1. NARFE Membership Marketing 2014 Federation Convention

2. Membership Overview  As of the March 2014 close, total membership stands at 249,392  The membership crisis continues  Progress is steady with a slowing of the decline for 14 months, both in terms of absolute numbers and as a percentage of total membership

3. Membership Overview  What are we up against?  30 year membership decline  Aging membership base  Cultural shift away from membership organizations  Evolution of a technology based lifestyle  Continued decline in response from OPM list  No large universe of “rentable” prospects  A political climate that limits claims of big legislative victories  Too few new members

4. Membership Overview  What are we doing about it?  Testing, testing, testing…  Building an in-house prospect list  Mailing 75,000 piece mailings 6x per year to lapsed members and prospects – in addition to twice yearly OPM mailings  Building NARFE awareness  Pursuing innovate online opportunities  Providing material and guidance to recruiters, retainers and prospectors in the field

5. 2012 vs 2013 Gain Loss Note: 4,718 unreported deaths over decades removed from Honorary and Life Member files in 2013. 2012 vs 2013 Membership Statistics Membership GainsMembership Losses New MembersReinstatementsTotals Cancellations Dropped for Non-Payment Reported DeathsTotals 201212,56813,431 25,999201244438,524 8,221 47,189 201314,36015,950 30,310201340935,150 12,851 48,410 2012 vs 20131,7922,5194,311 -35-3,3744,6301,221 Adjusted for data cleansing 201244438,524 8,221 47,189 201340935,150 8,133 43,692 -35-3,374-88-3,497

6. March 2014 Gain / Loss Year to-date losses are running 47% less than the same period last year. Membership GainsMembership Losses New MembersReinstatementsTotalsCancellations Dropped for Non-Payment Reported DeathsTotals January 1,0811413 2,494 January 622,029 587 2,678 February 7231503 2,226 February 313,178 948 4,157 March 480 1,074 1,554 March 35 3,239 524 3,798 April - - May - - June - - July - - August - - September - - October - - November - - December - - Total Membership Gains2,2843,990 6,274Totals Membership Losses1288,446 2,059 10,633 2014 Membership Gain/Loss (4,359) 2013 Membership Gain/Loss (8,178)

7. Feds in Crisis Early Conversion to Paid Membership Early results are encouraging. October joins will receive a last issue cover wrap with the May issue. Previous free offer testing has produced high conversion activity with the wrap. NOTE: We will see drop for non-payments for those who do not convert. The net gain in membership and brand exposure will have been a success.

8. Online Lead Generation Statistics Online Lead Generation continues to be a strategic priority in 2014. Lead Generation via online advertising continues to build our in- house prospect list and generate substantial NARFE brand exposure among AFEs.  97% of leads generated are Active Federal Employees.  Of all online leads generated, 7.5% are already members (enhanced engagement of new members).  Of “true prospects,” 8% convert to NARFE membership  36% of conversion takes place month 1.  76% of conversion has taken place by month 3.

9. Online Lead Generation Statistics 2013 was a building year, testing for best placements and offers. We are reaping the benefits in 2014. 2013Jan – April 27, 2014 Leads Generated14,7659,595 Average Impression per Month2.2 million Imagine online advertising as a bus ad that travels nationally but is viewed exclusively by federal employees. “Impressions” is the number of times the “bus ad” was viewed by our target audience. The leads, or prospects, provide a database of potential members that a bus could not.

10. Online Lead Generation Statistics The 2014 Click Through Rate (percentage of those who see the online ad and click for more information) is.43%. Compared to industry benchmarks, this rate is average – a comparison we will be working to improve the remainder of this year. The 2014 Conversion Rate (percentage of those, having clicked on the ad, that then fill out the form and become prospects) is 42.6% This statistic is phenomenal. Industry standards considers anything above 15% to be excellent.

11. Online Lead Generation Test Programs Facebook Custom Audiences Facebook now offers custom online marketing  Data Models are developed using characteristics of an existing list.  NARFE will provide email addresses of our online prospects for modeling.  Those addresses with Facebook accounts will be culled for data in order to build a list of “look-a-like” Facebook users.  NARFE online ads (free white paper offers) will be placed on the Facebook pages of look-a-likes.

12. Online Lead Generation Test Programs Google Remarketing Google follows online prospects and continues to offer targeted advertisements.  Those who visit the NARFE website but do not become members will receive additional opportunities.  As these prospects continue to surf the Web, NARFE advertisements will “follow” them.  A new NARFE white paper offer will be placed on subsequent pages viewed by the target audience.

13. Reason for Concern OPM Mailings – Continued Decline in Response As of 2011, the OPM backlog in full annuity payments began. Response to the OPM mailings saw a corresponding and deep decline. Implementation of successful testing has not overcome continued decline in response. Spring 2014 mailing includes testing an entirely new letter.

14. Prospecting at the Federation and Chapter Level NARFE members are our best recruiters – and prospectors. We ask that all encounters with potential members be viewed not only as a recruiting opportunity, but also as prospecting opportunity.  A new recruit is always important but prospects are also worth their weight in gold.  A local event may produce three recruits – but if it also produces 100 prospects, the effort has gone from a success to a grand slam.  M-2 cards received at headquarters will receive the royal treatment – acknowledgement letters, engagement emails, and many opportunities to join.  Raffles are great M-2 card incentives – Free membership, gift card, etc. 14

15. Recruitment and Prospecting Materials 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. The Recruiting/Prospecting Kit includes: narfe magazine NARFE Brochure F-135 Prospect Card M-2 Sample NARFE Elevator Speech 15

16. The Elevator Speech  An elevator speech is simply a summary – or the best possible way to present NARFE and the value of membership within a limited amount of time.  We seldom have the luxury of a relaxed, extended discussion with a potential NARFE member. Instead it is the hurried pitch to busy attendees of a health fair or a brief, chance encounter with a newly discovered co- federal employee. A clear, highly focused elevator speech makes certain that the limited time is used most wisely. 16

17. The Elevator Speech The best speech will be based on answering four key questions:  What is NARFE?  What does NARFE do?  What are the benefits of NARFE membership?  Why should I join? The following is a sample speech: 17

18. The Elevator Speech NARFE is the National Active and Retired Federal Employees Association. It is the only organization solely dedicated to protecting and preserving the pay and benefits of all federal workers and retirees. NARFE has two primary roles:  Your Legislative Voice. In-house, influential lobbyists advocate on Capitol Hill on behalf of the federal community.  Your Information Resource. NARFE provides clear information and trusted guidance on complex federal benefits issues. As a member of NARFE you receive:  narfe magazine – the prime source of information and guidance on critical legislation and benefit issues.  Access to a team of Federal Benefits Service specialists for answers to complex benefit questions.  Legislative alerts on issues directly impacting the federal community and an online Legislative Action Center to quickly and easily contact your Congressman.  Member-only eligibility for scholarship, disaster relief grants, and discount on products and services. When you join NARFE you will protect your earned pay and benefits, ensure you can get trusted guidance on complex pay and benefit questions, and support the federal community. 18

19. Upcoming Training In an ongoing effort to provide recruitment and prospecting training to the field, two marketing sessions will be offered at the National Convention.

20. Upcoming Training The Importance of Brand RickWhalen, president,Marketing General, Inc. Whether you’re promoting Coca Cola or NARFE, marketing efforts must be mindful of branding. An organization is defined by perception. While many imagine that brad refers simply to a logo, the term refers to the image that brand or logo represents. Come hear stories of success and failure and how top brands remain relevant in the eyes of their target audience.

21. Upcoming Training Be the Brand: Communication Techniques and the NARFE Pitch Martha Nall, retired extension professor, Program and Staff Development, University of Kentucky So you have secured a table at an event likely to attract potential NARFE members, or you have met up with an old federal colleague... now how do you capitalize on the opportunity? Learn how to make NARFE a valued brand for active and retired federal employees. Identify communication techniques that can increase your rate of success in recruiting and retaining members."

22. Recruiting & Retention Journal The NARFE Table In the most recent issue of the R&R Journal, please be sure to see the article on recruitment and prospecting at a NARFE table. Issues and tips covered include:  Your Table is the NARFE Brand  When Displaying Materials – Less is More  Step Out and Greet the Prospects  With So Little Time – Have the Perfect Pitch  The End Game… Capture the Prospect Both current and back issue of the journal can be found on narfe.org. Once logged in, go to Officer Resources, and click on Newsletters.