The_2019_Membership_Marketing_Benchmarking_Report (1)

YEARS

I N C O R P O R A T E D

2019 MEMBERSHIP MARKETING BENCHMARKING REPORT

SUPERVISED BY: Tony Rossell Senior Vice President Adina Wasserman, PhD Director of Research Matt Kerr, MA Market Research Manager

ABOUT MARKETING GENERAL INCORPORATED Marketing General Incorporated is the nation’s largest marketing agency working exclusively with membership associations. During the past 40 years, MGI has helped hundreds of associations and relationship-based organizations increase their membership, improve retention, enhance member engagement, grow revenue, and gain new insights through market research and analysis. Additional information can be found at www. MarketingGeneral .com or by contacting us at 703.739.1000 .

Marketing General Incorporated has been publishing the Membership Marketing Benchmarking Report annually since 2009. Every year, our creative and research teams put together this in-depth study of the strategies and tactics that membership organizations from the US and from around the world use to recruit new members, engage and renew those members, and reinstate lapsed members.

TONY ROSSELL Senior Vice President Tony Rossell is Senior Vice

ADINA W. WASSERMAN, PhD Director of Research Adina W. Wasserman, PhD, is Director of Research at Marketing General Incorporated. Dr. Wasserman is renowned for pioneering the concept of Indispensability Measurement for associations. In addition, she has created engagement measurements including the Customer Relationship Index and the Communications Effectiveness Index. She earned her undergraduate degree at the University of Michigan, Ann Arbor, and completed her Master’s and PhD in social psychology at

MATT KERR, MA Market Research Manager Matt Kerr is a Market Research Analyst at Marketing General Incorporated. He has more than 10 years’ experience in market research and analysis. Before joining MGI, he worked in the consumer and non-profit market research sector, leading numerous research projects for Fortune 500 companies and globally-recognized non-profit organizations. He earned his undergraduate degree at Kenyon College and his Master’s degree at the University of Arkansas.

President of Marketing General Incorporated in Alexandria, VA. A frequent writer and speaker on membership marketing topics, he is a contributing author to two books, Membership Marketing (ASAE 2000) and Membership Essentials (ASAE 2016). He also writes the “Membership Marketing Blog” and has over 30 years of experience in helping organizations grow their membership. Tony can be reached at 703.706.0360 or at Tony@ MarketingGeneral.com.

Matt can be reached at 703.706.0364 or MKerr@ MarketingGeneral.com.

Florida State University. Adina can be reached at 703.706.0373 or at AWasserman@ MarketingGeneral.com.

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YEARS

I N C O R P O R A T E D

© 2019 Marketing General Incorporated

A SPECIAL THANKS to Nicole Tomes Clark, Diane Platt, and Regina Shea for their help in the production of this report.

INTRODUCTION

SURVEY OBJECTIVE For the eleventh consecutive year, MGI has conducted its annual Membership Marketing Benchmarking Survey. As in past years, the report highlights the strategies and tactics that membership organizations find most useful in recruitment, engagement, renewal, and reinstatement of members. Each year, we review the questions from the previous survey to ensure that the content we provide is relevant and on trend. We evaluate the usefulness and success of questions and determine which will be removed, what questions will be added, and which will be retained for further analysis. This year, we added new questions focusing on topics such as innovation and new membership models. METHODOLOGY The 2019 Membership Marketing Benchmarking Survey was conducted online. It was launched on January 7, 2019, and remained open until February 18, 2019. Email invitations were sent to 18,218 association professionals. A total of 759 individuals fully completed and 176 partially completed the survey, totaling 935 participants. The response rate is approximately 5%. From these 935 responses, we drew the 824 unique associations that have formed the basis for this report. REPORT LAYOUT The data in this report is segmented by type of association: Individual Membership Organization (IMO), Trade Association (Trade), or association with a combination of both individual and organizational types of membership (Combination). All segments are included in all charts and tables to show data relevant to all associations. We are continuing our inclusion of the Participant Comment Highlights, which provide verbatim insights and recommendations shared by participants in the survey. SECTION 1 Association Statistics SECTION 10 Words of Wisdom SECTION 6 CHALLENGES and Goals SECTION 5 Social M dia SECTION 3 Memb r Engagement SECTION 5 Social Media SECTION 5 Social Media SECTION 1 Association Statistics SECTION 7 Dues and Membership Structure SECTION 8 Managing Your Association SECTION 9 The Demographics of Your Association SECTION 10 Words of Wisdom SECTION 6 CHALLENGES and Goals SECTION 5 Social Media SEC ION 3 Member Engagement SECTION 2 Member Re ruitment (Acquisition) SECTION 5 Social Media SECTION 1 Association Statistics SECTION 10 Words of Wisdom SECTION 6 CHALLENGES and Goals SECTION 5 Social Media SECTION 3 Member ngagement SECTION 10 Words of Wisdom SECTION 5 Social Media SECTION 1 Association Statistics SECTION 8 Managing Your Association SECTION 10 Words of Wisdom SECTION 6 CHALLENGES and Goals SECTION 5 Social Media SECTION 3 Member Engagement SECTION 8 Managing Your Association SECTION 7 Dues and Membership Structure

THE SECTIONS INCLUDED IN THIS REPORT ARE:

1

SECTION 1: Association Statistics PAGE 12

SECTION 1 Association Statistics

2 SECTION 2 Member Recruitment (Acquisition) SECTION 1 Association Statistics SECTION 1 Association Statistics SECTION 2 Member Recruitment (Acquisition) SECTION 3 Member Engagement SECTION 2 Member Recruitment (Acquisition) SECTION 2 Member Recruitment (Acquisition) 3

SECTION 2: Member Recruitment PAGE 22

SECTION 2 Member Recruitment (Acquisition) SECTION 2 Memb r Recruitment (Acquisition) SECTION 1 Ass ciation Statistics

SECTION 1 Association Statistics

SECTION 3: Member Engagement PAGE 29

SECTION 2 Member Recruitment (Acquisition)

SECTION 3 Member Engagement SECTION 3 Member Engagement

SECTION 4 Member Renewal and Reinstatement (Retention) SECTION 4 Member Renewal and Reinstatement (Retention) SECTION 3 Member Engagement SECTION 2 Member Recruit ent (Acquisition) SECTION 4 Member Renewal and Reinstatement (Retention) SECTION 4 Member Renewal and Reinstatement (Retention) SECTION 3 M mber Engagement 4 SECTION 4 Member Renewal and Reinstatement (Retention) SECTION 4 Member Renewal and Reinstatement (Retention)

SECTION 4: Member Renewal and Reinstatement (Retention) PAGE 37

SECTION 4 Member Renewal and Reinstatement (Retention)

SECTION 4 Memb r Renewal a d Reinstatement (Retention)

SECTION 6 CHALLENGES and Goals

5

SECTION 5: Challenges and Goals PAGE 50

SECTION 4 Member Renewal and Reinstatement (Retention)

SECTION 7 Dues and Membership Structure SECTION 7 Dues and Membership Structure SECTION 6 CHALLENGES and Goals SECTION 5 Social M dia SECTION 9 The Demographics of Your Association SECTION 8 Managing Your Association SECTION 8 Managing Your Association SECTION 8 Managing Your Association SECTION 7 Dues and Membership Structure SECTION 8 Managing Your Association 7 SECTION 6 CHALLENGES and Goals SECTION 7 Dues and Membership Structure SECTION 6 CHALLENGES and Goals SECTION 7 Dues and Membership Structure SECTION 6 CHALLENGES and Goals 6 SECTION 8 Managing Your Association SECTION 7 Dues and Membership Structure

SECTION 6: Dues and Membership

Structure PAGE 55

SECTION 7: Marketing Tools PAGE 64 SECTION 8: Association Demographics PAGE 70 SECTION 9: Words of Wisdom PAGE 75

SECTION 9 The Demographics of Your Association SECTION 9 The Dem graphics of Your Association SECTION 7 Dues and Membership Structure SECTION 10 Wor s of Wisdom SECTION 10 Words of Wisdom SECTION 9 The Demographics of Your Association 8 SECTION 8 Managing Your Association SECTION 9 The Demographics of Your Association

SECTION 9 The Demo raphics of Your Association

SECTION 9 The Demographics of Your Association

SECTION 10 Words of Wisdom

SECTION 9 The Dem graphics of Your Association

9

SECTION 10 Words of Wisdom

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EXECUTIVE SUMMARY

“It was once the case that each association owned a small monopoly, providing the single best resource to everyone in their field. No more. With the advent of 24/7 interconnectivity, anyone can set up shop and begin serving your members.” Fast Company

Yet despite these threats, more associations continue to report membership growth year over year than those that are seeing a decline in membership. For 2019, 45% of associations shared that their membership has grown over the past year compared to 26% that saw a decrease in membership counts. Indeed, contrary to the narrative that membership “no longer works,” for the past decade with the exception of the Great Recession, far more associations have reported experiencing an increase in members than those who have reported a decline in their membership counts. Everyone working for or engaging with associations can relate to the competitive challenges of today. In addition to 24/7 competition, associations are faced with scarce resources, talent shortages, and sometimes political or bureaucratic hurdles.

HOWHAS YOUR

INCREASED 45%

DECREASED 26%

REMAINED THE SAME 28%

IN THE PAST YEAR ? 823 ASSOCIATIONS SURVEYED

NOT SURE 1%

Please see page 12 for more detailed information. 1 Fast Company, Key Issues Facing Association Leaders, April 12, 2013.

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EXECUTIVE SUMMARY

Why have associations been able to adapt and continue to grow despite the challenges they face? The answer may be in the insights that we have gathered in this year’s Membership Marketing Benchmarking Report. In addition to looking at the tactics and strategies that typically correlate to success, we also asked respondents to rate how innovative their association is and the level of value they are delivering to members. In each case, associations reporting important positive outcomes in membership also report higher innovation and level-of-value scores. In short, these more innovative and value-producing associations are successfully adapting to the challenges faced in today’s competitive marketplace.

DO YOU BELIEVE THAT YOUR ORGANIZATIONHAS A CULTURE THAT SUPPORTS INNOVATION?

TOTAL 682 SURVEYED 76 %

INDIVIDUAL 306 SURVEYED 73 %

TRADE 202 SURVEYED 77 %

79 %

COMBINATION 174 SURVEYED

=

=

=

=

Please see page 54 for more detailed information.

Here are some of the data underpinning these findings. 81% of associations with membership increases in the past year and the past five years, and 82% with an increase in overall new members, are significantly more likely—by margins of at least fifteen points—to indicate that their organization has a culture that supports innovation. Conversely, those reporting declines in membership are significantly more likely to believe their association culture does not support innovation.

42 % MODERATELY INNOVATIVE

1 %

12 % VERY INNOVATIVE

35 % SLIGHTLY INNOVATIVE

9 %

EXTREMELY INNOVATIVE

NOT AT ALL INNOVATIVE

HOW INNOVATIVEWOULD YOU CONSIDER YOUR ASSOCIATION? TOTAL OF 693 ASSOCIATIONS SURVEYED

Please see page 53 for more detailed information.

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EXECUTIVE SUMMARY

Additionally, associations showing declines in membership over the past year and past five years are significantly more likely to indicate that their organization is only slightly innovative or not innovative at all (53% and 56%, respectively). Likewise, organizations experiencing decreases in new members and overall renewal rates indicate the same. In all cases, the margin is at least ten points versus associations experiencing increases.

DOES YOUR ORGANIZATION CURRENTLY HAVE A PROCESS IN PLACE FOR INNOVATION ANDNEW IDEAS?

42 % NO, we do not have a process

23 % YES, we have a specified process

35 % NO,butwe areworkingon developinga process

L

TOTAL OF 692 ASSOCIATIONS SURVEYED

Please see page 54 for more detailed information.

What’s more, associations that report increases in one-year and five-year membership numbers are significantly more likely—by margins of at least ten points versus those experiencing decreases—to have a specified process in place to support innovation and new ideas (29% and 28%, respectively). We also see a similar correlation between membership increases and compelling value propositions.

HOWCOMPELLING IS YOUR ASSOCIATION’S VALUE PROPOSITION TO YOURMEMBERS?

11 PERCENT

38 PERCENT

41 PERCENT

9 PERCENT

1 PERCENT

VERY COMPELLING

SOMEWHAT COMPELLING

NOT VERY COMPELLING

NOT AT ALL COMPELLING

COMPELLING

TOTAL OF 687 ASSOCIATIONS SURVEYED

Please see page 28 for more detailed information.

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EXECUTIVE SUMMARY

In fact, associations reporting increases in their one-year and five-year membership numbers (59% and 57%, respectively), as well as increases in their new members and their overall membership renewal rates, are significantly more likely to report that their value proposition is very compelling or compelling.

As one respondent commented: “VALUE, VALUE, VALUE!! If you have it, people will want it. Value has to be real and tangible in a way that people can’t compete without it.”

So if innovation and value are so important, how are associations innovating and providing additional value to members? One of the areas of innovation and value enhancement that we looked at this year was the development of new membership models. Ideally, changing the membership packaging is designed to respond to new market conditions, give members more options, and competitively price membership. And our data does support that adopting a new membership model may give membership a bump. Specifically, 22% of associations experiencing an increase in the number of new members this year report having adopted a new membership model (vs. 14% among those not seeing an increase).

WHAT TYPE OF NEWMEMBERSHIPMODEL(S) HAS YOUR ASSOCIATION ADOPTED?

ADDING SPECIAL INTERESTS (Student,Retired,etc) 22 %

22 %

15 %

14 %

4 %

50 %

TIERED

COMBINATION (Adding individual ororganizational membership)

GROUP

ELECTRONIC

OTHER

TOTAL OF 125 ASSOCIATIONS SURVEYED

Please see page 63 for more detailed information.

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EXECUTIVE SUMMARY

One respondent commented: “Group membership has been very effective to capture a full team of professionals in an organization rather than just the managers. This has led to more training and conference attendance.”

Historically, one membership model that has seen remarkable growth is the move toward combination membership. An association with a combination membership offers members opportunity to join as either an individual (like a typical IMO) or as an organization (like a typical trade association). In the 2011 version of the Membership Marketing Benchmarking Report, only 13% of respondents identified their association as having a combination membership structure. This year, 26% of respondents identified their association as a combination association. And the combination membership structure appears to be working for associations. These groups have the highest median growth over the past five years (14%), compared to 12% for IMOs and 10% for trade organizations. And combination associations that are achieving membership growth are also the most likely to report increases in membership counts of more than 10% over the past five year (58%).

WHAT IS THE TOTAL PERCENTAGE INCREASE INMEMBERSHIP OVER THE PAST FIVE YEARS?

TOTAL OF 408 ASSOCIATIONS SURVEYED

MEMBERSHIP INCREASE OVER PAST

Please see page 15 for more detailed information.

MEAN % INCREASED 28% Meansare influencedbyhighand lownumbers in thedataset.

EDIAN % INCREASED 12% M

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EXECUTIVE SUMMARY

Another developing innovation for associations is the use of paid digital media for marketing efforts. For membership recruitment, this channel has increased as a preferred channel from 12% to 15% over the past year. Of the 15% of associations that consider paid digital marketing tools as a highly effective method for recruiting new members, Facebook paid advertising remains the most effective digital marketing tool (68%).

WHICH OF THE FOLLOWING PROVIDES THEMOST NEWMEMBERS?

TOTAL OF 105 ASSOCIATIONS SURVEYED

0 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

68 %

Facebook Paid Advertising

51 %

Search Engine Optimization (SEO)

46 % 45 %

Remarketing (Facebook,AdRoll,orGoogle)

Search Engine Ads (pay-per-click)

32 %

Paid Banner Ads on other websites

30 %

Lead Generation Content Marketing (e.g.,whitepapers,videos,webinars)

29 %

LinkedIn Paid Advertising

Please see page 24 for more detailed information.

The use of digital marketing was nicely described by one survey respondent who said, “We started investing in digital marketing, which has increased the number of contacts coming to our sites and increased the contacts creating accounts with us. We can retarget those who visit our site but haven’t converted, which gives the gentle reminder to engage with us. We’ve seen positive results and a good ROI on the digital marketing spend.”

Associations are also increasingly using various paid digital advertising platforms to present their message for many products and services beyond membership recruitment.

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EXECUTIVE SUMMARY

The other technology-driven development that associations report this year is a significant decrease in data problems that have been reported in the past. The top data complaint is a lack of marketing results tracking and analysis, which dropped from 51% in 2018 to 39% in 2019. Similarly, the issue of inadequate membership dashboards and reporting tools went from 48% in 2018 to 35% in 2019. In the competitive association environment, the ability to track, analyze, and report on marketing efforts has become a core ability to drive success. So these improvements are significant.

WHAT ARE THEMOST SIGNIFICANT DATA CHALLENGES YOURASSOCIATION FACES?

39

%

35

%

33

%

TOTAL OF 652 ASSOCIATIONS SURVEYED

32

%

30

%

30

%

21 %

11 %

8 %

Please see page 52 for more detailed information.

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EXECUTIVE SUMMARY

WHAT GENERATION GROUP DO YOURMEMBERS BELONG IN ? 218 INDIVIDUAL MEMBER ASSOCIATIONS SURVEYED Finally, some associations are thriving through innovative ways to attract and provide value to Millennials and Generation X members.

10

36

29

20

6

%

%

%

%

%

BORN 1965 – 1979 GENERATION X

BORN 1980 – 1995 MILLENNIAL

BORN 1996 OR LATER GENERATION Z

BABY BOOMERS

BORN 1945

BORN 1946 – 1964

AND EARLIER

Please see page 21 for more detailed information.

Our data demonstrate that associations with increases in one-year and five-year membership numbers are more likely to have higher percentages of Millennials and Generation X members (23% and 31%, respectively). One way these groups are achieving this is through growth in participation with their young professional programs. On the other hand, associations reporting no changes in their membership in the past year are significantly more likely to have a higher proportion of Baby Boomers as members. And associations reporting declines in membership totals are much more likely to report that their specific challenges in membership marketing are related to their struggle with attracting and/or maintaining younger members. As one survey responder shared under the “what kept them up at night” question: “Attracting and maintaining younger professionals and also engaging them to become part of leadership.” SOWHAT SHOULD ASSOCIATIONS take away from this year’s Membership Marketing Benchmarking Report? In an era of rapid changes in technology, culture, and demographics, our data show that many associations have been able to sustain a level of membership growth and continue to serve their markets. And the data certainly suggest that innovation and value creation are important drivers of this success. But a critical look at the trend data also shows that over the last decade the percentage of associations reporting membership growth is in gradual decline from 52% in 2012 to 45% today. And the remainder, in fact a majority of associations, is seeing either no growth or declines in membership. Our hope from this report is that associations will use it as a call to action to aggressively innovate with new strategies, technologies, and marketing approaches in order to thrive and grow in a changing world.

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1

ASSOCIATION STATISTICS

tistics

tment (Acquisition)

How has your membership changed in the past one year period?

MEMBERSHIP CHANGE IN PAST YEAR

ement

Total (n = 823)

Individual (n = 373)

Trade (n = 240)

Combination (n = 210)

Increased

45% 26% 28%

46% 28% 26%

46% 23% 30%

44% 24% 30%

Decreased

al and Reinstatement (Retention)

Remained the same

Not sure

1%

1%

<1%

2%

y Compared to 2018, there is a slight downturn in the percentage of associations reporting increases in membership over the past year (45% vs. 48% in 2018). Similar to results from 2018, one-quarter of associations report declines in membership in the past year (26%), while 28% report no change. y Across all types of organizations, most report increases in membership over the past year, although the percentage of trade associations reporting increases has dropped since 2018 (46% vs. 52% in 2018). y Associations reporting declines in membership over the past year are significantly more likely to also report renewal rates below 80% (35%

vs. 23% with renewal rates over 80%), while associations reporting increases in their one- year membership are significantly more likely to report increases in their five-year overall membership, new member acquisitions, and overall renewal rates. y More than half of associations with annual budgets over $20 million report increases in their membership over the past year (56%). Furthermore, associations reporting a renewal rate of at least 80% for first-year members are significantly more likely to report overall increases in membership over the past year (52%). Conversely, those with new member renewals less than 80% are significantly more likely to report declines in overall membership over the past year.

nd Goals

ership Structure

Association

ics of Your Association

Associations reporting increases in their five-year membership numbers are significantly more likely to also report increases in membership over the past year, increases in their new members, and increases in their overall renewal rates.

m

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ASSOCIATION STATISTICS SECTION 1 Association Statistics

SECTION 2 Member Recruitment (Acquisition)

PERCENTAGE INCREASE IN MEMBERSHIP OVER PAST YEAR

SECTION 3 Member Engagement

Total (n = 372)

Individual (n = 170)

Trade (n = 110)

Combination (n = 92)

Mean % Increased*

8% 5%

8% 4%

8% 5%

10%

5% SECTION 4 Member Renewal and Reinstatement (Rete

Median % Increased

Increased 1% to 5% Increased 6% to 10% Increased 11% to 50% Increased more than 50%

59% 20% 20%

63% 18% 19%

60%

50% 26% 23%

SECTION 5 Social Media

19%

20%

1%

1%

1%

1%

SECTION 6 CHALLENGES and Goals

*Means are influenced by high and low numbers in the data set.

y Overall findings for associations reporting increases in their membership are almost identical to those from 2018. The median increase is 5% overall, with more than half of associations (59%) reporting an increase of 1% to 5% in overall membership over the past year.

y IMOs are most likely to report increases of up to 5% (63%; up from 57% in 2018), while 60% of trade associations and 50% of combination associations report increases at this increment (down from 62% for trade associations in 2018, and down from 57% for combination associations in 2018). Compared to IMOs and trade associations, combination associations are more likely to report increases over 5% (50%).

SECTION 7 Dues and Membership Structure

SECTION 8 Managing Your Association

SECTION 9 The Demographics of Your Association

SECTION 10 Words of Wisdom

PERCENTAGE DECREASE IN MEMBERSHIP OVER PAST YEAR

Total (n = 210)

Individual (n = 103)

Trade (n = 56)

Combination (n = 51)

Mean % Decreased* Median % Decreased

6% 4%

5% 4%

5% 3%

7% 4%

Decreased 1% to 5% Decreased 6% to 10% Decreased 11% to 50% Decreased more than 50%

65% 25%

65% 24%

66% 27%

65% 24% 10%

9% 1%

11%

7%

-

-

2%

*Means are influenced by high and low numbers in the data set.

y Of associations reporting declines in their membership, the median decrease in membership over the past year is 4%, mirroring findings from 2018, with most associations reporting declines of up to 5% (65%). There is an increase in the percentage of associations

reporting declines of 6% to 10% compared to the previous research (25% vs. 20% in 2018). Trade associations are slightly more likely than other types of organizations to report declines of 6% to 10% in their membership over the past year (27% vs. 24%).

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1

ASSOCIATION STATISTICS

s

t (Acquisition)

Over the past five years, how has the total percentage of your membership changed?

t

CHANGE IN MEMBERSHIP OVER PAST FIVE YEARS

d Reinstatement (Retention)

Total (n = 812)

Individual (n = 365)

Trade (n = 238)

Combination (n = 209)

Increased Decreased

50% 31% 14%

51% 31% 14%

51% 29% 16%

48% 32% 13%

Remained the same

oals

Not sure

4%

4%

4%

6%

ip Structure

y Over the past five years, half of associations report increases in membership (50%), a slight decline from 2018 (53%). Close to one-third of associations report declines in membership over the past five years (31%), slightly higher than in 2018 (29%). y Fewer trade associations are reporting increases in membership over the past five years compared to 2018 (51% vs. 56% in 2018), with a corresponding increase in the percentage that are reporting membership losses (29% vs. 23% in 2018). A slightly lower proportion of combination associations are reporting increases over the past five years compared to 2018 (48% vs. 51% in 2018).

y Associations reporting increases in their five- year membership numbers are significantly more likely to also report increases in membership over the past year, increases in their new members, and increases in their overall renewal rates. Similarly, associations reporting increases in their new members of at least 60% are significantly more likely to report increases over the past five years.

ciation

f Your Association



Echoing findings from 2018, the median percentage increase in membership over the past five years is 12%.

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ASSOCIATION STATISTICS SECTION 1 Association Statistics

SECTION 2 Member Recruitment (Acquisition)

PERCENTAGE INCREASE IN MEMBERSHIP OVER PAST FIVE YEARS

SECTION 3 Member Engagement

Total (n = 408)

Individual (n = 186)

Trade (n = 121)

Combinati on (n = 101)

Mean % Increased* Median % Increased

28% 12% 29% 18% 44%

29% 12% 29% 18% 42%

19% 10% 27% 23% 42%

38% 14% 30% 13% 49%

SECTION 4 Member Renewal and Reinstatement (Rete

Increased 1% to 5% Increased 6% to 10% Increased 11% to 50% Increased more than 50%

SECTION 5 Social Media

9%

11%

8%

9%

SECTION 6 CHALLENGES and Goals

*Means are influenced by high and low numbers in the data set.

y Echoing findings from 2018, the median percentage increase in membership over the past five years is 12%. A slightly higher percentage of associations are reporting growth of up to 5% over the past five years compared to 2018 (29% vs. 25% in 2018). The largest proportion of associations report increases of 11% to 50% over the past five years (44%).

y Combination associations have the highest median growth over the past five years (14%), compared to 12% for IMOs and 10% for trade organizations. Combination associations are also the most likely to report increases of over 10% (58%). SECTION 8 Managing Your Association SECTION 7 Dues and Membership Structure

SECTION 9 The Demographics of Your Association

SECTION 10 Words of Wisdom

PERCENTAGE DECREASE IN MEMBERSHIP OVER PAST FIVE YEARS

Total (n = 251)

Individual (n = 114)

Trade (n = 70)

Combination (n = 67)

Mean % Decreased* Median % Decreased

13% 10% 30% 26% 44%

13% 10% 29% 26% 44%

13% 10% 33% 21% 46%

13% 10% 27% 31% 40%

Decreased 1% to 5% Decreased 6% to 10% Decreased 11% to 50% Decreased more than 50%

1%

1%

-

2%

*Means are influenced by high and low numbers in the data set.

y For associations reporting membership declines over the past five years, the median decline is 10%. This does not vary based on type of membership organization. Most associations report membership declines of 11% to 50% (44%). This represents an increase in the percentage of associations

reporting losses at this level since the previous study (39% in 2018). Combination associations are more likely to report mid-level declines (6% to 10%) compared to IMOs or trade associations (31% vs. 26% for IMOs and 21% for trade associations).

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1

ASSOCIATION STATISTICS

s

t (Acquisition)

In the past one year, how has your new member acquisition changed?

t

CHANGE IN NEW MEMBER ACQUISITION OVER PAST YEAR

Total (n = 802)

Individual (n = 358)

Trade (n = 236)

Combination (n = 208)

d Reinstatement (Retention)

Increased Decreased

45% 15% 33%

42% 17% 33%

47% 16% 34%

47% 11% 33% 10%

Remained the same

Not sure

7%

8%

3%

oals

y 45% of associations report increases in their new member acquisitions, down slightly from 47% in 2018. IMOs are least likely to report increases in new member acquisitions (42%; down from 45% in 2018), compared to trade or combination associations (47% each). Only 15% of associations have reported declines in new member acquisitions, a slight increase from 2018 (12%). One-third of associations report no change in their new member acquisitions (35%). y Associations indicating increases in new members are also significantly more likely to report increases in overall membership over the past year, the past five years, and increases in renewals. Similarly, associations reporting declines in new member acquisitions are more likely to also report overall declines in membership over the past year, the past five years, and in their overall renewals.

y For IMOs, as the number of paid members increases, the likelihood of new member acquisitions actually decreases. The largest associations (over 20,000 individual members) are significantly more likely to report declines in their new member acquisitions compared to associations with fewer members (22% vs. 12% for associations with 5,000 members or fewer).

ip Structure

ciation

f Your Association

Associations indicating increases in new members are also significantly more likely to report increases in overall membership over the past year, the past five years, and increases in renewals.

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1

ASSOCIATION STATISTICS SECTION 1 Association Statistics

SECTION 2 Member Recruitment (Acquisition)

PERCENTAGE INCREASE IN NEW MEMBER ACQUISITION OVER PAST YEAR

SECTION 3 Member Engagement

Total (n = 358)

Individual (n = 151)

Trade (n = 110)

Combination (n = 97)

Mean % Increased* Median % Increased Increased 1% to 5% Increased 6% to 10% Increased 11% to 50%

16%

12%

18% 10% 37% 27% 32%

21%

8% SECTION 4 Member Renewal and Reinstatement (Rete

8%

7%

42% 23% 31%

44% 22% 32%

44% 19% 28%

SECTION 5 Social Media

Increased more than 50%

5%

2%

4%

9%

*Means are influenced by high and low numbers in the data set.

SECTION 6 CHALLENGES and Goals

y The median increase in new member acquisitions is 8%, up from 6% in 2018. 42% of associations report increases of up to 5% (down from 48% in 2018), with IMOs and combination associations most likely to report this level of growth (44% each). More than one-third of

associations report increases over 10% for new members (36%; up from 29% in 2018). Combination associations are the most likely to report these high levels of growth for new members (37%; up from 24% in 2018).

SECTION 7 Dues and M mbership Structure

SECTION 8 Managing Your Association

SECTION 9 The Demographics of Your Association

SECTION 10 Words of Wisdom

PERCENTAGE DECREASE IN NEW MEMBER ACQUISITION OVER PAST YEAR

Total (n = 120)

Individual (n = 60)

Trade (n = 38)

Combination (n = 22)

Mean % Decreased* Median % Decreased

14% 10%

13%

15%

15%

9%

8%

9%

Decreased 1% to 5% Decreased 6% to 10% Decreased 11% to 50% Decreased more than 50%

41% 21% 37%

42% 18% 38%

42% 18% 39%

36% 32% 27%

2%

2%

-

5%

*Means are influenced by high and low numbers in the data set.

y The median drop in new member acquisitions is 10% for those associations reporting declines, up from 8% in 2018. Almost four in ten associations report declines of over 10% (39%). About one-third of combination associations report declines of 6% to 10% (32%; up from 11% in 2018), while 32% report declines of over 10%, a significant drop from 2018 (53%).

y IMOs and trade associations are more likely than combination associations to indicate new member declines of over 10% (IMOs: 40%, up from 33% in 2018; Trades: 39%, down from 44% in 2018).

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1

ASSOCIATION STATISTICS

s

t (Acquisition)

In the past one year, how has your member renewal rate changed?

t

CHANGE IN MEMBER RENEWAL RATE OVER PAST YEAR

d Reinstatement (Retention)

Total (n =787)

Individual (n = 351)

Trade (n = 232)

Combination (n = 204)

Increased Decreased

23% 24% 47%

24% 26% 43%

22% 20% 54%

21% 25% 45%

Remained the same

Not sure

6%

7%

3%

9%

oals

y Close to one-quarter of associations report either an increase in their overall renewal rates (23%; down from 27% in 2018) or a decline in their overall renewal rates (24%). Most associations report no change in their renewal rates over the past year (47%; up from 42% in 2018). Trade associations are most likely to report that their renewal rates have remained the same (54%; up from 48% in 2018), compared to IMOs (43%; up from 38% in 2018) or combination associations (45%; up from 43% in 2018). y Associations with renewal rates at or above 80% are significantly more likely to indicate that their overall renewal rate has remained the same. However, associations with renewal rates less than 80% are significantly more likely to report some sort of change in their renewal rates, either increases or declines. Associations reporting increases in their overall member renewals are also more likely to report increases in their membership numbers in the past year.

y Associations with new member renewals below 60% are significantly more likely to report declines in their overall renewal rates. The largest IMOs (20,000 members or more) and larger trade organizations (over 100 members) are significantly more likely to report increases in their renewal rates compared to smaller associations.

ip Structure

ciation

f Your Association

Associations with renewal rates at or above 80% are significantly more likely to report increases in their membership over the past year.

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1

ASSOCIATION STATISTICS SECTION 1 Association Statistics

SECTION 2 Member Recruitment (Acquisition)

PERCENTAGE INCREASE IN MEMBER RENEWAL RATE OVER PAST YEAR

SECTION 3 Member Engagement

Total (n = 179)

Individual (n = 85)

Trade (n = 52)

Combination (n = 42)

Mean % Increased* Median % Increased Increased 1% to 5% Increased 6% to 10% Increased 11% to 50%

11% 3%

11% 3%

13%

7% 3%

SECTION 4 Member Renewal and Reinstatement (Rete

4%

65% 15% 13%

64% 13% 17%

64% 19%

71% 14% 12%

SECTION 5 Social Media

8%

Increased more than 50%

7%

7%

10%

2%

SECTION 6 CHALLENGES and Goals

*Means are influenced by high or low numbers in the data set.

y The median renewal rate increase is 3%. Similar to 2018, about two-thirds of associations report increases of up to 5% in their membership renewal rates (65% vs. 67% in 2018). Combination associations are most likely to report increases at this level (71%; up from 65%

in 2018), compared to IMOs (64%; down from 66% in 2018) or trade associations (64%; down from 71% in 2018). IMOs are most likely to report renewal rate increases above 10% (24%; up from 19% in 2018).

SECTION 7 Dues and Membership Structure

SECTION 8 Managing Your Association

SECTION 9 The Demographics of Your Association

SECTION 10 Words of Wisdom

PERCENTAGE DECREASE IN MEMBER RENEWAL RATE OVER PAST YEAR

Total (n = 188)

Individual (n = 90)

Trade (n = 47)

Combination (n = 51)

Mean % Decreased*

7%

5%

9% 5%

7%

Median % Decreased

3%

3%

4%

Decreased 1% to 5%

66%

71%

62%

63%

Decreased 6% to 10%

18%

18%

15%

22%

Decreased 11% to 50%

15%

11%

21%

16%

Decreased more than 50%

1%

-

2%

-

*Means are influenced by high or low numbers in the data set.

y The median decline in member renewals is also 3%, with two-thirds of associations reporting drops of up to 5% (66%; down from 70% in 2018). Trade associations are least likely to

report the smaller declines (62%; down from 73% in 2018), but are most likely to report declines over 10% (23%; up from 7% in 2018).

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1

ASSOCIATION STATISTICS

s

t (Acquisition)

What is your overall membership renewal rate?

t

OVERALL MEMBERSHIP RENEWAL RATE

Total (n = 675)

Individual (n = 302)

Trade (n = 206)

Combination (n = 167)

d Reinstatement (Retention)

Mean

82% 85%

78% 81%

89% 90%

80% 83%

Median

y Similar to results from 2018, the median renewal rate is 85% (84% in 2018). Overall, 70% of associations report renewal rates at or above 80%, a slight increase from 2018 (68%). Trade associations have the highest median renewal rate (90%). y Associations with renewal rates at or above 80% are significantly more likely to report increases in their membership over the past year. Additionally, associations with new member renewal rates at or above 60% are significantly more likely to report overall renewal rates at or above 80%.

y The smallest IMOs (up to 1,000 members) are significantly more likely to report renewal rates of 80% or higher compared to IMOs with more members. Conversely, larger trade associations (over 100 members) are significantly more likely to report overall membership renewal rates of 80% or more.

oals

ip Structure

ciation

f Your Association

What is your renewal rate for first-year members?

RENEWAL RATE FOR FIRST-YEAR MEMBERS

Total (n = 480)

Individual (n = 201)

Trade (n = 160)

Combination (n = 119)

Mean

72% 74%

65% 65%

81% 84%

71% 74%

Median

y The median renewal rate for new members is 74%, up from 70% in 2018. IMOs report median new member renewals of 65% (up from 62% in 2018), and combination associations report median new member renewals of 74% (up from 66% in 2018). Trade associations have the highest median new member renewals (84%). y Trade and combination associations are significantly more likely to report first-year renewals at or above 80% compared to IMOs (66% for trade and 44% for combination vs. 28% for IMOs). Furthermore, associations with overall renewal rates under 80% are significantly more likely to have first-year member renewals below 60%.

y Additionally, associations with increases or no change in their membership in the past year, or increases over the past five years are significantly more likely to report first-year renewals at or above 80%. Associations with declines in their five-year membership numbers and their overall new member acquisitions are significantly more inclined to report first-year renewals below 60%. IMOs with fewer than 1,000 members are significantly more likely to have first-year renewals of 80% or more, while larger associations have lower new member renewal rates.

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1

ASSOCIATION STATISTICS SECTION 1 Association Statistics

SECTION 2 Member Recruitment (Acquisition)

Please indicate what percentage of your membership belongs to each of the following generation groups. SECTION 3 Member Engagement

SECTION 4 Member Renewal and Reinstatement (Rete

GENERATION GROUPS

Individual (n =218)

SECTION 5 Social Media

Generation Z (born 1996 or later)

6%

SECTION 6 CHALLENGES and Goals

Millennial (born 1980 to 1995)

20%

SECTION 7 Dues and Membership Structure

Generation X (born 1965 to 1979)

29%

SECTION 8 Managing Your Association

Baby Boomers (born 1946 to 1964)

36%

SECTION 9 The Demographics of Your Association

Born 1945 or earlier

10%

y Associations with increases in their one-year and five-year membership numbers are significantly more likely to have higher percentages of Millennials and Generation X members. Associations reporting no change in their membership in the past year are significantly more likely to have more Baby Boomers. Associations reporting increases in their overall renewal rates are significantly more likely to have a higher proportion of Generation X members. SECTION 10 Words of Wisdom

y Results on generational breakdowns are relatively unchanged from 2018, with Baby Boomers constituting the largest percentage of the membership (36%), followed by Generation X (29%).

Associations with increases in their one-year and five-year membership numbers are significantly more likely to have higher percentages of Millennials and Generation X members.

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2

MEMBER RECRUITMENT

quisition)

Which recruitment marketing channels get your organization the most new members? You may select up to five answer choices.

instatement (Retention)

CHANNELS THAT GET MOST NEW MEMBERS

Total (n = 739)

Individual (n =327)

Trade (n = 223)

Combination (n = 189)

Word-of-mouth recommendations

69%

66%

74%

68%

Email

62%

67%

57%

59%

Local events/meetings

34%

36%

30%

35%

Cross-sell to non-members who buy your products or attend your conferences Promotion to/at your own conferences/trade shows

30%

29%

29%

32%

tructure

27%

24%

27%

32%

Personal sales calls

26%

10%

46%

29%

Association-sponsored events

25%

23%

28%

27%

ion

Direct mail

23%

28%

19%

18%

Chapters

19%

29%

5%

18%

Exhibiting at other conferences

17%

16%

19%

19%

ur Association

Paid online digital marketing

15%

20%

8%

13%

Advertising in your own publications

14%

13%

14%

15%

Free membership offered with a non-member meeting registration

10%

15%

2%

12%

Accreditation promotion

9%

8%

7%

13%

Public relations

8%

9%

8%

7%

Content marketing (white papers) Advertising in outside publications

8%

6%

11%

7%

5%

5%

7%

2%

Telemarketing

4%

6%

2%

4%

Radio or TV

2%

2%

1%

1%

Other

12%

14%

13%

10%

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SECTION 1 Association Statistics

2

MEMBER RECRUITMENT SECTION 2 Member ecruitment (Acquisition)

SECTION 3 Member Engagement

y Similar to 2018, word-of-mouth recommendations and email are the top two channels for acquiring new members. This year, local events or meetings is the third most effective method for recruiting new members (34%; up from 26% in 2018). y Across all types of associations, word-of- mouth recommendations and email are still the two most effective vehicles for acquiring new members. For trade associations, word- of-mouth recommendations have increased in their effectiveness (74%; up from 63% in 2018), but have become a bit less effective for combination associations (68%; down from 74% in 2018). Email has also become a less effective tool for combination associations over the past year (59%; down from 63% in 2018). y Both IMOs and combination associations report that local events and meetings are one of the best methods for recruiting new members (36% and 35%, respectively). However, for trade associations, personal sales calls are a highly effective tool (46%; up from 39% in 2018).

y Associations with overall renewal rates at or above 80% are significantly more likely to indicate that word-of-mouth recommendations and personal sales calls are effective for obtaining new members. Additionally, associations reporting increases in their one- year and five-year membership numbers are significantly more likely to find that promotion to/at conferences or trade shows is highly effective compared to those reporting declines. y Word-of-mouth recommendations are significantly more effective for IMOs with up to 20,000 members, and for associations with operating budgets of less than $5 million. Local events/meetings are significantly more effective for recruiting new members for IMOs with up to 5,000 members. For trade associations with over 100 member companies, personal sales calls are a highly significant tool for obtaining new members. Direct mail is most effective for IMOs with over 20,000 members and for associations with operating budgets over $20 million. Paid online digital marketing is significantly more effective for IMOs with 5,000 or more members or operating budgets over $5 million. SECTION 7 Dues and Membership Structure SECTION 8 Managing Your Association SECTION 10 Words of Wisdom SECTION 6 CHALLENGES and Goals SECTION 5 Social Media

SECTION 4 Member Renewal and Rei tatement (Retention)

SECTION 9 The Demographics of Your Association

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