ADVANTAGE SOLUTiONS

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SOLUT iONS One association goal that usually remains constant is membership growth and retention. Even strong organizations constantly look for ways to increase their member base, extend the reach of their services, and retain valued members. There are many elements that come into play affecting an association 9sability not only to grow but to retain the members they have.

Below are some traditional and not-so-traditional approaches to this issue. Research Ideally, if time and money were not an issue, then original research would be a regular component of any member growth and retention initiative. Focus groups and surveys can reveal what 9s on members 9 minds, what kind of target prospects are out there and what they are looking for in an association, and what 9s happening in the industry or profession that could play a part.

MEMBERSHIP GROWTH: CONVENTIONAL AND NON-CONVENTIONAL STRATEGIES By Jeanne Sheehy ADVANTAGE INSIDE THIS ISSUE: MEMBERSHIP GROWTH1 CREDIT CARD SECURITY FROM AN IT PERSPECTIVE1 AMEASURE OF SUCCESS2 CASE STUDY: TRI ACHIEVES SOLID FOOTHOLD IN THE FUTURE3 continued on page 5 CREDIT CARD SECURITY FROM ANIT PERSPECTIVE By Chris Hecht Y our association 9s Web site likely offers members the option of purchasing products and registering for events ... more. less.

online with their credit cards. Members enjoy the convenience of making transactions anywhere and anytime, and your association enjoys expanded revenue opportunities. But along with this convenience comes the threat of credit card fraud, which the Federal Trade "White Papers " Seminars "Case Studies " Consulting Solutions@bostrom.com www.bostrom.com continued on page 4 For Association Professionals And Volunteers ISSUE VII Tell us what you think about SOLUTiONS at www.bostrom.com/opinion 2 A ssociations should regularly assess how successful they are in realizing their mission and serving their members. To determine their level of success, associations typically employ traditional measures in the following categories: " Membership 4Has it increased, decreased, or remained the same? " Financial position 4Does the organization have a healthy bottom line? " Conferences and educational offerings 4 What is the attendance? Do attendees give them good evaluations? " Communication vehicles 4Does the association receive good audience feedback? " Advocacy issues 4How many cwins d has the association achieved? Data for these measures are relatively easy to collect and aggregate, and the measures, in turn, are easy to quantify. But do they tell the whole story? While the more traditional scorecard offers a snapshot of an association 9s current success, other indicators are required to capture an association 9s ability to sustain success and position itself for success in the future 4two key responsibilities of leaders. Quantitative measures such as those above, although necessary,provide only astatic picture of an association 9ssuccess, and association leaders need to look beyond them to the organizational dynamics that underlie a strong outlook. Let 9sexamine some measures of success that generally do not find their way into routine association benchmarking. " Understanding the changing industryor profession. Unless you understand the market forces in the area you represent, you will not be able to assess your members 9 changing needs and be ready to meet them. "Understanding members 9 decision model. What factors influence your members 9 decision to join or rejoin your association? You should know members 9 cpurchase determinants d and how they are changing. "Well positioned decision processes. Does your governance system support the kind and pace of decision making that the emerging environment requires? "Staff composition. Success depends on cultivating astaff with the skills mix necessary to meet your members 9 future needs and demands. "Knowing your organization 9s corporate culture. Can you describe it in a few sentences? Is the staff culture and the leadership culture compatible? Will those cultures support the decision-making needs of the future as identified above? "Organizational relationships. Has your association established alliances with other organizations or institutions, including government entities, that support the future direction of your organization? You should have an explicit strategy for what relationships are necessary for the future, what you expect from those relationships, and what you contribute to those relationships. These are the qualitative or csoft d criteria for success, but they are just as critical to future success as numeric results. Granted, they pose technical challenges in terms of measurement instruments; however, the committed association will seek and find the appropriate resources. The trend toward qualitative measures has emerged with the association industry as a whole examining in-depth the cultural and behavioral attributes of successful organizations. Specifically,ASAE & The Center for Association Leadership has recently published 7Measures of Success: What Remarkable Associations Do That Others Don 9t ,which presents empirical evidence supporting strategic behaviors of visionary associations. Among ASAE 9s seven measures are organizational adaptability, alliance building, and acustomer service culture. With ASAE 9s work as a catalyst, association executives can expect to be engaged in an ongoing dialogue regarding the long view of prosperity. continued on page 6 AMEASURE OF SUCCESS By Ken Monroe Data for traditional measures are relatively easy to collect and aggregate, and the measures, in turn, are easy to quantify. But do they tell the whole story? Challenge Since its founding in 1971, the Roof Tile Institute (RTI) 4a Chicago-based, non-profit trade association with a membership primarily of tile manufacturers 4had established itself as a leading technical resource in the tile industry. In 2003, however, RTI recognized it was time to grow beyond its technical base and examine its structure, assets, and marketing strategies in order to increase its presence and recognition in the concrete and clay tile industry. That 9s when the organization turned to Bostrom. Solution Bostrom led RTI through a strategic planning and branding process coupled with market research. This process, in turn, built a path of goals and objectives for the Institute 9sfuture. One important goal was to expand the Institute 9s reach in the industrythrough a new brand identity and membership structure. RTI received a new name as the Tile Roofing Institute (TRI) and opened up its membership for the first time in its history to contractors, suppliers, distributors, builders, architects, designers, and trade associations. Subsequently, Bostrom worked with TRI to develop marketing initiatives to support these new membership levels. In addition, Bostrom teamed with TRI committees to create and execute a comprehensive marketing plan including an integrated communication system, membership development campaigns, conference growth, and programming targeted to members. Results TRI posted impressive gains just 18 months after plan implementation. Some of the highlights include: "500% growth in membership "50% increase in bi-annual meeting attendance "25% growth in non-dues revenue Bostrom shares in TRI 9s success. According to Mike Penny, TRI chariman, cBased on Bostrom 9s experience with trade associations we are extremely pleased with the expertise and direction they 9ve built for TRI 9s future. d cBased on Bostrom 9s experience with trade associations we are extremely pleased with the expertise and direction they 9ve built for TRI 9sfuture. d CASE STUDY: TRI ACHIEVES SOLID FOOTHOLD IN THE FUTURE 3 4 Commission has found is the most common form of identity theft. Maintaining secure information systems provides your organization with the main line of defense in protecting members 9 personal information against theft and fraudulent use. The PCI Security Standards Council 4a consortium of stakeholders in the personal credit card industry (PCI) 4has developed an industry-wide technical security standard for organizations to adopt in protecting account holder information. The most recent version, 1.1, was released in September and appears below. Association leaders should check with their IT departments that they are in compliance with these standards. Some of the standards may require allocation of additional association resources 4for example, purchasing anti-virus updates 4in order to protect private member information. Other standards may require executive directions to the IT department, such as requiring a written information security policy. CREDIT CARD SECURITY FROM AN IT PERSPECTIVE continued from page 1 Principle Build and Maintain a Secure Network Protect Cardholder Data Maintain a Vulnerability Management Program Implement Strong Access Control Measures Regularly Monitor and Test Networks Maintain an Information Security Policy PCI Data Security Standard Requirement Requirement 1: Install and maintain a firewall configuration to protect cardholder data Requirement 2: Do not use vendor-supplied defaults for system passwords and other security parameters Requirement 3: Protect stored cardholder data Requirement 4: Encrypt transmission of cardholder data across open, public networks Requirement 5: Use and regularly update anti-virus software Requirement 6: Develop and maintain secure systems and applications Requirement 7: Restrict access to cardholder data by business need-to-know Requirement 8: Assign a unique ID to each person with computer access Requirement 9: Restrict physical access to cardholder data Requirement 10: Track and monitor all access to network resources and cardholder data Requirement 11: Regularly test security systems and processes Requirement 12: Maintain a policy that addresses information security There are tools that help organizations support data security standards, including secure sockets layer (SSL) or digital certificates and secure Internet gateway services between businesses and credit card networks. Digital certificates 4for example, Thawte 4validate your association 9sInternet identity, thereby building trust in your Web site. In addition, digital certificates protect data transmission through encryption. Internet gateways, such as Authorize.net, route credit card payment information through secure networks. Source: PCI Security Standards Council, 2006. For more information on the topics in this article, visit the following Web sites. "PCI Security Standards Council: https://www.pcisecuritystandards.org. "Details on SSL: https://www.thawte.com/ssl-digital-certificates/ssl- info/index.html. "How Authorize.net works: http://www.authorize.net/company/whatwedo/. SOLUTiON S 5 But realistically,not many organizations have the time, money,and resources to put together a full scale research project. So, if you 9re in a small association or simply have asmall budget, then go gorilla and become a detective for a few days. First, find out what research already exists. You 9d be amazed at the amount of information you can gather from existing surveys from conferences or meetings, or research from third-party firms. Another tactic is to make a few calls to members, ex-members, prospective members, and find out what 9sgoing on with them, the industry, and their thoughts on the association. You may even want to think outside the box a bit and call a competitive association or a prospect in a field or categorythat the association has never reached before. It doesn 9t take much time and effort to make a few calls and dig. This will give you the base information necessary to create your growth and retention programs. Corporate Support Reaching out to corporations for funding is often a primary source of revenue for an association, but those strategic relationships can be leveraged for membership growth as well. Look at your current sponsorship menu and include a group of corporate memberships as part of it. For example, a certain level of corporate sponsorship could provide discounts to conferences and free membership for the corporation 9s employees, thereby bringing new blood to events and the association as a whole. Plus, you can gain heightened visibility to a variety of networks within these large organizations. Working with companies on their internal networks offers another opportunity for membership growth. If they have groups or communities that meet about subject matter relevant to your association, then use your contact to get in front of them with your services 4maybe it 9sa free program for them to attend with a membership discount as an incentive to join. Word of Mouth Promotion There has been a lot of cbuzz d about word of mouth marketing (WOMM), and the strategy does have some teeth to it. It 9s a creative and economical way to get the message out about the benefits and existence of your association. WOMM is defined as activities that companies undertake to generate personal recommendations as well as referrals for brand names, products, and services. AWOMM promotion may consist of targeting your power members to spread the word about the association. You can provide them with tools to catch the attention of those around them spurring discussion about a meeting, a member benefit, or the association in general. Marketers also use publicity techniques as well as viral marketing methods to achieve behavioral responses to spreading the word. There are many resources available for this tactic, such as the Word of Mouth Marketing Association (www.womma.org) and Buzz marketing (www.buzzmarketing.com). Targeted Programming Don 9t forget to take a step back and look at your programs. How well are they doing? Do they need a face lift or do they need to retire? Are there programs that can be put online to increase your reach, decrease expenses, and better target your audience? Are your membership recruitment efforts reflected in your programming? Every program brings a subtle opportunity to promote the benefits of your association, reinforce your value to MEMBERSHIP GROWTH: CONVENTIONAL AND NON-CONVENTIONAL STRATEGIES continued from page 1 Don 9t forget to take a step back and look at your programs. How well are they doing? Do they need a face lift or dothey need to retire? continued on page 6 SOLUTiONS AMEASURE OF SUCCESS continued from page 2 230 E. Ohio Street, Suite 400 Chicago, Illinois 60611-3265 members, and entice prospective members to join. Make sure that your marketing communications, program development, and membership teams work together to fully leverage the content and marketing strategy. Back to Basics Sometimes associations get swept up in new ideas and forget that the old ones are still valid. Marketing strategy is built on long-tested approaches to human behavior. Your membership growth and retention may need only an integrated plan with measurable results to track your progress. Revisit your materials, communications plan, advertising, promotion, messaging, etc., and build a new annual marketing plan with membership growth and retention as one of your major goals. When the environment gets out of control, you need to take a deep breath, weather it, and start again. However the outside elements affect your membership, you can be prepared by listening to your staff and members, making sure you 9re getting the right data consistently to track your efforts, and mixing the old with the new to build a successful future. MEMBERSHIP GROWTH: CONVENTIONAL AND NON-CONVENTIONAL STRATEGIES continued from page 5 In today 9s rapidly changing environment, associations will find that addressing success criteria for the future may prove even more important than this year 9s performance. And the key factors that differentiate truly successful organizations from those that cjust get by d may well be grounded in these criteria. ABOUT BOSTROM Bostrom Corporation is a professional services firm offering comprehensive management, consulting and outsourcing to associations and other not-for-profits. Since its founding in 1933, Bostrom continues to meet the needs that define our clients' success. For more information please visit our Web site at www.bostrom.com or call 312.644.0828.

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