AAA Membership Loyalty and Partnership Marketing – How Well Are They Doing? #Membership Loyalty #LMktg click
AAA RoadSide Assistance Membership and Partnership Marketing
AAA of America reports that total membership is at 53 million members. This is up from 52 million reported members in 2010 and up 3 million members since 2007 – see below for a rundown:
- 1993 = 35 millin members
- 2001 = 44 million members
- 2007 = 50 million members
- 2010 = 52 million members
- 2012 = 53 million members
One things for certain, AAA memberhsip seems to keep growing on a yearly basis.
- 60% are in the age range of 35 65 years
- 55% are female
- 61% of members are married
- 45% have earned a college degree, post graduate degree, etc.
- Average income is $71,500 per household
AAA, with 53 million members and seemoingly strong demographcs seems to be an ideal organization to partner with. Of course there are other factors to be concerned with such as database targeting, etc. However, how good is AAA as a Partnership Marketing entity? Lets look at some facts regarding their “Show Your Card and Save” Program. The “Show your Card and Save” Program allows AAA members to show their “card” and save (with discounts) at over 164,000 hotels, restaurants and retail establishments. Discounts vary by location.
Here are some statistics on the “Show Your Card and Save” Program:
- 75% of members are “aware” of the Show Your Card and Save Program
- Average savings annually per AAA member household is stated to be $100
- Annual member savings in 2009 was said to be $2 billion
Interestingly enough, $2 billion divided by 51 million members = $39.22 in savings per member. Thus, a couple of things to note here:
- Penetration and active usage oof the Show Your Card and Save Program within the total member base of 53 million members is probably in the 50% range (especially since only 75% of members are aware of the program)
- How many members in AAA program are in the same household and simply “Associate” members, and not full members (i.e. get the membership at the discounted rate). For example, if a standard memberhsip is $66 per year an associate membership in the same household is FREE the first year and then $30 each subsequent year.
How Good is AAA for Partnership Marketing
AAA claims a wide membership base that has “attractive demographics” for potential partners and can increase loyalty for their partners. Here are some statistics that are relevant to potential partners:
- 53% of reported AAA members transactions for partners were from “New Customers”
- AAA members spend 30% more than non AAA members based on average dollars per transaction
- 25% of AAA members “buy up” (not sure the definition of this will get clarification)
- 35% of AAA members spend more frequently than non AAA members (need more clarification on this)
All in all, AAA touts some impressive membership and partnership numbers but as in many cases the statistics need further examination (how the calculations are performed, etc.).