New E-Subscriber Model Presented at the June 2009 Affiliate Council Meeting in Charlotte, North Carolina

1. New E-Subscriber Model Presented at the June 2009 Affiliate Council Meeting in Charlotte, North Carolina Updated 10.09 – Please reference the “notes” section for more detailed information or resources.

2. Guiding Principles Adopted by the NAEYC Governing Board April 2009 • NAEYC models are compatible with the NAEYC mission and vision. • NAEYC models are based upon the values of a high performing and inclusive organization. • NAEYC is data driven in the development of future models. • NAEYC membership offers member benefits and choices that are meaningful and relevant and offer opportunities for professional growth over the continuum of professional careers. • NAEYC seeks opportunities to broaden its outreach to potential members through strategic alliances. • NAEYC models create continued opportunity for the Affiliate Network to grow membership at the local and state levels. • NAEYC utilizes current technology to provide enhanced member benefits, resources and services within an economically sound business plan. (* Models = membership, subscriber, strategic alliances, etc.)

3. History and Context • The proposed membership model is not a completely new concept, various similar concepts have been presented over the past 10 years and most recently with the Membership Advisory Group lead by Karen Hughes in 2005 and the Staff Membership Implementation Team (MIT) group in 2006-2007. • December 2006, NAEYC formed MIT to review the revised version of the NAEYC membership structure approved in spirit and principle by the Governing Board, building on the work done in the prior year by the Membership Advisory Group. • Consensus achieved in 2007 for the following recommendations; • Member access to online version of YC • Addition of TYC and option of choosing either TYC or YC as hard copy journal of choice • Addition of 3rd party subscriptions; Child Care Information Exchange, Highlights High Five, etc. • Notion of a value or “gift” card • Discount packages and new, simpler membership categories • Fall 2007 flaws discovered in the new dues model causes NAEYC to pause work temporarily

4. History and Context • 2008 NAEYC commissions two surveys; Accreditation and Membership, plus a briefing paper on Innovative Membership Models. • The national survey targeted current and lapsed members, and “never been” members based on ASAE’s Decision to Join survey and report. • First comprehensive assessment of its membership in recent years • Evaluate all existing benefits to determine which have the most value • Identify “greater than self” personal and professional motivators that drive people to become and remain NAEYC members • Create a set of recommendations NAEYC can act upon to grow its membership and its revenue

6. The Problem Facts: • Between September 2003 and March 2009 NAEYC membership declined over 12% or close to 2% each year. At this rate of decline and with the current and uncertain future of the economy NAEYC will not be able to continue to function at its current capacity. • Membership dues are too expensive and have become out of reach for many current and potential members. This has limited NAEYC’s ability to grow its membership base. • Member benefits have not kept up with the lifestyle of today’s generation. NAEYCand Affiliates needto determine if the benefits are still “relevant” and if they still provide “value”. • No consistent marketing/branding campaign has been conducted to address the retention and growth of the member base. • The relationship between NAEYC, Affiliates and Members needs to be reviewed and re-architected to reflect changing membership value.

7. Member Counts 2004 to 2009 Between Nov 2004 and Mar 2009 NAEYC lost 14K members Aug 04 2005 2006 2007 2008 2009

8. Membership by Location State 80% of Members come from 23 States 90% come from 33 States CA is the top State NY , PA, FL , IL , OH, NJ, TX next highest membership

9. Membership by Type Between September 2003 and March 2009 The biggest loss was from the “Regular” membership category Data indicates growth in the Student category which could be attributed to members looking for a “lower priced” membership option Biggest Loss

11. Iowa

12. Florida

13. Welcome & Welcome Back! --back to top--

14. Reasons for Members Opting not to Renew Main Reasons • Based on analysis of our recent membership survey and our final renewal postcards the main reasons for not renewing are: • Cost (Perceived or Real) • Forgetting to renew • Content or not enough “value” Sample reasons from surveyed members • Too expensive and the only benefit to me was getting the magazine. • Wanted to renew, but at the time the money was short. I am looking to join again. • I am not considered a student anymore and the cost is a little too much • I can no longer afford the fee. Miss the journal.

15. Key Findings from 2008 Membership Survey • Potential population of over 2 million early childhood educators, NAEYC has less than a 5% market penetration • NAEYC has a high turnover of new members • NAEYC Membership is aging • Cost is a significant factor in many decisions about membership and program participation • Potential members are looking for alternative membership models • Significant potential exists for non-dues revenue through books and electronic offerings • Electronic and web-based programs will increase in importance • www.naeyc.org is especially important to former members • Teaching techniques and materials are the key benefit to NAEYC membership

17. The Path to Membership • NAEYC can create innovative pathways to membership by: • Creating value for “customers”; people who seek NAEYC out for products, services and information • Converting “customers” to “E-Subscribers”; people who value our products, services and information but want more content and connections • Converting “E-Subscribers” to “members”; people who choose to join to make a difference, and engage in local and state networks

18. CUSTOMER E-SUBSCRIBER MEMBER

19. NAEYC’s E-Subscriber Model

20. The New E-Subscriber Model There will be two types of offerings to allow individuals to participate in the mission and values of NAEYC

21. The New E-Subscriber Model

22. E-Subscriber Overview The purpose of the E-Subscriber model is to offer a low cost, limited yet content rich access to the resources offered by NAEYC The E-Subscriber will have the option to add on additional resources such as the print versions of YC and TYC at additional cost, however this option will always have a higher price point than full membership With this model NAEYC will be able to market and package this resource for Unions, Agencies, NAEYC Accredited Programs and other organizations The E-Subscriber will “NOT” have voting rights The E-Subscriber offerings will only be delivered electronically thus the cost to NAEYC will be minimal The system will be designed to enable E-Subscribers to EASILY upgrade from E-Subscriber level to full membership NAEYC will send State Affiliates $5 for every E Subscriber within their state With this model NAEYC Affiliates will be able to market directly to the E-Subscriber for local events and membership recruitment

24. Next Steps • Build the IT platform to support the E-Subscriber Model • Field test E-Subscriber model in up to 5 states (Ohio) • Track and analyze results through a transparent communications plan • Anticipated launch October/November 2009 (Annual Conference) • July Governing Board discussion and decision regarding Membership models (approval process of framework and concept in order for staff to move forward) • Develop a plan for a phased roll out that is considerate of the Affiliate’s fiscal planning, and the impact any change will have on NAEYC and Affiliate revenue • Create multiple opportunities to engage Affiliates in phase two of new membership model design in 2010 • Develop a communications and marketing campaign to promote the E-Subscriber and new membership models as approved • New membership models implemented and operational by beginning of FY 2011

25. NAEYC…Building Better Futures for all Young Children

26. Questions / Discussion