Laying the Groundwork for Growth and Engagement: Trends and Insights from the 2015 Research Study

Laying the Groundwork for Growth and Engagement: Trends and Insights from the 2015 Research Study

Research Goals Understand why some members join while others do not. Identify member needs, interests and satisfaction with AWWA and Section resources. Identify challenges and issues members face, by audience segment. Identify opportunities to improve the membership experience. Identify opportunities to increase engagement, with AWWA and at the Section level. Identify the value proposition that will resonate most when communicating with members and prospects.

Audience Segments Membership status Current members Lapsed members Prospective members Member Type Individual Active Grade 02 Additional Active Grade 04 Operations/Administrative Grade 06 Students Grade 14 Grade 80-86: Utilities Grade 90-94: Service Providers Young Professionals

Response Rates - Individuals An invitation to participate in an electronic survey was successfully delivered to 44,682 individuals on November 12 th, 2015. Five reminder emails were sent while the survey was open and it closed on November 30 th, 2015. A total of 5,780 surveys were completed (733 of these partial) for an overall response rate of 13%. The survey s margin of error is +1.30% at the 95% confidence. Response by Membership Status Current Member Former Member Prospective Member n 4,571 288 938 Response by Grade n 02: Individual Active 2,586 02: Additional active 714 06: Operations /Administrative 649 10: Life members 161 14: Students 366

Individuals - Respondent Characteristics Job Function Design and engineering/managerial and non-managerial 29% Management/Non-engineering 25% Executive 11% Operations 11% Scientific/Non-managerial 7% Student 5% Marketing & Sales/Non-managerial 3% Professor 1% Fully Retired 1% Purchasing 0% Other 7% Do you work for a utility or water wholesaler? Yes 51% No 49% Business Activity Public Water Supply Utility (municipally owned) 40% Consulting Firm 23% Government federal, state, local 12% Education Institutions, Libraries, Related Organizations 5% Public Water Supply Utility (privately owned) 5% Manufacturer of Equipment & Supplies 4% Other allied to the field 4% Contractor 2% Research Lab 2% Distributor of Equipment & Supplies 1% Private Industrial System or Water Wholesaler 1%

Individuals - Respondent Characteristics Country United States (including U S territories and islands) 86% Canada (including Canadian territories) 9% Mexico 1% India 1% Other 4% Gender Male 73% Female 27% Age Average 47.2 Median 48.0 Education High school diploma or GED 5% Trade school 2% Some college 13% Associates degree 6% Bachelor s degree 37% Advanced/Graduate degree 37%

Response Rates - Utilities An invitation to participate in an electronic survey was successfully delivered to 2,615 utilities on November 12 th, 2015. Five reminder emails were sent while the survey was open and it closed on November 30 th, 2015. A total of 514 surveys were completed (56 of these partial) for an overall response rate of 20%. The survey s margin of error is +4.19% at the 95% confidence. 493 current members and 16 prospective members responded to the survey. 286 small utilities (less than 5,000) 184 medium utilities (5,000 150,000) 19 large utilities (more than 150,000

Utilities - Respondent Characteristics Business Activity (n=510) Public Water Supply Utility (municipally owned) 79% Government federal, state, local 11% Public Water Supply Utility (privately owned) Private Industrial System or Water Wholesaler 6% 1% Other 2% Number of Service Connections (n=510) Fewer than 5,000 46% 5,001 10,000 18% 10,001 25,000 16% 25,001 50,000 8% 50,001 100,000 5% 100,001 150,000 3% 150,001 and greater 4% Country (n=511) United States (including US territories and islands) 93% Canada (including Canadian territories) 6% Other 1% Age (n=483) Average 54.2 Education (n=503) High school diploma or GED 12% Trade school 4% Some college 20% Associate s degree 12% Bachelor s degree 30% Advanced/Graduate degree 22% Gender (n=497) Male 87% Female 13%

Response Rates Service Providers An invitation to participate in an electronic survey was successfully delivered to 1,007 service providers on November 12 th, 2015. Five reminder emails were sent while the survey was open and it closed on November 30 th, 2015. A total of 123 surveys were completed (21 of these partial) for an overall response rate of 12%. The survey s margin of error is +9.22% at the 95% confidence. 103 current members, 4 former members and 16 prospective members responded to the survey.

Service Providers - Respondent Characteristics Tenure in the Water Industry Less than 5 years 16% 5 10 years 18% 10 15 years 9% 16 20 years 12% 21 25 years 10% 26 30 years 10% 31+ years 24% Gender (n=199) Male 73% Female 27% Job Function (n=123) Executive 36% Management/Non-engineering 20% Design and engineering/both managerial and non-managerial 18% Marketing & Sales/Non-managerial 18% Scientific/Non-managerial 3% Operations 1% Professor 1% Other 4% Water Activity (n=122) Potable water supply only 17% Both potable water supply and wastewater 69% Other 14% 10

Service Providers - Respondent Characteristics Business Activity Manufacturer of Equipment & Supplies 41% Consulting Firm 21% Government federal, state, local 11% Distributor of Equipment & Supplies 7% Contractor 5% Public Water Supply Utility (municipally owned) 2% Education Institutions, Libraries, or Other Related Organizations 2% Other 10% 11

Why do some members join while others do not?

Why join? To stay current and share information. 13 Individual Membership Drivers No/Low Driver Medium Driver High Driver Staying current with industry news and information 8% 35% 57% Sharing information and best practices 13% 40% 47% Networking with industry peers / leaders 18% 36% 46% Supporting the profession/water sector 15% 40% 44% Members value AWWA s legislative and regulatory work however, only 62% cite this as a driver of membership. The AWWA Connections Newsletter, Sourcebook and volunteer opportunities appear to have very little impact on the decision to join and maintain a membership in the organization. 13

Students join to develop & advance their career. 02: Individual Active 04: Additional Active 06: Operations/ Administrative 14: Students Staying current with industry news and information Sharing of information and best practices Networking with industry peers/leaders Supporting the profession/water sector Developing and advancing my career Demonstrating my commitment to public health 94% 96% 92% 84% 87% 92% 86% 79% 84% 87% 78% 88% 87% 87% 83% 81% 78% 72% 74% 91% 66% 74% 75% 66% Percentages are top two boxes

Utilities join to stay current, access Standards, and support the water profession / sector. 15 How much do the Following Factors Drive Organization s Membership n Top Two Box* Average* Staying current with industry news and information 486 93% 3.44 AWWA Standards 481 91% 3.42 Supporting the water profession/water sector 481 88% 3.34 Demonstrating our commitment to public health 484 84% 3.26 Legislative and regulatory alerts 483 83% 3.21 Continuing education units and/or professional development hours 482 83% 3.20 AWWA Standards had the highest percent of promoters while AWWA volunteer and networking opportunities had the highest percent of detractors. 15

Service providers join to stay current, network and support the profession. 16 High Driver Medium Driver Low Driver Staying current with industry news and information 58% 30% 8% Networking with industry peers/leaders 55% 30% 10% Supporting the profession/water sector 50% 33% 11% AWWA Standards 45% 31% 16% AWWA Annual Conference (ACE) 33% 30% 29% Demonstrating our commitment to public health 32% 32% 21% Supporting the legislative and regulatory work conducted on behalf of the water sector 25% 31% 27% Section membership 23% 32% 27% Journal American Water Works Association 16% 40% 36% 93% believe their organization is a current member. 84% of respondents are current members (AWWA database) 61% indicated some of their organizations employees hold an individual membership. 16

What influences the decision to join? Influence Most members learn about AWWA though word-of-mouth Awareness Some members lack awareness of benefits or are confused about their status Support Individuals who receive financial support from their employer are more likely to join Value When perceived value equals or exceeds the costs, individuals join 17

Members first learn about AWWA from others. Influence Most members learn about AWWA though word-of-mouth 02: Individual Active 04: Additional Active 06: Operations/ Administrative 14: Students n= 2,498 693 632 347 Supervisor/manager 27% 37% 33% 7% Colleague/friend 23% 18% 18% 14% School/professor/advisor 14% 8% 7% 54% I do not recall 10% 11% 9% 2% AWWA publication 7% 8% 8% 4% AWWA conference/event 6% 5% 5% 4% AWWA section conference/event Industry trade show/conference 4% 5% 7% 1% 3% 4% 7% 2% AWWA Website 2% 1% 2% 6% 18

Lack of employer support is the top barrier to joining Support Employer support drives individual membership Primary Reasons You are not a Member My employer will not pay for my membership 898 1 It s too expensive to maintain a membership 775 2 Dues are too high for the benefits gained through membership 677 3 I belong to another association with overlapping value 456 4 My company is a member of AWWA 430 5 Other 356 6 I can obtain the same benefits from other sources 332 7 I did not know my membership lapsed 282 8 I am unaware of all of the benefits of membership in AWWA 267 9 I was not satisfied with my membership experience 145 10 19

Confusion regarding membership status/benefits. Awareness Some members lack awareness of benefits or are confused about their status Primary reasons you are not a member (Never been a Member) My employer will not pay for my membership 1208 1 It s too expensive to maintain a membership 949 2 My company is a member of AWWA 846 3 I am unaware of all of the benefits of membership in AWWA I belong to another association with overlapping value Dues are too high for the benefits gained through membership 771 4 625 5 576 6 I have never been asked to join 404 7 Other 375 8 I can obtain the same benefits from other sources Educational information is not relevant to my interest area 333 9 135 10 20

Members believe cost equals or exceeds value. Value When perceived value equals or exceeds the costs, individuals will join Value of AWWA Membership by Self-Reported Member Status Current Former n= 4894 218 TOP TWO BOX: (Value Exceeds Cost) 37% 24% Significantly exceeds the cost of membership 9% 2% Exceeds the cost of membership 28% 22% Is equal to the cost of membership 42% 34% Is less than the cost of membership 9% 16% Is significantly less than the cost of membership 2% 8% BOTTOM TWO BOX: (Value Less Than Cost) 11% 24% Unsure 10% 18% 21

Satisfaction and loyalty to AWWA and Sections

Members are more satisfied with their AWWA experience than their Section experience. Satisfaction with Membership Experience N Not at all satisfied Not very satisfied Somewhat satisfied Satisfied Very satisfied Top Two Box AWWA Experience 4451 1% 2% 22% 55% 21% 75% Section Experience 4389 2% 6% 24% 48% 19% 67% AWWA + Section Experience 4375 1% 3% 24% 54% 18% 72% A higher percentage of members moved from Satisfied to Somewhat satisfied since the 2012 study. Q35: Overall, how satisfied are you with your AWWA experience, Section Experience, AWWA + Section Experience? 23

Members from all grades are more satisfied overall than Student members. Top-Two Box Percentages for Satisfaction with Membership Experience Current Members by Grade 02: Individual Active 04: Additional Active 06: Operations/ Administrative 10: Life 14: Student AWWA Experience 77% 78% 75% 86% 67% Section Experience 69% 71% 69% 71% 63% AWWA + Section Experience 73% 77% 71% 78% 66% Although overall satisfaction is relatively high, it is slightly lower than when measured in 2012. Q35: Overall, how satisfied are you with your AWWA experience, Section Experience, AWWA + Section Experience? 24

Percent of members Most members plan to renew their membership. Individual members 60% NPS (Net Promoter Score) % Promoters - % Detractors = +21-100 +100 7% 0% 4% Extremely unlikely 21% Unlikely Unsure Likely Extremely likely Likelihood to Renew Membership 23% Promoters 33% 44% Passives Detractors 25

Percent of members Most members plan to renew their membership. Utility members 64% NPS (Net Promoter Score) % Promoters - % Detractors = +21-100 +100 11% Extremely unlikely 0% 1% 24% Unlikely Unsure Likely Extremely likely Likelihood to Renew Membership 22% Promoters 35% 43% Passives Detractors 26

Percent of members Most members plan to renew their membership. Service Providers NPS (Net Promoter Score) 64% % Promoters - % Detractors = +11-100 +100 24% 11% 0% 1% Extremely unlikely Unlikely Unsure Likely Extremely likely 31% 27% 42% Promoters Passives Detractors Likelihood to Renew Membership 27

86% of Individual Active (02), 79% of Students (14) and 77% of YP are likely to renew their membership next year. Nearly one in three are likely to rejoin AWWA How Likely to Renew Next Year by Individual Grade 02: Individual Active 04: Additional Active 06: Operations/ Administrative 10: Life 14: Students n = 2421 678 609 160 321 TOP TWO BOX (Likely) 86% 73% 83% 88% 79% Extremely likely 67% 59% 65% 74% 42% Likely 20% 14% 18% 14% 38% Unsure 3% 2% 2% 5% 12% Unlikely 0% 0% 1% 1% 1% Extremely unlikely 7% 9% 9% 6% 5% It s not up to me, it s my employer s decision 3% 16% 5% 0% 2% Average 4.43 4.37 4.37 4.49 4.12 28

61% of individual members and Operations/Administrative members consider AWWA an indispensable part of their career Is AWWA indispensable to your career? Percentage Who Agree AWWA is Indispensable to Their Career Grade 02: Active individuals 61% 04: Active individuals w/utility or svc. prov. 61% Prspect, 31% Former, 35% Current, 61% 06: Operators/Administrators 61% 10: Life 74% 14: Student 53% Tenure in Industry 5 years or less 46% 6 15 years 54% 16 25 years 61% 26 35 years 63% More than 35 years 62% Groups of Interest Young Professionals 54% Academics 53% Canada 56% India 67% International 48% Self-Described Member Status Current 60% Former 35% Prospect 31% Q57: Do you consider AWWA to be an indispensable part of your career? Base: All respondents

AWWA can increase value of membership through Local training, larger discounts and more online resources. AWWA Membership Section Membership Larger discounts on educational events Larger discounts on AWWA Standards, manuals of practice, books and other technical resources More online resources Additional networking opportunities More in-person training programs More online/distance learning opportunities Better general communication about offerings More local training opportunities 30

37% of individual members indicated additional networking and in-person training would improve their experience. Additional Value/Resources the Sections Should Offer to Improve Member Experience Additional networking opportunities More in-person training programs More online/distance learning opportunities 37% 37% 36% Larger discounts on continuing educational courses Better general communication about offerings More local career resources 25% 25% 24% More leadership/volunteer opportunities 16% Other 6% Nothing would improve the experience 10% (n=3,552) 31

53% of service providers indicated additional networking opportunities would improve their experience. Additional Value/Resources the Sections Should Offer to Improve Member Experience Additional networking opportunities 53% Nothing would improve the experience 23% Larger discounts on continuing educational courses 21% Better general communication about offerings 21% More in-person training programs 19% More local career resources for staff 16% Other More leadership/volunteer opportunities 8% 10% (n=62) With what could your Section provide your organization that would markedly increase your organization s experience? 32

62% of utilities indicated more in-person training programs would add more value. Additional Value/Resources the Sections Should Offer to Improve Member Experience More in-person training programs 62% Larger discounts on continuing educational courses 47% Additional networking opportunities 29% More local career resources for staff 28% Better general communication about offerings 23% Nothing would improve the experience 7% More leadership/volunteer opportunities 6% (n=3 With what could your Section provide your organization that would markedly increase your organization s experience? 33

Issues and challenges members expect to face over the next 12 months and where they will turn for assistance.

Water treatment, water quality and water distribution are the top areas of interests for individual members. Score Overall Rank Water treatment 40% 1 Water quality 35% 2 Water distribution 32% 3 Infrastructure replacement and renewal 29% 4 Water supply 26% 5 Regulatory issues 26% 6 Utility management and leadership 22% 7 Training / Certification / Licensure 21% 8 Wastewater treatment 21% 9 Asset management 20% 10 Q41: Choose your top 5 areas of interest. Base: All respondents

Renewal & replacement of aging W/WW infrastructure is the top challenge individual members face. Score Overall Rank Renewal & Replacement of aging W/WW infrastructure 8121 1 Compliance with current regulations 5442 2 Aging workforce/anticipated retirements 4617 3 Financing for capital improvements 4457 4 Public understanding of the value of water resources 4391 5 Talent attraction and retention 4271 6 Public understanding of the value of W/WW systems 4088 7 Asset management 3991 8 Long-term water supply availability 3561 9 Water conservation/efficiency 3031 10 Q40: What are the top five challenges that you expect to face over the next 12 months? Base: All respondents

An aging workforce, talent attraction and retention, and compliance with current regulations are top issues for service providers. Score Overall Rank Aging workforce/anticipated retirements 134 1 Talent attraction and retention 115 2 Compliance with current regulations 112 3 Long-term water supply availability 104 4 Public understanding of the value of W/WW systems & services 96 5 Public understanding of the value of water resources 94 6 Renewal & replacement of aging W/WW infrastructure 86 7 Financing for capital improvements 77 8 Asset management 63 9 Water loss control 53 10 Q40: What are the top five challenges that you expect to face over the next 12 months? Base: All respondents

Renewal & replacement of aging W/WW infrastructure and financing for capital improvements are top issues for utilities. Score Overall Rank Renewal & replacement of aging W/WW infrastructure 952 1 Financing for capital improvements 621 2 Compliance with current regulations 487 3 Aging workforce/anticipated retirements 473 4 Public acceptance of future W/WW rate increases 428 5 Q40: What are the top five challenges that you expect to face over the next 12 months? Base: All respondents

70% believe that AWWA is meeting their educational needs for most of their top areas of interest, but only 48% for infrastructure. TOP TWO BOX* How Well is AWWA Meeting Your Needs n Percent Water treatment 1980 70% Water quality 1747 67% Water distribution 1589 66% Infrastructure replacement and renewal 1460 48% Water supply 1296 59% Regulatory issues 1296 68% Utility management and leadership 1101 48% Training/certification/licensure 1043 51% AWWA members plan to participate in 62% Section conferences and events. 58% Section Annual Conference. 55% AWWA distance learning courses and/or webinars. 39% AWWA in-person learning events 36% AWWA Annual Conference (ACE) 42% of current members plan to participate in non- AWWA online learning 43% of current members plan to participate in non- AWWA in-person events * On 5 point scale, from Not meeting my needs at all to Meeting all of my needs Q42: How well AWWA is meeting your educational/informational needs in terms of your areas of interest Base: All respondents 39

LinkedIn is the leading site for Individual Actives, while Facebook is the top site for Students and Operations /Administrative 53% Individual Active 45% Additional Active 57% Students 32% Operations/Administrative 39% Operations/Administrative 39% Individual Active 36% Additional Active 65% Students 35% Students 25% Operations/Administration 25% Additional Active 22% Individual Active 40

AWWA website meets or exceeds expectations and is a primary gateway to the organization for members. 41

AWWA Website 67% have visiting in the last 60 days and 90% in the last year. Student members are more likely to visit it than other groups. Primary reason to visit is to access technical resources (39%) join/renew (26%) and find information on educational programs (26%) Top two reasons cited for not visiting include: 30% Not top of mind 28% Time constraints / too busy 42

Member profiles based on personas

AWWA Member Personas To obtain a deeper understanding of AWWA s audience, Avenue M segmented the respondents into Persona groups based on their attitudes and behaviors. 44

AWWA members may share some traits, yet their motivations and behaviors differ. Information Seekers, 22% Transactionals, 11% Professional Resource Seekers, 26% Enthusiasts, 24% Network Builders, 18% Because most AWWA members fall into one of five distinct Personas Enthusiasts, Network Builders, Professional Resource Seekers, Information Seekers, and Transactionals the organization should promote and deliver value propositions that will ensure each group is satisfied. 45

Enthusiasts - 24% Defining attributes: Most supportive audience in AWWA AWWA records indicate 74% work for a Utility Hold the highest interest in member discounts 51% describe themselves as leaders 36% describe themselves as passionate 20% consider themselves to be part of a community 33% are female 90% consider AWWA indispensable to their career Recommendations for Enthusiasts: AWWA should develop a robust peer engagement program that leverages the goodwill and excitement that Enthusiasts have about the profession and the association. The intensity of Enthusiasts will have a positive impact on other members with whom they interact. Providing this group with tools, incentives and frequent reminders to interact with their fellow professionals can help AWWA increase its membership numbers, as well as, member engagement. 46

Professional Resource Seekers 25% Defining attributes: AWWA records indicate this segment contains the highest percentage of individuals that work for a Utility (79%) 60% indicate they work for a Utility or Water Wholesaler 53% indicate their business activity is public water supply utility (municipally owned) Contain the highest percentage of individuals in management/nonengineering (30%) 23% are Operations/Administrative (Grade 06) Lowest percentage to hold a bachelor s degree or higher (60%) Contain the highest percentage of individuals interested in training/ certification/ licensure (28%) For important information, 45% prefer training guides Recommendations for Professional Resource Seekers: Messages directed to this group should focus on the tangible benefits of AWWA, as they are unlikely to respond to emotional appeals. Demonstrating how membership has helped individuals in their job will assist this group in justifying their investment in AWWA. Helping this segment connect the dots between the benefits that AWWA offers and improved outcomes that result from having access to these benefits should increase their level of affiliation. We recommend organizing the website so individuals can quickly and easily navigate to the professional resources they need specific to their roles and responsibilities. 47

Information Seekers 22% Defining attributes: Most experienced segment in the water industry, on average (19.4 years) Largest percentage of individuals 56 or older (34%) 43% hold an advanced degree 81% are male 51% consider AWWA indispensable to their career Recommendations for Information Seekers: AWWA should pay close attention to meeting this segment s need for up-to-date information and knowledge. To achieve this, the AWWA should review its portfolio of information services to 1) identify areas of excellence and programs that need additional attention and 2) Ensure resources are easily accessible and up-to-date. This analysis will provide a starting point for identifying opportunities to improve the accessibility and usability of AWWA s existing knowledge offerings, as well as the development of new offerings. 48

Network Builders - 18% Defining attributes: AWWA records indicate over one-half (55%) work for a Service Provider Highest percentage of individuals in Design and Engineering (40%) For non-utility or non-water Wholesalers, have the highest average gross sales ($15.4 million) Largest percentage of Active Individuals (Grade 02) (69%) Highest likelihood to volunteer for AWWA 41% hold an advanced degree Youngest audience on average (average age: 43) One-third are female 81% consider AWWA indispensable to their career Recommendations for Network Builders: They are the strongest audience for volunteerism and Section conferences and events. Recruit Network Builders for an AWWA Refer-a-Member campaign. Consider creating a Conference VIP package, at a premium price, for this segment. 49

Transactionals 11% Defining attributes: Almost one-half (48%) indicate they work for a Utility or Water Wholesaler For Utility or Water Wholesalers, have the lowest average number of service connections (55,205) Nearly one quarter (24%) are Operations/Administrative (Grade 06) Oldest segment on average; (average age: 49) Although, over one-half (52%) have been in the water industry for just 15 years or less 46% have been an AWWA member for just five years or less 80% are male Recommendations for Transactionals: Most membership organizations have some transactional members. This is a concern when this group represents a large percentage of the overall membership. Since Transactionals represent only 11% of the audience, we do not believe this group provides a large opportunity or poses a significant threat to the future of AWWA at this time. Taking this into consideration, we do not recommend investing significant resources into converting this group into engaged members. If AWWA chooses to target this segment, AWWA should regularly review this segment s areas of interest to ensure you keep up with any changes in the profession and needs of these customers. 50

Recommendations and Next Steps

Recommendations for Sections 1. Dedicate resources to measuring behavior. 2. Customize messages based on audience segment. 3. Set a goal of achieving 50% top-box ratings on all programs and events. 4. Assign a simple engagement score to all new members; monitor new member activity. 5. Utilize social influence marketing to increase engagement and participation. 6. Create an education curriculum to help members keep their skills sharp and ensure they stay current. 52

Recommendations for Sections 7. Leverage the AWWA Refer a Member program. 8. Enhance the on-boarding program for new members to help them fully take advantage of Section benefits and retain them as members. 9. Use customizable marketing materials. 10. Strengthen relationships with local companies. 11. Increase the Section online experience. 53