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NARFE Membership Marketing 32 nd NARFE National Convention August 2012

NARFE Membership Marketing 32 nd NARFE National Convention August 2012. Membership Marketing Overview - 2010 Perspective. NARFE could no longer depend on the status quo to address the membership crisis and to reverse the long-term, steep membership decline.

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NARFE Membership Marketing 32 nd NARFE National Convention August 2012

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  1. NARFEMembership Marketing32nd NARFE National ConventionAugust 2012

  2. Membership MarketingOverview - 2010 Perspective NARFE could no longer depend on the status quo to address the membership crisis and to reverse the long-term, steep membership decline. • Reliance on the OPM recruitment mailings as the sole new member acquisition effort produced insufficient membership gain and left the association vulnerable. • Membership marketing best practices and proven strategies and principles were not in place. • Membership materials were in need of major revision and redesign. Only large-scale change would produce large scale results.

  3. Membership MarketingOverview - Creating the Solution Analysis, expertise, strategic planning and resources were needed to “turn the ship”. • MGI (Marketing General, Inc), a consulting firm specializing in association direct response marketing, was retained. MGIbrings best practices and strategic insight based on experience with hundreds of membership organizations. MGI lends both strategic and tactical support to the Recruitment and Retention staff. • A 2012 Strategic Membership Marketing plan was developed based on proven strategies. • Innovative and aggressive testing is underway. • A 2013 Strategic Plan will be developed based on 2012 learning.

  4. Membership MarketingPresentation Agenda • Draw a clear picture of the NARFE membership history and the current membership dynamic. • Present a clear understanding of how we are addressing NARFE’s unique membership situation. • Provide an update on what has been done, what we have learned, and what efforts are in progress.

  5. Review of NARFE Membership History and Current File Dynamic Why is history important? • To understand what factors have contributed to membership decline so that we can react /adapt to these threats • To gage the degree to which these factors have and will continue to have impact so that we can quantify the threat • To clarify where the opportunity for big turnaround exists so that we can focus our resources

  6. NARFE Membership History 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. • OPM List History - Over 30 years since membership high = vulnerability • Early 1980-1982 – Full access to OPM file • 1983–1993 – No access to OPM file • 1993 – began twice yearly OPM access • Currently - OPM back log in full retirement benefits impacts response • Environmental History - Over 30 years since membership high = outside of NARFE control • Aging membership base • Cultural shift away from membership organizations • Technology-based lifestyle change

  7. Current File DynamicRetention NARFE is currently retainingover 90% of membership Annual Drops 42,595 (or 15% of the membership file) Reinstatement 30% Net Annual Drops 29,817 (or 10% of the 2011 year-end membership file) Gross Retention Rate90% • The Gross Retention Rate is based on the 2011 year-end membership. It does not account for either reported or unreported deaths. Deaths result in a smaller “renewable” file. Only 22% of all associations are retaining members at a rate above 90%

  8. Current File DynamicAttrition vs. Acquisition NARFE Retention of 90% is highly successful given industry norms and our decreasing “renewable membership file”. Acquisition is the critical focus. Membership Attrition (Loss) 10% New Member Acquisition (Gain) 6.5% (5 year average) Net Membership Loss 3.5% Only large scale, profitable acquisition efforts will turn the tide.

  9. Current File DynamicProjected Natural Membership Decline NARFE Membership also faces a growing rate of decline given the aging membership base Current Annual Reported Deaths 10,000 Unreported Death Assumption 5,000 Total Assumed AnnualDeaths 15,000 Given the age of the membership file, this projected natural decline will increase exponentially. Assuming there is a 50% increase in annual deaths each year; Year 1 15,000 Year 2 22,500 Year 3 33,750 Over the course of three years, NARFE may see a natural decline in membership of over 70,000 members

  10. New Members EffortsLarge Scale Acquisition Priority of acquisition efforts moves from “hot” to “cold” • Lapsed Members – 1st priority. “Hottest” leads. Will “acquire” members at the highest response and lowest cost. Finite list. • Prospecting – Where lapsed members are “hot leads” -- prospects are “warm”. They are within the target audience and have knowledge of NARFE and our benefits • Examples: Online lead generation (responded online to offer of free NARFE Q&A white paper), trade shows (face-to-face discussion about NARFE and our benefits) • Outside Lists – Large volume, “cold leads”, and higher cost. Must test small quantities, refine offers, message and package -- and then build on success. • Two-step Prospecting – Building a relationship with those who have access to our target audience • Examples: Federal HR Managers, GSA approved Pre-Retirement Seminar and Financial Service Providers

  11. Membership Marketing PlanCompleted To Date • Lapsed Member Telemarketing Reinstatement Program 2000 paid reinstated members • On-Line Lead (Prospect) Generation Program 690 leads over initial three month test • 3-part email cultivation (convert prospects to members) effort in process • Other NARFE prospects are included in this series • Spring OPM Mailings with Outside List Test Panel 2056 new, paid members • 1st New (non-OPM) Member Acquisition Mailing 1614 new paid members

  12. Membership Marketing PlanCompleted To Date • 2ndNew (non-OPM) Member Acquisition Mailing dropped June 25th • 3rd New (non-OPM) Member Acquisition Mailing dropped August 13th • Revised renewal notices, added advance renewal test • “Member-Get-A-Member” campaign mailed June 12th

  13. Membership Marketing PlanIn Progress • Two additional 2012 New Member Acquisition Efforts Planned • Expanding and enhancing the online lead cultivation (convert prospects to members)series • Expanding from 3 to six emails • Adding new engagement vehicles (survey, Q&A download with membership) • Fall OPM Mailing Scheduled (revisit messaging given the multi-year decline in response.) • 2012 Lapsed Member Telemarketing Effort – now ongoing campaign

  14. Membership Marketing PlanAdditional 2H 2012 Plans • Outreach to Federal Human Resource Managers • Outreach to GSA approved PRS and Financial Planning providers • Website tools • Membership Toolkit • Best Practices Repository • 2013 Strategic & Tactical Planning – will include marketing strategy for a fully integrated branding, lead generation, and recruitment & retention plan

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