Make Your Membership An Offer They Can't Refuse
Are your members finding your membership value proposition irresistible? Well, if you ask association members why they choose not to renew, you’ll find that two out of three of them point to a lack of perceived value for the price they pay. And guess what? Half of them also mention their lack of engagement with the organization as a reason. Some even admit, “I just forgot.” These are clear signs that members are voting with their feet, indicating how they perceive the value you provide.
Our research has confirmed that an organization’s membership value proposition is the key driver for membership renewal. So, how can you ensure that you reinforce this value through marketing that truly makes membership impossible to resist?
Discover our top four recommendations on how to craft an offer they simply can’t refuse, and make your membership value proposition undeniably compelling.
1. Add Member Value, Don't Discount Dues
Discounting dues by 50% or more may seem like a tempting option for some organizations, but it comes with risks. Just because something has no value at $100 doesn’t mean it suddenly becomes valuable at $50. By going down this path, organizations end up sacrificing significant dues revenue without much to show for it in terms of membership growth.
A smarter approach is to lower dues for specific segments like students and young professionals who may be more cost-sensitive. This strategy helps to “fill the hopper” with potential future members who will eventually pay full dues. In fact, one large society saw a 15% increase in young professional membership within just one year after implementing this strategy.
However, lowering the cost alone doesn’t automatically make your membership more valuable in the eyes of potential members. To truly attract them, you need to offer a compelling membership value proposition that makes them want to join. Remember, the perceived value of membership is always more important than the cost.
Remember, the perceived value of membership is always more important than the cost.
2. Bundling Benefits Builds Member Value
Increasing awareness of the most significant benefits is crucial; otherwise, it holds no value for members. Some organizations have taken a smart approach by bundling benefits together. This not only makes high-value opportunities more enticing and accessible but also allows for the removal of outdated benefits that clutter communication with members.
Instead of developing new products and programs, many organizations have successfully implemented this strategy with existing offerings. By reframing the concept of “products” to encompass all the ways the organization serves its members, it opens up opportunities to highlight the value proposition of membership and why potential members should be interested.
With the right insights, this approach can yield impressive results, with some organizations experiencing a membership engagement increase of over 40%.
3. Make The Member Value Crystal Clear
Ensuring that the benefits of membership are lucid, easy to comprehend, and well-defined may appear straightforward at first glance, yet our research suggests that it is an indispensable component in maintaining members. Prospective members, as well as existing ones, are unable to fully appreciate and take advantage of the value you offer if they aren’t clearly aware of what they receive through their membership.
Every organization that offers membership encounters a challenge in renewing first-year members. However, our studies have shown that member retention rates grow exponentially beyond the initial year. When first-year members realize the value that comes with membership early in their tenure, they are more likely to remain lifelong members. As a result, it’s crucial to emphasize this to your first-year members in your communication.
With the right insights, some organizations experience membership engagement increases of over 40%.
4. Offer a Grace Period
Our team has found that offering grace periods is an excellent opportunity for your organization to provide additional value and support to your members. By providing these grace periods, you give members a chance to rectify any oversights in renewing their membership while still being able to utilize all the benefits and perks associated with their membership.
Based on research, we have found that organizations who offer grace periods tend to have higher member retention rates than those who do not provide them. Generally, grace periods can last around three months, and organizations with 80% or higher renewal rates tend to offer them. By extending this value proposition, you can enhance member satisfaction and loyalty.
Conclusion: A Membership Value Proposition They Can't Refuse
In conclusion, consider the possibility of a membership value proposition that professionals simply can’t refuse. With the potential to restructure your current model and create an irresistible offer, your association has the opportunity to capture the attention and loyalty of members. So don’t overlook this chance to provide a value proposition that stands out and keeps professionals engaged.
To learn more about irresistible membership value propositions see Maximizing Association Value: Unleashing 3 Powerful Membership Pricing Strategies and Two More Views on Member Value
