Engaging New Members

We all know that first year members don’t renew at the same level as our base members.

 

Why is that? Engagement.

 

In some chambers, that can be a difference of up to 40% (i.e., base member’s retention rate of 85% and first year member’s retention rate of 45%).

 

What are you doing to engage that first year member?

 

If you don’t have a formal plan, now is the time to create one. At a minimum, the following should be considered in any first year member engagement plan:

 

• Welcome letter and membership kit;
• Follow-up phone call 90 days into the membership;
• Sign-up for something on your website; and
• Get them to a chamber event.

 

It’s a fact - an engaged member is a retained member.

 

Create that first year member engagement plan today!

New Board Member Orientation

Are you conducting a board orientation each year for your new members?

If not, you should.

Each year we welcome up to one third new members to our boards.

It doesn’t take long (three to six years, depending on your board terms) before you have a completely new board (not counting your executive committee).

I believe it’s imperative to keep all board members on the same page and a new board member orientation is a great way to do that.

Your orientation should be prior to their first board meeting and should contain all the relevant collaterals that paint a picture of the chamber and the organizations work. Some of those materials might be:

• Chamber Bylaws;
• Board member job description;
• Board minutes from the past year;
• The chamber’s last annual report and audited financial statement;
• Strategic Plan;
• Dates of all upcoming board meetings and major events for the year;
• A current list of all board members and their terms; and
• A scorecard to measure board member involvement.

These are just a few suggestions. It’s important that you add what works best for your chamber. Setting the expectation up front concerning your board members involvement in the organization is just good business.

An informed board member will be an active board member.

Start that new board member orientation today!

For a list of best practices of board member orientations go HERE.  For an anatomy of a board orientation from Bob Harris, CAE go HERE.

And for one more great resource on board orientations by The Bridgespan Group go HERE.

Golden Handcuff: Do You Have One?

If you’re not familiar with the term, a “Golden Handcuff” is essentially a program, product or service that your member can’t do without.

It compels them to send in their dues check year after year after year.

If you are familiar with the term, the attached list is nothing new.

What program, product or service are you providing that is your golden handcuff?

• Insurance Programs (Workman’s Comp, D&O, etc)
• Credit Cards
• Certification
• Affinity deals with office supply stores
• Etc.

Let me give you one that you’ve probably never thought of – “Your Board of Directors.”

By show of hands, how many of your board members are non-dues paying members. That’s right, they’re all dues paying members. That goes for all your volunteers – committees, task forces, etc.

So the next time you’re asked if you have a "Golden Handcuff" – you can proudly say, YES, we have one, it’s my board.

Lifetime Value of a Member

In my previous post I asked the question "are all members important?" Are some members more important than others?

Let’s all say out loud “Lifetime Value of a Member."

You know the Lifetime Value equation:

(Average Dues + Average Non-Dues) x Average Number of Years of Membership

If you’re a numbers person, you’ll want to track this number on a regular basis. It’s all about retention. The better your retention rate the bigger the ROI will be when it comes to your lifetime value.

Are you incorporating engagement campaigns, especially for 1st year members, to raise your retention rate? We all have the challenge of a low first year retention rates vs. our base members.

If you don’t have a strategy in place to improve your retention rate, now is the time to start.

For a previous blog post on membership equations go HERE.

Governance: Owners, Managers, and Customers

What a unique business we are in. Our members are our owners, our managers and our customers.

• Owners: That’s right, members own the organization. It belongs to the members, not the staff. That’s why they’re called membership organizations. Sometimes we forget that.

• Managers: Your volunteer structure ensures that the members are involved in managing the organization. Task Forces, Committees and ultimately the Board of Directors. The Board has fiduciary responsibility for the organization in setting policy and making sure the organization is financially stable.

• Customers: That’s right again! Who buys the Chamber’s products? Membership, monthly luncheon registrations, after hours networking events, sponsorships, annual meeting registrations, and the list goes on.

The key to successful organizations, in my opinion, is to have a strong working relationship with your Board of Directors. A level of trust must always be present. If you don’t have it, you have nothing.

As CEO, you were hired by the Board to implement the policies that were decided by the Board. Take that charge seriously.

That’s your responsibility!

15+ Bright New Membership Ideas

The following is a list of potential ideas you may want to try for your organization as it relates to your:

- Recruitment;
- Retention; or
- Engagement campaigns.

The second set of ideas were collected in small groups representing professional societies and trade associations.

The following were identified strategies that they they were employing or planned to employ in membership.

Recruitment

• Membership is everybody’s business (staff and volunteers).
• Create a fact sheet.
• Know why people join: Advocacy, publications, affinity programs, recognition, training & development, etc.
• Fine-tune your message (you don’t have time to tell all).
• Sell your brand.

Retention

• Communicate (not just at renewal time).
• Show dollar value of each service for membership.
• Show the value (Benefits – Costs = Value).
• Mini surveys to monitor satisfaction.
• Office visits.

Engagement

• Orientation programs (in person, virtual).
• Reference guide.
• Volunteer opportunities.
• Personal contact.
• Rewards programs.

Professional Society Ideas

Recruitment

• Go directly to the college or university.
• Work closely with graduates or soon to be graduated students.
• Get member volunteer to work with each campus.
• Conduct some events for non-members (non-student members and non-society members).
• Use these public events as a “look” at what the society can do for you.
• For non-member conference attendees, offer 30-day window to join at special conference attendee rates.
• Follow up with mailing and phone contacts.
• New member discount on first event attended.
• Obtain letterhead and envelopes from members and send “invitation letter” to join to prospects as a personal endorsement over member signature.
• Use “endorsement partners” to assist with or sponsor membership marketing program.

Retention

• Ask lapsed members why they have not continued.
• Get local members more involved in retention work.
• Offer deferred dues for displaced members (hardship) category.
• Job board for free to keep members involved (retains members if it is free to them.)
• Have volunteers make calls to non-renewals - there is usually a higher response rate because their peers are asking.

Engagement

• Conduct regular “Needs Assessment Survey’s.”
• Ask them to be on a committee.
• Ask for expressions of interest.
• Add new volunteer positions (in each committee).
• Show appreciation for membership and volunteering.

Trade Association Ideas

Recruitment

• Personal visits.
• Business/members to bring in a new member.
• Use phone-a-thon, with a runner to deliver membership packet.
• Changes in staff offer opportunities to meet again with prospects.
• Ask board members to write why they are a member and use these statements as testimonials.
• Focus on core group.
• Work on strategic relationships and alliances with allied associations so that there are opportunities to share information.
• Membership and involvement in umbrella organizations to add credibility and to foster relationships and raise industry profile.
• Make sure that the Web site draws prospective members to the “How to Join” site easily and logically.

Retention

• Calling program—list those not on ‘involved’ status.
• Mentor/ambassador program to adopt new members.
• Reenergize membership committee: 1) give them high visibility at convention and other events; 2) provide distinctive polo shirts, ask them to greet members at trade show, convention; and ask membership committee members to make follow-up calls, visit after staff contact.
• Press releases to industry of association developments, and copies sent to members to show what the association is doing to raise visibility, credibility of industry.
• Press releases to announce member accomplishments.

Engagement

• Use mentors or hosts for each new member.
• Organize a mentoring program.
• Some groups are offering a “tour’ of membership programs.

The Relevance of Chamber's of Commerce

Are Chamber’s of Commerce relevant? Are some more relevant than others?

Are all your members important? Are some more important than others?

The answer is yes to both, some chambers are more relevant than others and some members are more important than other.

The key is to fine what your chamber stands for and focus on executing that mission.

I’m reminded of the Hedgehog Theory – by Jim Collins in his book “Good to Great.”

As you may know, the theory uses three circles to make his point. Using these three circles, indentify what you have passion for, what you are or could be the best at, and what do you make money on. Where those three circles come together is where you should focus your energies.

Just a quick look at the numbers of chambers across the country are mind boggling. Differentiating your chamber from the competition is critical to your continued growth and success.

What makes us relevant? Based on a Winston Study in 2001, the following were identified by members of chambers across the country.

• Networking opportunities
• Economic/community development
• Issue advocacy/lobbying
• Tourism/Community promotion
• Leadership training
• We help our members grow their business

It should be noted that what is relevant for one chamber could be completely different for another. That again lies the real question. What do we want to be known for? What is going to make us relevant? If you don’t know, it’s time for you to conduct a board retreat and find out.

What’s Driving Change in Membership?

There are internal and external forces that are forcing chambers to change the way they do business. The following are just an example of the issues facing chamber execs each year, and as you can see, many are out of our control.

Internal

• Budget cuts
• Staff cuts
• Doing more with less (doing away with or cutting back on services – 24 hours just became a 48 hour turnaround time – is that acceptable)

External

• Economy (your members have fewer dollars)
• Internet (free or pay as you go)
• Competition (bookstores, state & regional chambers, local chambers, our members)

It’s important to revisit your value prop on a regular basis. You know the equation, Benefits – costs = value. The challenge is to communicate that value effectively to your membership, non-members and community alike.

I subscribe to the philosophy that all businesses in your community are either members of the chamber or are going to be members of the chamber.

Membership Is Everybody’s Business

Membership is what’s on everybody’s mind today, as is -- “How do we keep growing in these uncertain times?”

What is your organization doing to continue growth during the challenging months ahead?

My new pitch – “Membership is everybody’s business!”

I recently participated in a session on “Driving Change in Membership Services.” With fiscal year-end upon us, now is the time to review your organization's activities to ensure you are doing everything possible get back on the track of continued growth many of us experienced in the 80’s and 90’s.

General Themes

Membership is a labor-intensive activity. I would suggest the day of the phrase “build it and they will come” no longer applies. How about these phrases (sound familiar): “Where’s the beef” – “Show me the money” – and today I hear “What’s the value of membership.” As membership organizations, we must always be prepared to answer that fundamental question.

Membership is everybody’s business. We must remember that a bigger membership base means more book sales, program registrations and potential advertising dollars that the entire organization will benefit from – not just the membership department. All staff and all volunteers need to know the importance of membership and the key role they can play in influencing that process.

Continue to be innovative while still delivering the goods! I’m reminded by a book I read written by Anthony Bourdain titled Kitchen Confidential. In it he gives an analogy on why people continue to go to the same restaurants and purchase the same meals over long periods of time. They do it because they know they can expect the same quality of a specific dish on any day of the week or week of the year.

What’s Driving Change in Membership

There’s no question the past 12 to 18 months have created challenging times for all of us. Budget cuts, staff cuts and doing more with less are just three internal factors we're are dealing with everyday as we continue to deliver value to our members. Once you add the economy, the Internet and competition (sometimes from our own members) as three external factors we face, it’s no wonder recruiting new members is getting tougher and tougher each year.

When organizations and companies are affected by the economy, memberships are one of the first things that get reviewed, which leads to one of the most important equations membership professionals face today. Showing the value of membership! I’m sure you’ve read or heard that phrase before. Putting an actual dollar figure next to each could be problematic, but the following equation is what I suspect many of our members are calculating in their heads during invoice time:

Benefits - Costs = Value

An Eye Towards The Future

The future looks bright! It was reassuring speaking with many of my colleagues with all the creative membership campaigns being done in the membership arena. Now may be the time to look at that new class of membership your Board was thinking about creating to grow membership over the past couple of years (students, global, retired, etc.).

Members want a place they can call home - deliver the value – that’s our job!