davidpoulos.com

Category: Leadership

Battle For The Bucks: Big Data VS. Good Data

With marketers, retailers and web pundits delving into the topic of Big Data, studying their Google Analytics report like it’s the Zapruder film and studying up on their compiler language, how does all that information translate into creating products that people love and that fly off the shelves?

I contend that there are two elements of this, one is Big Data, which shows you a tranactionally-based road map of what’s popular, what people like, what they prefer given an unlimited number of choices, and can show you how people’s purchase decision gets made; and Good Data, which is gained through other means than digital, but has a digital internet component, and can show you WHY people prefer one thing over another, WHY they gravitate to certain elements or items, WHAT MAKES things popular, WHAT their needs might be in their daily lives BEFORE its been created and marketed.

The two are different and both are extremely useful in putting together a cogent innovation program that can generate the new things we all crave and to marketing them effectively and making them popular and successful. One is only “better” than the other under specific constraints and circumstances. I tend to use both depending upon the project, Good data being the best and most useful to drive new product or service innovation, and Big Data the most useful for gathering and testing theorems and intelligence on applications and market positioning for the product once it’s been developed.

True innovation is a brand new, never been seen before element, and therefore Big Data will not be able to provide you with any comparative data because there’s nothing to compare it to. I doubt the folks at Apple tried to sift through transactional data to see if anyone wanted an MP3 player the size of a lighter with a thumb wheel selector, but if you had asked individuals (primary insight research, Good Data), how they listened to music, where they listened to music most often, and how they WANTED to be able to listen to music (while running, exercising, swimming, in the car,), and why they couldn’t do those things with the current gear, those answers might have lead you to create the iPod.

The wealth of Big Data spawned by tracked internet traffic, and the dearth of Good Data based on ineffective feedback loops, automated CS phone trees and do-it-yourself web-based customer service devices have isolated the bigger more established brands, those with a solid customer base, and a culture often lacking in specific innovation paths beyond incremental improvements f the current product line. That isolation will likely have a dampening effect on those firm’s ability to innovate over the next several years and beyond, if internal structural changes to the organization are not made and a comprehensive, skin-thin customer facing transparency established so that consumer input can be distilled into actionable intelligence quickly and efficiently.

Those firms without an effective “Data Loop” to constantly feed the development teams a source of Good Data will slowly stagnate and become copy-cat innovators, while those closest to their own customers will clear a path to new product development that is facile, smooth and relevant on an ongoing basis, fostering innovation in search of customer happiness. Expensive? Not really, when considered against the cost of lost customer base, eroding market share, lack of attention to pirated technology due to inattention to customer need, defense of intellectual property infringement and a host of other ills facing a stagnant brand.

If you think like I do, and want to help your company become a place that fosters innovation, comment below, or contact me via e-mail at dpoulos@granite-part.com or on LinkedIn.

August 27, 2015
So, I’ve Got All This Data . . . Now What?

Marketing industry media, and more recently mainstream media have latched on to the term “Big Data” as the next big thing due to the huge impact all the computer communications and digital signal data can have via tracking internet traffic. It has reached the point that you can’t open a blog, a magazine or newspaper without seeing it mentioned in a headline, often in conjunction with subject only thinly related to marketing. Some are related to privacy and identity data, which is a legitimate concern when all your personal information is digital and flying around through the air every time you take a phone call or text your friends. But the use of transactional and biographical and search data to custom craft messages and actively serve digital ads online has been around for the last five years, or more depending on how you qualify the description, (remember AOL, and their MyAOL product that showed you ads from places you’d visited in the last week? 1998!)

But unfortunately, big data is here to stay, not just the next big, shiny thing on the marketers tactical menu. Our personal, transactional, and biographical data, (medical, too, if you dig nefariously) is available for the taking, asking, renting, or hacking, and can and will be used against you in a court of law . . . Everything you text, tweet, post, share, like, friend, check-in and play is held on a server somewhere, virtually forever, and if mankind invented a way to store and secure it, man can find a way to get at it for other purposes. Certainly adds food for thought as you’re browsing those facebook posts that lead who-knows-where, killing time on the phone waiting to pick up your kids or in the doctor’s waiting room.

Used properly, ethically, and strategically, the use of big data to mine and prospect for customers should be nearly invisible, and indeed will create welcome and well-timed information that is relevant to you and that you will actually use and enjoy. It’s when corporate marketers use these sophisticated tools with less-than-complete understanding, and don’t want to put the safeguards in place, to put in the effort and human intelligence to remove the obvious mismatches any such algorithm will inevitably create. That’s when the problems start and people get in trouble.

If your company has a a sizable database, a well-trafficked website, and a social media and web presence of any size, you have or can gather a vast treasure trove of data on your visitors, casual and otherwise. The question then becomes not “How do I get this data,” but “Now what do I do with it.” The real task here is to use groups, sets, trends and responses in that data to build an outreach or nurturing program that will provide your customers and prospects with a positive, relevant, valued experience. Such a program will allow you to engage them in a positive way that puts your brand in the best light and make them feel comfortable and engendered to your products and services, to the point where they buy them over and over again.

Call it trust, call it security, call it safe harbor, to whatever degree your customers feel they need to feel comfortable buying from you, you need to show them that you will provide it, including how you use their data – mistrust of data use leads to mistrust of transactional security, which leads to avoidance, in a strange death-spiral of aversion that makes it hard to retrieve a customer who’s been caught in this web of misappropriation of your personal information. You play that card 100,000 times a month, and see how many customers you have left . . .

One of the best safeguards against this, for the marketer, is to start slowly, put the relevant safeguards in place, play them up, in fact, compared to your competitors – you want to own it, especially in the beginning of your big data journey. You want to highlight your security in a way that shows you care about and for your customers. People will endure unimaginable, tedious routines and log-in scripts to avoid having their data end up somewhere unintended – anyone who’s flown on an airplane in the last decade instinctively knows this.

Build up your data use slowly, carefully, cautiously, so that it makes sense to achieve the outcome you want – happy, engaged customers in growing numbers, recommending your products and services to their “friends” and families, because they are secure in the knowledge that buying from you won’t lead to any surprises later. Trust is a fragile thing, handle it with care . . .

If you like this train of thought and want to jump on board, or if you think I’m full of it, let me know, I’d like to hear from you in the comment box below.

August 21, 2015
Free Product Development Assistance – Just Ask Your Customers

We’ve long been a proponent of the use of primary customer research to guide and inform marketing activity, because it makes so much sense to simply ask your customers or members how they would like to receive communications from you, in what form that communication should be, and what the focus of those communications should be. “Give the people what they want” is something of a mantra around here, and it has been very effective for our clients, driving solid member growth, higher retention rates for non-profits, and smarter customer interaction, higher engagement levels and higher customer loyalty levels for commercial businesses.

Taking that a step further should yield even better results – don’t just ask customers how to market to them, ask them how they want the product or service to look, feel, be delivered and how it should function! Bringing your customer input into the business stream at the product development level can offer stellar results, and not doing it can deliver disastrous consequences.

Imagine pouring your blood, sweat, and tears, not to mention scads of time and money, into developing a product based solely on secondary market research – other products on the market, SWOT analysis, competitive scan, staff intelligence gathering and R&D imagination, then getting all the way to the sales pipeline and discovering that no one really likes or wants the product as it is. Heartbreaking, sure, but also damaging to the brand, the company, the bottom line, and the credibility of the company for potentially years to come.

But, ask some key questions ahead of time, toss in a focus group or two, build some inexpensive prototypes (for products of a certain size and price point) by 3D printing or other inexpensive method, and see how actual users react, how they interact, how they approach using the product, and you can build a fully-viable product, well-suited to it’s intended target market. You get it right the first time, spend less on marketing costs, and can scale up with confidence, knowing that the product has a viable, receptive market.

Yes, we know this doesn’t work for every product or service. We can’t very well have experimental pharmaceuticals out there floating around in a focus group and having the participants dropping like flies because they determined their own dose, and having the astronauts test the rocket on their own prior to building it can be expensive, and a little dangerous. But for many products, and a significant number of service businesses, a little primary research and customer input before the launch will save a huge number of missteps and headaches, and make the launch a bolder, more confident, less anxiety-racked event.

Based on some of the products I’ve seen out in the marketplace recently, the phrase “There’s never time to do it right, but there’s always time to do it over” seems to resonate with inventors and product originators more often than ever, and in the rush to market, many seem to have ignored the mistakes of others in the past regarding assessing the needs, wants and preferences of the marketplace. With broad-spectrum consumer research an inexpensive option due to newly developed technology, there’s no excuse not to do it right the first time, and have nailed down your customer’s needs before the product ever hits the shelves.

Do you agree? Let me know in a comment if you’ve discovered any new products or services you’ve seen where you thought “Who were they thinking would buy this?”

August 13, 2015
Innovation – Does Your Management Style and Culture Foster or Hinder It?

Organizational culture is getting a lot of attention recently, as economic growth is tougher to come by and company profits even harder to generate. Where efficiency, productivity, and process used to get the attention of management gurus, the general impression is that those things aren’t sexy anymore, and that if you can create the “right culture” at your organization, it will be able to grow by leaps and bounds, leap tall buildings and take the market by storm, etc.

Culture’s definition is often a bit diffuse, but for the sake of argument we’ll use this: The atmospheric environment within an organization created by the Senior executive and mirrored down the ladder to the rank and file, reflective of a set of values and preferences, and a vision conferred onto individual staff interactions that bleeds into their products and services and suffuses the brand. True, that still leaves much room for interpretation, but it gives you an idea of what the majority of workers are going for.

But culture goes deeper in some cases than others. In almost all cases, it really starts at the top, with a communicated vision for what that senior executive wants that company to be, day in and day out. That vision is reflected in many aspects of daily life within the organization, from the physical plant layout, furnishings and decor, down to the paint on the walls in some cases, to the tone of the Employee Manual (or if there even IS one), memos and e-mails, the recording on the voice mail at the front desk, to how customer services treats customers, and in nearly every other aspect of life in that hive every day. What holidays they celebrate and how many, how vacation time is viewed, how the management structure is coached, trained and their performance assessed are key to defining that corporation’s culture.

But how does that culture affect the organization’s ability to innovate?

I think it has the most to do with a sense of freedom borne of respect for the employees’ ability to work together for a common goal. That ability is derived through common and communal trust and a sense of obligation to the mission and to their co-workers. If you are trusted by your peers, and managers, and you trust your subordinates and direct reports to do the best they can all the time, to strive for continual improvement, and to work as hard as necessary to adhere to the goals and needs of the company as a whole, the table has been properly set to drive innovation around the current product or service offering, as part of that constant curiosity and need to improve the status quo.

On the flip side, if management is constantly looking over the shoulder of direct reports, codifying each action and driving their efforts down a narrowly defined group of managed behaviors, that trust in and growth of their abilities doesn’t have much “elbow room” alongside the rest of the required actions, and innovation rarely occurs – they’re having too much trouble just getting through the day.

Innovation comes from many quarters and from many unexpected directions, but somewhere down the line, it really stems from the freedom to be curious, to be able to find answers to the question “What if . . .?” If the answers to that question are never sought because there’s no value to exposing the answer, innovation will have a hard time taking hold and the organization won’t be able to nurture that spark into a meaningful flame of business brilliance.

Don’t let your need for profitability smother creativity and innovation – five hours “wasted” finding out about a certain idea could be the best investment you ever make.

August 7, 2015
NEW STUDY RELEASED: SHOWS NON-PROFIT BRANDS HAVE MORE POWER THAN THEY THINK

Granite Partners’ Study Shows Brand Power Underestimated, Suggests that Relevance Key to Engagement

Sparks, MD – Non-profit member-driven organizations may have more brand power than they are aware of, and can potentially use that power to leverage the launch of new products and benefits to members, according to a new study released today in a white paper by Granite Partners, LLC, a Maryland-based marketing consulting firm.

In a small study conducted among over 60 non-profit membership organizations, professional trade associations and professional societies, brand awareness, brand value and power among their constituencies was studied with respect to member engagement, with some surprising results. Such organizations have been struggling in recent years on the whole with finding and keeping members, and having a difficult time opening new member sectors or keeping them alive.

This study, while too small to paint the industry with a broad brush, suggests that when these organizations fully engage their members, their brand has the viability and trust needed to successfully offer new products or benefits to their current members, and enough relevance to recruit and keep new members as well.

“Based on our work with these groups over thirty years, we found that we had consistently asked them the same questions over time, and in looking at the answers, we noticed some significant differences between how these non-profits gauged their own brand awareness and power, and how their constituents and members gauged that same power. These organizations have been underestimating their own importance to members, and the level of trust they’ve built up over the years in their brand. Many of them can be leveraging that difference to recruit and retain new members, open new segments, “ notes David Poulos, principal of the firm and author of the study.

The White Paper outlining the study results, “Customer Engagement: The Science of Getting From “I See it” to “I Want It”” was released today, and is available digitally upon request. To receive a copy of this informative paper, send a request to: dpoulos@granite-part.com .

David Poulos, has over thirty years of marketing experience, ranging from private enterprise, state and federal government, non-profit and charitable organizations. He has a Bachelor of Science degree in Marketing Communications from Northeastern University, Boston, MA, and has effectively served as Director of Membership Marketing for the National Grain and Feed Association, as Director of Marketing Communication for the National Printing Equipment Manufacturers Association (NPES), Director of Marketing for the National Court Reporters Association, and as a consultant to a host of other non-profit clients including: American Institute of Aeronautics and Aviation, Community Associations Institute, Electronic Retailing Association, Kitchen Cabinet Manufacturers Association, National Assn. Retail Pharmacists, National Association of Wholesale Druggists, National Geographic Society, National Grain and Feed Association, National Information Corp., and the National Society of Professional Engineers.

Mr. Poulos has published over 20 articles on a variety of marketing topics in nationally published magazines and websites, is the author of “The Marketing Doctor’s Survival Notes,” has published over four year’s worth of weekly blog articles on non-profit and commercial marketing, management and customer service best practice, has been quoted as an expert in articles appearing on Fox News Small Business and MSN Main Street Business websites, was featured in the Global Edition of Who’s Who of Marketing Executives, and is a former board member and President of the Sales and Marketing Executives international, and is a member of ASAE, DMAW.

For more information on Granite Partners, visit www.granite-part.com , or

July 27, 2015
Consultant Saves 25% over In-House Cost for Member Research

Cost Comparison between In-house and hiring a consultant for a typical member research project. Assumes In-Depth Interview method, with 20 Interviews, and recommendations report.

Costs calculated based on 6-month project, utilizing 15% of three salaried employees’ time and costs. Consultant saves 25% overall.

There are lots of reasons to hire a consultant: to drive additional revenue programs, add to your creative firepower, review your efforts with an outside, impartial perspective, add to your staff’s existing skill-set, and now there’s one more – saving money! Many executives have a perception that hiring a consultant is an additional expense, is very expensive, and a waste of money since they are already paying in-house staff.

Not the case, as proven by the above graphics. By the time you add up all the expenses of using staff to do a given task, it turns out to be less expensive to outsource to a consultant in many cases. This doesn’t even account for the added expertise, and years of experience, which not only makes projects run more smoothly, but also gets them completed faster with fewer errors.

Faster, better, cheaper, more in-depth – the right consultant can be a real asset to your organization’s growth!

Would love to hear your opinion . . .

July 8, 2015
And Now, A Word From Our Sponsor . . .

Are you really getting as much value from your sponsorship activity as you were lead to believe when you entered into the agreement? Have you ever tried to measure the gains, results, or revenue generated from a sponsorship opportunity?

It’s tough, isn’t it? It’s difficult because there were no metrics or measurement tools built into the sponsorship, and likely no real activation point with which to leverage the value of that sponsorship into more sales opportunities. Sounds like gobbledegook, but there’s a fundamental truth buried in all that jargon: You can’t elicit or assess value if you don’t have a way to measure the return, and you can’t take advantage of visibility unless you find a way to make it turn into action by the viewer.

Let’s take the activation portion first.

Creating activation for a sponsorship, be it a meeting, a sporting event, a team, a radio program or other media opportunity is not easy, and it’s often not just a one-step process. Companies who’ve had success with sponsorship have found ways to really turn that awareness generated by this type of activity into action on the part of the viewer.

Modern technology can help. The QR code is one way, the photo submission contest is another, with cell phone cameras being nearly ubiquitous in the US. The idea is to give event attendees or viewers a reason not only to interact with your brand, but to extend that interaction beyond the context within which it started to outside the venue, to incorporate it into their daily activities. Technology helps you give viewers a channel through which to interact with the brand that is new and fun and engaging, and if you do it correctly, they will become evangelists for your brand and pass their experience along to the others in their personal network, extending your reach even further.

Now with modern technology, viewers have a method to engage, but you still have to provide a motive. They’ve got to WANT to interact with your brand, hopefully in a positive way. Motivating emotions for sponsorships tend to be the need for individuality (only people who attended in person get this shirt), aspiration to be an early adopter (be the first on your block to have one), greed (something for nothing), and the need for attention (winner gets his picture on our product box) these can take many forms in terms of the offer and the audience.

Clearly, the brand/venue/activity/audience match-up is critical to making the most of your sponsorship, always has been, and technology hasn’t changed that much. Making smart selections based on your brand character, and your goals for the sponsorship are still critical exercises. But the need to engage, not just raise visibility for a short time, is higher than ever as message clutter has risen and attention spans have shortened.

Now, on to measurement. Not coincidentally, engagement and measurement go hand in hand. The more actively engaged your audience is with your sponsorship activity, the more easily measured it is. Engagement involves action, and actions can be recorded, measured and assessed. If you put up a banner in a sporting arena as part of a sponsorship, that doesn’t inspire much engagement. But if you put that banner at eye-level in front of the entrance to a famous venue gate, and ask people to take a picture in front of the gate and send them in to your website for a prize, now you have engagement. The more photos you receive, and the wackier they are, the higher the engagement and the more value you get from the sponsorship.

More sophisticated measurements can be taken if you have the need and the use for the data. There is tracking technology, built into ticket stubs, bracelets, and the like that can track attendee movement and dwell within a venue passively, over time. The readouts in aggregate can show you roughly how much exposure your physical representations got that day or that week, and give you a target number to benchmark against for future events in that venue. Connect the two methods, and you set up a sort of Where’s Waldo scenario that can lead to an avalanche of engagement, at least within the venue, for more bang for your buck.

However you choose to do it, the basics are the same: Give them a reason and a way to interact with your brand in a positive way, and then measure the activity and benchmark it against the cost and the value of the sponsorship to assess ROI and renewal decisions. With a little extra effort, you can reap huge benefits from your sponsorship opportunity.

June 18, 2015
The Best “Big Data” is The Invisible Kind

Anyone who hasn’t listed their domicile as “rock, lower level” in the last five years knows that the biggest mega-trend in marketing is “Big Data.” As with most of these media-dubbed monickers, this means different things to different people, but in general, “Big Data” refers to the use of customer information, some of it public, some of it mined from social media, some from transactions, appending services and overlays, to market more effectively to those customers. We’ll use that loose definition here as a basis for discussion.

Most consumers see evidence of big data in use either in their mailbox or their e-mail inbox. Personalized postcards, membership cards, letters, e-mail messages etc. are visible evidence that big data is in use. For better or worse, this type of evidence is really just the tip of the iceberg when it comes to data, and can indicate a less desirable and more clumsy approach to data use. We contend that the best use of data like this should be virtually invisible. It’s like the movies – if you can see how the special effects are done, the movie becomes about them and not about the story. Poor usage draws attention to the mechanics and diverts interest from the bigger message.

Big data can be an incredibly useful and effective tool for creating an outstanding customer experience, as we’ve seen with companies like Amazon or Zappos. The use of transactional and preference data to enact an algorithm to “suggest” logical and related purchases the customer might find of interest is a tremendous customer retention tool. If I know that my transactional data is being saved and used for this purpose, I’m comfortable with that, knowing that they can only really use the information I give them. Plus, if there is a problem, I know they have a vested interest in keeping that data for longer periods of time, and keeping it accurately and privately. I can reference an order and have a really good chance of them being able to access their records, see what the problem is, and correct it immediately – the data and it’s access empowers their customer service staff to solve problems quickly and completely.

For outreach marketing, lead generation, membership recruiting and the like, the use of big data gets trickier. You may or may not have any transactional data to use, so often the underfunded marketer falls back on extensive and repeated use of the data they have, by over-personalizing their outreach materials. It’s like the insecure guy trying to prove how smart they are to the pretty girl, it looks obvious and a little desperate. If I receive a piece of correspondence with my name or address liberally sprinkled throughout the piece, I get the feeling they don’t know me and are trying to fake it.

Brilliant use of big data is unseen by the recipient. Big data is behind the fact that you are receiving the message at all. But that’s just the beginning. Modern computing power is such that each message can be customized to the recipient in a vast array of ways, either printed or digital. Keying photographs, imagery, copy, messaging, offer and other elements to appended data makes for a powerful and effective marketing punch that gets results. Outreach marketing is about triggering an emotional response, and one thing we know reaches our emotional triggers is things we’re familiar with and comfortable with. Seeing an ad served to you on your favorite social media platform from a site you recently did some shopping with shows the marketer’s hand, but is effective because you’re familiar with the shopping site and know how it happened. A personalized postcard for a national swimwear marketer with my name all over it, featuring beach clad models sent to an address in Minnesota announcing a sale in February is not likely to resonate as well. The data could have been used to swap out the image for one of Eskimoes in swimwear, and change the headline to “Coming Soon. . . ” just based on the zip code and the date. Let us know you at least gave us a moment’s thought . . .

The best bet is to put yourself in the shoes of the recipient as effectively as possible, for as long as possible, and to use the data to effect the outcome, not to show you have the data. Use that data you have cleverly and wisely, rather than show how much data you have. Show us you thought about us, not that you know about us. Invisible data speaks the loudest, and contributes the most to the bottom line.

June 12, 2015
Members Behave Like Consumers . . . and Make Decisions The Same Way!

As the debate rages on as to whether non-profits would be better off behaving more like for-profit corporations, it would be wise to keep in mind that the central reason most non-profits were formed was to serve the members, and in that aspect non-profits could learn a lot from their for-profit counterparts. If you were to substitute the word “member” for “customer” in much of the modern marketing and advertising literature, there is a deep mine of wisdom that non-profits could plumb in order to more adequately frame their value proposition, and find greater success in the ever-present quest to find, recruit, and keep members.

There is an obvious schism in the way corporations reach out to consumers. The two schools of thought – the “logical” and the “emotional” – are forced to co-exist, and if done properly, can work cooperatively to achieve their goal of building customer base and consumer loyalty. The “Logical” school, promoting features of the products, and the benefits thereof, using statistics, facts, information to make a “case” for their product’s superiority; and the “Emotional” school, in which images and messaging that appeal to some of the more base emotional motivators to influence purchasing behavior appear.

This can perhaps be seen most readily in the automotive industry, possibly due to the sheer volume of television and print ads for cars that pervade national media. In roughly half the ads, the manufacturers promote things like fuel efficiency, flexibility in seating arrangements, crash safety, popularity with consumers, cargo space, back-up cameras or parking assist, features that make it desirable to certain segments of the buying population. The other half feature imagery and messaging that promote how the car will make you look, feel, how it will make your neighbors envious, how you’ll be more popular or get more attention if you own one, how it will make your co-workers jealous, appealing to the base emotional drivers like need for recognition, elevation of status or popularity, vanity or need for acceptance.

In nearly all the non-profits we’ve worked with or counseled, the value proposition has been of the “Logical” variety – here’s the benefits you get from joining and staying a member. The other half, and some would say the much more powerful half based on some recent consumer research on buying behavior, has been left out in the cold, as if because they are a professional organization appealing to other professional organizations or persons, there is no emotional reward for becoming a member. This bloodless approach is unfortunately too typical of B-to-B marketing in general, but the ethos surrounding non-profits is so laced with the need to be taken seriously, many cannot bring themselves to voice the benefits of membership in any sort of emotional way for fear of being seen as weak, or needy, or heaven forbid, unprofessional!

By injecting some of the emotional component into their outreach approach, non-profits could certainly experience great success in their recruiting efforts, as they would find a much larger segment of the buying population would respond to their appeals. Even in a B-to-B purchase decision, there are one or more PEOPLE making that buying decision, people with emotions, feelings and attitudes that can drive behavior in a much stronger way than the typical “Franklin List” of pros versus cons of joining an organization. By taking a “business only” approach, membership marketers have sidestepped a huge driver of consumer behavior – the need to belong, for acceptance, for praise and recognition. Maybe they feel that the emotional appeal may not be strong enough to pry the dues check out of the fingers of hard-nosed business members, who need a business case to justify every decision. Maybe they’re uncomfortable using a more emotionally based appeal to reach their potential members because they can’t guarantee to “deliver” that type of benefit year after year. Whatever the reason, there would seem to be tremendous gains to be made by positioning their organizations emotionally as well as economically.

Maybe a look at another area of their operation would yield some insights – many non-profit, member-based organizations have a charitable arm or foundation of some sort, and the search for donors is often not only more aggressive and better focused than the member recruitment effort, but the appeals tend to vacillate between the logical and the emotional appeal, doubling the reach of the organization and driving donations beyond what the membership could logically support. Much can be learned from corporate marketing efforts and applied to non-profit recruitment and retention efforts. Sometimes its a case of simply looking over the backyard fence . . .

May 21, 2015
Engagement Turns Your Members Into Cheerleaders

Under the traditional membership model employed by the majority of non-profit trade and professional groups, membership in the organization offers you benefits, but doesn’t necessarily deliver them directly to the member. That doesn’t refer to third party affinity programs or insurance underwriters – it refers to the fact that the interaction with the organization is typically voluntary and one-sided. The member has to reach out to take advantage of the particular benefit directly, the organization typically doesn’t drive the benefit to the member. As a result, what often happens is that many of the potential benefits of membership are either unknown, or unused, and as a result, there is not sufficient member engagement to really live up to the value proposition that the initial membership offer proposed.

Studies have shown that if a member is actively engaged in the activities of the organization, either through staff or another member, their chances of lasting longer than the initial year as a member skyrocket, rising by over 400%. Given the lifetime value of a member to the organization, it would seem a smart investment to craft an engagement program to reach out and grab those new members, get them involved, give them a sense of mission, of empowerment, and of belonging, that will help retain them for years to come.

Those organizations who do put in the time and effort find they reap fairly substantial rewards at renewal time. Renewal rates above 94% are not uncommon in those organizations we’ve studied, and the members not only rejoin, they go out and recruit as well. That’s a double win for any organization, in an era where time starvation and economic uncertainty make membership a low priority for most professionals. And it doesn’t have to be complicated or automated to show strong returns.

Sometimes a simple welcome phone call, from a prominent member, Board member, or staffer, to introduce themselves, welcome the new member to the organization, ask some questions, including what they expect to get out of their membership. Not only does that keep staff in touch with members on a programmatic basis, but provides a constant source of research data on the value of offered benefits, and their popularity among the membership, in real time. Not a bad bonus for making a few calls a week.

Sometimes the effort can be more formal, such as an invitation to join a committee, or to provide feedback on a new product or service prior to it’s introduction to the general membership. Sometimes it’s a request for support for a cause, lobbying effort or legislative initiative. The key is to do it early, and in a systematic way so that no one falls between the cracks. More elaborate efforts will incorporate timing features, automated systems to reach out to certain sectors on a rotating basis with a specific focus, and other bells and whistles, but those automated systems tend to dilute the impact of the effort, to depersonalize it and distance the group from the new member, the exact opposite effect of what you were seeking. The simplest and most effective is the most honest and direct method, a personal phone call or letter from an known member of prominence, welcoming them to the organization, asking what they need or expect, and helping them take direct advantage of the benefits the group offers.

Engagement can take many forms, and the right form is different for each individual, as different as their real reason for joining. Once such a program is in place in your organization, you’ll be amazed at the increase in retention, engagement, and connectivity of your members. They wanted to be a part of a group for a good, real, reason. Tap into that need, and you’ll have a group of lifetime members who closely affiliate and identify with your mission – they become cheerleaders, and that’s where the gold is!

May 13, 2015