Building a Prospective Member Database

Building a Prospective Member Database

by Bunnie Riedel, Host of Nonprofit Conversation

I recently received a question from a reader regarding how to build a prospective membership database.  It seems the organization did not keep good records and he was trying to sort it out.  But he also wondered how they could get prospect names for potential membership.  If you just don’t have a very good prospect list, there are several things you can do to get started.

Buy a list from a similar organization.

In this instance, the organization was a small community historical museum.  I would look at similar kinds of organizations in the community, such as the other types of museums.  Are there other types of historical “societies” in the community, such as Daughters of the American Revolution (DAR), railroad societies, antique car clubs, genealogy clubs, etc?  Any group, association or organization that may have an interest in history.  Can you buy a list of their members?  In instances where like minded organizations already have established lists, there is often “list sharing” that goes on.  

Some organizations might be hesitant to turn over their lists, feeling somewhat territorial or afraid of losing members to the other organization.  I understand that fear, however, I know from practical experience that cross pollinization of organizations has the opposite effect.  Between two or three or more organizations that sell or trade lists, memberships or donations actually increase.  For example, I support a horse rescue farm and my husband supports the local humane society.  Our goal is exactly the same, to help do what we can to alleviate animal suffering and encourage animal adoption.  It would never occur to us to choose one or the other, we think both are important. 

 

Partner with a similar organization.

Host an event at your organization for the members of another organization.  Think of the example of the historical museum.  What if they host the annual meeting for the members of the railroad society or the antique car club?  They will have accomplished a couple of things, first they will have built good will with the other organization, becoming real “partners” with them and they’ll have gotten all those members into their museum. 

You can easily capture the attendee’s names and contact information by hosting a raffle or drawing and having them write down their contact information and put it in bowl.  This is something you see all the time at trade shows, vendors raffling away gifts to those who leave their business cards.  

Look at affiliation benefits.  Here the museum offers a discount to members of the railroad society on tickets or gift shop purchases.  Perhaps you create a coupon that they have to fill out with their contact information in order to get the discount.  Or you provide cross membership benefits “If you become a member of the railroad society you will receive a year’s membership in the historical museum for half price,” or vice-versa.

Host a conference together.  Or offer discounts on your conference to their members and again, vice-versa.

Trade advertising in each other’s newsletters or on your website.  If online, make sure the click-through includes a sign up form.

Buy a table or a booth at similar organizations’ conferences or meetings.  Make sure you’re giving something away, even if it’s a discount coupon. Again, capture those names by hosting a raffle or drawing. 

Enlist those already affiliated with your organization.

I love “member-get-a-member” campaigns.  That’s when you ask your members to bring in new members.  If you sweeten the pot, say offer a premium for every member they bring in or offer a contest with a really great grand prize, your success will be better.  

Has everyone on your board turned over their address list yet?  They should.  Or at the very least, they should send a letter to their friends and colleagues asking them to join or support your organization.  I would provide your board members with the sample letter, outside and return envelopes.

Finally…

There are a lot of great minds out there that read this blog.  Please post your suggestions and comments below.

Guerilla Tactics for Membership Renewal

by Bunnie Riedel, host of Nonprofit Conversation

When I was younger and had no money, I would buy things on “lay-away.” You’d put a little down and then make payments but not get the product until it was paid in full. I got my first set of dishes that way, a little bit at a time. For the last twenty years, lay-away hasn’t existed but now with the economy in a slump, lay-away is back at some of the large stores.

In thinking about membership, so many organizations have lost members and are trying desperately to get them back. However, I have also seen a rigidity among nonprofits when it comes to membership dues and structure. Some nonprofits aren’t really understanding that doing business as usual will only continue to cause their membership numbers and dollars to fall. In normal circumstances, even when the economy is fabulous, nonprofit membership churn (or turnover) is roughly 20%-25%. In shaky times that number goes up by quite a bit.

Here are some ideas I’ve been noodling on lately:

Assess your current membership demographics. Where have you lost members? Are there certain types of people that are not renewing? Is there a way to bring them back by tailoring membership to their needs? For instance, let’s pretend that your organization is the National Tennis Enthusiasts Association (NTEA--a completely fictional association). Do you really know who your members are? Have you done demographic surveys of your membership?

Let’s pretend you have done those demographic surveys and you find the following:

20% of your members are under eighteen.
25% of your members are nineteen to thirty-five.
25% of your members are thirty-six to fifty.
30% of your members are over fifty.

Approximately 40% of your members are female and 60% of your members are male.

75% of your members live in suburban communities and 25% of your members live in urban areas.

Now cross-reference: How many of your under eighteen year old members are female or male and how many live in suburban communities vs. urban areas.

And, what percentage of those sub-groups have you lost?

You see that you’ve lost 30% of your under eighteen year old female urban area members. What can you do to appeal to them? Could you create an online community directed at them, with the latest news about young urban female tennis champions? Secure discounts on equipment and clothing? Offer “buddy” membership where two can join for the price of one? Host a “Young Miss” event in their city? Have a tennis camp scholarship contest for members only?

Now you also see that you’ve lost 40% of your suburban male over fifty members. What strategies can you think of to reclaim that demographic? It certainly won’t be the same as you would use for the under eighteen year old urban females. The point is: if you lump all your members together in one big group without taking into consideration their unique qualities, you will continue to lose membership or at least be challenged to maintain members.

Assess your membership dues structure. What is the cost of membership? Has it remained constant over the last few years or gone up? I know of an organization that recently raised its membership dues, and I think that’s insane, given the economy. Now is the time to look at your membership dues and think about putting them “on-sale.”

But we’ll lose even more money!

I don’t believe you will. People are looking for bargains and looking to cut back on their expenses. You will gain more members if you discount your membership dues. Also, think how you can market the discount.

“We know that the economy is slow and we decided to lower our membership dues to make it easier for you. We don’t want you to miss having your member benefits.”

If you took 30% off your membership dues tomorrow what would that look like? How can you market that to members you’ve lost? Is there a “volume potential” for your organization?

For seriously lapsed members (say a year or more) think about providing them membership at half-price.

Find value-added partnerships. I just received notice from an association telling me that I can now buy at a significant discount at an office supply store because I am a member. What products do your members use all the time? Perhaps they need a discount on liability or theft insurance. Perhaps they need certain types of equipment. Maybe they need discounts on airfare. Once again, conduct a short survey. Ask your members what they need and then find a supplier or retail partner that will give them substantial discounts just because they belong to your association.

If I see that over the course of a year my membership will save me $300 through discounts, and that $300 more than pays the cost of my membership, then I have a strong incentive to become or remain a member.

Provide a payment plan. Just like lay-away, except your members get their product up front. My heating and cooling maintenance providers just sent me a notice saying we can pay for the service in “3 easy payments.” Could you offer your members “3 easy payments?” This could certainly affect your cash flow and how you budget, but isn’t that better than not getting the membership?

I heard an organization advertise that you can join them by making monthly payments. So instead of it costing $120 per year, it now costs $10 a month. That makes it much easier to swallow. Of course the best way to do this is to set it up as an automatic withdrawal from their bank account. That’s the way my gym does it.

Make sure you are providing value. If you are losing members right and left, maybe it’s time to think about your organization’s “value.” Not only are people spending less but they are also demanding high value in the things they buy. What is your value? How are you competing with other nonprofits of similar size or mission? Why should anyone join your organization? You can’t ask for membership dollars and then not deliver a product. If people don’t see any advantage in sending you money, they will stop sending you money.

I hope that this has given some of you food for thought. And I hope that all of you achieve and succeed in your membership goals!!!

Recruiting and Retaining Board Members

It can be tough to recruit new board members. Everyone is very busy and finding the right match can be challenging. Wayne Pinnell, Chair of the Board of Directors for Laura's House offers some practical and good advice. It's a good quick read that should be shared with your Board! Bunnie

Recruiting and Retaining Board Members

By Wayne R. Pinnell, CPA
Managing Partner
Haskell & White LLP
Irvine, Calif.

Chairman, Board of Directors
Laura’s House
Ladera Ranch, Calif.

Membership on a nonprofit board of directors can be a rewarding experience for individuals who have the both the desire to serve, and a passion for the work that the nonprofit organization is doing within the community. Yet, with nonprofit board membership comes great responsibility, which most often requires the board member to commit not only their time, but also their financial resources, to benefit the nonprofit organization.

As Chairman of the Board for Laura’s House (http://www.laurashouse.org/), a nonprofit organization whose mission is to change the social beliefs, attitudes and behaviors that perpetuate domestic violence while creating a safe space in which to empower individuals and families affected by abuse, part of my responsibility is to help recruit new board members. I am also there to ensure that current board members remain committed to our organization’s mission and purpose, and continue to support our organization through whatever means they can.

The current economic climate has made the job of recruiting and retaining board members somewhat challenging. Personal finances, as well as the ability for board members to meet the various “give or get” goals set by a nonprofit organization’s board of directors, have been impacted. For example, board members who once relied on their employer or their business to supplement or meet their entire financial commitment to the nonprofit may no longer be able to do so, and may determine that they can no longer individually meet the minimum financial requirements of board membership.

Yet despite this reality, I would encourage the board of directors to avoid downplaying or overlooking that member’s contributions and service in other areas, such as volunteering with the organization or serving as a community advocate. A financial reversal of fortune often can be temporary, and if the board member remains committed and enthusiastic about serving the organization, the board of directors should make every effort to work with that individual to ensure their continued involvement. Likewise, the board member may very well be able to draw other folks to the organization as volunteers, donors and or future board members.

In the event that your board of directors finds it must replace individuals who have left the board for any reason, including financial hardship, or if a board expansion is in the works, there are key factors that should be taken into consideration when it comes to recruiting and retaining board members.

First of all, remember that the recruiting process is an opportunity not only for you to get to know the prospective board member, but for them to get to know you as well. Do not assume that because they show up for the interview, that they want the job. Make sure that they understand the mission of the organization, and that it aligns with their personal values. Determine how they want to serve your organization. Do not assume that a marketing professional will want to help market the organization or that an accountant will want to help with finances. Nobody wants to be pigeon-holed and this is a sure-fire way to burn out what could be a great board member.

Another important element to evaluate when recruiting prospective board members is personal motivation. After the prospect has learned more about your organization, are they still committed, or simply looking for an opportunity to “network” or build their own business? If it is the latter, you are in trouble because the board member will only stick around long enough to get what it is they want, and will not likely contribute to the long-term success of your organization.

Once the board member joins the organization, make sure that they are put in a position where they are allowed to thrive. Do not set them up for failure. If the board member is tasked with a project for which they simply do not have the talent or skillset, find something more appropriate for them to do. In the long run, they will be much happier and successful in their service to your organization. Also, make sure that they are acknowledged for their service in a way that does not embarrass them, or make them feel slighted. Keep in mind that some board members love the huge fanfare and recognition, while others prefer to remain “unsung heroes” through quiet recognition.

Finally, encourage periodic feedback from the members of the board as to their level of participation and ongoing enthusiasm, evaluation of the organization’s goals and the progress toward those goals, and the member’s interests in participation in other areas. A little bit of self-evaluation and reflection may be all that is needed to boost a member’s participation – or have them realize it is time for them to make their seat available for someone else.

For more information on Laura’s House, visit http://www.laurashouse.org/.

Writing an Effective Membership Renewal Letter

Writing an Effective Membership Renewal Letter

by Bunnie Riedel, Host of Nonprofit Conversation

Some time ago, in the blog “Membership Renewal and Retention” (http://nonprofitconversation.blogspot.com/2009/01/membership-renewal-and-retention.html) I promised I would offer a sample membership renewal letter. And my Google Analytics is telling me that people are frequently searching for sample membership renewal letters, so I guess I better make good on my promise. Rather than providing a sample, I decided to provide step-by-step instructions because every nonprofit is different and it would be impossible to write a pristine one-size-fits-all letter.

Additionally, we have spent a great deal of time here discussing social media and technology, so now I’d like to advocate for good-old-fashioned-letter-in-the-mail membership renewal letters. There are a couple of reasons. Strictly sending a membership renewal via email will lower returns. People are inundated with email and the likelihood the recipient will delete the email without reading it is high. Your email may be seen as just another communiqué from the organization and easily dismissed. And while people are also inundated with postal mail, your chances are much better the recipient will add your renewal letter to their “bill” pile and write the renewal check while taking care of their usual obligations. You can do both, email the renewal letter and mail the renewal letter, that way all your bases are covered.

The Greeting

It is important to personalize the greeting. The address block should look like any business letter you do and the greeting should be “Dear Person’s First Name.” Example “Dear John.” If you are in a culture in which using a person’s first name is prohibited, then at least use a proper “Dear Mr. Smith.” But don’t use “Dear Member” or “Dear Supporter.” You should establish that your organization has a personal relationship with the member and that they are important to your organization and not just some anonymous check writer. Mail merging is a simple process, if your membership person doesn’t know how to do it, they need to learn.

The First Paragraph

The first paragraph must be an acknowledgement and a thank you to the member for their loyalty to your organization. Do not jump into “It’s membership renewal time!” Write a few lines thanking them for their past membership because after all, you are grateful for their membership, without it you wouldn’t have an organization.

Second and Third Paragraphs

Briefly tell them what the organization has accomplished in the past year. When I say “briefly” I mean “briefly.” Your organization may be the greatest on the planet but people do not have time to read a dissertation on its accomplishments. Personally, I am a fan of bullet points. And I am a fan of the rule of three’s (it’s actually an obsession I have). Tell me three great things you did with their membership dollars.

“Your membership enabled us to accomplish so much this year.

• We were able to beat back legislation on Capitol Hill that would have prohibited farming collectives in the Tennessee Valley. Our defeat of this legislation means that family farms will continue to thrive just as they have for over 150 years.

• We held our first-ever conference on “Why Water Matters” in Las Vegas, Nevada. Over 300 people attended the four day conference and we were able to award 50 conference scholarships to graduate students from universities throughout the country.

• We developed a media relations campaign with public service announcements for television and radio on why water conservation is so important. The “Waste Today, Thirst Tomorrow” campaign aired on over 400 television stations and 1,200 radio stations throughout the nation. The video public service announcements garnered a Telly Award as “Most Effective TV Campaign by a Nonprofit.”
  
  We’re proud of what we’ve been able to do and we could not have done it without you!"

Next Paragraph

Now tell them what you have planned for this year. Note, I said, “this year.” Not the next two or three or five years. You need their membership commitment to accomplish even greater things in the coming year. List a few of those great things you are going to do. Again, bullet points are my preference; short, sweet, bullet points. Also show some excitement about what you have planned…you just can’t wait to get to the projects! If some of what you have planned is continuing the programs you are already doing, that’s fine, but do emphasize why those programs are so necessary and important.

Finally “The Pitch”

The pitch or closing the deal,, whatever you prefer to call it. This is not the time to be shy, ask them to renew their membership and make it urgent “Please renew your membership today!” This is the paragraph (or two) where you might even include a premium for renewing quickly, such as: “If you renew your membership in the next two weeks, we will send you our lovely low-flow shower head so you can begin to conserve water right away!” This is also the place where you can ask them to renew at a higher level or add an extra amount to their membership.

The Close

Thank them again, let them know that if they need anything they can contact you and you will be happy to assist. The closing must be from the highest officer (Executive Director) or Chair of the Board, not the membership director. Make it warm and friendly, I think “Sincerely” is just fine but you can go beyond that with a “Your partner in water conservation, Jane Doe” if you choose, just make sure it’s not cheesy.

Technically

Here are some technical points:

• Try not to go over 2 pages. I once was in a seminar in which a direct mail consultant said the appeal letter had to be 4 pages. I completely disagree. People do not have time to read 4 pages, the mail package will cost you a lot more and nowadays, people see lots of paper as being wasteful. I recommend 2 one-sided pages so it has some weight, but if your organization is highly concerned about conservation, you can do a double sided letter (not my first choice).


• Do use recycled paper and envelopes, people notice things like that.


• Include a return envelope. You don’t have to provide postage and in fact, I recommend you do not provide postage as some will view that as waste. If they really like you, they will spring for the stamp.


• Be sure the outside envelope has “Address Correction Requested.” While you have to pay the return postage, in the long run it helps keep your list clean.


• Don’t forget to include the membership application.


• Be sure the signature of the Executive Director or Chair is in blue, not black. Even while most people understand that the membership letters are computer generated, having the signature in blue makes it look more personal.


• Be sure to send a thank you note, it can be brief, but acknowledge their membership. Many organizations like to provide membership cards, you can do that, but it’s very expensive, so unless having a membership card entitles them to some discounts or special events, you don’t need to do that. A nice thank you will suffice.

In the previous post I talked about when you should mail, how often you should mail, etc. You cannot mail one time and expect good results, you just can’t. Read the Membership Recruitment and Retention post mentioned at the top of this one for a membership renewal mailing strategy.

And, please do write me if you have any questions or need assistance info at riedelcommunications dot com

Thanks for reading! Bunnie