Insight piece: member demographics and segmentation

Guest blog by Lucy Arthur, Director, Chrysalis Digital

 

Increasing your revenue and attracting new members is a top priority, but are you truly ready for the next generation (Gen Z) as they become the new generation of members?

The millennial generation has been a key focus for many due to the big shift in their approach and changing needs. But have we thought enough about what comes next? And when we say ‘next’ we mean now as this new generation is starting to enter the workforce (born after 1995). Born during the 4th Industrial Revolution with rapid technology evolution and multi-channel communication as the norm – they are digital natives in the truest sense. A new UK survey by Adobe found that Gen Z are the UK’s biggest content consumers, on average spending 5.9 hours a day consuming content – specifically on mobile.

Attracting and nurturing new members is critical and something you must plan for carefully, but this has to be balanced with understanding existing members in order to support continued revenue growth.

Segmenting your membership will allow you to target everyone with the most relevant messages and content. After all, relevancy is the biggest priority with over 49% stating this in Adobe’s survey. Creating categories relevant to your organisation can be beneficial. For example, we have helped clients look at their members in 3 groups, thus increasing the satisfaction level within each group, through a better understanding of their engagement. We recently ran this in a large association within the finance area, allowing them to create a more informed communication plan for their membership base. Here are the segments that came out of this process:

 

Skimmers

Shallow users of their membership but happy to pay fees both for education and accreditation. Very low maintenance for the organisation.

Dippers

People that dip into activities, they require a bit more hand-holding but again they are not high maintenance.

Divers

This segment demands a lot and are fully engaged in their membership.

 

All three groups are very important to this particular organisation and, by creating these segments using the data collected, they can now provide each group with the right level of support and content – resulting in increased member satisfaction and engagement.

Going back to our Gen Z, nurturing new members sits slightly outside this segmentation initially, demanding its own focus. When a new member joins, they are at their most engaged. Do you have a new member process? This is your chance to provide details on your products/service, relevant promotions and USPs and to engage them with relevant and timely content, whilst monitoring their interaction carefully to be sure they are placed in the most relevant segment.

Data plays a vital part in this process and must be used carefully: there is nothing worse than getting a communication promoting an offer on something after you have just signed up, or receving details about an event which may not be available in your local area.

You will always lose a few members along the way for one reason or another but, if they have felt engaged, lapsed members may still be advocates for others. Understand why they’ve left and thank them for their contribution. You never know … they may come back or refer new members in. Word of mouth marketing is better than any type, especially when targeting the Gen Z.

Looking outside the normal channels when marketing to attract new members is key. Regardless of the channel the same recommendations apply – be authentic, be relevant, always consider the multi-channel user experience and be timely.  Never before have we had so much data at our fingertips. We have to get used to using it to understand this new generation. If we don’t it will be to our cost.

 


 

We have written several articles that may be of interest on your digital journey. Never be afraid to ask, we are always happy to offer unbiased advice and recommendations.

Chrysalis Digital provides a digital transformation service designed to help build a more agile, efficient and innovative organisation. With its broad cross-sector experience Chrysalis has helped many organisations map their digital path and through careful planning and assessment, choose the right technology partners. Chrysalis Digital is 100% agnostic when recommending CMS and CRM suppliers to its clients.

If you need any help with the next steps in your journey please call Ben Sturt on 07469 768990 or email info@chrysalisdigital.co.uk