How to Implement a New Membership Model

16 Jul 2021 6:30 AM | Brett Jeffery (Administrator)

Even before the pandemic, many associations were beginning to realize that adapting to the needs of members meant implementing a new membership model. The pandemic has just accelerated that need for some associations. Developing a new membership model is no easy task, but staying the course has its own risks, especially now. Below are four key recommendations your association should consider when undertaking this endeavor.

In Start with your value proposition: Switching to a new membership model is a great way to improve retention and growth. Still, even a great model alone will not increase the tangible and intangible value your membership provides. Without membership value, a new membership model cannot succeed.

Exploring a new membership model should start with evaluating your value proposition. Does your association’s value proposition need to be updated, expanded, or merely repositioned? There are several signs of a weak value proposition:

  • Usage of key product lines is decreasing
  • Engagement is low or declining
  • Members indicate the value of membership is lower than the cost of dues
  • Former members cite lack of value as the main reason for not renewing

If a weak value proposition is the starting point, then improving the value of membership becomes a critical component of building a new model.

Alternatively, the value of membership may be strong, but awareness and usage of that value are low. A new membership model can enable your association to reposition its value proposition, emphasizing the value in a way that resonates with former and prospective members, as well as current members.

Focus on retention: While expanding to new markets and maximizing member growth are often the impetus for a new membership model, retention of current members should not take a back seat, particularly in light of COVID-19’s impact on many industries. When you consider the cost to acquire and onboard new members far exceeds the cost of retaining current ones, associations should make retention a priority in a new membership model for the sake of current and future revenue stability.

While expanding to new markets and maximizing member growth are often the impetus for a new membership model, retention of current members should not take a back seat.

Moreover, with companies’ and people’s budgets tightening because of the pandemic, members who drop membership now might be less likely to return. In other words, former members might be less willing to give your association a second chance if membership value doesn’t meet their expectations or needs during this crisis.

Know your total addressable market: If one of your primary goals of a new membership model is growth, then it is crucial to understand your current market share and total addressable market. A common mistake some associations make when creating a membership model is overestimating their market by assuming the entire universe of their profession will want membership when that may not be true.

Related to understanding market size is understanding the competitive landscape. Are many prospective members getting their professional needs met by another association? Does your association have value to meet this audience’s unmet needs? Be ambitious when exploring new audiences but also realistic when measuring your market.

Finally, consider how the size of your market may change in the future. Is the profession your association serves thriving during the pandemic, with plenty of future members coming down the pipeline? Or has the pandemic made things less certain? Both your current and future market potential should factor into the model you choose and the risk your association is willing to undertake.

Don’t let fear of change be debilitating. Every new model has risks, but so does your association’s current membership structure. Sheri Jacobs, FASAE, CAE, CEO & President of Avenue M Group, often shares the following advice when talking to risk-averse associations about their membership models: “Making no change is also a choice, and it’s a risky one.”

Matthew Cavers, Senior Director, Research and Consulting, and Emily Thomas, M.Phil., Senior Research Consultant, are with Avenue M Group, a global, full-service marketing research and consulting organization with in-depth expertise in driving member growth, increasing revenue and building brands. Learn more at www.avenuem.org. This article was originally published in Associations North’s Focus North magazine.



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