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09.28.06
Membership Marketing -- It's More Than Magazines
 By
Shira Linden
Membership marketing is not new. The American Medical Association was founded in 1847, while the Marine Corps Association was formed in 1913, to cite a few examples.
But membership marketing seems to be gaining traction in today's marketplace.
The world's largest circulation magazine
Yes, it's AARP, The Magazine, which arrives at 24 million households each month. According to Lin MacMaster, Director of Membership Development for AARP, the magazine is a tangible benefit, but it plays a supporting role in providing information to help individuals age with grace and dignity and lead purposeful lives. MacMaster believes people are joining for the full array of benefits.
She states that the main benefits of membership include being part of a force of over 36 million Americans who are attempting to remain healthy and live life the way they want to live it, navigating the waters as life changes. Founded in 1958, AARP is a huge advocacy organization on both the federal and state levels, says MacMaster.
The organization has three divisions - a foundation, a non-profit and AARP Services, a for-profit division where AARP partners with insurance companies and other providers, delivering unique benefits to members. Membership costs $12.50 annually; two and three year memberships are also available. According to MacMaster, the AARP card has a high perceived value and is frequently used to obtain discounts.
AARP The Magazine is not available by subscription, but does have some distribution in doctors' offices. Associate members (those under 50) can get the magazine as well. While the magazine offers feature articles, news is covered in the AARP Bulletin, a full-color newspaper. Both accept advertising. AARP also offers members free e-newsletters on an array of topics, including caregiving, health, wellness and financial well-being.
Segmenting the Market
Currently, AARP is moving away from a mass approach to acquisition to a segmented approach. They are mailing their control packages less - a standard package and a snap pack - and testing packages to specific groups. Rather than what MacMaster refers to as the pu pu platter approach (something for everyone) AARP has been testing topics that resonate with the 50-59 year-old segment including caregiving, financial security and health and wellness.
They are also tweaking language and offers, testing formats and messaging, and experimenting with information offers and premiums and freemiums tied to their value proposition (Tips for financial well-being, Tips for Turning 50, pedometers). Over the last two years AARP has also done a lot of channel testing utilizing the web, AdvoSystems, FSIs, radio and TV that is showing promise.
Getting Promotional
As for renewals, AARP uses a 7-effort series. They are testing shorter and longer versions as well as different messages to different audiences (first time renewal versus longstanding member) and trying more promotionally based offers tied to longer terms. On their website, I noticed a "Win-Win Membership Sweepstakes" for a 16-day expedition and cruise to Antarctica. Renewals are also handled via their customer care calls for those who call in. AARP is looking to the web and all member touch points for additional renewal opportunities.
MCA - Membership with a Mission since 1913
The Marine Corps Association is the professional organization for all Marines-active duty, Reserve, retired, and Marine veterans. Annual membership costs $21 for enlisted and $32 for officers, and will be going up in April. MCA publishes not one but two monthly magazines - Leatherneck - Magazine of the Marines and Marine Corps Gazette. Both accept advertising. Bill Hughs, Director of Marketing, indicates Leatherneck offers more general interest/news while the Gazette is a professional journal, covering issues that face Marines every day. Members get a choice of magazines, and some take both. The magazines are available to non-members with 1775 current non-member subscribers.
MCA puts out 4,400 issues as single copies at base exchanges, MCA bookstores and kiosk stands inside some commissaries. The magazines are also available at the Quantico Amtrak station and other newsstands near bases. MCA currently does catalog marketing and finds 67% of their retail sales are from members, who enjoy a 10% discount on catalog products.
An Association in Flux
Almost 90,000 members strong, the association is currently reorganizing, evaluating whether the magazines are their main raison d'etre. Hughs states that members perceive the magazines are the main benefit. E-newsletters are also sent out to members. The membership card does not have a high perceived value, he says, as the association has not adequately promoted the other benefits which include retail discounts and travel, to name a few.
Hughs stated that MCA is taking another look at lists, affinity partnerships, positioning, segmentation and messaging. They will do research, focus groups and talk to members. Currently, 62% of their membership is over 40, and they need to do a better job of reaching younger Marines (Generation X). Hughs believes this is because they've been using directive language in their messaging, and Gen X is not receptive to this approach. Hughs plans to change the creative, relaunch the magazine and review the renewal and expire programs to increase their membership base.
The Good Sam - a For-Profit Association for RVers
According to Sue Bray, The Good Sam Club offers a valuable package of benefits that promote the RV lifestyle. A membership survey reveals the campground discount is the top benefit, while the magazine, Highways, is next and their web-based trip routing service is third. Other benefits include Good Sam events and member-to-member online forums. Bray is unsure if the membership card has a high perceived value. Membership costs $25/year for the basic dues.
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