1. Employers’ Activities Programme Effective Employers’ and Business Organizations
Membership strategy

2. Objectives
Identify key elements to design a membership strategy in your organization
How?
Discuss and review key performance indicators on membership
Strategic tools for membership retention and recruitment
Define your membership target

3. Our tool

5. Representativeness - influence
Why is it crucial?
Revenue – resources
Representativeness - influence

6. The issues around membership
Further growth and influence
More resources
Increasing membership
High representativeness
High quality services
More resources
High membership

7. The issues around membership
Membership low
Limited resources
Limited services
Low influence
More limited membership
Lower resources
More limited services

8. We need more communication, a membership pack, launch new services...
Reactions of BMOs
Two reactions:
Instinctive one
Lots of efforts, but not efficient and effective (NO cost
and effort maximised) and coherent (NO strategy)
We need more communication, a membership pack, launch new services...

9. Two reactions: 2) A more professional one
Reactions of BMO’s
Two reactions: 2) A more professional one
Membership is a complex issue, which needs planning, holistic approach, a comprehensive strategy and dedicated support tools (ie. Membership database or at least well organized excel file)

10. Membership concepts Voluntary/Obligatory
Associations/Direct company members/Mix
Members not = to paying/active members
Members not = to users
Membership strategy based on KPIs
Members increase = recruitment + retention

11. What do we know about members
Key performance indicators (KPI) for a membership strategy
N° members, % Members paying subscription fees
Number of members per sector / size
N° of employed workers by members / Total n° of employed
Turnover achieved by members /Total GDP region or district
Representativeness
% Members using services
Intensity
Recruitment rate - Retention rate – average loyalty
Relevance

12. If yes,please fill in the data in the membership table!
Do you have and use these Key Performance Indicators?
If yes,please fill in the data in the membership table!
If not, make sure you start collecting these key indicators on membership!

13. Membership increase what?
Membership increases are determined by:
Retention
Recruitment

14. Brainstorming exercise – 5 minutes
In two groups: GROUP 1: Why are company-members joining your organization? GROUP 2: Why are company-members joining your organization? Write down on a flipchart

15. Membership retention

16. Membership retention

17. Two overriding reasons:
Membership retention
Two overriding reasons:
Cost effectiveness.
Retention between 5 and 10 times cheaper than recruitment
2) Customer loyalty a trump card.
Loyal members spend more.
Word of mouth most important for recruitment of new members; old members are the best ambassadors

18. Measuring and analysing retention
What should we know:
How many and which members are leaving?
Why are they leaving (reasons – quality info)?

19. Voluntary dis-affiliation Mandatory dis-affiliation
Dis-affiliation CEPB
Voluntary dis-affiliation
The member entity must submit a written note to the Board of Directors, stating the decision.
They must have their ordinary and extraordinary fees paid.
Mandatory dis-affiliation
The transgression of the principles of free enterprise.
Failure to comply with the regime of contributions, incurring in delay.
Non-attendance at fifty percent or more of the Board of Directors meetings held for one year.
The omission in the transfer of its current constitutive institutional documentation and modifications to it.
Other institutional faults, established in this Statute.

20. Retention Rate ( = Renewal Rate)
Measuring
N° members which renew Total number of members which expire
Retention Rate ( = Renewal Rate)
Example:
420 renew = 84%
500 in total expire
Lapse rate = 16%

21. Retention by categories of members
Members at risk
Apply retention rate and average tenure at different categories of
members per:
Size (employment)
Sector/branch
Ownership
Unionised / Non unionised
Region - district

22. Benchmark your retention rate
Year by year (signal function)
With competitors (if possible)
With other territorial organizations
With EO’s from other countries
If retention rate is below 80% there is a problem

23. Predict which members might be leaving
Reasons for leaving
Predict which members might be leaving
Before it is too late - How to obtain data?
Via your database / Excel sheet
Via satisfaction and needs assessment surveys
Compare members and users of your services
A member never using your service is a member at risk: call or pay a visit to him/her to know how you can help him/her
Regular survey amongst members to measure satisfaction and collect needs

24. Reasons for leaving. Exit Survey
When its too late – How to obtain data?
Simple
Short (max 10 min.). Better by phone

25. Data collection and surveys
Do you have a database? Do you use the database to monitor the use of your services by the members?
Do you regularly conduct satisfaction and needs assessment surveys?
Do you conduct exit survey?
Discuss and fill in the table!

26. Recrutiment of new members

27. Measuring recruitment rate
Present recruitment rate: N° of new members Total members 2016 Minimum Needed recruitment rate= lapse rate

28. Benefits and Costs/Investment for recruiting new members
Subscription
Average service spending/
member
Average tenure
LTV (Life Time Value)

29. Exercise on Life Time Value
A new member campaign costed USD
50 new members were recruited
Subscription fees per year: 100 USD
Service spending/member per year= 50 USD
Average tenure: 6 years
Was the campaign a wise investment??
Calculate !!!

30. Recruitment campaigns
Company visits
Colleague to colleague” visits: organizations’ ambassadors
Road shows
Information events
Letters with brochures
Calls
Advertisement on local radio and TV
Advertisement on local newspapers s
Website
Do not forget new
members package!

31. Discuss and fill in the table!
Recruitment tools
Do you conduct effective recruitment campaigns? Do you have a budget for it?
How do you welcome new members?
Discuss and fill in the table!

32. Top 5 challenges to retain and recruit more members
Perceived lack of value
Too expensive
Forgot to renew
Not aware of BMO’s offer
Not involved

33. Issue 1: Perceived lack of value
Evidence-based lobbying
Better promote the results of your advocacy efforts
Identify key services which your members might require
Offer quality services at prices sligthly lower than what is available in the market
Talented and qualified professionals in the secretariat are a MUST

34. How to prove your organization is adding value to local SME’s
For territorial organizations:
Market niche: Which services are not available in the local market and you could eventually provide?
Relevant services: Which services are needed by local SMEs to improve their performance? How can you make their life easier?
Added value: How can you demonstrate the return on investment for services purchased from your organization?

35. Issue 2: Too expensive Subscription fee is too high
Service fees are too high
Recent price increases not too swallow

36. Subscription fees: general principles
Most organizations have three income sources:
Principles for subscription:
Subscription fees
Paying services
Special projects (international donors/technical cooperation, public funds
Balance right between too cheap/exclusive
Danger of one income source

37. Fees – General principles
Many territorial organizations having mostly SMEs as members, are charging low subscription fees and generating most of the income through direct services.
SMEs are generally keener to pay for relevant punctual services.

38. Subscription Fee level: EO’s around the world
Fees structure: Most vary per size (revenue,employees) Level of fees: Very often around 0,1% salarybill or annual equal to average cost of 1 worker/1000 Coverage of fees: Wide variation but in most cases advocacy, information, basic services; specific services are in many cases charged ad hoc

39. Increases of subscription fees: How much?
Pro: cost increase and investment needs
Contra: effect on demand
Study US: little effect on demand if increase up to 10-15% (corridor of price indifference)
General marketing: conciousness 7% threshold before effects

40. Increases of subscription fees: how often?
Annually, bi annually, occassionally
Study US: about 30% annually
Some EU: automatic indexation with inflation

41. Issue 3: Members forgetting to renew
When do renewal process start?
How often do you contact lapsed member?
Policy for non paying members

42. Policies for non paying members
Strict policy (3- 6 months grace period) Vs Flexible approach (case by case)

43. Process Employers Organization in Ireland (IBEC)
1 month before: invoice sent achievement document usefulness for member Renewal date: first reminder by During 6 months: monthly reminder 2 telephone follow-ups After 6 months: stop services adapt database

44. Delay in payment fees CEPB
Failure to pay the fee for three consecutive months
Confederation addresses a note to the member giving a period
of 10 days for payment
Disqualification due to delays:
prohibition of the proposal of
candidates or exercise their right to vote in Councils or
Assemblies
If the member entity pays: restitution of the rights as an affiliate

45. Discuss and fill in the table!
Subscription fees
Subscription fees: fair system? Right balance between paying and not paying services
Do you have a smooth process for renewals?
Do you have a clear policy for members non-paying subscription fees?
Discuss and fill in the table!

46. Issue 4: Not aware of your organizations offer
Improve communication via different channels – s, SMS, whatsApp, meetings to present the available services, etc
Consult members and keep them informed on your advocacy efforts
Communication campaign, road show, presence in local radio and TV, brochure, meetings with local business, communities in municipalities
For members:
For non members:

47. Issue 5: members are not involved
“Opening up the club”
Involved members have trust and commitment
Solutions:
Governance rules – comittees and mandates
Social activities: Awards, lunches, golf, AGM, personal contacts
Status (gold, silver, bronze)
Monitoring of involvement: DATABASE or excel sheets

48. Communication and member involvement
How to improve communication with members? And with non-members?
How to better involve members in the «club»?

49. Your membership strategy
In groups
20 minutes
Fill in the table - Set the targets for next year!
Discuss in plenary the proposed targets

50. We are a solid and reliable partner in the delivery of training for Business Member Organizations and we look forward to assist you in the implementation of your training needs
For further information, please contact:
Programme for Employers’ Activities
Phone: