R egion X Conference Membership Marketing The Bottom Line September 2013

1. Region X ConferenceMembership MarketingThe Bottom LineSeptember 2013

2. Membership MarketingThe Bottom Line – A brief overview • NARFE has experienced a thirty year decline in membership, leaving the association in serious trouble • The association did not have the expertise to analyze the problem or develop and implement a plan to attack the issues • Marketing General Inc. (MGI), a firm with over thirty years of marketing experience with hundreds of associations was contracted and additional industry knowledge and experience was brought in-house

3. Membership MarketingThe Bottom Line – A brief overview • Ongoing marketing plans are developed to test best options and implement successful efforts • There is no silver bullet • We have slowed the year-over-year decline and are building the foundation for the future.

4. NARFE 30-Year Membership Decline 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 • Current - OPM back log in full retirement benefits • 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 Note: Thirty Year Trend / Constant Loss since 1999

5. Membership MarketingThe Bottom Line – member deaths • NARFE member deaths are escalating: contributing to an erosion of the renewal rates and an increase in Dropped for Non-Payment statistics. • Monthly average reported deaths have increased 23% from 2012 (Does not include database cleansing efforts) • Unreported deaths impact renewal rates which have eroded from 82% to 78% over the course of five years • 9% increase in Drops form 2011 to 2012. 10% increase in Drops form 2012 to 2013

6. Membership MarketingThe Bottom Line - recruitment • Recruitment of new members is our most critical initiative. • Reversing the decades of membership decline requires high volume recruitment of new members.

7. Membership MarketingThe Bottom Line - OPM OPM response has declined steadily over the last decade • The OPMlist has historically been the sole source of high volume new membership. It has never produced enough new members to maintain membership levels • The current OPM backlog, which leaves so many recent retirees with only partial annuity, is contributing to a further decline in response

8. Membership MarketingThe Bottom Line – Other Lists • The rental universe, beyond OPM, for federal employees and retirees is relatively small and the most responsive lists are quite expensive. Standard offers have not worked. • Successful use of these lists will be dependent on: 1. Success of the Free 6 Month Trial Offer or 2. A new break-through offer. • With limited and expensive outside list options, building an internal prospect list (lead generation) is the key to large scale acquisition.

9. Membership MarketingThe Bottom Line – Prospecting • As of the 2013 budget, advertising dollars have been brought to the prospecting task. Our media spending now must work double-time, providing both high brand exposure AND a high volume prospects. • Testing has revealed that highly targeted electronic newsletters are most effective. We are finding and engaging the active federal employee where they gather online.

10. Membership MarketingThe Bottom Line – Prospecting • Within the first eight months of online advertising, we saw just under 13 million impression of the NARFE brand. • In the first seven months of this year, we have generated over 8,000 leads from this effort alone. • 92% of the leads generated are Active Federal Employees

11. Membership MarketingThe Bottom Line – Prospecting

12. Membership MarketingThe Bottom Line – Prospecting What does Headquarters do with the prospect list? • New prospect letter • The first correspondence, a letter acknowledging the prospect’s recent interest and inviting them to join, is sent within a week of data entry. • Email cultivation series • All prospects, upon data entry, are entered into a six-part email cultivation program. Prospects are offered white papers, take a survey, and are invited to join. Relevant engagement is a key factor in converting prospects to members. • Bi-Monthly mailings • Prospects are selected for bi-monthly acquisition mailings. Multiple exposure is a key factor in converting prospects to members.

13. Membership MarketingThe Bottom Line - reinstatements • With dedicated promotional effort beginning in the Fall of 2010, culminating in the current bi-monthly mailing to lapsed members, we see significant gains in reinstatements– despite member deaths.

14. Membership MarketingThe Bottom Line - retention • On account of strong reinstate statistics and despite escalating deaths, total retention (renewal plus reinstate) remains extremely high. • NARFE Retention Rate is 92% • Only 15% of member associations report retention rates of 90% or higher

15. Membership MarketingThe Bottom Line – slowing the decline There is ongoing evidence that the membership decline is slowing In order to accurately reflect year-over-year comparisons, 4,718 members (those removed from the file as we researched decades of unreported deaths) needs to be excluded from the data to reflect current realities. Once done: Over the course of the last three months, we have seen a 20 to 25% decrease in losses compared to the same time periods in 2012

16. Membership MarketingThe Bottom Line – “getting into federal buildings” • Beyond the substantial exposure to current federal employees via online advertising and lead generation, four additional plans are in place to “get into” federal buildings. • Six month plan to “gift” 165 agency HR officers with magazines, brochures, white papers, “how can we help you?” surveys and emails with free downloads for distribution. (Sample of July issue letter attached) • Introductory letter from Headquarters available for use in the field. It will be included in the updated F-10, Chapter and Federation’s Officers Manual. (Letter attached) • “Best Effort” model from Headquarters for entry and implementation into two agencies. (Draft letter attached) • Call for best practices from field to be solicited in next Recruitment & Retention Journal and shared online.

17. Membership MarketingIn the Field • Assess the resources within your chapter and federation • Are there funds / matching funds / successful recruiters / potential recruiters • Assess the opportunities in your area, district and state • Are there federal facilities / events / gatherings that may at first blush seem unlikely • Work the OAM and M12 • Prospects and new members can be found here

18. Membership MarketingIn the Field • Engage, Engage, Engage – and then ask • Don’t just send a letter and forget prospects – include a magazine and brochure • Develop a prospect follow up plan over the course of six months • New members are likely active employees or recent retirees – welcome them!, understand their unique needs or perspectives • New members are likely active employees or recent retirees – they are your best potential recruiters

19. Membership MarketingIn the Field • Seek/share expertise • Develop a relationship with nearby chapter membership chairs and federation officers • Comb the quarterly Recruitment and Retention Journals for top recruiters in your area and contact them • Map out event opportunities and best possible/available staffing (limited) • Set goals • Order magazines, brochures and M2s for event tables • Develop a personal elevator speech that strongly positions NARFE as the Legislative Voice and Information Resourcefor federal employees and retirees

20. Membership MarketingIn the Field • Identify, build and cultivate relationships within local agencies • Individual’s success in gaining access to federal buildings and invitations to events within them have been most often based on long-term cultivation of a personal relationship • Pursue social media • For those who are comfortable within social media, spreading the word about NARFE is effective public relations • For those who resist local chapter membership, suggest eNARFE

21. Membership MarketingIn the field • Prospecting – field support • The F-135, current narfe magazine and M-2 cards are promoted wherever possible as key recruiting and prospecting tools. All are encouraged to limit event materials to this “kit”. • A sample “elevator speech” is sent with each request and available online. Keeping the Exchange Focused Limiting materials and having a rehearsed “elevator speech "will keep the conversation focused and provide manageable, digestible information for the prospect.

22. Membership MarketingIn the field Share your story!