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The Future
of Membership
American Museum Membership Conference!
                      Philadelphia, PA!
                     October 26, 2011!
                                      




                                          1
§  Introductions

          §  Trends and Transactions

Agenda
   §  Culture Track

          §  The Interactive Imperative

          §  The Membership Profession and The Pulse of Membership

          §  Q&A and Conclusion




                                                                       2
Introductions
Dana Hines Membership Consultants!
dana@membership–consultants.com

Noreen Ahmad LaPlaca Cohen!
noreen@laplacacohen.com

Rosie Branstetter fiveseed!
rosie@fiveseed.com




                                     3
Trends and
Transactions




               4
§  Demographics.

             §  How we transact membership.
A Changing
Landscape
   §  Expectation of discounts.

             §  Who our members are.

             §  How we get and keep members.

             §  The membership profession.




                                                 5
A Case Study:
The Houston Zoo




                   6
§  Set in a 55-acre lush tropical landscape, the
    Houston Zoo is home to more than 6,000 exotic
    animals representing more than 800 species.

§  The Houston Zoo has an annual attendance of
    more than 1.8 million visitors along with 45,200
    member households.




                                                       7
2010 U.S. Demographics
                   According to the 2010 U.S. Census, 16% of the!
                   population is Hispanic. This is expected to rise!
                   from 16% to 30% by 2050.

                   §  A higher percentage of Houston’s population is!
The Houston Zoo
       Hispanic than most of the country.

                   §  In 2000, 37% of the Houston population was!
                       Hispanic of any race and 61% were born!
                       outside of the United States. 

                   §  However, only 10% of the Zoo’s membership!
                       base is Hispanic.




                                                                         8
Introduction
                   §  Demographically, Hispanic guests were not buying!
                       memberships at the rate of their attendance at the!
                       Zoo (10% vs. 38%). 

                   §  Working with researchers from Rice University, the
                       Zoo examined this issue. 
The Houston Zoo
   §  Findings: The Zoo’s Hispanic consumers did not!
                       react well to the term “membership.”

                   §  The Zoo decided to implement a Season Pass to!
                       achieve an increase in Hispanic participation.

                   Goal
                   §  To engage interest in membership programs from!
                       additional ethnic groups, with a strong focus on the!
                       Hispanic market.


                                                                               9
Key Operational Methods
                   §  Created a six month individual pass in the summer!
                       of 2010 and named it Houston Zoo Season Pass.
The Houston Zoo
                   §  Adult passes were $15 and children passes!
                       were $12.

                   §  The only benefits attached to the pass were free
                       admission for six months and usage of the member
                       express entrance.




                                                                            10
Key Operational Methods
                   §  No ticket upgrades were allowed with the passes.

                   §  The pass was marketed and sold only onsite.

                   §  Table set up in front of the Zoo with Spanish
The Houston Zoo
       signage to sell the passes.

                     −  Staffed with 2 Hispanic sales representatives!
                        and 3 application processors.

                     −  Anyone could buy the pass but marketing was!
                        driven toward the Hispanic market.

                   §  The passes were sold over two weekends at the
                       end of July and beginning of August.




                                                                           11
Results
                   §  Sold more than 1,200 passes in 4 days.
The Houston Zoo
   §  Able to target multiple family sizes.

                   §  Passes assisted in driving attendance to the Zoo.

                   §  Guaranteed revenue from pass holders.




                                                                            12
§  How are people joining?
How We Transact!   §  How are they renewing?
Membership
                   §  Are direct mail and telemarketing dead?

                   §  Should all communications and transactions be
                       electronic?




                                                                       13
Gen Y 
                 Gen X
    Boomers
                                                                         20-30 yrs
              31-46 yrs
 47-65 yrs


                   Checkout donation                                         48%
                    57%
                    52%
                   (This is comparable to
                   onsite sales!)
                   Check by mail
                                              26
                     43
                   54
How We Transact!   Gift shop
                                                  28
                     35
                   32
Membership
                   Website
                                                    29
                     35
                   31
                   Third-party vendor
                                         25
                     27
                   17
                   Phone
                                                       8
                     10
                   16
                   Monthly debit
                                              11
                     17
                   14
                   Mobile/Text
                                                14
                     13
                    4
                   Social networking site
                                      9
                       6
                   4




                   Ways	
  people	
  have	
  given	
  money	
  in	
  the	
  last	
  two	
  years:	
  Source:	
  Convio	
  
                                                                                                                                    14
§  People are living by discounts.

                    §  Internal decisions to discount.

                    §  External means of discounting—Groupon and !
The Expectation !       Living Social.
of Discounts
                      – 
Memberships.

                      – 
Admissions.

                    §  Membership IS a discount.

                    §  What is happening to our perceived value of
                        membership?




                                                                      15
§  Know your member profile.
Who Are Our!   §  Age, presence of children, geographic pockets.
Members?
               §  Target audiences.

               §  What each market segment might be looking for in their
                   membership relationship.




                                                                            16
The Biggest Issues!!
                 Acquisitions
                 §  How to define, then find, new audiences.

                 §  Demographics are changing in the U.S., how do we
                     make museums an attractive lifestyle choice?
How We Get and
Keep Members
    §  How to engage a younger audience . . . is this!
                     possible?

                 §  Should you be customizing solicitations by different!
                     audience interest groups?

                 §  Should you be customizing your membership levels!
                     by different interest options?

                 §  Mission vs. value members—how will you balance
                     these motivations for joining?



                                                                             17
Onsite Solicitations Become!
                 More Important
                 §  More challenging to find new prospects.
How We Get and   §  Work with your visitors, but even smarter.
Keep Members
                 §  Gain new members and collect: 

                    −  Names.

                    −  Addresses.

                    −  Emails.

                    −  Interests.




                                                                   18
Renewals
                 §  How best to gain new members’ loyalty?

                 §  How to deliver an experience that satisfies year!
                     after year?

How We Get and   §  Which will be the best solicitation strategies for!
Keep Members
        highest ROI—mail, email, 2-year members?

                 §  Where does discounting fit in terms of renewals for
                     the future? It’s the mission vs. value motivation
                     again.

                 §  First year renewals are the toughest—so make the
                     first year more memorable.

                 §  Engaging welcome packet/communications/
                     events.



                                                                           19
Special Importance for Renewals
                 §  Some things never change . . . 
How We Get and
Keep Members
    §  Know your numbers.

                   – 
What are your renewal rates?

                   – 
How are people renewing?

                   – 
Why are they not renewing?




                                                        20
Whole Institution Approach
How We Get and   §  Collaborate fully with education, curatorial, visitor!
Keep Members
        services, and marketing to ensure the promised!
                     membership experience is delivered.

                 §  Develop new member welcome strategy.

                 §  Keep it fresh!




                                                                              21
Maintain BEST PRACTICES
                 §  Know your numbers.
How We Get and
                 §  Be alert to new ideas and receptive to change.
Keep Members
                 §  Test new ideas.

                 §  Before you change the program, can you and your
                     organization deliver the experience?

                 §  Without risk there are no new great ideas! 




                                                                       22
Multi-Everything (Cultural,!
How We Get and   Generational, Interest)
Keep Members
                 §  Make your museum a valued lifestyle choice for
                     groups who have not traditionally been part of !
                     your plan. 

                 §  Be you, but reach out—how to do this best?




                                                                        23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
The Interactive
    Imperative




                  50
How to use online social media and mobile to!
                   increase membership:
The Interactive!   §  Awareness.
Imperative
                   §  Engagement.

                   §  Conversion.

                   §  Retention.




                                                                   51
SOURCE: Museum Next   52
SOURCE: Museum Next   53
54
55
The Mobile
 Revolution




              56
§  There are 5.3 billion active mobile devices in the!
                  world (that’s 70% of the world’s population). 

              §  By the end of 2011, over 85% of hand-sets will be!
The Mobile!       able to access the mobile web.
Revolution
              §  There were over 6.1 trillion text messages sent !
                  in 2010.

              §  Smartphones will overtake feature phones in the!
                  U.S. in 2012.




                                                                        57
58
59
60
Indy Museum Adventure Trek

Indianapolis Jones needs your family to
help locate seven treasures in the
museum. Work together to figure out the
clues to try and find the location of each
treasure.


Text childrensmuseum to 728647




                                             61
62
63
64
Getting More
Memberships Online




                     65
Getting More!   §  Best practices in user experience.
Memberships!    §  Winning with promotions and contests.
Online
                §  Converting site visitors into members.




                                                              66
67
68
69
Winning With Contests
      and Promotions




                        70
71
72
73
Converting Online
Visitors to Members




                      74
Give-to-Get
                    §  Premium content.

Converting !        §  Enhanced personalized content.
Online Visitors !
                    §  Free content.
to Members
                    §  Discounts.

                    §  Online community.

                    §  Insider scoop.




                                                          75
Optimize the Registration!
Converting !        Process
Online Visitors !
                    §  Shorten the registration form.
to Members
                    §  Adopt a progressive disclosure model.

                    §  Leverage the user’s existing identities.




                                                                    76
77
78
79
80
Pulse of Membership
              2011




                      81
What is Pulse of Membership?
                   §  A survey of membership programs nationally.

                   §  An ongoing membership tracking survey,
                       performed four times since the economic
                       downturn.
Pulse of!
Membership 2011
   §  Data collected from a pool of 2,000 membership
                       managers, with approximate response rate of 10%
                       each time.

                   §  A survey conducted by Membership Consultants as
                       a service to the field to monitor the status of
                       membership programs in challenging fundraising
                       times.




                                                                         82
What Does Pulse of Membership!
                   Explore?
                   §  Membership statistics and trends.
Pulse of!
Membership 2011
   §  Membership tools used and with what level of
                       success.

                   §  Tracks and compares membership by types of!
                       organizations: museums, gardens, zoos.

                   §  New in 2011: membership salary and position!
                       statistics.




                                                                      83
How Can I Access the Full
Pulse of!
Membership 2011
   Survey? 
                   Visit MembershipConsultants.wordpress.com to view
                   a copy of the full survey.




                                                                       84
Membership Revenue
Pulse of!          §  Account for 8% to 15% of an organization’s overall!
Membership 2011
       operating revenue.

                   §  Some organizations are viewing membership!
                       revenue as “earned” revenue rather than donated!
                       revenue.




                                                                             85
Membership Reporting Structure
                   §  Historically part of development departments.

                   §  In the zoo and aquarium world, membership!
Pulse of!              reporting structure is:
Membership 2011
                     – 
38% to development.

                     – 
31% to marketing.

                     – 
17% to a freestanding department.

                     – 
10% to visitor services.




                                                                        86
Membership Titles
Pulse of!
Membership 2011
   §  Membership Director    
   
44.1%

                   §  Membership Manager     
   
36.2%

                   §  Membership Coordinator 
   
17.5%




                                                            87
Length of Service In Years
                   §  < 1 year        
   
7.9%
Pulse of!
                   §  1 to 2 years    
   
15.8%
Membership 2011
                   §  3 to 4 years    
   
24.3%

                   §  5 to 10 years   
   
28.2%    


                   §  Over 10 years   
   
23.7%




                                                          88
89
Length of Service!
Pulse of!          By Museum or Organization Type
Membership 2011
                   Zoos (31% with 10+ years of membership service)!
                   have the membership personnel with the longest!
                   longevity, followed by art museums (22% with 10+
                   years of membership service).




                                                                      90
91
Membership Salaries
                   §  Mode: $30,000 to $40,000.

                   §  Median: $40,000 to $50,000.
Pulse of!
Membership 2011
   §  6% reported salaries in excess of $80,000.

                   §  10% did not wish to respond.

                   §  Related to length of service: 6 out 7 respondents!
                       who make more than $90,000 have served for 10!
                       or more years in the membership field.




                                                                            92
The Membership
     Profession




                  93
How is Membership Perceived? 
The Membership!   §  Within the museum world?
Profession
       §  What is the positioning of the membership!
                      department within the institution?

                  §  What is the status of the membership!
                      professional?




                                                                   94
The Membership Position
                  Within the museum world:

                  §  Membership gaining more respectability.

                  §  Demands on membership revenue ever greater in
The Membership!       the future.
Profession
                  §  Membership is growing in importance to all
                      institutions from a(n):

                    – Financial perspective.

                    – Audience perspective.

                    – Involvement perspective.




                                                                      95
The Membership Department
                  What is the positioning of the membership!
                  department within the institution?

The Membership!   §  More connected to the marketing side.
Profession
                  §  May move more to the transactional side.

                  §  If that proves to be true, may see more !
                      institutions considering membership dues as!
                      earned revenue.

                  §  Must still maintain close ties to development!
                      functions.




                                                                       96
The Membership Professional
                  What is the status of the membership professional?
The Membership!
                  §  More respectability.
Profession
                  §  Longer service.

                  §  Salaries increasing.

                  §  Membership is a destination position.




                                                                        97
Membership Trends
                  §  Membership is a destination position.

                  §  Longer service.
The Membership!
                  §  Salaries increasing.
Profession
                  §  Membership gaining more respectability.

                  §  Demands on membership revenue ever greater in!
                      the future.

                  §  Membership is growing in importance to!
                      all institutions.




                                                                       98
Q&A and

                         Conclusion
Download via Slideshare !
slidesha.re/future_of_membership




                                       99
Contact Us
Dana Hines Membership Consultants!
dana@membership–consultants.com

Noreen Ahmad LaPlaca Cohen!
noreen@laplacacohen.com

Rosie Branstetter fiveseed!
rosie@fiveseed.com




                                        100
Thank You




            101

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The Future of Membership - AMMC 2011

  • 1. The Future of Membership American Museum Membership Conference! Philadelphia, PA! October 26, 2011! 1
  • 2. §  Introductions §  Trends and Transactions Agenda §  Culture Track §  The Interactive Imperative §  The Membership Profession and The Pulse of Membership §  Q&A and Conclusion 2
  • 3. Introductions Dana Hines Membership Consultants! dana@membership–consultants.com Noreen Ahmad LaPlaca Cohen! noreen@laplacacohen.com Rosie Branstetter fiveseed! rosie@fiveseed.com 3
  • 5. §  Demographics. §  How we transact membership. A Changing Landscape §  Expectation of discounts. §  Who our members are. §  How we get and keep members. §  The membership profession. 5
  • 6. A Case Study: The Houston Zoo 6
  • 7. §  Set in a 55-acre lush tropical landscape, the Houston Zoo is home to more than 6,000 exotic animals representing more than 800 species. §  The Houston Zoo has an annual attendance of more than 1.8 million visitors along with 45,200 member households. 7
  • 8. 2010 U.S. Demographics According to the 2010 U.S. Census, 16% of the! population is Hispanic. This is expected to rise! from 16% to 30% by 2050. §  A higher percentage of Houston’s population is! The Houston Zoo Hispanic than most of the country. §  In 2000, 37% of the Houston population was! Hispanic of any race and 61% were born! outside of the United States. §  However, only 10% of the Zoo’s membership! base is Hispanic. 8
  • 9. Introduction §  Demographically, Hispanic guests were not buying! memberships at the rate of their attendance at the! Zoo (10% vs. 38%). §  Working with researchers from Rice University, the Zoo examined this issue. The Houston Zoo §  Findings: The Zoo’s Hispanic consumers did not! react well to the term “membership.” §  The Zoo decided to implement a Season Pass to! achieve an increase in Hispanic participation. Goal §  To engage interest in membership programs from! additional ethnic groups, with a strong focus on the! Hispanic market. 9
  • 10. Key Operational Methods §  Created a six month individual pass in the summer! of 2010 and named it Houston Zoo Season Pass. The Houston Zoo §  Adult passes were $15 and children passes! were $12. §  The only benefits attached to the pass were free admission for six months and usage of the member express entrance. 10
  • 11. Key Operational Methods §  No ticket upgrades were allowed with the passes. §  The pass was marketed and sold only onsite. §  Table set up in front of the Zoo with Spanish The Houston Zoo signage to sell the passes. −  Staffed with 2 Hispanic sales representatives! and 3 application processors. −  Anyone could buy the pass but marketing was! driven toward the Hispanic market. §  The passes were sold over two weekends at the end of July and beginning of August. 11
  • 12. Results §  Sold more than 1,200 passes in 4 days. The Houston Zoo §  Able to target multiple family sizes. §  Passes assisted in driving attendance to the Zoo. §  Guaranteed revenue from pass holders. 12
  • 13. §  How are people joining? How We Transact! §  How are they renewing? Membership §  Are direct mail and telemarketing dead? §  Should all communications and transactions be electronic? 13
  • 14. Gen Y Gen X Boomers 20-30 yrs 31-46 yrs 47-65 yrs Checkout donation 48% 57% 52% (This is comparable to onsite sales!) Check by mail 26 43 54 How We Transact! Gift shop 28 35 32 Membership Website 29 35 31 Third-party vendor 25 27 17 Phone 8 10 16 Monthly debit 11 17 14 Mobile/Text 14 13 4 Social networking site 9 6 4 Ways  people  have  given  money  in  the  last  two  years:  Source:  Convio   14
  • 15. §  People are living by discounts. §  Internal decisions to discount. §  External means of discounting—Groupon and ! The Expectation ! Living Social. of Discounts – Memberships. – Admissions. §  Membership IS a discount. §  What is happening to our perceived value of membership? 15
  • 16. §  Know your member profile. Who Are Our! §  Age, presence of children, geographic pockets. Members? §  Target audiences. §  What each market segment might be looking for in their membership relationship. 16
  • 17. The Biggest Issues!! Acquisitions §  How to define, then find, new audiences. §  Demographics are changing in the U.S., how do we make museums an attractive lifestyle choice? How We Get and Keep Members §  How to engage a younger audience . . . is this! possible? §  Should you be customizing solicitations by different! audience interest groups? §  Should you be customizing your membership levels! by different interest options? §  Mission vs. value members—how will you balance these motivations for joining? 17
  • 18. Onsite Solicitations Become! More Important §  More challenging to find new prospects. How We Get and §  Work with your visitors, but even smarter. Keep Members §  Gain new members and collect: −  Names. −  Addresses. −  Emails. −  Interests. 18
  • 19. Renewals §  How best to gain new members’ loyalty? §  How to deliver an experience that satisfies year! after year? How We Get and §  Which will be the best solicitation strategies for! Keep Members highest ROI—mail, email, 2-year members? §  Where does discounting fit in terms of renewals for the future? It’s the mission vs. value motivation again. §  First year renewals are the toughest—so make the first year more memorable. §  Engaging welcome packet/communications/ events. 19
  • 20. Special Importance for Renewals §  Some things never change . . . How We Get and Keep Members §  Know your numbers. – What are your renewal rates? – How are people renewing? – Why are they not renewing? 20
  • 21. Whole Institution Approach How We Get and §  Collaborate fully with education, curatorial, visitor! Keep Members services, and marketing to ensure the promised! membership experience is delivered. §  Develop new member welcome strategy. §  Keep it fresh! 21
  • 22. Maintain BEST PRACTICES §  Know your numbers. How We Get and §  Be alert to new ideas and receptive to change. Keep Members §  Test new ideas. §  Before you change the program, can you and your organization deliver the experience? §  Without risk there are no new great ideas! 22
  • 23. Multi-Everything (Cultural,! How We Get and Generational, Interest) Keep Members §  Make your museum a valued lifestyle choice for groups who have not traditionally been part of ! your plan. §  Be you, but reach out—how to do this best? 23
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  • 50. The Interactive Imperative 50
  • 51. How to use online social media and mobile to! increase membership: The Interactive! §  Awareness. Imperative §  Engagement. §  Conversion. §  Retention. 51
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  • 57. §  There are 5.3 billion active mobile devices in the! world (that’s 70% of the world’s population). §  By the end of 2011, over 85% of hand-sets will be! The Mobile! able to access the mobile web. Revolution §  There were over 6.1 trillion text messages sent ! in 2010. §  Smartphones will overtake feature phones in the! U.S. in 2012. 57
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  • 61. Indy Museum Adventure Trek Indianapolis Jones needs your family to help locate seven treasures in the museum. Work together to figure out the clues to try and find the location of each treasure. Text childrensmuseum to 728647 61
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  • 66. Getting More! §  Best practices in user experience. Memberships! §  Winning with promotions and contests. Online §  Converting site visitors into members. 66
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  • 70. Winning With Contests and Promotions 70
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  • 75. Give-to-Get §  Premium content. Converting ! §  Enhanced personalized content. Online Visitors ! §  Free content. to Members §  Discounts. §  Online community. §  Insider scoop. 75
  • 76. Optimize the Registration! Converting ! Process Online Visitors ! §  Shorten the registration form. to Members §  Adopt a progressive disclosure model. §  Leverage the user’s existing identities. 76
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  • 82. What is Pulse of Membership? §  A survey of membership programs nationally. §  An ongoing membership tracking survey, performed four times since the economic downturn. Pulse of! Membership 2011 §  Data collected from a pool of 2,000 membership managers, with approximate response rate of 10% each time. §  A survey conducted by Membership Consultants as a service to the field to monitor the status of membership programs in challenging fundraising times. 82
  • 83. What Does Pulse of Membership! Explore? §  Membership statistics and trends. Pulse of! Membership 2011 §  Membership tools used and with what level of success. §  Tracks and compares membership by types of! organizations: museums, gardens, zoos. §  New in 2011: membership salary and position! statistics. 83
  • 84. How Can I Access the Full Pulse of! Membership 2011 Survey? Visit MembershipConsultants.wordpress.com to view a copy of the full survey. 84
  • 85. Membership Revenue Pulse of! §  Account for 8% to 15% of an organization’s overall! Membership 2011 operating revenue. §  Some organizations are viewing membership! revenue as “earned” revenue rather than donated! revenue. 85
  • 86. Membership Reporting Structure §  Historically part of development departments. §  In the zoo and aquarium world, membership! Pulse of! reporting structure is: Membership 2011 – 38% to development. – 31% to marketing. – 17% to a freestanding department. – 10% to visitor services. 86
  • 87. Membership Titles Pulse of! Membership 2011 §  Membership Director 44.1% §  Membership Manager 36.2% §  Membership Coordinator 17.5% 87
  • 88. Length of Service In Years §  < 1 year 7.9% Pulse of! §  1 to 2 years 15.8% Membership 2011 §  3 to 4 years 24.3% §  5 to 10 years 28.2% §  Over 10 years 23.7% 88
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  • 90. Length of Service! Pulse of! By Museum or Organization Type Membership 2011 Zoos (31% with 10+ years of membership service)! have the membership personnel with the longest! longevity, followed by art museums (22% with 10+ years of membership service). 90
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  • 92. Membership Salaries §  Mode: $30,000 to $40,000. §  Median: $40,000 to $50,000. Pulse of! Membership 2011 §  6% reported salaries in excess of $80,000. §  10% did not wish to respond. §  Related to length of service: 6 out 7 respondents! who make more than $90,000 have served for 10! or more years in the membership field. 92
  • 93. The Membership Profession 93
  • 94. How is Membership Perceived? The Membership! §  Within the museum world? Profession §  What is the positioning of the membership! department within the institution? §  What is the status of the membership! professional? 94
  • 95. The Membership Position Within the museum world: §  Membership gaining more respectability. §  Demands on membership revenue ever greater in The Membership! the future. Profession §  Membership is growing in importance to all institutions from a(n): – Financial perspective. – Audience perspective. – Involvement perspective. 95
  • 96. The Membership Department What is the positioning of the membership! department within the institution? The Membership! §  More connected to the marketing side. Profession §  May move more to the transactional side. §  If that proves to be true, may see more ! institutions considering membership dues as! earned revenue. §  Must still maintain close ties to development! functions. 96
  • 97. The Membership Professional What is the status of the membership professional? The Membership! §  More respectability. Profession §  Longer service. §  Salaries increasing. §  Membership is a destination position. 97
  • 98. Membership Trends §  Membership is a destination position. §  Longer service. The Membership! §  Salaries increasing. Profession §  Membership gaining more respectability. §  Demands on membership revenue ever greater in! the future. §  Membership is growing in importance to! all institutions. 98
  • 99. Q&A and Conclusion Download via Slideshare ! slidesha.re/future_of_membership 99
  • 100. Contact Us Dana Hines Membership Consultants! dana@membership–consultants.com Noreen Ahmad LaPlaca Cohen! noreen@laplacacohen.com Rosie Branstetter fiveseed! rosie@fiveseed.com 100
  • 101. Thank You 101