Region X Conference Membership Marketing The Bottom Line September 2013

Membership Marketing The Bottom Line – A brief overview 2  NARFE has experienced a thirty year decline in membership, leaving the association in serious trouble  The association did not have the expertise to analyze the problem or develop and implement a plan to attack the issues  Marketing General Inc. (MGI), a firm with over thirty years of marketing experience with hundreds of associations was contracted and additional industry knowledge and experience was brought in-house

Membership Marketing The Bottom Line – A brief overview 3  Ongoing marketing plans are developed to test best options and implement successful efforts  There is no silver bullet  We have slowed the year-over-year decline and are building the foundation for the future.

OPM List History - Over 30 years since membership high = vulnerability Early – Full access to OPM file 1983–1993 – No access to OPM file 1993 – began twice yearly OPM access Current - OPM back log in full retirement benefits Environmental History - Over 30 years since membership high = outside of NARFE control Aging membership base Cultural shift away from membership organizations Technology based lifestyle change NARFE 30-Year Membership Decline Since the NARFE membership high in 1982, reliance on the OPM list for acquisition, the aging of a retired membership base and both cultural and environmental shifts have accounted for steep decline. Note: Thirty Year Trend / Constant Loss since 1999

Membership Marketing The Bottom Line – member deaths 5  NARFE member deaths are escalating: contributing to an erosion of the renewal rates and an increase in Dropped for Non-Payment statistics. Monthly average reported deaths have increased 23% from 2012 (Does not include database cleansing efforts) Unreported deaths impact renewal rates which have eroded from 82% to 78% over the course of five years 9% increase in Drops form 2011 to % increase in Drops form 2012 to 2013

Membership Marketing The Bottom Line - recruitment 6  Recruitment of new members is our most critical initiative.  Reversing the decades of membership decline requires high volume recruitment of new members.

Membership Marketing The Bottom Line - OPM 7 OPM response has declined steadily over the last decade  The OPM list has historically been the sole source of high volume new membership. It has never produced enough new members to maintain membership levels  The current OPM backlog, which leaves so many recent retirees with only partial annuity, is contributing to a further decline in response CampaignResponse Spring % Fall % Fall % Spring %

Membership Marketing The Bottom Line – Other Lists 8  The rental universe, beyond OPM, for federal employees and retirees is relatively small and the most responsive lists are quite expensive. Standard offers have not worked.  Successful use of these lists will be dependent on: 1. Success of the Free 6 Month Trial Offer or 2. A new break-through offer.  With limited and expensive outside list options, building an internal prospect list (lead generation) is the key to large scale acquisition.

Membership Marketing The Bottom Line – Prospecting 9  As of the 2013 budget, advertising dollars have been brought to the prospecting task. Our media spending now must work double-time, providing both high brand exposure AND a high volume prospects.  Testing has revealed that highly targeted electronic newsletters are most effective. We are finding and engaging the active federal employee where they gather online.

Membership Marketing The Bottom Line – Prospecting 10  Within the first eight months of online advertising, we saw just under 13 million impression of the NARFE brand.  In the first seven months of this year, we have generated over 8,000 leads from this effort alone.  92% of the leads generated are Active Federal Employees

Membership Marketing The Bottom Line – Prospecting 11

Membership Marketing The Bottom Line – Prospecting 12 What does Headquarters do with the prospect list?  New prospect letter  The first correspondence, a letter acknowledging the prospect’s recent interest and inviting them to join, is sent within a week of data entry.  cultivation series  All prospects, upon data entry, are entered into a six-part cultivation program. Prospects are offered white papers, take a survey, and are invited to join. Relevant engagement is a key factor in converting prospects to members.  Bi-Monthly mailings  Prospects are selected for bi-monthly acquisition mailings. Multiple exposure is a key factor in converting prospects to members.

Membership Marketing The Bottom Line - reinstatements 13  With dedicated promotional effort beginning in the Fall of 2010, culminating in the current bi-monthly mailing to lapsed members, we see significant gains in reinstatements – despite member deaths. Reinstate Improvement 2010 vs % 2011 vs % 2012 vs %

Membership Marketing The Bottom Line - retention 14  On account of strong reinstate statistics and despite escalating deaths, total retention (renewal plus reinstate) remains extremely high. NARFE Retention Rate is 92% Only 15% of member associations report retention rates of 90% or higher

Membership Marketing The Bottom Line – slowing the decline 15 There is ongoing evidence that the membership decline is slowing In order to accurately reflect year-over-year comparisons, 4,718 members (those removed from the file as we researched decades of unreported deaths) needs to be excluded from the data to reflect current realities. Once done: Over the course of the last three months, we have seen a 20 to 25% decrease in losses compared to the same time periods in 2012

Membership Marketing The Bottom Line – “getting into federal buildings” 16  Beyond the substantial exposure to current federal employees via online advertising and lead generation, four additional plans are in place to “get into” federal buildings.  Six month plan to “gift” 165 agency HR officers with magazines, brochures, white papers, “how can we help you?” surveys and s with free downloads for distribution. (Sample of July issue letter attached)  Introductory letter from Headquarters available for use in the field. It will be included in the updated F-10, Chapter and Federation’s Officers Manual. ( Letter attached)  “Best Effort” model from Headquarters for entry and implementation into two agencies. (Draft letter attached)  Call for best practices from field to be solicited in next Recruitment & Retention Journal and shared online.

Membership Marketing In the Field 17  Assess the resources within your chapter and federation  Are there funds / matching funds / successful recruiters / potential recruiters  Assess the opportunities in your area, district and state  Are there federal facilities / events / gatherings that may at first blush seem unlikely  Work the OAM and M12  Prospects and new members can be found here

Membership Marketing In the Field 18  Engage, Engage, Engage – and then ask  Don’t just send a letter and forget prospects – include a magazine and brochure  Develop a prospect follow up plan over the course of six months  New members are likely active employees or recent retirees – welcome them!, understand their unique needs or perspectives  New members are likely active employees or recent retirees – they are your best potential recruiters

Membership Marketing In the Field 19  Seek/share expertise  Develop a relationship with nearby chapter membership chairs and federation officers  Comb the quarterly Recruitment and Retention Journals for top recruiters in your area and contact them  Map out event opportunities and best possible/available staffing (limited)  Set goals  Order magazines, brochures and M2s for event tables  Develop a personal elevator speech that strongly positions NARFE as the Legislative Voice and Information Resource for federal employees and retirees

Membership Marketing In the Field 20  Identify, build and cultivate relationships within local agencies  Individual’s success in gaining access to federal buildings and invitations to events within them have been most often based on long-term cultivation of a personal relationship  Pursue social media  For those who are comfortable within social media, spreading the word about NARFE is effective public relations  For those who resist local chapter membership, suggest eNARFE

Membership Marketing In the field 21  Prospecting – field support  The F-135, current narfe magazine and M-2 cards are promoted wherever possible as key recruiting and prospecting tools. All are encouraged to limit event materials to this “kit”.  A sample “elevator speech” is sent with each request and available online. Keeping the Exchange Focused Limiting materials and having a rehearsed “elevator speech "will keep the conversation focused and provide manageable, digestible information for the prospect.

Membership Marketing In the field 22 Share your story!