The Big Secret: Why Associations Matter

What is an Association? More Than You Think

So, what exactly is an association? At its core, it’s a nonprofit where thousands—or even hundreds of thousands—of people unite around a common cause. Whether they’re fighting diseases, advancing industries, or supporting professions, associations exist to drive progress and serve the public good. In the US alone, there are over 40,000 associations, touching every imaginable sector.

From pharmacists and realtors to horse owners and software engineers, associations shape the spaces they serve. Without them, industries would lack the collaboration and standards that make innovation possible. And yes, while some associations may seem niche—like those for pet sitters or gravestone studies—each plays a crucial role in elevating the areas they represent.

Our association clients serve millions of members around the world and touch the lives of nearly every person on the planet. Like oxygen, you may never notice, but you would if they were gone.

Our association clients serve millions of members and touch the lives of nearly every person on the planet. Like oxygen, you may never notice them, but you would if they were gone.

Associations Impact: The Unsung Heroes of Everyday Life

Think about the device you’re holding right now. The network it’s connected to, the electricity powering it, and the software running on it all exist thanks to standards set by volunteers in associations. These organizations ensure that technology works seamlessly and that cars, planes, and even household appliances are safe.

The ethical guidelines followed by your doctor, lawyer, or accountant? Published by associations. The certifications that keep your mechanic, realtor, or therapist up to date? Administered by associations. Nearly all the continuing education that sharpens professionals’ skills? Also driven by associations. Without these organizations, professions—and the standards they rely on—wouldn’t exist.

Associations don’t just touch the workplace; they bring scientific and academic breakthroughs to life. They publish research, share knowledge, and foster innovation. The American Chemical Society, for example, maintains SciFinder, a database of every known molecule, supporting the entire field of modern chemistry. Essential resources like that exist in medicine, psychology, and many other fields, all supported by nonprofit membership organizations. Associations impact is everywhere, often quietly unnoticed.

Bringing People Together: The Power of Associations

Associations aren’t just about standards and education—they’re about people. Every year, more than 50 million individuals come together at association conventions and events. These gatherings fuel the exchange of ideas, create business opportunities, and ignite innovation across every sector.

Beyond events, associations fund research, drive community service programs, and lobby governments for policies that benefit the public. Whether advancing scientific discovery or improving policies that impact everyday life, associations work behind the scenes to push society forward.

Whether advancing scientific discovery or improving policies that impact everyday life, associations work behind the scenes to push society forward.

When We Realized Associations Change Everything

Our first client was AARP, the largest association in the US represents millions of older Americans, advocating for their rights, providing critical resources, and helping them stay active and informed.

When we worked with AARP, we helped them rethink how to engage their diverse member base more effectively. From understanding the unique needs of aging populations to modernizing their member benefits, we saw firsthand how AARP’s mission to improve the lives of older adults creates real, positive change in society.

Watching AARP invest deeply in services to provide even more value to millions of people showed us the transformative power associations can have. They’re not just helping individuals—they’re helping entire generations.

That’s why we love what we do. Every day, we support associations as they tackle society’s biggest challenges. By helping them grow their membership and amplify their associations impact, we know our work is improving industries, communities, and people’s lives.

To Associate Is Human: It’s In Our DNA

To associate is human—it’s in our nature to collaborate, share, and work toward something bigger than ourselves. In the US, this legacy goes back to 1766, when the Medical Society of New Jersey was founded to improve healthcare—a mission it continues today.

At their best, associations represent who we aspire to be—working together selflessly to solve problems, push progress, and make the world better. According to ASAE’s 2023 Impact Study, associations contributed over $100 billion to the US economy, employing more than a million people and supporting countless industries, from healthcare and education to technology and public service.  

This commitment to service and innovation makes associations a vital, though often overlooked, part of modern life.

At their best, associations represent who we aspire to be—working together selflessly to solve problems, push progress, and make the world better.

For more on Associations Impact, please Forget Unicorns, Think Platypi: Why Associations Are Better Than Corporations   and The Seven Habits of Highly Effective Association Leaders.

We’ve all heard the saying, “Clients get the consulting they deserve.” At Sequence Consulting, we’ve seen firsthand how successful consulting relationships are built through trust, collaboration, and clear communication. In our 23 years of consulting, great clients inspire our best work by embodying these qualities. Let’s explore how you can create a successful consulting relationship to get the best results from your consultant.

A Client Success Story: How to Foster a Successful Consulting Relationship

Exceptional consulting isn't just about the consultant's expertise. It's about the partnership that happens when both sides are committed to excellent outcomes.

10 Steps to Build a Successful Consulting Relationship

• Be Open: Transparency is the foundation of any successful consulting relationship. Be willing to listen to new ideas and embrace different perspectives.
• Be Direct: Your feedback is invaluable to us. Don't hold back – tell us what you like, don't like, and want to see changed.
• Be Collaborative: True collaboration is essential for creating a successful consulting relationship. When clients and consultants work closely, the results are always better.
• Be (Gently) Demanding: You're making a significant investment and deserve exceptional results. Set high expectations, but remember that the best solutions often emerge through flexibility and open communication.
• Be a Champion: While we're the experts on the problem, you're the expert on your organization. Help us navigate internal dynamics, rally support for the project, and bring the right people on board.
• Be Reasonable: We're always willing to go the extra mile, but remember that scope creep can derail a project. Let's work together to prioritize and focus on the most impactful efforts.
• Be Responsive: We know you're busy, but your timely responses keep the project moving forward. Your engagement sends a powerful message about the importance of this work.
• Be Growth-Minded: Embrace change. Be willing to experiment, learn, and evolve. Your commitment to growth will inspire us to push boundaries and deliver truly transformative solutions.
• Appreciative: We're passionate about delivering value and helping you succeed. Your positive feedback motivates us and helps us understand what makes you tick.
• Be Optimistic: You hired us because you believe in the power of change. Believe we can make change possible, and we'll work tirelessly to solve your toughest challenges.

For more on successful client relationships please see Sequence Consulting’s Articles & Research page and What the Very Best Clients Do by David A. Fields.

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

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

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

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

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.

1. 2024 iMIS Membership Performance Benchmark Report
2. MGI 2024 Association Economic Outlook Report
3. MGI 2023 Membership Marketing Benchmarking Report

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

The Myth of the Unicorn: Why Your Association Doesn't Need to Be One

In the realm of successful organizations, Silicon Valley’s “purple unicorns” – those rare, highly valued startups like Apple, Amazon, or Google – often steal the spotlight. Their strategic efficiency and innovation engines seem unmatched. Yet, another type of organization, less flashy but equally effective, deserves recognition: associations. Think of them as the platypuses of the organizational world.

While unicorns are celebrated for their mythical allure, platypuses, with their duck-like bills, beaver-like tails, and egg-laying habits, are often misunderstood. Yet, these seemingly bizarre creatures are perfectly adapted to their environments, thriving where others fail. Similarly, associations with unique structures and goals frequently outperform corporate giants in their specialized niches.

Newcomers to association leadership, especially those from corporate backgrounds, might find this surprising. But associations’ seemingly chaotic nature is intentional, and it’s precisely what makes them thrive.

1. The Triple Bottom Line Advantage

Newcomers to the association world, especially those from corporate backgrounds, might find this surprising. But associations' seemingly chaotic nature is intentional, and it's precisely what makes them thrive.

Unlike corporations, where profit reigns supreme, associations dance to the rhythm of a different drum – the Triple Bottom Line. This unique approach to success is an association leadership balancing act that requires juggling three equally important factors:

• • • Mission: The North Star of any association. This is the fundamental reason for its existence, the change it seeks to make in the world. A strong mission guides every decision, from strategic planning to daily operations. It’s the soul of the organization, the driving force behind its work.

    • Member Value: More than just a membership card or a newsletter, member value encompasses the tangible and intangible benefits that members receive. It’s about providing relevant resources, fostering a sense of community, advocating for their interests, and ultimately, enriching their lives and careers. Associations thrive when they consistently deliver value that exceeds member expectations.

    • Money: While not the sole focus, financial sustainability is essential for any association. It enables the organization to invest in its mission, provide valuable services to members, and adapt to changing needs. But money is a means to an end, not the end itself. Associations must always remember that their financial decisions should align with their mission and serve the interests of their members.

The Triple Bottom Line is not just a buzzword; it’s a holistic approach to measuring success. It recognizes that associations have a responsibility to their members, their communities, and the broader world. By focusing on mission, member value, and money, association leadership can create lasting impact that extends far beyond the bottom line.

2. A Conglomerate of Purpose

Associations aren’t monolithic entities like the sleek, streamlined unicorns of Silicon Valley. They’re more like platypuses, a curious amalgam of seemingly disparate parts. Associations are ecosystems of interconnected businesses under a shared mission. This might include membership programs, publications, events, advocacy initiatives, and charitable foundations.

While this structure can lead to siloed efforts, when done right, it creates a powerful synergy where each part contributes uniquely to the overall success. Think of it as a diverse team with specialized skills collaborating towards a common goal. 

This diversity of functions, like the platypus’s varied features, enables association leadership to adapt and address a broader range of needs than corporations typically do.

3. Distributed Power: A Strength, Not a Weakness

Associations often have multiple power centers, with various boards, committees, and volunteer leaders contributing their expertise. This hyper-distributed association leadership might seem chaotic, but it serves a vital purpose.

Associations are not just about achieving goals; they’re about empowering a collective to achieve many diverse goals. Their purpose is to serve the shared purpose of their constituents. This democratic approach ensures that the organization remains focused on its mission and the needs of its members. 

This distributed power structure, like the platypus’s decentralized nervous system, allows association leadership to be more responsive and adaptable than corporations with more centralized leadership.

Associations are not just about achieving goals; they're about empowering a collective to achieve many diverse goals.

4. Consensus as a Superpower: The Art of Balancing Priorities

While corporations streamline decision-making, associations thrive on consensus. This approach may be slower but fosters buy-in, inclusivity, and a deep understanding of diverse perspectives.

Great association leaders understand that their role is to facilitate consensus, even when faced with competing priorities and the complexities of the triple bottom line. It’s a “pathological democracy,” a unique characteristic like the platypus’s electroreceptors, that allows associations to navigate their environments and achieve what other organizations can’t. 

This consensus-driven approach often leads to more equitable and sustainable outcomes than the top-down decision-making common in corporations.

Rather than trying to fit into the corporate mold, associations should embrace their unbusinesslike nature, recognizing that it's their greatest strength and what sets them apart.

The Platypus Paradigm: A New Model for Association Leadership

In the world of organizations, forget the mythical allure of unicorns. Instead, embrace the platypus – the strange, misunderstood creature that thrives where others fail. Associations, like platypi, may appear messy and complex, but their unique structures are what make them resilient, adaptable, and remarkably effective in their own way. 

Their distributed power, consensus-driven approach, and focus on multiple bottom lines enable them to address complex challenges, serve diverse needs, and achieve long-term success. 

Rather than trying to fit into the corporate mold, associations should embrace their unbusinesslike nature, recognizing that it’s their greatest strength and what sets them apart.

For more information on association leadership, please see  Be Unbusinesslike Why Associations Are Better Than Corporations and 5 Essential Leadership Skills for Association Leaders.

Member engagement and retention are the ultimate weapons in the battle for long-term success. Without a loyal and actively involved base, even the most well-intentioned organization can struggle to grow or sustain itself. This article steps up to be your champion in this fight, offering a treasure trove of insights and strategies to turn passive members into enthusiastic participants.

Defining Engagement: Beyond Participation

Engagement goes far beyond the act of simply showing up. It’s a dynamic two-way street where both the organization and its members actively contribute and receive value. This exchange can manifest in many ways, fostering a sense of connection and belonging within a thriving community.

Recognizing this multifaceted nature of engagement is the key to unlocking a more involved and invested membership base. By understanding how members can contribute value, organizations can cultivate a more profound sense of connection and, ultimately, achieve their growth objectives.

Engagement transcends mere participation. It's a two-way street where an organization and its members exchange value.

The Value Hierarchy of Engagements

Not all engagement activities are created equal. On one hand, high-impact, infrequent events like annual conferences offer substantial value. These gatherings provide opportunities for in-depth learning, networking with peers, and fostering a sense of community. However, these events typically occur only once a year, limiting their overall impact on engagement. Conversely, low-impact, frequent actions like receiving newsletters may not generate significant engagement on their own. 

The critical challenge for organizations lies in identifying the sweet spot – activities that contribute most significantly to member value and influence membership renewal. This requires a shift in perspective, moving beyond simply counting the number of engagements to understanding their depth and impact. 

Organizations can uncover hidden gems by analyzing data on member activity and its correlation with renewal rates. For example, volunteering opportunities or participation in advocacy efforts, while less frequent than attending a webinar, might demonstrate a more profound member commitment and positively influence renewal decision.

Measuring Engagement with Precision

While offering a starting point, traditional surveys are limited in capturing the full spectrum of member engagement and retention. Imagine relying solely on surveys to gauge a student’s performance—you might miss valuable insights from class participation or project work. Similarly, surveys can miss subtle engagement cues that paint a more accurate picture.

This is where data-driven analysis enters the game, providing a far more nuanced picture. Organizations can uncover hidden gems by examining the frequency of member activities and their correlation with renewal rates. Think of it like this: Surveys ask members, “How engaged do you feel?” while data analysis shows you, “What actions demonstrate true engagement?” Analyzing website visits, event attendance, volunteer sign-ups, and even content downloads paints a more complete picture of how members interact with the organization.

This data can then be used to create an “engagement scorecard.” This scorecard goes beyond a simple yes/no response and assigns a value to each activity based on its frequency and correlation with member renewal. The scorecard empowers organizations to move beyond a one-size-fits-all approach and tailor their strategies to activities that genuinely resonate with their members, fostering long-term engagement and a thriving membership base.

Not all engagement activities are created equal.

High-Value Engagement Actions: Where the Magic Happens

Certain actions consistently emerge as the heavy hitters of member engagement and retention, offering significant value and fostering deeper connections. These high-value engagements include:

• • Personal interactions through local chapters: Face-to-face interactions in local chapters create a sense of community and belonging. Members can connect with peers, share experiences, and receive personalized support, fostering a deeper loyalty to the organization.
  • Volunteering: Volunteering allows members to contribute their skills and expertise to a cause they care about. This two-way street strengthens member commitment and builds a stronger sense of ownership within the organization.
  • Advocacy efforts: Participating in advocacy campaigns allows members to collectively have their voices heard on issues that matter to them. This active participation fosters a sense of purpose and strengthens the bond between members and the organization they represent.
  • Interestingly, recurring engagements like specialized insurance purchases also rank highly as high-value actions.

This finding challenges the conventional wisdom that discounts and one-off events are the key to member engagement and retention. While these tactics still have a place, the data suggests that members value benefits that seamlessly integrate with their daily lives and provide ongoing value.

Strategies for Supercharging Member Engagement and Retention

Enhancing member engagement and retention requires a strategic shift, starting with a comprehensive audit of your current offerings. Think of it like revamping your product line – you need to identify what resonates with your members and what’s gathering dust on the shelf. This audit analyzes member activity data and its correlation with renewal rates. By understanding which activities generate high engagement and contribute most to member retention, you can prioritize these “star performers.” 

On the other hand, the audit might reveal some low-engagement benefits. These could be generic discounts on unrelated products or access to infrequently used resources. Instead of clinging to these underperformers, organizations should consider strategically reallocating resources. Phasing out low-engagement benefits frees up valuable budget and human resources that can be channeled towards more impactful initiatives.

Organizations can create a balanced engagement portfolio by prioritizing high-value benefits and strategically reallocating resources. This portfolio caters to diverse member needs and preferences, ensuring a year-round engagement cycle that keeps members actively involved and invested in the organization’s success. Imagine a membership experience that goes beyond one-off events – it’s a dynamic ecosystem offering ongoing value, fostering continuous interaction, and ultimately driving member retention.

Engagement for New vs. Tenured Members

Engagement strategies shouldn’t be a one-size-fits-all approach. Like nurturing a plant, member engagement thrives when tailored to the member’s lifecycle stage.

New Members (First 90 Days): Imagine a new member as a seedling – full of potential but needing careful attention to establish strong roots. This is a critical period for setting the stage for long-term engagement. Organizations should implement a targeted onboarding program during the first 90 days. Techniques like personalized welcome emails, phone calls, or access to online resources like FAQs or video tutorials can empower new members with the knowledge they need to navigate the organization’s offerings. 

Tenured Members: Think of tenured members as established trees that provide shade and stability to the organization. However, even established trees need occasional pruning and care to flourish. For these members, the focus shifts towards deepening their connection and maximizing their value to the organization. Targeted email series can be used to share exclusive content, industry updates, or member success stories, demonstrating the organization’s value proposition and keeping them actively involved. 

By tailoring strategies to each lifecycle stage, organizations can nurture a thriving membership ecosystem, fostering ongoing engagement and loyalty from both new and established members.

The ultimate goal is to construct a high-engagement portfolio that maximizes member value and drives renewal rates.

Building a Thriving Engagement Portfolio

The ultimate goal is to construct a high-engagement portfolio, a collection of membership benefits and programs that truly resonate with your members. By prioritizing engagement, you can maximize the value members perceive from their membership, ultimately driving renewal rates and securing a loyal base.

Here’s how this approach works:

• • Member-centric focus: Shift the focus from simply offering benefits to strategically evaluating each based on its ability to drive member engagement and retention. This means understanding what truly motivates your members and prioritizing benefits that align with their needs and interests.
  • Data-driven decisions: Don’t rely on guesswork. Utilize surveys, feedback mechanisms, and analytics to score each benefit based on engagement value. This data will guide you in allocating resources towards the most impactful offerings.
  • Enhanced member experience: Members who find value and purpose in their membership are more likely to stay engaged. A high-engagement portfolio fosters a sense of satisfaction and belonging, leading to a more positive overall membership experience.
  • Organizational growth: A high-engagement portfolio prioritizes member needs and fosters loyalty, resulting in a stronger organization. Increased retention rates mean sustainable revenue streams, which in turn fuel the further development of member-centric programs and services.

Conclusion: A Blueprint for Success

Member engagement and retention isn’t a one-size-fits-all tactic; it’s a dynamic and multifaceted process. Think of it like cultivating a thriving garden – you need to understand the soil, choose the right plants, and provide ongoing care. Similarly, successful member engagement and retention requires a strategic and data-driven approach.

These insights offer a valuable blueprint for revitalizing organizations’ engagement efforts. By fostering a deep understanding of your members and prioritizing high-impact activities, you can cultivate a vibrant and engaged membership base that thrives for years to come.

Call to Action

Evaluate your organization’s current member engagement and retention strategies and consider implementing the abovementioned approaches. Focusing on high-value engagements and strategically enhancing your engagement portfolio can lead to sustained growth and a more engaged membership base.

For more information on member engagement and retention, please see Unleashing Member Engagement: Overcoming The 3 Biggest Challenges and Your Complete Guide To Increase Member Engagement.

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The old way of doing things isn’t cutting it anymore. Traditional association 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 association 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.

The Vacation Home Analogy

Second societies are like vacation homes. No one needs a reason to stay home this weekend, but they need a reason to make the trip to the lake house. It needs something pretty special you can’t get at home or by going to a hotel. A great vacation home fills a white space in your life. You go there to get something you don’t get someplace else. It doesn’t have everything, but what it does have is special. Not to torture the analogy, but a great vacation home has the right to win your free time.

Your Right to Win

So, how do you get the right to win? Wee Willie Keeler, one of the best baseball hitters ever, said it best: “Keep your eyes clear and hit ‘em where they ain’t.” In other words, find the white space and offer something your competitors can’t. A lot of what you do may overlap with others. Ask yourself what doesn’t. What can you do that others in your space cannot?

For example, one Sequence client was focused on urban development, a space with professionals from many walks of life: developers, investors, urban planners, and so on. Many members belonged to nine or more associations to meet their professional needs. So where was the white space? It became clear that this association was the only place all those different people could come together to solve problems. They alone could convene those kinds of curated, trusted environments, so much that their most exclusive work groups cost thousands of dollars, which members line up to pay.

A lot of what you do may overlap with others. Ask yourself what doesn’t. What can you do that others in your space cannot?

Another Sequence client was in the food space, serving scientists and technicians from dozens of different disciplines, who, on average, belonged to four or more associations. They found their right to win in the space between all those scientific fields. They could provide connections, community, and trusted information that cut across the entire industry, something members needed badly, and no one else could provide. This allowed them to double down on the white space and stop doing things other societies did better that had little value for the organization.

Conclusion: A Winning Member Value Proposition

Successful organizations embrace their not-first-choice position and go all-in on well-defined spaces where they have a clear right to win. The key to finding that winning member value proposition is understanding what your members need that no one else is giving them and meeting it in a way only you can. If you become world-class at doing that, your association will thrive.

For more on creating a winning member value proposition, please see From Ordinary to Extraordinary: Crafting Irresistible Member Value in 4 Steps and Six Ways to Show a Strong Member Value Proposition.

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.

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.

For more on association management trends, please see  Ten Ways to Future Proof Your Membership  and Top 20 Association Trends to Watch and Take Advantage of in 2024.

Transforming Membership Marketing with AI

AI-generated content and sophisticated data-driven marketing strategies are transforming how associations attract and retain members. By analyzing vast datasets, AI tools can pinpoint the most effective messaging and channels for different membership segments, optimizing marketing efforts to resonate with the intended audience. In a competitive landscape, this ability to tailor marketing strategies can significantly impact membership growth.

For instance, an association leveraging AI for membership marketing saw a 15% increase in new member acquisition within the first year. By employing continuous A/B testing and analyzing member data, the association identified key messages and channels that appealed to potential members, streamlining their marketing strategy for maximum impact.

This method allows associations to test various engagement strategies and membership models without risking real-world fallout.

Informing Strategic Decisions

Beyond operational efficiencies and marketing, AI-powered data analytics play a crucial role in strategic decision-making. For example, dues sensitivity analysis helps associations find the sweet spot for pricing, balancing financial sustainability with perceived value. Loyalty driver analysis, on the other hand, uncovers factors that affect member retention, guiding enhancements in value propositions and engagement strategies.

A trade association conducted a loyalty driver analysis using AI, identifying key services that were most valued by their members. By focusing on these areas, the association improved its retention rate by 18% over two years.

Conclusion

The integration of AI into association management heralds a paradigm shift towards more efficient, personalized, and strategically informed operations. By automating tasks, enhancing member services, personalizing communications, revolutionizing marketing efforts, simulating member behavior, and aiding in strategic decisions, AI technologies offer a comprehensive suite of tools for associations ready to embrace the future. As we continue to explore and integrate AI, associations are poised to meet the evolving needs of their members more effectively, ensuring sustained success in an increasingly digital world.

For more on AI in association management, please see:  2024 Association Outlook: Embrace the Change.

We conducted research with top executives from leading organizations that navigated the pandemic experience successfully with lasting results. Here is what we learned.

Member Renewal Best Practices

A Bespoke Research Study By Sequence Consulting

We conducted in-depth research with ten highly prominent organizations with renewal-based business models to understand member retention best practices and benchmarks across industries. 

Participating organizations included associations, publishers, financial services, and philanthropic organizations. 

To learn more about member renewal best practices see The Art of Member Retention: 3 Essential Strategies and Membership Retention and Renewals: Strategies, Processes, and Tips

This article first appeared in Sidecar as “Be Unbusinesslike: Why Associations are Better Than Corporations”

Name a model organization. What did you think of? It is probably a corporation exuding strategy and efficiency with an engine of innovation and progress, like Apple, Amazon, or Google. You probably don’t think of an association; they have little in common with the corporations typically held up as beacons of organizational success. But is that a bad thing?

Up-and-coming association leaders from corporate backgrounds are often shocked and bewildered by how their new organization works. They may ask themselves, “How does anything get done here at all?“

But anyone familiar with the association space knows that things do get done; not only that, but they also get done well, and associations are built the way they are for a reason. The best leaders understand the things that make associations unique and often challenging, are also what make them successful.

So, how do you recognize and embrace those opportunities and become a wiser and more effective leader?

1. THERE IS MORE THAN ONE BOTTOM LINE

Corporations work towards one bottom line: profit. Ultimately, a corporation exists to make money; the more you make, the better you are. Conversely, associations have three bottom lines to manage simultaneously – Mission, Member Value, and Money.

Each is just as important to the organization’s success as the last. As an association, you’re failing if you’re only good at one of these things. Great associations work at the intersection of these strategic imperatives, harmonizing their efforts in each area to maximize their results. If done well, the whole is greater than the sum of the three parts.

2. ASSOCIATIONS MUST BE MANY THINGS AT ONCE

Associations are one organization in name only. They’re not one organization but a conglomerate of businesses that share a mission and brand. Associations might have a membership business, a publishing business, an events business, an advocacy firm, and a charitable organization all under the same roof. Each of these businesses has different goals that sometimes intersect but often don’t.

In its worst form, this manifests as working in silos, each organization doing its own thing and never mind the others. In its best form, it comes to life as a strong independent organizations uniquely contributing to the same triple bottom line.

It’s the difference between Frankenstein’s monster and a duck-billed platypus. Frankenstein’s monster is built from parts that don’t go together, resulting in something ugly and frightening and a platypus, part beaver, part duck, part who knows what looks so strange you might think it was fake. But it’s exquisitely adapted to its Tasmanian environment in a way no other creature is.

If the Googles and Amazons of the world are the “purple unicorns,” associations are the platypi. Unicorns are sexy, but they don’t do so well in the wilds of Tasmania.

3. POWER IS HYPER-DISTRIBUTED

Associations have more goals and faces than corporations – and more bosses, too. In a company, business units report to executives, who report to boards, who report to shareholders, all focused on their single bottom line. Associations may have many hierarchies and power centers. The publications business may have its executive team, membership may have its executive team, and the foundation will be a separate corporation altogether.

If this were not complex enough, the executives report to a board of volunteers (there may be more than one of those, too). These boards often have committees- often lots of committees–overseeing the association’s work in great detail. Finally, volunteer leadership changes all the time, as often as every year, and a new set of leaders comes in with their ideas.

On the face of it, this is madness. What sane person would contrive such an organization? A rational person who truly understood the role associations play.

The role of an association is not to achieve goals. It’s to empower many people with one shared purpose to achieve many different goals together. An association’s purpose is to serve its constituents’ shared purpose. It does not matter if the work gets done if it loses sight of that purpose or leaves people behind.

4. AN ASSOCIATION'S SUPERPOWER, CONSENSUS

If you did not know better, you would think associations are badly broken versions of corporations begging for re-engineering. In over two decades of working with associations, I have rarely come across an organization that is not convinced they are seriously defective in some way. Some of these are the most influential associations on the planet.

And while associations are messy and maddeningly complex, often slow and inefficient, for a reason – it allows them to be great at what they do.

So, how do they get anything done? In the most unbusinesslike way possible: consensus. Great association leaders maintain a loose, flexible consensus that balances all the competing priorities and the triple bottom line. It is often slow and only sometimes pretty. Some call it “Pathological Democracy.” But being unbusinesslike makes associations the only organizations capable of doing what they do.

Strong associations and strong leaders own their mess and complexity. They embrace the need for endless consensus-building. They combine their many far-flung efforts to drive all three of their bottom lines – mission, membership, and money- in harmony. They are unbusinesslike. And proud of it.

This article first appeared in Associations Now as “Baby Come Back! How to Win Back Lapsed Members and Why You Should”

Learn common reasons why members leave their associations and creative strategies to pull them back in for the long term.

When a member leaves, it doesn’t mean goodbye forever. Members who have walked away may be the easiest ones to get back. Most organizations turn to recruiting new members to fill gaps in enrollment, but since they don’t already know you, this group is more challenging to convert. You have much convincing to do before they’re ready to sign on.

Meanwhile, for every four or so new members you get, you lose one existing member who doesn’t renew. Let’s put it this way—if your retention rate is 75 percent, you must replace a quarter of your membership with new members every year before you see any growth.

If you want to boost enrollment, your organization’s best bet is improving retention. Engaging new members immediately when they join is the key to cultivating an engaged base that renews without a second thought.

Despite your best efforts, some members are bound to leave. The keys to getting them back are how long you offer them opportunities to renew and how well you understand their needs.

IT's NOT YOU; IT'S ME

Ask yourself why members leave. The odds are that it’s not personal. Research reveals that the top reason for nonrenewal is usually “I didn’t see the value in membership” (followed by “I just forgot to renew.”) Lapsed members aren’t disgruntled. They’re just disinterested—for now. As often as not, losing a member is not about you. Maybe membership with your organization is a classic case of “right person, wrong time.” The best examples of this are recent graduates and young professionals; while they might not need their association right away, they frequently rejoin seven to 10 years later when it makes sense for their career.

PLAYING THE LONG GAME

But you’ve already asked, and they said no, right? On average, we’ve found that the most successful organizations start renewal campaigns 3.9 months before the membership in question expires. Throughout that period, they invite that member to renew 7.1 times. Even after being offered every opportunity to renew, some members still don’t. Why bother to keep trying? Because these same successful organizations keep asking for over a year after a member lapses, sending 5.8 more invitations to rejoin. And it works.

If you focus on what your members care about, your chances of creating a loyal base that renews repeatedly are strong.

Nonmembers who know you, like lapsed members, are far more likely to respond to your invitations than anyone else. In one of our recent tests, nonmembers who had previously engaged with the organization in any way were six times more likely to respond than those who never had.

Lapsed members know you. At one point, they saw the value in membership, whether they experienced it or not. With lapsed members, you don’t have to make any introductions. You need to find the right way to make the ask.

But you’ve already asked, and they said no, right? On average, we’ve found that the most successful organizations start renewal campaigns 3.9 months before the membership in question expires. Throughout that period, they invite that member to renew 7.1 times. Even after being offered every opportunity to renew, some members still don’t. Why bother to keep trying? Because these same successful organizations keep asking for over a year after a member lapses, sending 5.8 more invitations to rejoin. And it works.

YOU KNOW EACH OTHER

This brings us to the next point: You know them, too. If you track member data (and if you don’t, you should), you have information about what your lapsed members are interested in. What did they open, download, or attend as members? That information is the key to bringing them back. Time and again, tests show that the most effective membership messaging is segmented by interest. Engage with members on things they care about, and they’ll respond.

This is especially true for lapsed members who already know you and need a reminder of the unique value you have to offer them. For example, 75 percent of previous American Lung Association (ALA) donors had not engaged in over a year. Initially, ALA thought donors cared about over 30 things. Upon close inspection, they found that their base was focused on three significant areas: lung health, clean air, and smoking cessation.

ALA immediately increased email engagement by 50 percent by tailoring their messaging to these three interests. Although many of their donors had lapsed for over two years, ALA reactivated 7 percent of their file in one year. In two years, they reactivated 300,000 donors and grew their active file by 50 percent. (See How We Helped American Lung Association Grow Their Base 50%)

By understanding what individual members care about and tailoring your messaging accordingly, this massive growth is within reach for your organization.

The Way Forward TO WIN BACK LAPSED MEMBERS

But will they stay this time? If you focus on what your members care about, your chances of creating a loyal base that renews repeatedly are strong.

If your association is like most, your audience is not infinite. Only so many people can join, many of whom are already members. Many have never been. In between sit people who were once members but are no more. Treating the middle ground like your best prospects is a winning formula for growth.

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.

For more on how to grow engagement see: Member Engagement: Three Big Problems and Three Ways to Fix Them and How To Improve Member Engagement.

Is Your Association Leaving Money On The Table?

Most associations face concerns about increasing membership dues. It’s common to hesitate due to the length of time since the last increase, a lack of rational framework for determining dues, or uncertainty about members’ willingness to pay more. However, it’s essential to realize that many associations share these apprehensions. The fear of members leaving or feeling unfairly charged can create undue stress for associations. 

In reality, though, associations are often more worried about dues increases than their members are. By following a few simple guidelines, you can successfully raise dues with minimal resistance from your members.

The Best Financial Decision You Can Make

Increasing membership fees is a wise financial choice. Why? Firstly, every additional dollar of dues directly contributes to your overall profit. It brings in more revenue without any extra expenses. The benefits accumulate over time. A dues increase generates additional income for years to come. A 5% increase today will result in a significant 60% rise in revenue over a decade. This can be a game-changer for many associations.

Above all, it’s a fair decision. In any good relationship, there should be a balanced exchange of value. You receive what you pay for, and you pay for what you receive. Member relationships are no exception. As professionals, you provide substantial value, and it’s only reasonable for your members to contribute accordingly. They operate their businesses in the same manner.

To effectively raise dues and gain support from your members, your organization should consider three essential steps. These actions will help you determine the appropriate dues level and provide a solid justification for the increase.

A 5% increase today will result in a significant 60% rise in revenue over a decade. This can be a game-changer for many associations.

1. Know Your Benchmarks

Profitability is a crucial benchmark for any organization, including nonprofits. Ensuring that your revenue from dues surpasses the cost of serving your members is essential. Understanding the “Cost to Serve” metric is vital—it encompasses the total expenses associated with providing membership benefits. Surprisingly, many associations have yet to calculate this and are often taken aback when they do.

Another important benchmark is comparative pricing. It is helpful to know what similar organizations charge their members. While you may not have direct competitors, likely other organizations are catering to the same members or providing comparable benefits. This knowledge can aid in making informed decisions about dues increases.

A thorough market analysis of dues structures serves two purposes: firstly, it provides insight into the market’s willingness to accept the current dues rates. Secondly, it assures you and your Board that any potential change in dues structure is reasonable and justifiable, minimizing the risk associated with a dues increase.

However, when considering member research, caution is advised. It is widely acknowledged in market research that individuals do not always follow through on what they express, mainly when it concerns pricing. Their opinions may differ when answering a survey compared to when they have to make a payment.

Determining price sensitivity can be complex and costly, often requiring more advanced techniques like conjoint analysis. This method involves assessing individuals’ willingness to pay for different benefit bundles, allowing for the identification of the value of each item within the bundle and helping to determine the optimal price.

More expensive economic techniques, such as yield analysis, can also provide reasonably accurate predictions of membership levels at different dues rates. While this information is interesting, it may not be necessary for all organizations. Only the most risk-averse boards, seeking expert reassurance that higher dues will not negatively impact membership, may find such techniques essential.

When considering a dues increase, it is essential to carefully assess price sensitivity using appropriate methodologies to avoid potential negative consequences.

2. Stop Putting It Off

Gradually raising membership dues yearly, typically by 3-4% to account for inflation, is a sensible approach. Failing to do so means falling behind the inflation rate. Consider a real-life example where a client only increased dues once (by 6%) over 17 years. Eventually, they realized that catching up with inflation required a whopping 43% dues increase. It’s quite a challenging situation to rectify.

Now, let’s discuss the implications of postponing dues increases. Smaller, understandable increases like 1.5% require little explanation. However, a sudden 15% increase will naturally demand some clarification. Think of it as the “boiling the frog” analogy applied to member dues. If you have consistently prepared your members for regular, gradual increases, they will accept them without fuss. On the contrary, if you have conditioned them to not expect any increases, it becomes more challenging to implement them.

Is there such a thing as “too much”? A general guideline suggests that a maximum 10% increase at once would prevent significant member complaints. While spreading out the increases over multiple years may seem like a way to soften the impact, it might not yield substantial benefits while potentially leaving money on the table. Often, a rational, transparent narrative of “more value for more dues” is required to bring members on board.

Don’t underestimate your members. Take, for instance, a trade association that had long avoided raising dues for fear of alienating their corporate partners. However, after thorough research and consideration, they decided to increase rights for certain members by up to 50%. Surprisingly, the members expressed gratitude, as they felt guilty for paying so little, considering all the association had done for them.

While I can’t guarantee your members will express their gratitude, rest assured that an uptick in dues is likely something they anticipate.

Gradually raising membership dues yearly, typically by 3-4% to account for inflation, is a sensible approach.

3. Make A Dues Increase About Value, Not Price

It may have been quite some time since you last raised your membership fees. The services and benefits you provide to your members have evolved significantly since then. You may have introduced improvements or new offerings, enhancing the overall member experience. Additionally, you may now offer compelling new content. These enhancements contribute to the added value that justifies a dues increase.

Indeed, as your costs rise, it becomes necessary for dues to follow suit. While members understand this, it may not precisely thrill them. However, they will undoubtedly be excited about the new value they will receive from your organization. If you can effectively demonstrate your increased value, they will be much more willing to pay a higher dues amount.

When considering a dues increase, it can be an excellent opportunity to showcase the new value you have created. By discussing your various benefits and value, your members will appreciate hearing it all at once. Additionally, a dues increase can be a perfect time to enhance member value by bundling additional benefits into their membership. This approach generates extra revenue and demonstrates visible new value to your members when requesting higher dues.

A Membership Dues Increase Need Not Be Something To Fear

Dues increases are an essential financial necessity, and there’s no need to worry. By thoroughly researching benchmarks, incorporating them regularly, and connecting them directly to member value, you can consistently enhance revenue without adversely affecting your membership.

For more on association pricing strategies see Association Pricing: 3 Ways to Drive More Value, and Should You Increase Membership Dues?

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: 

• Positive PR in publications highlighting the great things their organization is doing
• Access to advocacy and policy leaders to be in the know and have their voices heard
• A seat at the table on an Executive Advisory Council with the CEO
• Help in recruiting employees with exclusive data and priority promotional opportunities
• Substantial savings on education and events they have to pay for (e.g., continuing ed, training events)

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.

The Real Reason Members Don't Renew Membership: They Don't Know What You Do

Membership surveys consistently indicate that the primary reason for non-renewal among members is a perceived lack of value. The common factors cited by members who don’t renew membership often include lack of engagement, value, or return on investment (ROI). This raises the question: “What do they want us to do?” But the real question is: “What do they think we do?”

A prominent medical society, facing challenges in delivering member value like many others, posed this question and received a startling response: Members knew almost nothing about most of the work the association did. Shockingly, only 20% of established physicians were aware of any other offerings from the association besides the journal. Consequently, they failed to grasp the value of their membership because they were unaware of the association’s other valuable resources. As a result, they lacked a compelling reason to renew membership.

Members knew almost nothing about most of the work the association did. Shockingly, only 20% were aware of any other offerings besides the journal.

Members don't need new things to make them renew

The main question was this: “How would their perception change if they were aware?” To explore this, they experimented. They engaged in discussions with doctors about the organization and its impactful contributions. These discussions were titled “Twenty Minutes With Tim” (pseudonym). They believed that spending twenty minutes with any physician would be sufficient to persuade them to become members and renew their membership. We explained everything the organization did to improve the lives of doctors and their patients, most of which they had never heard of before. Subsequently, they asked if these physicians would consider joining or renewing. Almost all of them said they would. 

The key takeaway is that members weren’t asking for anything new or different. They weren’t expressing any dissatisfaction with the organization’s current efforts. Instead, they weren’t aware of all the organization’s great work that served their interests. The real challenge lay not in coming up with new offerings but in effectively showcasing the exceptional offerings they already had. 

You must align with how members perceive value

Not every member gives you twenty minutes. Sometimes, you only have twenty seconds while they quickly scan your email or post. Naturally, you might feel inclined to overwhelm them with a long list of everything you do or desperately try to direct them to your website for more information. But even if you’re already doing these things, chances are you’re still struggling to make an impact. Your current methods aren’t effective because they don’t align with how members perceive value.

Think about those classic diners with extensive menus boasting hundreds of options. Do you read the entire menu? Or do you skip to the dishes you like and ignore the rest? It can be off-putting when you must put in so much effort to find what you want. While your organization is not a diner, you might unintentionally imitate one by bombarding your members with information, hoping they’ll find something they like. So, how can you simplify your offerings when everything you do is genuinely valuable?

 

members don't renew just for transactions

Twenty Minutes With Tim revealed an important insight: not all members prioritize transactional value, where it’s a give-and-take relationship. Some members are interested in benefits and discounts, while others have different concerns. These individuals focus on improving patient outcomes, challenging insurance companies and pharmaceutical giants, and enhancing their practices. What’s intriguing is that these members aren’t searching for mere deals; they seek an ally.

The organization possesses a wealth of information that aligns with members’ interests. They have achieved remarkable accomplishments and obtained impressive results. When members become aware of these endeavors, they recognize the value and find a compelling reason to renew membership for themselves and their profession and patients. They perceive the organization as an ally worth supporting, thus motivating them to continue their membership.

Associations find themselves wondering, "What do they want us to do?" The real question is, "What do they think we do?"

If you want them to renew membership, tell them what you do for them

In response, the organization rolled out a bold new strategy that made what they learned in Twenty Minutes With Tim into a campaign. It put physicians front and center in the membership brand, and reinforced the things the association did that doctors cared about most. It included “proof points,” real stories of things the association had accomplished for doctors to make the case that membership was for them. In just one year, this innovative membership brand and marketing strategy  tripled the rate at which new members joined the association. (To learn more, read The Power Of Strategy: How AMA Achieved Exponential Member Growth.)

Countless organizations face a similar challenge. Frequently, associations find themselves wondering, “What do they think we do?” It becomes clear that their members really have no idea what their association does and that therein lies the root cause of why members don’t engage and don’t renew membership. 

What do your members think YOU do? The answer could be the real reason members don’t renew.

 

For more insights on why members don’t renew, see: From Ordinary to Extraordinary: Crafting Membership Offers They Can’t Refuse and Membership Renewal Strategy: The Top 6 Reasons Your Members Don’t Renew.

Organizations often claim to have strong member focus, but how can they be sure they truly are? It’s easy to assume alignment with member needs, but testing that alignment is a critical exercise. Here are two practical ways to evaluate whether your organization genuinely prioritizes its members and maintains a strong member focus.

1. The Member Test: Seeing Through Their Eyes

To pass the Member Test, your organization must consistently put itself in its members’ shoes. This means understanding their challenges, aspirations, and how your offerings align with their needs. Consider these steps to ensure a clear member focus:

• Engage Directly: Conduct member surveys and interviews to gather feedback about their priorities and satisfaction with your programs and services.

• Create Personas: Develop detailed member personas to represent key segments of your audience, ensuring their needs and goals guide your decisions.

• Audit Your Offerings: Review your programs, events, and benefits to assess how well they address member priorities. Are they solving real problems or adding tangible value?

For example, a regional medical association realized through member interviews that rural healthcare providers felt isolated and unsupported. In response, the association launched a virtual peer network where members could share resources, discuss challenges, and access specialized training. This initiative strengthened the association’s member focus and bridged a significant gap for rural providers.

Another example comes from a professional society that discovered its members wanted more real-world applications of industry research. The society responded by creating practical toolkits and case studies that applied research findings to day-to-day work, resulting in a measurable increase in member satisfaction.

Aligning with member needs enhances engagement, which in turn strengthens loyalty and drives growth

2. The Mission Test: Aligning Action with Purpose

The Mission Test evaluates whether your organization’s activities align with its mission. A misalignment often signals a drift from member focus, as the mission should encapsulate why your organization exists and whom it serves. Here’s how to apply this test to ensure a mission-driven member focus:

• Revisit Your Mission Statement. Ensure it clearly reflects member-centric goals. Is it still relevant to today’s members’ needs?

• Evaluate Resource Allocation: Review your budget and staffing to confirm alignment with mission-critical initiatives. Are you investing in areas that deliver the most value to members?

• Assess Program Impact: Measure whether your offerings advance the mission in ways that benefit your members. Programs that fall outside this scope might require reconsideration.

For instance, an engineering association with a mission to “advance innovation in sustainable design” noticed that its flagship journal focused primarily on theoretical research. Members, however, wanted more content on practical, implementable solutions. The organization restructured its editorial priorities to include applied case studies and industry best practices, ensuring alignment with its mission and reinforcing member value.

Similarly, a nonprofit association serving educators identified a disconnect between its mission to “equip teachers for success” and its outdated professional development offerings. The association realigned with its mission by shifting resources to develop online, on-demand courses tailored to specific teaching challenges and significantly increased member engagement.

Why These Tests Matter

The Member Test and the Mission Test are essential tools for ensuring your organization remains grounded in member priorities. When you pass these tests, you create a virtuous cycle: aligning with member needs enhances engagement, strengthening loyalty and driving growth. This unwavering member focus can set your organization apart in a competitive landscape.

The Member Test and the Mission Test are essential tools for ensuring your organization remains grounded in member priorities.

Next Steps: Putting the Tests into Action

Here’s how to start:

1. Survey Your Members: Use tools like surveys or focus groups to gather insights into their current needs. Strong member focus begins with listening.

2. Audit Your Activities: Review your programs, events, and communications using the Member Test and Mission Test to ensure alignment.

3. Adjust Strategically: Make data-driven decisions to align offerings with member priorities and your mission, ensuring consistent member focus.

Final Thoughts

Being truly member-focused requires more than good intentions; it demands deliberate effort and consistent evaluation. By implementing the Member Test and Mission Test, your organization can stay aligned with what matters most—your members.

Are you ready to test your member focus? Start small, and the results will speak for themselves. A member-focused organization is stronger and better equipped to fulfill its mission and thrive in the long term.

To read more about member focus, please see How to Make Membership An Offer They Can’t Refuse and “Focus on Members Who Love You Most.”