And the Survey Says … Associations Are Thriving in 2024, with a Bright Future Ahead

Association Industry Trends
Reading Time: 4 minutes

What does the future hold for associations in 2024 and beyond? Recent surveys paint a vibrant picture of growth driven by positive economic indicators and a renewed focus on member engagement. This article uncovers the key survey insights, offering a data-driven look at the trends and opportunities shaping association industry trends.

Turning the Tide: Association Executives Optimistic About Growth

Confidence among association executives is at an all-time high. A remarkable 67% now express optimism about their organizations’ future growth and sustainability, up from 24% in 2023.1 Notably, 70% of Millennials report feeling very or extremely confident,2 a testament to the belief in the industry’s strategic direction and innovative initiatives

Association Industry Trends

A Year of Growth: Associations Poised for Financial Gains in 2024

Association Industry Trends

The financial forecast for associations in 2024 is decidedly optimistic. With anticipated membership, renewals, engagement, and overall revenue increases,¹ associations are poised for growth. Bolstering this confidence, 60% of associations are confident in reaching their revenue goals for the year.² This optimism is further reinforced by stable or growing marketing budgets, with over 40% of associations expecting their budgets for recruitment and engagement to either increase or hold steady.³

Even with inflationary pressures, 48% of associations anticipate only moderate increases in dues and non-dues prices.¹ This careful balance between budget management and financial optimism demonstrates thoughtful planning and strategic foresight within associations, paving the way for continued association industry trends for growth and stability.

Confidence among association executives is at an all-time high, with 67% expressing optimism about their organizations' future growth and sustainability, up from 24% in 2023

Association Industry Trends: Surging Membership and Engagement

Membership growth is a vital sign of an association’s vitality, and the data for 2024 is nothing short of encouraging. A substantial 61% of associations anticipate an increase in net membership count, with 56% projecting growth in non-dues revenue and 53% expecting overall revenue to rise.¹

 

Association Industry Trends
Association Industry Trends
This positive momentum is further supported by the fact that 49% of associations have already seen membership increases, primarily driven by new member acquisitions.³ Moreover, 54% of associations have observed heightened member engagement,¹ and 45% have improved retention rates compared to 31% last year.³ These figures collectively underscore  associations industry trends of attracting new members and fostering stronger connections and loyalty, paving the way for sustained growth.

A substantial 61% of associations anticipate an increase in net membership count, signaling a vibrant future ahead

Back to the Ballroom: In-Person Events Regain Popularity

In 2024, associations are rediscovering the power of in-person events. A striking 61% plan to focus solely on in-person gatherings this year,² signaling a return to traditional engagement methods that foster deeper connections. This shift reflects a recognition of the unique benefits that in-person events offer: the ability to network, build relationships, and foster a sense of community that virtual formats often struggle to replicate.

Association Industry Trends

The Next Chapter: What's in Store for Associations in 2025 and Beyond?

The promising outlook of 2024 is poised to propel the association industry into a dynamic future in 2025. Building on current association industry trends and embracing emerging technologies, the landscape is set for continued progress:

Accelerated Growth: The momentum in membership and revenue is expected to surge forward in 2025, driven by targeted efforts to attract and retain members through innovative programs and services.

Technological Transformation: Associations will increasingly leverage cutting-edge technology like artificial intelligence (AI) and automation to optimize operations, elevate member experiences, and unlock valuable insights from data.

Hybrid Event Evolution: While in-person events will remain a cornerstone, hybrid models will gain prominence, providing greater flexibility and inclusivity for diverse audiences.

Looking towards 2025, association industry trends are even brighter, with emerging technologies and a renewed focus on member engagement driving the future of associations.

Conclusion: A Bright Future Beckons

The association industry is thriving in 2024. The current landscape is undeniably positive, with surging confidence, strong financials, booming membership, and the return of in-person events. Looking towards 2025, the horizon is even brighter. The momentum built this year, combined with the potential of emerging technologies and a renewed focus on member engagement, suggests that associations are ready for whatever comes next and eager to shape it.

By embracing innovation, remaining adaptable to the ever-evolving needs of their members, and staying ahead of the curve on emerging trends, associations are poised to continue on this upward trajectory. The associations that seize the opportunities presented in this dynamic environment will solidify their position in 2025 and set a new standard for excellence and innovation within the industry. The stage is set for a new era of association success – and it’s just getting started.

For more information on association industry trends, please see Association Management Trends 2024: Embrace the Change.

Rethinking the Model: Why Your Membership Structure Needs an Upgrade

Association Membership Model
Reading Time: 3 minutes

The old way of doing things isn’t cutting it anymore. Traditional membership models are struggling to keep up with what people want. This article dives into this critical issue, exploring the anxieties of organizations and providing a clear path to reinvigorate their membership offerings.

Understanding the Association Membership Model

Traditionally, association membership followed a simple formula: members paid annual dues and received a set package of benefits. These perks could include access to exclusive content and discounts on industry resources, invitations to member-only events, and networking opportunities. However, this “one-size-fits-all” approach has become increasingly outdated. Today’s members are diverse and have broader needs and preferences. Younger members, especially, may be less interested in traditional benefits and seek more flexible options, like bite-sized content or project-based resources. The “Old Standard” model can’t keep pace with this evolving membership landscape, leading to frustration and declining participation.

The Impetus for Change

Statistics paint a concerning picture: 54% of association leaders express concern over their association membership model, and another 35% are somewhat worried (MGI 2023 Membership Marketing Benchmarking Report). The call for transformation is loud and clear. The factors driving this challenge are multifaceted. Overdependence on event revenue, declining membership numbers (often with an aging demographic), and increased competition all contribute to this challenge. Additionally, attracting younger members and keeping pace with rising operational costs necessitate exploring ways to make memberships more relevant and financially sustainable.

The "Old Standard" model simply can't keep pace with the evolving membership landscape, leading to frustration and declining participation.

Simple Solutions, Big Impact

Fortunately, there are straightforward strategies to breathe new life into your association membership model. Consider implementing autorenewal for recurring revenue, offering monthly or quarterly payment options (think “Netflix Model”), or introducing multiyear membership plans with attractive discounts. Flattening your dues structure to remove multiple tiers can also be an effective way to simplify offerings and appeal to a broader audience.

Tiered Memberships: A Double-Edged Sword

While tiered memberships, with varying levels of benefits and fees, seem like an obvious solution, it’s important to tread carefully. Creating too many tiers can become overly complex and confusing for potential members. Additionally, the value proposition for each tier needs to be clearly defined to avoid resentment among different membership levels.

Emerging Trends: Redefining Value

Exciting new association membership models are emerging, offering fresh approaches to member engagement. Here are a few examples:

All-Inclusive Membership: Offering a single, comprehensive package that includes various benefits, this model eliminates the nickel-and-diming perception, appealing to consumers’ desires for simplicity and value.
“Friends of” Membership: A tiered approach that starts with a free or low-cost basic membership, this model allows for gradual engagement and upselling.
“Meal-Plan” Membership: This model replaces complex discount structures with a credit system, empowering members to use their benefits as they see fit, enhancing perceived value.
Professional Practice and Corporate Membership: These models extend membership beyond individuals to practices and enterprises, offering benefits that address the needs of larger entities and potentially unlocking significant growth opportunities.

We urge organizations to move beyond a piecemeal approach to membership innovation. Don't just pick and choose a single strategy – think strategically about how these innovations can work together.

Strategy: It's All About the Mix

We urge organizations to move beyond a piecemeal approach to membership innovation. Don’t just pick and choose a single strategy – think strategically about how these innovations can work together to create a powerful, comprehensive membership model. Remember, there’s no magic bullet – a one-size-fits-all solution doesn’t exist. The key is to craft a dynamic structure that caters to your membership base’s diverse needs and preferences. By integrating these innovative strategies, you can build a membership model that thrives in the ever-evolving landscape of member expectations.

Conclusion: Ditch The One-Size-Fits-All

The world of memberships is changing fast. Organizations clinging to outdated models are like runners stuck at the starting line. These innovative approaches aren’t just suggestions, they’re the map to long-term success. Take a moment to consider the trends we’ve explored. How can you leverage them to achieve your organization’s goals? It’s time to ditch the one-size-fits-all mentality and craft a membership strategy that speaks directly to today’s members.

Call to Action

Don’t wait to breathe new life into your membership model. Take stock of what you currently offer. Explore the innovative strategies we’ve discussed – they might be the perfect ingredients to cook up a membership experience that truly resonates with your audience. Remember, every organization is unique. Whether you brainstorm internally or tap into our expertise, the key is embracing change and taking that first step. 

The road to a thriving membership model starts with a willingness to innovate – and the rewards are well worth the journey.

For more on innovating association membership models, please see Empower Your Association: Embrace 4 Forward-Thinking Membership Models.

Association Management Trends 2024: Embrace the Change

Association Management Trends
Reading Time: 5 minutes

Association Management Trends 2024

In the evolving landscape of 2024, associations face a pivotal moment characterized by significant shifts in membership dynamics, economic pressures, and technological advancements. This year’s association outlook underscores the necessity to adapt and thrive amidst these changes. Here are some of the transformative strategies and innovations we see shaping the future of associations.

New Directions In Membership

RAPID CHANGES IN ASSOCIATIONS

The landscape for associations has been transformed drastically, with changes occurring at a pace not seen in the last two decades. Associations are grappling with changing member expectations. The landscape for associations has been transformed drastically, with changes occurring at a pace not seen in the last two decades. Associations are grappling with changing member expectations and recovering from the pandemic-induced losses. There’s a pressing need to diversify revenue and membership to ensure sustainability. Amidst these challenges, there’s a silver lining – a realization that change, collaboration, and quick action are possible, fostering optimism. A robust economy is seen as a beacon of hope for membership growth.

There's a pressing need to diversify revenue and membership to ensure stability.

REBOUND IN MEMBER GROWTH

After a decline in 2021 and 2022, associations are witnessing a significant rebound, with member growth rates reaching their highest since 2016. The MGI 2023 Membership Marketing Benchmark Report found that 49% of associations report growth, contrasting to 26% in 2021. The median increases are 6% annually and 12% over five years. Notably, the median renewal rate is steady at 81%, with first-year renewals at 63%, indicating that new member acquisition is a critical driver of this resurgence.

Association Management Trends
After declines in 2021 and 2022, associations are rebounding and showing increases in member growth at the highest rate since 2016.

EVOLVING MEMBERSHIP MODELS

In response to these shifts, associations are reevaluating their value propositions, membership models, and dues structures. This reevaluation is leading to innovative membership options such as all-inclusive memberships, credit-based “gift card” memberships, and practice memberships, each designed to cater to diverse member needs and preferences.

KEY INDICATORS AND DRIVERS OF ASSOCIATION GROWTH

Associations experiencing growth share common traits: a compelling value proposition, an influx of new members, and the development of new benefits. High overall renewal rates (over 80%) and first-year renewal rates (over 60%) are strong growth indicators. 

Moreover, associations with a higher proportion of millennial members are seeing growth, whereas those with predominantly boomer members are declining. This demographic shift underscores the importance of evolving association offerings to meet changing preferences.

Growth Drivers

Diversifying Revenue and Membership Strategies

ACROSS-THE-BOARD DUES INCREASES

To combat financial pressures, especially inflation, nearly half of the associations increased their dues in the last year, a significant jump from previous years. The reality is stark: without dues increases, associations find their dues revenue down by 35% in real terms, with expenses up by the same margin. Many are now adopting automatic annual increases, which correlate with higher renewal rates, typically between 3%-5% annually.

Forward-thinking associations are redefining their value propositions to ensure their long-term sustainability and relevance.

ALL-INCLUSIVE MEMBERSHIPS

Associations are moving towards “all-inclusive” memberships, incorporating most a la carte benefits into the membership package. This approach addresses member frustrations over being “nickel and dimed.” It significantly enhances the value of membership by making benefits such as continuing education, publications, training, and smaller events available at no extra cost. This strategy justifies higher dues and provides non-members with financial incentives to join.

NON-MEMBER ASSOCIATES AND CREDIT-BASED MEMBERSHIPS

Innovative models like tiered memberships for non-paying “associates” and credit-based memberships are gaining traction. These models offer a range of benefits and engagement opportunities without the upfront cost, creating a self-selected pool for membership marketing. On the other hand, credit-based memberships allow members to use credits for additional benefits, demonstrating the financial value of membership and simplifying the member experience.

PRACTICE MEMBERSHIPS

Tailored for owners of small to mid-sized practices, these memberships offer a combination of individual benefits plus additional perks for the business and its team. This model aims to expand membership by appealing to business owners and allied professionals who might not otherwise join, providing comprehensive support across administrative, marketing, legal, and professional development domains.

Revolutionizing Association Management with AI

Artificial Intelligence (AI) has ushered in a new era of association management trends, offering unprecedented opportunities to enhance operational efficiency, member engagement, and personalized communication. In this transformative landscape, AI is not just a technological advancement; it’s a strategic ally that enables associations to navigate the complexities of modern member expectations and competitive pressures. Through AI-powered member segmentation, content personalization, and predictive analytics, associations are leveraging AI to streamline operations, craft tailored member experiences, and drive growth in innovative and impactful ways.

AI FOR MEMBER SERVICE

Automation and AI-driven FAQs streamline routine transactions and inquiries, enhance efficiency, and improve member satisfaction.

In this transformative landscape, AI is not just a technological advancement; it's a strategic ally.

AI FOR MEMBER COMMUNICATION

Dynamic versioning and omnichannel value delivery enable associations to provide highly personalized and timely communications to their members. This approach leverages the latest data to create over 1,000 versions of communications tailored to specific audience segments.

AI FOR MEMBERSHIP MARKETING

AI-generated content and continuously A/B-tested messaging are revolutionizing acquisition and renewal strategies. These AI-driven approaches allow for highly targeted and effective marketing campaigns.

SIMULATING MEMBERS: DIGITAL TWINS

This innovative application of AI involves creating digital representations of members to simulate real situations and outcomes. This technology enables associations to refine their marketing, communication, and operational strategies by predicting engagement and optimizing the member experience.

For more on AI in associations, please see  From Mundane to Magical: How AI is Reshaping Association Management.

Conclusion: A Forward-Looking Approach

As associations navigate through the changes 2024 brings, the key to success lies in embracing innovation, leveraging technology, and remaining adaptable to the evolving needs of their members. By reimagining their value propositions, diversifying revenue streams, and harnessing the power of AI, associations can ensure sustained growth and relevance in an increasingly dynamic environment. The future for association management trends is not just about adapting to change but thriving through innovation and resilience.

2024 Association Outlook: Embrace the Change

2024 Outlook Cover
Reading Time: < 1 minute

In this presentation, we explore the 2024 association outlook and how professionals can embrace and adapt to the evolving landscape. Join us as we provide a descriptive overview of the upcoming year, highlighting key trends, opportunities, and strategies to navigate the dynamic environment. Get ready to discover the transformative potential of the 2024 outlook and prepare yourself for the possibilities that await.

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Transforming Nonmember Customers into Loyal Members: Unlocking Association Success

Unlocking Association Success: Transform Nonmembers Into Loyal Members
Reading Time: 4 minutes

This article first appeared in Sidecar as Are Your Members Your Best Customers?

Your Nonmember Customers May Be Your Best Future Members

How to grow engagement? It’s a law of nature in marketing: Your best prospect is the customer you already have. Research consistently shows that it costs six to seven times more to get a new customer than to keep one, and in membership terms, smart associations understand what that means for retention. A dollar spent on retention goes much further than a dollar spent on recruitment.

It goes further than current members, too. Your second-best customers are likely to be your lapsed members – strange as it may sound. Members who have left you may be the easiest to recruit again because they know you, and you know them, which is half the battle in acquisition.

However, are these the only groups that associations should be thinking about to grow engagement? What about your nonmember customers?

Looking Beyond Your Membership To Grow Engagement

Are members your only customers? The answer is no, but most associations don’t think that way. After all, they’re membership organizations, and members matter most. While that might be true, they’re not the only ones who matter.

What about all the others you serve who are not members? People who attend your events, take your training, buy your publications, and more? These are your nonmember customers.

Unfortunately, associations don't cultivate customer relationships and leave a lot of money on the table.

Understanding The Impact of NonMember Customers

In purely financial terms, these customers are possibly more valuable than most of your members. How? Someone who attends two to three events each year, every year is probably contributing more revenue than a member who simply pays their dues. They will probably be more loyal than unengaged members, too. “But they should become members!” you say. Of course they should. They might be your best prospects of all. After all, non-member customers know you, have a relationship with you, and get value from you. More importantly, you know who they are and how to talk to them. They should be prime targets for recruitment, and they are. One large engineering association tested marketing specifically to non-member customers and found they responded three to five times better than the general market.

The Challenge for NonMember cUSTOMER Engagement

But what if they don’t want to be members? This is where most associations fall down. They push the non-responders to the side and move on to the next prospective member. In reality, there is plenty of upside in growing those non-member relationships. The people most likely to come to an event are those who come to other events. People who like your events will likely enjoy your training and vice versa.

Unfortunately, associations don’t think this way, so they don’t cultivate customer relationships and leave a lot of money on the table.

Associations make significant investments in technology to manage their member relationships: to communicate with, engage and renew them. Very few make similar investments in managing non-member customer relationships.

Building a Customer Engagement Plan

The first part is hard for most associations. Events, training, subscription, and membership data are usually not kept in one place. If they are, they are generally not looked at with a single view of the customer, namely, the big picture of their relationship.

The first step would be to figure out how many customers you have. If you add up all of the people who have transacted with you in the last five years, including lapsed members, how big is your audience? Your customer universe will likely dwarf your current membership. How much untapped growth opportunity is there?

If you think of membership as one opportunity among others for nonmember customers,
you unlock many new avenues to deliver value and grow engagement.

Consolidating Customer Data

The first part is hard for most associations. Events, training, subscription, and membership data are usually not kept in one place. If they are, they are generally not looked at with a single view of the customer, namely, the big picture of their relationship.

The first step would be to figure out how many customers you have. If you add up all of the people who have transacted with you in the last five years, including lapsed members, how big is your audience? Your customer universe will likely dwarf your current membership. How much untapped growth opportunity is there?

Setting Goals for NonMember Customer Interaction

The second part of managing a customer relationship is making it into what you want it to be. What do you want from your customers besides membership? Is it to maximize revenue right now? To cross-sell your offerings? To grow engagement and repeat business? Only managed customer relationships achieve these things. Unfortunately, that is what most associations leave on the table.

Making the Most of Your Association’s Relationships

While many associations only focus on their members, a customer-centered strategy is just a mental leap away. You have thousands, if not tens of thousands of relationships today with customers who will never be members. So how will you make the most of them?

If your best prospects are the customers you already have, your best customers are the ones you treat like customers. If you think of membership as one opportunity among others for nonmember customers, you unlock many new avenues to deliver value and grow engagement.

Unlocking Growth: Embracing Organizational Membership for the Future

Embrace Organizational Membership: Unlocking Growth For The Future
Reading Time: 4 minutes

This article was first published in Associations Evolve: 2023 & Beyond

Organizational Membership: The Future Of Membership Growth

Group Membership is Not a Growth Strategy

Many associations have “group” membership, which usually amounts to a modest volume discount, sometimes with a single invoice. The idea is that companies will want to pay for their employees’ memberships if they get a price break and a convenient way to pay. Unfortunately, these group membership plans do not do very well and are mostly an afterthought in the membership strategy. 

The problem is that companies don’t want to pay for any employee’s membership. Or at least far fewer companies do. Most organizations stopped paying employees’ membership dues when times got tough and never started again. Eventually, organizations realized it was unnecessary since employees who really want a membership are willing to pay for it themselves. 

Organizational Membership is the New Path to Growth

Organizational membership is an entirely different value proposition. It is a B2B offering designed with the executive decision-maker in mind. Discounts on individual memberships are but a part of it. The real magic in the offering is a distinct set of benefits that speak to the needs of the executives who make the decision. These are things that benefit the company and the executives themselves. 

What kinds of things? They must be things that have demonstrable financial value and elevate the decision-maker’s profile. They could include: 

There are two things to note about this list. First, these are things that only the association can provide but doesn’t offer now. Second, they have real bottom-line value to a corporation at a minimal cost to the association to deliver.  

This kind of offer works because it is a great business decision for the company. It has clear value and is easy to justify financially. 

Organizational Value is Worth Far More Than Dues

Associations think about dues, which is exactly right for the individual lens and dead wrong for organizations. Why? The value to the organization is not a matter of how many employees they sign up for membership; it is the tangible financial impact they will receive. How much is $1 million in savings worth to an organization? 

Corporations expect to pay for things this way—the greater the value, the more things cost. In organizational membership, larger companies generally get more value than smaller ones and thus pay more. A large organization might pay $100K for that $1 million in value. A smaller one might get less and so pay less. 

This value-based pricing is uncomfortable for many associations, but it is critical to effectively selling organizational memberships. 

An Explosive Growth Opportunity

A prominent medical society Sequence worked with launched an organizational membership with overwhelming success. They designed the membership for large health systems that employ physicians. They offer a suite of benefits, including inside access, publicity, burnout prevention, early access to residents for recruiting, and free continuing education. In addition, all of the physicians in the system are eligible for individual membership at no cost. 

The cost is value-based, ranging from a flat fee of $15k for smaller systems to $100K for large ones. The price does not depend on the number of individual memberships. Health systems sign up for the tangible financial value they receive. 

In the first year, 5,000 new physicians came in through enterprise membership, so many that they had to pause the program because they could not onboard them fast enough. Some of the largest systems have enrolled as many as 15K physicians. The association projects that more than half of its new members will join through organizational membership in a few years.

The Key is to Sell It the Right Way

What were the keys to success? First, an incredibly attractive set of benefits based on thorough research. Second, a convincing financial case. Finally, and most importantly, sales. 

Organizational membership is a B2B sale. It takes time and skill to reach and persuade the right buyers. In this case, it meant a sales resource dedicated to building this program, armed with the quality of sales materials executive buyers expect. It also meant solid executive support: the CEO will personally engage with executives at large systems to help convince them.  

Their vision and investment paid off. Other Sequence clients have had equivalent success with organizational membership programs custom-tailored for their markets. For example, the Executive’s Club of Chicago doubled its membership in three years after rolling out a new Enterprise Member value proposition. 

In another example, SAE International launched a subsidiary focused solely on the needs of companies in their industry and grew their non-dues revenue ten times over.  

How to Minimize the Risk

While the payoff can be very substantial, it can come with some risks. One concern is how much it might “cannibalize” individual membership. The risk is that organizational membership might ultimately decrease net revenue by offering discounted memberships to individuals who would have paid full price. 

It is a valid question that one can answer with good data analysis. Unless market penetration is exceptionally high, the revenue gains will outweigh the discounts in most cases. 

There is also a risk that big groups that join at once might leave at once, creating excessive volatility in membership. To reduce this risk, one can mitigate this with thoughtful multi-year contracts that include extended notice provisions and other safeguards.

The Future of Membership Growth

For many associations, individual membership has reached a plateau. Growth is meager, despite their best efforts, and it is unrealistic to expect big jumps in growth from doing the same old things. A new model is needed.  Organizational membership allows associations to repurpose assets they already have to enter a new market where they have an immediate competitive advantage — and do so at a very low cost. The revenue and membership growth opportunities are significant. Too significant not to explore seriously.

For more on membership growth strategy see Association Success: 7 Ways to Thrive Not Just Survive.

Mastering Membership Marketing: 5 Game-Changing Breakthroughs You Need to Know

Mastering Membership Marketing 5 Game Changing Breakthroughs You Need To Know
Reading Time: 5 minutes

This article first appeared in Associations Now as “Five Breakthroughs in Membership Marketing

It's Time for a Breakthrough in Membership Marketing

Traditional membership marketing is predictably low return and has stayed the same for years. Most associations were slow to adopt email marketing when it came on the scene in the mid-90s. Today, 85% of associations use email, and 48% say it is one of their most productive channels.12022 Membership Marketing Benchmarking Report,
Marketing General
Still, click rates remain low, on average less than 2%.2Average Industry Rates for Email as of April 2023, Constant Contact

Many associations have delved into social and digital advertising but have failed. Only 14% say social media is effective, and 10% say the same of paid digital.

The good news is that membership marketers can expect a lot better. We have recently tested innovations in membership segmentation, targeting, messaging, and advertising that performed four to nine times better — in one case, twenty-seven times better — than the old-school tactics they replaced.

1. FOCUS ON YOUR "CUSTOMERS"

As I have written previously, your members are not your only customers. Your organization has relationships with many other people who interact with you differently. They attend your events, take your training, and write for your journals. One client calls them “ghost members,” people who are with you in spirit but not in membership.

It is a truism in marketing that your best prospect is the customer you already have. Why? On the one hand, they know you, so you don’t have to work hard to introduce yourself. This is even more important than you might think. Most associations have less than 35% awareness across their trade or profession.
Moreover, your customers see you as valuable in some way, so you don’t have to do so much to convince them. Most importantly, you know them. You know who they are and what they like, which is more than half the battle in marketing.

If true, your non-member customers should be your best membership prospects. But are they? We tested sending the same emails to a list of non-member customers and a rented email list of cold contacts. The emails sent to non-member customers performed 8.6X better than emails sent to cold lists. Not to mention, the rented list was expensive, and the customer list was free.

What does this tell you? First, you should be marketing membership to your non-member customers. But also, you should be actively cultivating your list of those customers by capturing opted-in emails at every touchpoint you can.

2. LAPSED MEMBERS CAN BE YOUR EASIEST NEW MEMBERS

In a previous article, I explained why lapsed members are an even more under-tapped audience. Most associations move on from members who don’t renew after a month or two. Some may try to win them back but then give up. This is often short-sighted. 

Lapsed members do ghost members one better: They not only know your organization, they know your membership experience and saw value in it when they joined. Members don’t lapse because they hate you. They lapse because they don’t see your value at that moment. 

Are lapsed members a lost cause, or can you remind them of your value and bring them back again?

At the American Lung Association (ALA), 75% of their donor file had been dormant for as long as two years. Historically, ALA had forgotten about them and focused all their efforts on finding new donors.

We helped ALA develop an email campaign that built on what ALA knew about these donors, namely, what they cared about. Of all ALA’s great work, people gravitate to four significant issues: clean air, lung health, and smoking cessation. They sent messages that spoke to lapsed donors about what they cared about – and only what they cared about – inviting them to be part of the solution again.

The result? In one year, they reactivated 7% of their lapsed members. In two years, ALA grew their donor file by 50% — over 600K active donors – by focusing on long-forgotten lost causes.

3. SEGMENT BY INTERESTS

A significant reason for ALA’s success was segmentation by interest. Sending clean air messaging to people they knew to care about clean air was many times more effective than their old, unfocused messaging. As we have found before, organizations do not segment their messaging or segment based on career stage or employment setting, which is seldom effective.

In another powerful example, we helped American Medical Association (AMA) analyze their member data to arrive at four interest-based segments: Advocacy, Practice Improvement, Patient Outcomes, and Medical Education. Segmenting their marketing this way helped triple their member growth in one year.

This is one way targeting your customers and lapsed members can pay off big. Because you know their interests, you can segment them effectively. In our most recent test, a leading engineering society used data they had collected on “ghost” members to identify the specific technical interests of their prospects. It tested interest-based messaging against their standard “generic” messaging. The interest-specific messages performed four times better than the generic ones.

4. Make EMAIL PERSONAL AGAIn

Email is the mainstay of many membership marketing programs, but it has become less effective as people have tuned email out. Of the nearly 145 billion emails sent daily, 84% are considered spam. A full 54% of email users delete or ignore spam.3What Percentage of Email is Spam In 2023?, Earthweb  You don’t think your membership emails are spam, but your prospects probably do because it looks like commercial email.

People like personal email, however, and a more personal approach to membership email can be far more effective. In another recent test, we sent a series of emails to prospective members that appeared to come from a well-known member of the society (with their permission, of course). The subject line was personalized, and the body of the email was a short, personal invitation to join the organization.

This straightforward approach has powerful results when done correctly. In our test, people clicked through personal emails twenty-seven times more often than impersonal messages and enrolled five times more often.

5. take another look at digital

At the beginning of this article, I pointed out that most associations need better results from digital advertising. Traditional banner and search ads are expensive, and the results could be better. Newer, less conventional advertising can be far more effective when correctly integrated with email campaigns.

All major digital advertising platforms (Google, LinkedIn, Meta) can target custom audiences. That is, provide them with a list of individuals you want to reach and advertise only to them. Because it is so targeted, it is a far more efficient way to advertise. We have found that the most effective way to use custom audiences is to support your email campaigns.

Using this approach, prospects who receive your emails are exposed to your digital ads simultaneously. The ads increase awareness and offer another way to respond, improving the success of your campaign.

In one recent test, we created a custom audience on LinkedIn comprised of prospective members identified using the tactics discussed above. These individuals received membership marketing emails and were exposed to LinkedIn ads simultaneously.

The emails with digital ad support performed 22% better than emails without digital help. Because LinkedIn ads are pay-per-click and the primary purpose of the test was to drive email response, the cost of the ads was significantly lower than a stand-alone digital ad campaign.

LinkedIn also offers Sponsored Messaging, which allows you to reach prospective members in your custom audience via direct messages that appear to come from another LinkedIn member. In another recent test, we sent personal messages to a custom audience, like the personal emails discussed above, personally inviting prospective members to join the organization.

This tactic yielded open rates as high as 56% — more than seven better than traditional emails sent to the same list. This approach was far more efficient than regular LinkedIn ads, yielding three times more click-throughs at only 6% of the cost.

Conclusion

These next-level membership marketing techniques deliver transformational membership results. New ways of targeting the best prospects, segmenting your audience, and reaching them in new ways with new messages can revolutionize recruitment. Best of all, they are well within reach of any association that wants to take their marketing to the next level.

Cracking the Code: How to Turn Your Customers into Your Best Members

How To Convert Customers Into Loyal Members
Reading Time: 3 minutes

Are Your Members Your Best Customers?

It’s a law of nature in marketing: your best prospect is the customer you already have. Research consistently shows that it costs six to seven times more to get a new customer than to keep one, and in membership terms, smart associations understand what that means for retention. A dollar spent on retention goes much further than a dollar spent on recruitment. 

It goes further than current members, too. Your second-best customers are likely to be your lapsed members – strange as it may sound. Members who have left you may be the easiest to recruit again because they know you, and you know them, which is half the battle in acquisition. 

However, are these the only groups that associations should be thinking about? 

Looking Beyond Your Membership

Are members your only customers? The answer is no, but most associations don’t think that way. After all, they’re membership organizations, and members matter most. While that might be true, they’re not the only ones who matter. 

What about all the others you serve who are non-members? People who attend your events, take your training, buy your publications, and more? These are your non-member customers. 

Understanding the Impact of Non-Member Customers

In purely financial terms, these customers are possibly more valuable than most of your members. How? Someone who attends two to three events each year, every year is probably contributing more revenue than a member who simply pays their dues. They will probably be more loyal than unengaged members, too. 

“But they should become members!” you say. Of course they should. They might be your best prospects of all. After all, non-member customers know you, have a relationship with you, and get value from you. More importantly, you know who they are and how to talk to them. They should be prime targets for recruitment, and they are. One large engineering association tested marketing specifically to non-member customers and found they responded three to five times better than the general market.  

The Challenge for Non-Member Engagement

But what if they don’t  want to be members? This is where most associations fall down. They push the non-responders to the side and move on to the next prospective member. In reality, there is plenty of upside in growing those non-member relationships. The people most likely to come to an event are those who come to other events. People who like your events will likely enjoy your training and vice versa. Unfortunately, associations don’t think this way, so they don’t cultivate customer relationships and leave a lot of money on the table. 

Associations make significant investments in technology to manage their member relationships: to communicate with, engage and renew them. Very few make similar investments in managing relationships with non-members.  

Building a Non-Member Engagement Plan

The few who do manage their relationships with non-member customers are generally those that don’t depend on dues revenue. Organizations with hugely successful publications or event businesses, for example, manage their customers well because that is what it takes to be successful. 

You may not be one of those organizations, but there are lessons to learn from them that will help you grow your non-dues revenue streams. So what does it mean to manage a customer relationship? Fundamentally, it means gaining insight into your current relationship and building a strategy for what you want it to be.  

Consolidating Customer Data

The first part is hard for most associations. Events, training, subscription, and membership data are usually not kept in one place. If they are, they are generally not looked at with a single view of the customer, namely, the big picture of their relationship. 

The first step would be to figure out how many customers you have. If you add up all of the people who have transacted with you in the last five years, including non-members and lapsed members, how big is your audience? Your non-member customers will likely dwarf your current membership. How much untapped growth opportunity is there?

Setting Goals for Your Non-Member Interactions

The second part of managing a customer relationship is making it into what you want it to be. What do you want from your customers besides membership? Is it to maximize revenue right now? To cross-sell your offerings? To build loyalty and repeat business? Only managed customer relationships achieve these things. Unfortunately, that is what most associations leave on the table. 

Making the Most of Your Association's Relationships

While many associations only focus on their members, a customer-centered strategy is just a mental leap away. You have thousands, if not tens of thousands of relationships today with customers who will never be members. So how will you make the most of them?

If your best prospects are the customers you already have, your best customers are the ones you treat like customers. If you think of membership as one opportunity among others for customers, you unlock many new avenues to deliver value and drive growth.

This article originally appeared in Sidecar as Are Your Members Your Best Customers?

For an example of explosive growth from non-member customers, see SAE international multiplied non-dues revenue 10 times

Is Your Member Segmentation Strategy Holding You Back?

Member Segmentation: Is It Limiting Your Success?
Reading Time: 4 minutes

Is Your Member Segmentation Strategy Wrong?

This article originally appeared in Sidecar as Is Your Member Segmentation Strategy Wrong?

Most associations segment their membership in the same way: by career stage. So young professionals might be one segment, mid-career folks another, and so on into retirement. They do it this way because it seems obvious and easy – but is there a chance it’s wrong?

When determining whether or not your member segmentation strategy is helping increase member engagement, ask yourself: Do our different segments act differently?

The Problem With Career-Stage Member Segmentation

If career stage has been the category used for your member segmentation, it’s likely been difficult to spot any trends or changes. For example, do mid-career and late-career members respond to different messages or engage with different things? They probably don’t.

Career-stage segmentation does not work because it doesn’t tell you how to treat people differently to get the best response – It is not actionable.

What you need to know is how your audience is different, which often falls into two distinct categories: what interests them and their relationship with you.

These groups were very distinct. For example, many physicians were not interested in advocacy, but those who were were highly passionate. So, talking about advocacy to the wrong people may have led to unsubscribes while talking about advocacy to the right people got an enormous response.

Segmenting By Interests

One of the most effective ways to segment your audience is by interests – after all, people will always respond better to things that interest them. Moreover, some things your association does are far more interesting to certain people than others. So how can you know which things and which people?

For starters, let your email be your guide. Cluster your email by topic and look at which members respond to what. You will begin to see patterns, and that’s where your member segmentation should start.

In an analysis we completed at Sequence for the American Medical Association, we found that there were four principal areas that physicians responded to:

Understanding Interests Through Action

How do you know what people belong in which segment? If you know what emails and content a member responds to, that will tell you. If you don’t, you can analyze your data for “look-alikes.” That is, members likely to respond to advocacy because they look like advocates in other ways. For example, they may open the same emails or visit the same pages. They may even have similar demographics.

Taking it one step further, an outside data shop can also help you use consumer data to segment non-members by interest. For example, the medical society in the story above doubled its member growth rate in this way.

The Loyalty Ladder

The other member segmentation strategy that always applies is how engaged your members are with you. Picture a ladder with your most engaged members on the top. These are your Super Fans. They are longtime members active in everything you do. They are your governance and volunteers. You wish every member were like them.

On the bottom are the unengaged. They joined but have not done anything. These are your Window Shoppers. In between are increasing levels of engagement. Members have more lifetime value at each level and become more likely to renew, so your goal is to move your members up the ladder.

Members at each rung of the ladder will react to different things. But, more importantly, you want them to respond to different things.

This approach allows you to concentrate your resources where they will do the most good and engage the members methodically to increase loyalty.

Don't Ignore Non-Members Either

You can also extend this approach to non-members. People come to your events, subscribe to publications, and contribute to journals – yet they aren’t members. More often than not, these non-member “constituents” make up a larger group than members.

For example, you can look at non-members who attended your event and infer their interests from what they did there or how they are similar to members whose interests you know. Once you have that information, your segmentation strategy can be to send more of those resources via email with a call to action to turn them into members.

Thinking about non-member interactions as rungs on the ladder allows you to walk them up to a membership.

Member Segmentation In Action

You do not have to choose between these approaches. Some of the most successful associations combine these segmentation strategies to attract new members and increase loyalty as effectively as possible. A winning acquisition and retention strategy allows interests to guide messaging and loyalty to inform offers.

It used to be that only the largest, data-savvy associations could achieve this kind of member segmentation. That is not true today. Better technology makes data analysis easier and cheaper every day, even in-house.

Could you be doing your member segmentation wrong? There is no reason not to start doing it right.

Mission-driven Membership Growth: Strategies That Work

Effective Strategies For Mission-Driven Membership Growth
Reading Time: 3 minutes

How Can You Make Your Mission Drive Membership?

Associations are “mission first” in word and often in deed. Yet many lead less and less with their mission to revitalize their membership. Instead, enhancing member value and experience has been the guiding light for association growth. Rightly so. We often reduce the mission to believing that “what’s in it for me” is the only key to nonprofit marketing success in membership messaging. Guided by research, many organizations have sought to imitate for-profit marketers. They promote “features and benefits” and enticing offers that often disappoint expectations and don’t drive membership.

Some of the best-performing associations are doubling down on their missions. They know that personal alignment with the mission creates feelings of belonging and influence, which drive membership in ways that no transaction can. It builds increased relevance and growth. Your mission is the one competitive advantage to drive membership for which there is no for-profit alternative.

Millennials are skeptical, with a very high bar for trusting a brand. They demand authenticity, consistency, and shared values. They want opportunities to participate. Brands that meet these requirements get rewarded with emotionally invested, long-term customers. Aspects of this mindset cross generations. A recent survey found that:

Your association can drive membership by recognizing the millennial mindset and adopting it in your marketing strategy.

Appeal to Self-Directed Consumers

It’s never been faster or easier to research products and brands before buying. Comparison shopping extends beyond price and reviews. It now includes corporate practices on a host of social issues. There are even apps developed to help consumers do exactly that. Good on You rates fashion brands’ impact on people, animals, and the environment. Good Guide scores over 200,000 products on health, environment, and social justice. The power to buy based on beliefs is at consumers’ fingertips. [3]

Self-direction also extends to charitable giving. In response to the 2016 flooding in Louisiana, GoFundMe users raised more than $11M through more than 6,000 flood-related campaigns. The Salvation Army only raised $4M, in contrast. These micro-campaigns were about individuals and families with compelling, relatable stories. They dovetail perfectly with the Millennial mindset.

Market your mission, then act on it. Doing so will prove to the self-directed consumers of today that your association is serious about their beliefs.

Leverage Technology to Drive Membership

Technology makes it possible to research purchases and choose causes with great specificity. It also allows consumers to shift allegiances immediately. Providing a consistently positive brand experience has never been more critical. The growing adoption of voice assistants forces businesses and nonprofits alike to figure out yet another way to connect. Google awarded $25M to a proposal to use AI to tackle some of the world’s most significant social, humanitarian, and environmental challenges. With moves like this, we can only expect the rate of change to increase.[4]

Connecting with members through the channels they use most will allow your association to highlight your mission and encourage members to be an active part of it.

Technology makes it possible to research purchases and choose causes with great specificity. It also allows consumers to shift allegiances immediately. Providing a consistently positive brand experience has never been more critical. The growing adoption of voice assistants forces businesses and nonprofits alike to figure out yet another way to connect. Google awarded $25M to a proposal to use AI to tackle some of the world’s most significant social, humanitarian, and environmental challenges. With moves like this, we can only expect the rate of change to increase.[4]

Connecting with members through the channels they use most will allow your association to highlight your mission and encourage members to be an active part of it.

Your mission — to advance a field, protect your people, and make the world better – is your most powerful platform to connect with members. It should be an emotional rallying point that inspires action and invites belonging. The best way to do that is to attune to the Millennial mindset. By highlighting real people and their stories, you put a human face on how you serve them. That lets members see themselves in your picture.

From Mediocre to Memorable: Elevate Your Nonprofit’s Brand with These 3 Steps

Elevate Your Nonprofit Brand: 3 Steps To Memorable Success

Reading Time: 3 minutes

Think Fast: What is Your Nonprofit Brand Strategy?

It is not just a mission or vision. A nonprofit brand strategy is how your organization shows up in the world, and how you want existing and potential members to see and feel about you. It is a promise about who you will be to them, and a promise they expect you to fulfill.
Far more than a logo or tagline, a great brand strategy is a compass by which you navigate your future.

Our research has shown that most organizations never think about their brand promise, but high-performing organizations are invested in their brand strategy and intentionally orient to it in every big decision they make.

Our most recent research report found that 4 out of 5 organizations that came through 2020 the strongest did so by explicitly leaning into their brand promise as the No. 1 yardstick of what they would and would not do.

So, how can you create your own nonprofit brand strategy?

Step 1: Build a Pyramid

When building your brand strategy from the ground up, think about it taking the shape of a pyramid, with a line drawn in the middle from top to bottom.

On one side of the pyramid, you have the rational aspects — the “thinking” reasons a member would join. That is, your value exchange of benefits. Most organizations stop there with a list of what members get for their dues; that’s important, but it is only half of your brand story.

On the other side of the pyramid, you have the emotional aspects of your strategy — the “feeling” reasons members are drawn to you and want to belong. These are harder to think about but they are actually the first reasons members are drawn to you. It is why they even consider the benefits you offer. People want to belong, to connect, to have a sense of identity, to feel influential. How does your organization feel for potential members? How does it feel to belong?

The way the rational and emotional converge at the peak of the pyramid is your brand promise. It should boil down to one clear, compelling umbrella statement that ties everything you do together.

For example, Subaru tells us that “Love is what makes a Subaru a Subaru.” Everything they say and do shows they don’t only care about making you love your Subaru, they care about supporting you in loving your family and community, as well. Subaru owners know that and they feel that. As a result, Subaru has some of the most loyal customers in the world.

Great association brands have that power, too.

Step 2: Show, Don’t Tell

Think about your brand promise and ask yourself, why should members believe you?

What do you do every day that “pays off” on that promise? Our research shows that for more than 80% of associations, the overwhelming majority of members don’t really know what the organization does. But when they do learn about it, their feelings are far more positive and they are much more likely to belong.

Think about your “proof points” – strong, simple examples of how you deliver on your promise to your members. The most powerful proof you have is the great work you do. Most organizations underuse it. Tell stories about how you make a difference. Don’t just tell them who you are, show them.

Let’s go back to our Subaru example. Subaru shares not just their safety awards but stories of how their cars have protected real people. They show you examples of people doing what they love because their Subaru made it possible. They show you that love really does make a Subaru a Subaru.

Highlighting your proof points makes your brand tangible and relatable. It helps your members “get” you and makes them feel drawn to know more.

Step 3: Live It

How do you put your promise and your proof points to work?

Sure, you show it on your website but it goes much further than that. Your brand is not just about how you talk. It is about the things you choose to do. A great brand lives its strategy. Their people feel it and believe it and put it to work every day as they serve their members. This becomes crystal clear in times of crisis when tough choices must be made. The strongest organizations ask themselves out loud “What is the best way to keep our brand promise?”

Before the crisis, the American Medical Association rebuilt their nonprofit brand strategy around the promise to be: “The Physician’s Powerful Ally in Health Care.” They have 20 clear and compelling proof points of how they do that in their work fighting the opioid crisis, reducing hypertension, advocating for physician confidentiality and fair reimbursements, and much more. They make sure physicians hear them and give them reasons every day to believe them. Their renewed brand focus has led to a massive shift in physicians’ perceptions of AMA — and their strongest member growth ever.

The power of a strong nonprofit brand strategy is just one of the success lessons in our most recent research. You can read more about nonprofit brand strategy and other lessons in our full report.

This article originally appeared Sidecar as 3 Steps to a Great Nonprofit Brand Strategy