Transcript 02 Membership Marketing - The Bottom Line - NARFE

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.
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.
600,000
OPM List History - Over 30 years
since membership high =
vulnerability
500,000
• Early 1980-1982 – Full access to
OPM file
• 1983–1993 – No access to OPM
file
400,000
• 1993 – began twice yearly OPM
access
300,000
• Current - OPM back log in full
retirement benefits
200,000
Environmental History - Over 30
years since membership high =
outside of NARFE control
100,000
• Aging membership base
0
• Cultural shift away from
membership organizations
Note: Thirty Year Trend / Constant Loss
since 1999
• Technology based lifestyle
change
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 2012. 10% 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
Campaign
Response
Spring 2005
6.6%
Fall 2005
9.8%
Fall 2012
4.0%
Spring 2013
4.3%
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.
Email cultivation series
 All prospects, upon data entry, are entered into a six-part email 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
+17%
2011 vs. 2012
+33%
2012 vs. 2013
+36%
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 emails 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
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Share your story!