I had a conversation with an Executive Officer recently about doing a retention mailing to a “lost” member list and as usual the word “budget” came up. Although the odds of this particularly creative mailing being successful and paying for itself many times over was very high, the necessary upfront investment just wasn’t in the budget.
This particular mailing would consist of an oversized envelope with a personal letter signed by EVERY member of the board, a business card with a signed short personal note on the back from every board member, and some sort of promotional item to make the envelope “lumpy”. The oversized envelope would be hand-addressed and real stamps would be used for the postage. Finally, there would also be a stamped, self- addressed envelope included to make the response as convenient as possible.
The real obstacle was simply the upfront cost to do a true “direct marketing” mailing as opposed to just another number 10 envelope with a dunning notice inside.
A mailing of this type could easily run $2 to $3 per piece. Sending just twenty per month for twelve months (240 in a year) would rack up a $700 – $800 expense. The upside was that if the mailing generated just seven or eight renewals over the course of the year, it would pay for itself and then some.
Here is a solution to the budget issue that is often overlooked, yet offers a benefit to all of the parties involved. GET A SPONSOR – NOT A DONATION.
For just $95 per month a member company that sponsors the “lost member” mailing can receive the following benefits:
1. They can provide the promotional item (pen, key chain, mini-flashlight, etc.) that will go inside every “lost member” envelope.
2. They can include their business card and a note that will be included in each mailing.
3. Their company logo and bio can appear in the newsletter during the month they sponsor.
4. They can receive recognition at the Membership Meeting during the month of their sponsorship.
5. Their logo and a link to their website can be included on the Association website.
6. A thank-you email announcing their sponsorship with a link to their website can be sent to the entire membership.
7. They can be invited to the next membership committee meeting to be recognized again.
8. They can receive a list of any “lost members” that renew so they can follow-up with a thank-you and request an appointment.
9. Their promotional item (pen, keychain…) will be handed out to all board members at the board meeting during the month of their sponsorship.
10. Get the idea? What other tangible benefits could you offer?
As you can see, that’s a lot of “bang for the buck” for just $95.00!
A sponsorship is not and should not be presented or perceived as a donation. Sponsorships are true marketing opportunities that have to include specific marketing deliverables. In the example above there is virtually NO ADDIITONAL EXPENSE to the Association to provide the sponsor benefits.
At just $95.00 per month for the “lost member” sponsorship the annual income is $1140 and the expense is about $700. Now an expense has actually become a non-dues revenue income producer, but even more important is if these unique mailings generate even ten renewals, the true return on investment becomes amazingly high.
Look at every expense as a potential marketing opportunity for your members and be creative with the benefits. A little “out of the box” thinking can offset some or allow you to implement a project that didn’t seem financially feasible in the past.
Where else can you apply this type of thinking in your Association?