in my field Members-Only Discounts Saves you $$$$$$$ Paying too much somewhere else! Good steward of organization’s money Newsletter or eNewsletters Ongoing access to timely information Wasting time searching for critical information Allows you more time to spend on the things that really matter Monthly Magazine/Journal Covers the hottest topics and trends around <your profession> in your area Not being on top of major employer concerns Being on the cutting edge of the profession Webinars Convenient learning at your fingertips Costs of travel, room and board for educational needs You can become an expert in a specific area Face-to-face lunches/meetings Networking with other professionals like you to discuss and solve common problems Working in isolation on key issues that would benefit from multiple viewpoints Making professional friendships that last a lifetime

Value Chart Exercise FEATURE BENEFITS AVOIDANCE EMOTIONAL DRIVERS Webinars Convenient learning at your fingertips Costs of travel, room and board for educational needs You can become an expert in a specific area

Components of a Membership Marketing Plan Audience Tie audience to your objectives & should be prioritized Young professionals At-large members Expired members Thriving industries / businesses in your area

Components of a Membership Marketing Plan Tactics Sell / renew membership onsite at events Send monthly email to prospective members Invite at-large members to 6 local events Test offering incentive for lapsed members to rejoin Increase email open rates to prospective members by testing new subject lines

Engagement Map

Recruitment Schedule

Renewal Schedule

Mapping Out the Tactics

Mapping Out the Tactics

Mapping Out the Tactics

Mapping Out the Tactics Exercise

Components of a Membership Marketing Plan Resource Requirements Budget mailings – postage, paper / envelopes, printing Incentives Hire designer to create membership brochure and email template Volunteer / Staff develop email message, sending out emails per the schedule, measure and report monthly Phone outreach to lapsed members Address, stamp and mail acquisition and renewal letters

Components of a Membership Marketing Plan Economics of Membership

Components of a Membership Marketing Plan Risks to Goal Achievement Membership Director may be moving Have a backup cross-trained Budget availability to hire print/web designer Find out if anyone has design experience in exchange for reduction in membership dues or find a student at the local college Impact of recent flood on jobs / ability to pay dues Consider a transitioning membership option Competition from law firms in area are starting to offer more HR compliance seminars/resources for free Provide an overview of product competitors, and their strengths and weaknesses Position each competitor’s product against the new product

Components of a Membership Marketing Plan RACI Activity Responsible Accountable Consulted Informed Acquisition Mailings Acquisition Emails Renewal Reminders Renewal Phone Calls

Components of a Membership Marketing Plan Tracking & Metrics Track actual spend against budget Track ROI of each initiative Track effectiveness of each initiative Reporting mechanism

2016 SHRM VOLUNTEER LEADERS’ SUMMIT Measuring Results 2016 SHRM VOLUNTEER LEADERS’ SUMMIT

9/8/2018 Marketing Plan Chapter Name :: Year

9/8/2018 Table of Contents

Vision & Strategic Direction 9/8/2018 Vision & Strategic Direction

Product Definition Describe the product or service being marketed 9/8/2018 Product Definition Describe the product or service being marketed

9/8/2018 Objectives & Goals Make these SMART goals, if possible

9/8/2018 Key Insights

SWOT Analysis SWOT Analysis S W O T Strengths Weaknesses Opportunities Threats Weaknesses S W T O

SWOT Analysis SWOT Analysis FEATURE BENEFITS AVOIDANCE EMOTIONAL DRIVERS Webinars Convenient learning at your fingertips Costs of travel, room and board for educational needs You can become an expert in a specific area

9/8/2018 Audience

Campaign Plan & Tactics 9/8/2018 Campaign Plan & Tactics Tactics Calendar

Resource Requirements & Budget 9/8/2018 Resource Requirements & Budget Economics of membership

Resource Requirements & Budget 9/8/2018 Resource Requirements & Budget

Risk Assessment Internal/external threats to goal achievement 9/8/2018 Risk Assessment Internal/external threats to goal achievement Competition

9/8/2018 Tracking & Metrics Tactic Date Audience Topic # sent # opened % opened # clicked % clicked # converted % converted Revenue Cost Metrics for direct mail, telemarketing, social media will all be slightly different