4 Top Takeaways on the Membership of the Future

Membership Of The Future
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4 Top Takeaways On the Membership of The Future

Our new report gives you advice from the top leaders of successful associations on the changes to make right now to create a thriving membership of the the future

The events that unfolded over the last 18 months have brought about extraordinary change for organizations in nearly every industry. Associations in particular had to adapt quickly and assess old ways of doing things and determine the best path forward, while keeping up with evolving member expectations. The lessons associations learned in crisis will guide next steps.

Our latest report, “Ten Ways to Get Ready for the Membership of the Future Now” draws on research conducted with senior leaders of successful associations to highlight 12 changes you can make today to best prepare for the membership of the future.

Crank Up The Content

Speed up your cycle. Are you publishing engaging new content daily? It’s important to deliver content that adds value to your members every day.

Reboot your process. If your content and communications process cannot work at that pace and scale, get a new one. Out with the old and in with the new—go digital with content.

Repurpose, repackage, recycle. Reformat long-form reports, huge PDFs, event content, and other resources into more digestible content.

Let your members create it for you. User-generated content can be some of the most meaningful content you can get. Think beyond guest blogs to other formats and channels to give your members the stage. For example, member-hosted forums (online or hybrid) or member-created video and photography.

“Putting a stake in the ground and marking clear organizational boundaries and goals that the entire organization can rally around will change the game.”

Create Member-to-Member Experiences

Do it small but often. Frequent—even weekly—small group, member-driven interactions have proven to be some of the most valuable things associations can do. The Executives Club of Chicago hosts an informal virtual “Coffee and Connect” for members every week.

Present less, discuss more. The most successful presentation formats now keep the presentation time to a minimum and maximize time for genuine discussion. The American Psychological Association has landed on a winning format of 10 minutes of expert presentation with 30 minutes for open discussion.

Create spaces to connect. What many people love most about membership is the impromptu conversations that happen in between scripted content and events. Members will create connections themselves if you create inviting spaces for them. Monthly discussion sessions for groups of like-minded members, private social media channels you provide but that members can create for themselves, and small, in-person local gatherings that build on your annual event themes are all good examples of how this is being done today.

Keep Your Promise

Lead with brand strategy. A brand strategy is not a vision or mission statement, and it is not a logo or tagline. It is a deeply felt promise about who you are, how you show up in the world, and a solid plan for how you will live it.

Stake your claim. Putting a stake in the ground and marking clear organizational boundaries and goals that the entire organization can rally around will change the game. Name your purpose and stick to it, especially when times get tough.

Walk the talk. Your mission statement might only live on your website, but your purpose should shine through in everything you do.

Build Capabilities and the Outcomes Will Follow

Get real. In each of the areas above, do you have what it takes to execute at the highest level? When the next huge disruption comes will you be able to adapt? Be honest about where you have gaps and get serious about necessary investments you should make for the membership of the future.

Prioritize capabilities over outcomes. This sounds like a break from the traditional “goals and metrics” approach to planning (which still has a place). Organizations that had invested in first-class systems and processes before the crisis found themselves innovating in ways they never thought of and achieving outcomes they could not have hoped for.

One lesson we have all learned: Expect the unexpected. It will not always be a health crisis, but the pace and scale of disruptive events will only accelerate. The most forward-looking organizations think through all the possible scenarios as their primary strategic planning process. The traditional five-year plan has become a directional “north star.” Proactively anticipating disruptions builds agility and financial stability at the same time. The key to survival in the membership of the future, as we learned the hard way, is agility and responsiveness.

To learn more about exploring the future of membership, read our complete report, 10 Ways to Get Ready for the Membership of the  Future Now.

This article was originally published in Associations NOW as Top Takeaways on How Membership Will Survive the Great Reset.

How to Make Membership an Offer They Can’t Refuse

Membership
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How Can You Make Membership An Offer They Can't Refuse?

Ask association members why they don’t renew, and two in three will say lack of value for the price. Half of them also say lack of engagement or “I forgot,” which are another way of voting on your value with their feet.

Value Trumps Dues Discounts Every Time

Member Value

Some organizations jump to discounting, slashing dues by up to 50% or more. This path is fraught with danger — the expensive kind. After all, something that has no value at $100 may have no value at $50, either. They end up sacrificing significant dues revenue with little to no growth to show for it. 

Others have lowered dues for cost-sensitive segments, including students and young professionals. This can be a wise strategy to “fill the hopper” with future full-paying members. One large society that adopted this strategy increased young professional membership by 15% in one year.

The perceived value of membership trumps cost every time.

Bundling Benefits Builds Perceived Value

Even the greatest benefit is worthless if members do not know about or understand it. Some organizations have attempted to increase their perceived value by “bundling” benefits. This practice can make high-value opportunities for members more exciting and accessible. At the same time, it is a chance to weed out outdated benefits that only clutter your communications.

Many times, organizations do this with products and programs that already exist. There is often no need for extensive new product development. You can reframe the idea of “products” to include all the work the organization does on behalf of members. This creates opportunities to talk about how you serve members and why they should want to join you. With the right insights, this approach can reap dramatic insights. Some organizations have seen member engagement jump over 40%.

Membership Bundle

Do You Have A Membership Offer They Can't Refuse?

Could you already have the makings of an offer they can’t refuse within your current dues structure? Our experience says you could. And it’s an opportunity your association should not pass up.

Learn how we can help make membership and offer they can’t refuse for you here

For more on the value of membership see Two More Views on Member Value

10 Ways to Get Ready for the Future of Membership Now

Future Of Membership
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Exploring the Future of Membership With Top Association Leaders

In our latest exclusive research report, we partnered with Ricochet Advice to deep dive on the membership of the future with top executives from the most successful associations, who emerged from the crisis stronger than ever.

Here are their ten most critical strategies for the membership of the future and to stay ahead of the curve.

Read more about this important research on here.

6 Ways Young Members Are Secretly Boomers

Young Members
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Are Young Members Secretly Boomers?

In 2015, millennials surpassed Generation X to become the largest population in the workforce. The majority of the workforce is getting younger. Most membership organizations are seeing the average age of their membership go up.

In response, nonprofit associations are prioritizing the attraction of young members. Young members are their future—future volunteers, future dues payers and future leaders. But attracting young professionals hasn’t been easy.

Perception is the root of this challenge. Millennials are unlike the generations that have come before them. Technologically savvy, they sit on the cutting edge of change. Conversely, baby boomers, are thought to be technologically unsophisticated and allergic to change.

These generalizations suggest an insurmountable abyss exists between boomers and millennials. Associations believe they must reinvent their past strategy to attract millennial members. Recent AARP research shows that young members have much in common with boomers. In fact, the distance between the two generations is converging. Associations will benefit more from noting their similarities, rather than their differences. This new perspective holds the key to successful strategic planning for nonprofit organizations.

So what are these shocking similarities?

1. Consumer-Centric

Boomers are the original “me” generation. That thinking has filtered down to the millennials. Often raised by boomer parents or grandparents, millennials grew up around this idea. They expect everything is–and should be– about them. Not only do baby boomers and millennials want what they want, they want to be able to do it themselves.

How can your association’s marketing strategy reflect this?

Both boomers and millennials want a “customized” experience. They will choose the association that can give it to them. That means more options and on-demand services that give them what they want, when and how they want it.

2. Overwhelmed by Choices

Boomers and millennials alike idealize choices. However, the abundant options make the decision-making process a burden for both generations. This is further complicated by their rejection of guidance from intermediaries.

How can your association’s marketing strategy reflect this?

Associations don’t need different content to appeal to option-fatigued millennials and boomers. They need to present and distribute their existing content in new ways. Associations need to expand content distribution to channels preferred by these generations. This will give them the best chance of capturing their attention.

3. General Mistrust of Institutions

Young members and boomers are skeptical of institutions. True to their “me” instincts, they question what’s in it for them. Both generations want institutions to prove their value.

How can your association’s marketing strategy reflect this?

Trust is key to loyalty. Boomers and millennials are loyal to institutions they trust—but that trust has to be earned. Associations can overcome their mistrustful nature by promoting defined and proven membership benefits. They can work to build confidence over time.

4. Value Experiences over Things

For millennials and boomers, things are just…things. It’s experiences they are after. According to a study conducted by Eventbrite, 94% of millennials and 91% of boomers believe that experiences lead to a fulfilling life.

How can your association’s marketing strategy reflect this?

Associations that provide opportunities to engage will draw in millennials and boomers. Whether digital or face-to-face, the prospect of an experience will entice them.

5. Social Sharing as Status

Experiences are the new status symbols and social media is the trophy case. Young members’ affinity for sharing on social media is well known. But boomers are catching on, too. People aged 50+ are the fastest growing segment on social media.

How can your association’s marketing strategy reflect this?

When associations provide meaningful experiences to their members, they share it on social media. This is especially true for millennial and boomer member segments. Social shares spread an association’s message and proof of value.

6. Pervasive Use of Technology

Technology is not just a millennial thing. While millennials are technology natives, boomers have adopted technology readily. They consume it at a rate rivaling the millennial generation. If you’re not reaching out to boomers and young members digitally, then you aren’t reaching them at all.

How can your association’s marketing strategy reflect this?

Associations using technology well to communicate with their membership will see higher engagement.

There are myriad similarities between millennials and boomers. This crop of young professionals clearly isn’t a special case. In fact, millennials are echoing many of the needs of older generations—just in a more demanding tone. The older generations have been more tolerant in waiting for change. Yet their patience is wearing thin.

Associations need to do more than determine how they can attract young members. They need to change to meet current and future member needs. Fortunately, young professionals can tell us a lot about how to do that.

When the needs of millennials are met, so are those of current and future needs of associations. Associations can attract young professionals and improve the experience of older members by bringing the generations together.

For more insights and ideas about young members see: “Who Needs Associations Anymore?  4 New Membership Models.”

Association Success: 7 Ways to Thrive Not Just Survive

Association Success
Reading Time: 10 minutes

This report was originally published as Tacking Into the Headwinds of Association Growth

The Shifting Association Market

We heard it again and again from our clients at leading membership organizations. It was harder every year to reach association success.

Some knew the market was shifting around them. Some had thought they were immune. But instead, all felt the pressure on their numbers, which told them the way they had always done things was not working anymore. 

 But what exactly changed? Our team at Sequence Consulting devoted the past twelve months to answering that question: studying the research, having in-depth conversations with clients, and collaborating with other leading associations.

 This gave us an understanding of which market forces they were up against and, much more importantly, what they could do about it. We learned that some organizations have been victims across the membership landscape, and others have been victors of significant shifts in their environment. 

 This report is about what studying the headwinds can teach association leaders  and what you can learn from those who have tacked into them successfully. 

Table of Contents

We heard it again and again from our clients at leading membership organizations. It was harder every year to reach association success.

Some knew the market was shifting around them. Some had thought they were immune. But instead, all felt the pressure on their numbers, which told them the way they had always done things was not working anymore. 

 But what exactly changed? Our team at Sequence Consulting devoted the past twelve months to answering that question: studying the research, having in-depth conversations with clients, and collaborating with other leading associations.

 This gave us an understanding of which market forces they were up against and, much more importantly, what they could do about it. We learned that some organizations have been victims across the membership landscape, and others have been victors of significant shifts in their environment. 

 This report is about what studying the headwinds can teach association leaders and what you can learn from those who have tacked into them successfully. 

Market Pressures On Association Succeses

When we think of headwinds, we think of slow and halting progress against forces beyond our control. Today, membership organizations’ headwinds come in many forms: increasing consumer demands to get anything they want “on-demand,”; huge shifts in the data economy and everything it touches, and pressure from every angle on the affinity marketing model. 

 These headwinds have been building for some time. But unfortunately, the effects are rippling through the association world – putting downward pressure on membership, lowering advertising, royalty, and other revenue sources, and impacting the dashboard metrics of most organizations. Faced with these inexorable realities, organizations have chosen a wide range of responses, from defensive and incremental to innovative and bold. 

 These headwinds will not abate. Laggard organizations have fallen further behind, and many will continue to do so. Moreover, the accelerating rate of change will quite likely prove too much for some large, long-standing organizations that have been too slow to adapt, and they will be forced to merge or find other ways to exit the market. 

 Meanwhile, winners who embraced these changes keep winning, sticking to their association success formulas while adapting to the new realities. 

High Expectations Of The On-Demand Economy

Consumers expect immediate and easy access to whatever content, product, and services they want. Moreover, they expect access to be free or part of a low-cost, subscription-based service that offers highly unique and relevant value. Examples of hugely successful on-demand-type services include discounts, travel, insurance, content, and others. 

 In short, the paradigm of membership, in general, is less appealing because it is less well-aligned to the daily experiences and ensuing preferences of today’s consumers, especially those who are younger. This is not to say membership is dead. However, the bar for thriving membership is higher. Organizations must come to grips with the increased competition and consumer loyalty around even their most tried and true core offerings, including their mission-based work. 

 Options on causes to support are merely one example of the “on-demand” economy that has upended consumer expectations across the spectrum of modern life, including the core business of membership organizations. The gap between winners and losers will be measured by their ability to adapt to these new realities. 

On Demand Discounts

On-demand discounts. Honey has been downloaded over 5M times and can automatically apply codes from more than 21,000 stores during the check-out process. Users, of whom 67% are Millennials, have saved $170M+ this year. In addition to ad revenue, 

Honey earns a small commission on every coupon code used. The secret to Honey’s success is fulfilling consumers’ need for confidence that they’re getting the best price before completing their transaction. The resulting increase in completed sales is a huge benefit to retailers.

 On-demand insurance. Slice provides on-demand insurance for home-sharing. The homeowner can buy customized levels of coverage just for the term the home will be rented. Other providers offer “microinsurance” for high-value items like phones and computers. 

These new insurance companies are targeting Millennials and have taken pains to simplify and streamline the application process so coverage can be purchased in minutes through a mobile device.

On Demand Insurance

The Exploding Data Economy

The most tectonic shift facing membership organizations is the meteoric rise of the new data economy. Some say that “data is the new oil.” It is the fuel that powers nearly every aspect of the world we now live in. However, it is also a vast, complex, largely untapped, highly fragmented, and impossible to control resource for which the world has an insatiable appetite. New data sources come online every day, and a multi-layered industry to extract, refine, and distribute data has grown exponentially. 

In the past, organizations were able to capitalize on their exclusive access to their members and prospects to drive their recruitment efforts, create communication channels to drive advertising revenue, and monetize their list through royalty agreements. In essence, as “owners” of an exclusive and valuable audience, membership organizations were in the driver’s seat in offering access to them, giving birth to an entire industry in affinity marketing. 

 This role as privileged gatekeeper has been progressively eclipsed by the realities of today’s data economy. The sheer wealth of consumer data, widely available, allows marketers to target the consumers they want in many ways. These marketers, who in the past would have eagerly signed up for royalty agreements for access to a member list, can now find, understand, and target those same consumers themselves and do so more cost-effectively.

The Eroding Affinity Model

Many major insurance carriers that were once mainstays of the affinity industry have exited the industry or significantly reduced their involvement. Seeking to streamline their own operations, minimize their regulatory exposure, and maximize their marketing ROI, they have re-organized and re-invested in ways that have left their affinity relationships behind, oftentimes after decades in business together. 

 The affinity market of just a few years ago represented $60B in annual premium. Insurers are not abandoning this outsized opportunity, but they are increasingly abandoning the model, which formerly provided great value in terms of unique access to marketable groups of strong buyers. As the calculus has changed, so have insurers’ approaches to the market and their affinity partnerships. 

Insurgent Threats To Membership

While membership organizations and their marketing partners have been questioning their models, insurgent organizations have been reinventing them without them. For-profit start-ups which have mastered the new data and digital realities have been able to quickly steal significant shares from larger membership organizations that cannot yet compete on this new playing field. 

At the same time, smaller, more nimble, not-for-profits have successfully undermined larger, “umbrella” organizations through a relentless focus on understanding their key segments and delivering them strong unique value. 

New Insurgents

Doximity, a for-profit, online startup focused on physicians, raised $85 million in venture funding and amassed more than one million physician members in six years. Their membership now includes 70% of all US physicians, 90% of fourth-year medical students, and nearly half of all nurse practitioners and PAs. 

Their revenue model, which has been cash-flow positive for some time, is based on the free membership and no advertising, monetizing the membership by selling access to recruiters. 

Member value is delivered through simple but powerful digital tools that doctors need and use every day and high-profile partnerships, including US News and World Report’s Hospital Rankings. 

One key to their meteoric growth is their mastery of the market data, which includes data on every US physician before they ever become a member.

Faced with the inevitable reality of these challenges, organizations have taken a variety of new directions, ranging from incremental and defensive to radical and innovative. 

The Dying Royalty Model

As the royalty model erodes, organizations of all sizes are forced to rethink their product portfolios. Once reliable passive income sources, their product suites have been devalued by the exit of their traditional royalty partners and an absence of new partners interested in the “standard” affinity marketing arrangement. 

This leaves many holding products and services that do not contribute much revenue and that members do not value. Retrenchment takes the form of drastic pruning, leaving only those “signature” offerings that are uniquely aligned with their mission and have commercially competitive advantages. 

In other cases, the model of “products as revenue” has given way to “products as member value,” which leads to new, highly flexible commercial arrangements to secure products members love first and foremost, sometimes with minimal or even no revenue attached at all. 

 Several prominent associations have dramatically reduced their product portfolio. They have eliminated products with low engagement and weak member value. Instead, they have consolidated their royalty streams around high-value, highly unique products with high revenue—for example, profession-specific insurance products. 

In place of their old, unproductive royalty relationships, they have launched new marketing relationships akin to sponsorships. Providers with high-value products for members can promote them through a  straightforward marketing relationship — exclusive access to highly responsive marketing channels for a negotiated fee. 

The primary driver is delivering member value, to the end of acquisition and renewal, with revenue a secondary consideration. This model is far more comfortable and attractive to most modern marketers, which opens up a whole new range of potential relationships and offerings that would have been out of reach in a traditional royalty model. 

New Directions for Association Success

Faced with the inevitable reality of these challenges, organizations have taken a variety of new directions, ranging from incremental and defensive to radical and innovative. 

Seeking Growth Globally

Organizations that have reached saturation in their markets, or are faced with insurmountable competitive pressures here in the US, have turned to international markets for new audiences, including members and subscribers, buyers, event attendees, and others. Membership models in these countries are often less mature and competition less intense than at home. 

In addition, US-based organizations often have considerable advantages in their intellectual property and access to American networks and resources. Far from a panacea, disparities in buying power and business methods require adaptability and will. Still, strategically patient and determined organizations have succeeded in offsetting pressures here at home by advancing into untapped markets abroad. 

Img Globe Association Success

One prominent engineering association, like many organizations, saw its value proposition erode due to the confluence of market forces, particularly pressure on their publishing business. 

However, unlike many organizations, they recognized and reacted to the trends early, in their case, by shifting focus to international markets in search of growth. As early as 1995, they began investing in marketing operations internationally, leading with publishing, technical standards, and events, which drove membership. 

Taking a long view allowed them to enjoy sustained and diversified growth. Fully 1/3 of all of their business, including membership, is international, where they have seen a predominance of their development while the US market has mainly remained saturated and flat. 

“The bar for association success is higher and organizations must come to grips with the increased competition and consumer loyalty around even their most tried and true core offerings, including their mission-based work.” 

Buying Growth With Acquisitions

Some organizations that have money to invest but lack the internal resources to develop critical new capabilities have chosen to buy them instead. These organizations seek out and acquire capabilities that complement the mission and elevate the organization’s position but would be impossible or impractical to build themselves. Not for the faint of heart, acquisition and integration are complex and fraught with risk. But wisely done, small purchases of niche players with unique assets or intellectual property can transform an organization’s profile and give it a real competitive advantage by cementing its hold on uniquely valuable spaces in the market and often provide new sources of revenue and relationships. 

Sae International

SAE International has made a series of acquisitions of for-profit companies that bring unique capabilities to their industry offerings, from cybersecurity to quality control to training and certification. 

These strategic acquisitions allowed them to quickly build an entirely new, industry-facing arm of their enterprise, providing new revenue streams and competitive advantage alongside, but independent of, its membership. 

Growth Through Groups

As the individual membership model becomes less and less fruitful, some organizations have opened a new avenue of membership for employers. Far from the “group discount” offered in the past, the new institutional membership includes individual membership for employees but layers on new B2B benefits uniquely available from the association and only offered to group members. 

Intelligent program design offers clear financial benefits to the employer, with calculable ROI and intangible benefits that are important to the executives who decide to buy. In addition, successful programs can more than offset declines in individual membership and potentially foretell a future in which group memberships surpass individual memberships in importance. 

Ama

AMA, recognizing that nearly half of US physicians are now employees of large health systems, created an entirely new group membership for large health systems, loaded with benefits for the group and its executives. These benefits and discounted memberships for all of their physicians were easy for executives to justify. As a result, group member growth will surpass individual member growth this year. 

What Will Association Success Look Like?

One of the most important lessons the market teaches us is that organizations that have thrived in the face of often tectonic changes responded boldly and did so a long time — even decades ago. The pace of change is only accelerating, not only in velocity but in the sheer number of fundamental shifts and unforeseen threats facing every organization, even the most venerable and entrenched. 

It is often not one new development that imperils a business model but rather a nexus of powerful but fragmented changes that overwhelm old ways of doing business and create entry points for a potential swarm of new competitors. 

From our market survey, it is clear that the pressures associations have felt are neither transitory nor entirely within their control. The pace of change will increase. 

The unexpected should be expected. And the fundamental forces at play go deeper than messaging and positioning. Instead, they encroach upon the elements of the business model itself, which entirely revolves around an organization’s ability to build and monetize an audience, that is to say, a membership. 

 Headwinds mean challenges and opportunities for association success and those who can tackle them while others struggle to stay afloat. The most successful associations have seized the moment to consider their options and courageously turn their threats into opportunities.