1. Economics of building Member Relationships By Jay T. Dziwlik, CAE, MBA jay@indental.org /@idajay 317.634.2610

2. Who am I?

3. Why are you here? What question(s) brought you to this session and or what answers do you need prior to leaving?

4. Agenda and Objectives Economics of Membership Thirty tips for developing and deepening membership relationships. Resources and Questions

5. Economics of Membership? Why you should care

6. It’s Your Job….Literally The End

7. High Cost of Not Retaining Membership Relationship According to the Counselors to America’s Small Business For every customer who bothers to complain, there are 26 others who remain silent. The average “wronged” customer will tell 8 to 16 people. 91% of unhappy customers will never purchase services from you again. It costs about five times as much to attract a new customer as it costs to keep an old one. Each one of your customers has a circle of influence of 250 people or potential customers who hear bad things about you!

8. Renewal Rate Renewal Rate = Total # Members Now -# of New Members Last 12 Months / Total # Members Last Year Measures the number of members that you keep over a specific period of time, usually 12 months

9. Renewal Rate i.e. IDA Renewal Rate = 2,847 Total # Members Now 2011 YTD -92 # of New Members Last 12 Months / 2,898Total # Members Last Year 2010 =.951 or 95.1% or 4.9% don’t renew

10. Renewal Rate i.e. IVMA Renewal Rate = 1319 Total # Members 2011 -Estimated 15 New Members Last 12 Months / 1327 Total # Members 2010 =.983 or 98.3% renewal rate Or 1.7% don’t renew Wow! Excellent!

11. Average Tenure Average Tenure = 1 / ( 1 – Renewal Rate ) Measures how long a member stays

12. IDA Average Tenure 1 / ( 1 –.951 Renewal Rate ) = 20.4 years Average Tenure for IDA

13. IVMA Average Tenure 1 / ( 1 –.983 Renewal Rate ) = 58.8 years Average Tenure for IVMA

14. Lifetime Value of Members (Annual Dues + Annual purchased products/services + annual endorsement royalty income) X average number of years in membership = Lifetime Value of Member

15. Example of IDA LVM ( $350 Annual Dues + $ 75 Annual purchased products/services + $ 100 annual endorsement royalty income) X 20.4 average number of years in membership = $10, 710 Lifetime Value of Member

16. Example of IVMA LVM ( $205 Annual Dues + $ 400 Annual purchased products/services/annual endorsement royalty income) X 58.8 average number of years in membership = $35, 574 Lifetime Value of Member

17. So, how are we doing? What is your lifetime value of member? What percentage of members do you lose annually? Do you know the top three reasons your members leave? What is your member’s #1 expectation? When was the last time you talked about member relationships?

18. Thirty Suggestions to Improve Membership Relationships

19. Visit a member #1

20. Ask a new member to volunteer once #2

21. Go early, mingle much #3

22. Introduce members to each other #4

23. Send a member a handwritten thank you note #5

24. Write article about member value #6

25. Create at balance sheet for dues, members and nonmembers #7

26. Schedule time for member interaction #9

27. Point out value to members #10

28. Visit a local chapter, society, or small group #11

29. Introduce yourself to student future members #12

30. Post pictures, video from member events #13

31. Examine and develop the “Membership Experience” #14

32. Prioritize Member contact #15

33. Ask members why they joined /nonmembers why they don’t #16

34. Answer/address members questions /problems #17

35. Measure member satisfaction periodically but regularly #18

36. Tech Use/Social Media? #19

37. Create a member to member thank you call-a-thon #20

38. Create a “typical” member profile #21

39. Contact a member who is hurting #22

40. Keep track of questions asked by members #23

41. Answer them don’t tell them #24

42. Insure worthwhile meetings and work #25

43. Save a member time #26

44. Save a member money #27

45. Train your staff on membership relationships #28

46. Celebrate success with your members #29

47. Know the economics of your membership #30

48. Book Resources Retention Wars and Millennium Membership by Mark Levin The Volunteer Recruitment Book by Susan Ellis Generational Imperative by Chuck Underwood

49. Website Resources American Society of Association Executives – www.asae.org www.asae.org “Best Association” by Stevens and Stevens, LLC. www.bestassociation. com www.bestassociation. com

50. Association Resources Look around at other boards, associations, ask members what they think.

51. Questions? Thank you for your attention Jay T. Dziwlik jay@indental.org /@idajay 317.634.2610