Marketing & Membership Conference The Power of Loyalty

1. Marketing & Membership ConferenceThe Power of Loyalty Presented by: Gioia Albi, Director of Member Services, International Association of Fire Chiefs Caryn Allender, Marketing Associate, American Chemical Society Kathy Censky, Senior Manager, Member Relations, ASAE & The Center Debbie Fillinich, Manager, Membership Acquisition, American Chemical Society Kate Haddon, Manager of Membership Marketing, International Association of Fire Chiefs June 26, 2006 Connecting Great Ideas and Great People

2. Policies And Procedures in Association Management:A Benchmarking Guide Published for over 75 years by ASAE & The Center: • Provides benchmarking statistical information • Chronicles practices of 1,100+ associations in virtually every major area of organizational management • Seven Volumes: • Membership • Technology • Human Resources & Diversity • Financial Operations & Office Management • Governance, Components, Government Affairs and Legal • Marketing, Public Relations & Communications, Publications, & Research • Conventions & Meetings, Education & Professional Development, Certification, Accreditation, & Licensing Volume 1: Membership Findings: • Estimated cost of recruiting a new member: $50 median • Estimated budget for member retention: $6,500 median • Estimated budget for member recruitment: $10,000 median • Average length of membership: 10 years median • Number of respondents having a formal MGAM program: 20% • Number of respondents not having a formal MGAM program: 80% • Number of new members acquired from MGAM program: 9%-25% • Retention Rate remains at 90%

3. Loyalty ProgramsPrize-Based Board-Driven Points-Based

4. Prize-Based ProgramsMember-Get-A-Member Programs

5. Top Reasons Members Engage In Recruiting 1:  Helping & Educating 2:  Proving Knowledge 3:  Finding Common Ground 4:  Validating Our Own Opinion 5:  Pride 6:  Sharing Taken from the book "Grapevine"  The New Art of Word-of-Mouth Marketing by Dave Balter & John Butman

6. American Chemical Society 2005 Member-Get-A-Member Campaign Debbie Fillinich Manager, Membership Acquisition June 26, 2006

7. American Chemical Society National headquarters, Washington, D.C. 158,000+ individual members 1,700 staff 10 staff in Membership Marketing Dept. Chemical Abstracts Service in Columbus, Ohio is a subsidiary

8. What We’ll Cover Today • Goal – • “365 in 2005” • Meet our recruitment goals The campaign steps: • Double Post Card • Direct Mail Packages • Follow-Up Post Card • Thank-you Ad in Chemical & Engineering News • What we learned in 2005 • 2006 Campaign

9. MGM Response History

10. MGM Gift History 2005 - Periodic Table Throw (930) 2004 - Sweepstakes Trip (360) 2003 - Sweepstakes National Meeting Trip (389) 2002 - Star Post-it Premium Plus Fast-50 Bonus Gift (460) 2001- Graduated Gifts Plus Bonus Gift for Most Nominees (310) 2000 - Catalogue of Graduated Gifts (1,145) 1999 - Graduated Gifts (290)

11. 2005 MGM Gift

12. General MGM Premises • Uniquely valuable to our audience • Highly prized (insider message) • The throw can not be purchased or otherwise obtained

13. Step 1 – Double Post Card • Qty Mailed: 73,000 U.S. Members Only • Purpose: • To have them respond with a pledge to recruit a member • To alert current members to the new gift --Periodic Table of the Elements woven throw • Also offering them a website to get a head start on recruiting • Responses: 1,208 early pledge participants

14. Double Post Card & “Throw” Buckslip

15. Step 2 – #11 Direct Mail • Qty Mailed: 85,000 • Package included letter, brochure, application, buck slip, #11 carrier • Purpose: The letter package is a follow-up to the double post card mailing. Tells them again how to get a new member and receive a periodic table throw.

16. Step 3 – Targeted and Personalized • MGM to Local Chapters, Technical Divisions and Past President Club members. • Qty Mailed: 1,300 • Purpose: The letter is personalized to each member; local chapter and division name is mentioned. • Presidents Club letter thanks the member for all their past efforts.

17. “Keep Me In The Loop” • Included in each direct mail package - Post card offering opt-in for updates on how the campaign was progressing • Purpose: We had 58 respondents who received the progress e-mail update and periodic updates.

18. Step 3 – Last Chance Post Card • Follow-up post card to all domestic members • Qty Mailed: 89,000 • Purpose: Reminder of the December 31st deadline, web site address and year-end goals

19. Step 4 – “Thank You” Ad published inChemical & Engineering NewsThe ad ran in early 2006 and promoted the 2006 campaign.

20. What We Learned

21. What We Learned • The initial post card mailing drove participants to the web early in the campaign • The “Keep Me In the Loop” email updates were not widely requested • The campaign guidelines had “loopholes” • Eligibility requirements needed to be broadened • Members went to great lengths to get the throw

22. Source of Applications Source of Applications

23. What We Learned Our members The Periodic Table of the Elements Throw

24. 2006 MGM Campaign • Reduced costs: • Single post card without reply device to drive Web traffic • Resized the mailing packages from #11 to #10 (lowering printing and postage costs) • Resized and reformatted brochure/application • Placed a larger initial order for the Throws

25. 2006 MGM Campaign • Updated Gifts: • Leveraged our 2005 success • Updated Periodic Table to be current • Chose new colors and added the year • New, surprise gift for 2 or more nominations

26. 2006 MGM Campaign • Results to Date: • Expanded eligibility to include Students and Reinstatements • Online applications to date are over 200 • First direct mail effort of 93M pieces mailed this month

27. American Chemical Society Debbie Fillinich, Manager, Membership Acquisition Phone: 202-872-4369 E-mail: d_fillinich@acs.org Caryn Allender, Marketing Associate Phone: 202-872-6172 E-mail: c_allender@acs.org Websites: chemistry.org chemistry.org/membership/mgm.html

28. Recruitment Slides

29. Harley Campaign • The Good, The Bad & • The Ugly

30. Harley Campaign • THE GOOD… • Brought in 653 new members and grossed $97,950. • Tripled all previous member-get-a-member campaigns. • Perfect item for our memberships psychographics. • Created lots of good buzz and interest. • Promoted heavily through many mediums so everyone knew about the contest. • The odds of winning were good— 1 in 419 • The following member-get-a-member campaigns maintained close to the same number of new members per month.

31. Harley Campaign

32. Harley Campaign

33. Harley Campaign • THE BAD… • $25,000 give away • Harley Davidson refused to donate or discount the price of the bike. • Some municipalities don’t allow employees to accept gifts • Winner must be in the audience when announced at the annual conference, this required our President to be in DC a month earlier to draw the winner and that we keep it a secret. • Concerns once the winner was from our President’s local area and our 2nd place prize was a well-known leader as well. • Logistics of getting a Harley for our Membership booth. • We inherited the rules, process, costs, etc. • Had to market the bike using it’s official name and trademarks. • Our winner only recruited one person, while others recruited as many as 17 new members.

34. Harley Campaign • THE UGLY! • We had to get tax exempt status in MA. • Our winner was going to have pay taxes on a $25,000 bike. • Logistics of ordering the Harley over the telephone. • Details involved in branding the bike with our logo. • Keeping the momentum and buzz up for the next member-get-a-member campaign. • What do you give away after a Harley?

35. Follow Up Campaigns

36. Thank you.

37. ASAE & The Center For Association Leadership Recruit-A-Member Program

38. Campaign Success ASAE & The Center members are one of our strongest resources for attracting new members. 25%-33% of our new members are sponsored by another member. FY’05 Campaign results: 700 members recruited 1,125 new members. # New Members# New Members Recruited% New Members Recruited FY02 4,475 1,461 33% FY03 5,359 1,535 29% FY04 4,225 1,060 25% FY05 4,503 1,125 25%

39. Board-Driven ASAE & The Center Recruit-A-Member FY’O5 Budget • Gifts/Tips/Awards: $ 7000 • Office Supplies/Copier: $ 300 • Office Postage: $ 750 • Mail House Postage: $ 3200 • Printing/Advertising: $ 9650 • Mail House Services: $ 2600 • Total: $ 23,500 Staff Allocation:One to 1 ½ staff manage the program Cost to recruit a new member via the 2005 Recruit-A-Member Program: $20.88

40. Board-Driven ASAE & The Center Board-Driven Recruitment Initiative • Overview: 76 ASAE & The Center for Association Board Members competed to recruit new members during a 7-month timeframe. • Goal: • Raise awareness of membership recruitment with senior level volunteers • Increase ASAE & The Center membership numbers

41. Board-Driven • Three Tribes were formed: Forbes, Gates and Trump! • Materials provided to each Board Member: • A total of 3,040 prospects (40 prospects ea) were provided to all 3 Tribes • Personalized membership applications with Board members name and id # designating them as the sponsor • Summary of current membership discounts • Overview of member benefits

42. Board-Driven Member Relations Activities to Support Program: • Daily tracking of call sheets, follow-up with prospects where applicable, updated database • Monthly progress reports sent to each Legacy Board member including a scoreboard outlining each tribe's member’s recruitment figures and an overview of upcoming membership promotions • Targeted prospect lists sent upon request to specific board members including prospect lists segmented by title, industry and/or geographic area. (Prospecting by their key industries) • Coordinated Two CEO and Top Level Executive Breakfast Meetings. 4/13/05: Chicago and 6/17/05 WDC. • Facilitated monthly conference calls to Tribes offering progress reports

43. Board-Driven Challenges of Legacy Recruitment Initiative: • Organizational-wide challenges with keeping database information/records as current as possible. IE: Database integrity • Managing additional projects from specific tribe members. IE: Extra credit points/Group points, etc. • Tracking recruitment efforts when board member did not use a personalized/properly coded campaign application • Collecting data for the monthly progress report. (7 unique reports needed for each monthly progress report) • Learning process involved with helping board members understand the realistic turnaround time involved in converting prospects to members

44. Board-DrivenBoard Legacy Results: A Drum Roll Please… The Boards recruited 167 new members through this initiative. That equated to 21.4% of all members that were recruited during this specific 7-month timeframe, were recruited by an ASAE & The Center Board Member!

45. Points-Based Programs

46. Points-Based Programs • UKROP’S GOLDEN GIFT PURPOSE • Ukrop's commitment to giving back to the communities they serve • Launched the Golden Gift program in 1987 • Goal: To develop a way for customers to help decide which non-profit organizations would benefit from Ukrop’s corporate giving • Have contributed over $11 million back to the communities they serve • Programs three basic steps: Join, Shop & Give! • Customers register with Benevolink then shop for Ukrop's Brand and participating national brand items • As a member, every time they purchase participating items, up to 3% of every dollar spent goes into their Benevolink account • Four times a year, members "direct" their earned giving to the non profits of their choice

47. Points-Based ProgramsSociety of American Foresters – A points driven awards program whereyou earn points for recruiting new members, attending education,conventions, volunteering, taking surveys, etc.

48. Points-Based ProgramsSociety of American Foresters: Points earned can be redeemed for SAF store gift certificates, books and videos

49. “Buzz Marketing” • The Association Forum replaced all direct mail to recruit members with word-of-mouth marketing • Strategy: Focused every effort on their members talking favorably about them! • Plan Components: 1. Created a “buzz campaign” to help members spread the word 2. Marketed from the inside out 3. Offered a creative prize • Prize: The Buzz Kit included a bobble head of their CEO and chairwoman, membership applications, Buzz Guide, postcards, and two free education passes • Buzz Ambassadors: Selected 30 buzz ambassadors to spread the word. When someone joined through this method, they received a buzz kit • Results: The grew their membership by 34 percent in 2004/2005, and this year are positioned to grow another 20 percent

50. Thanks for your participation in today’s Marketing & Membership Conference! Please feel free to contact us: Gioia Albi, Director of Member Services, International Association of Fire Chiefs 703-273-9815 gioia@iafc.org www.iafc.org Caryn Allender, Marketing Associate, American Chemical Society 202-872-6172 c_allender@acs.org www.chemistry.org Kathy Censky, Senior Manager, Member Relations, ASAE & The Center 202-626-2853 kcensky@asaecenter.org www.asaecenter.org Debbie Fillinich, Manager, Membership Acquisition, American Chemical Society 202-872-4369 d_fillinich@acs.org www.chemistry.org Kate Haddon, Manager of Membership Marketing, International Association of Fire Chiefs 703-273-0911 khaddon@iafc.org www.iafc.org Connecting Great Ideas and Great People