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Growing Your Association through Innovative Membership Models

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Developing new membership models take a long term marketing concept called product line extension and apply it to an association’s membership product. Many associations are moving away from a traditional “one size fits all” membership and instead offering a portfolio of membership options that allow a prospect to select a package that best meets their content needs and budget. New membership models range from a tiered membership structure, to group membership, to an option for selecting either individual or organizationally based membership package. Properly deployed, these new models can help an association increase member engagement, numbers, and revenue.

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Growing Your Association through Innovative Membership Models

  1. 1. Growing your Association through Innovative Membership Models
  2. 2. Introduction • Tony Rossell, Senior Vice President • Marketing General Incorporated • Seventy Five (75) staff members • Vice Chair of the ASAE Membership Section Council • Writes the Membership Marketing Blog • Started the MGI Membership Marketing Benchmarking Report • Contributing author to ASAE’s Membership Essentials (2008) and Membership Marketing (2000)
  3. 3. Selecting a Growth Strategy Status Quo Market Expansion Product Expansion Diversification Markets Products Current New New Current
  4. 4. Product Line Extension “Adding depth to an existing product line by introducing new products in the same product category; product line extensions give customers greater choice and help to protect the firm from a flanking attack by a competitor.“ The Marketing Dictionary
  5. 5. A Data Source 5
  6. 6. 36% 35% 15% 1% 13% 70% 15% 5% 2% 9% 49% 19% 19% 3% 11% The membership dues are based on certain attributes (e.g., qualifications, experience, company size, revenue) Everyone pays the same membership dues The membership dues are based on a tiered structure of increasing benefits The membership dues are based on member-selected benefits (a la carte) Other Individual (n = 346) Trade (n = 223) Combination (n = 197) Dues Structure by Membership Type
  7. 7. Tiered Membership
  8. 8. Going “Economical” – Basic Membership
  9. 9. Going “Mainstream” – Full Membership
  10. 10. Going “First Class” – Premium Membership
  11. 11. Organizational or Hybrid Membership
  12. 12. Going “My Way”– Organizational Membership/Hybrid
  13. 13. MEMBERSHIP TYPE BY STUDY YEAR 2014 (n = 886) 2013 (n = 693) 2012 (n = 643) 2011 (n = 643) 2010 (n = 404) Individual Member 44% 48% 54% 49% 54% Trade 28% 30% 28% 36% 28% Combination 26% 20% 15% 13% 17% Other 2% 2% 3% 2% 1%
  14. 14. MEAN MEMBERSHIP RENEWAL RATE Less than 80% renewal 80% renewal or higher Individual Member Trade Combination Mean 64% 88% 76% 85% 80% Median 70% 88% 80% 88% 82%
  15. 15. Online E-Membership OR Freemium Membership
  16. 16. • Going “Green” – Online Membership
  17. 17. Over the past decade “freemium”—a combination of “free” and “premium”—has become the dominant business model among internet start-ups and smartphone app developers. Users get basic features at no cost and can access richer functionality for a subscription fee. If you’ve networked on LinkedIn . . . . you’ve experienced the model firsthand. Harvard Business Review, May 2014
  18. 18. Group Membership
  19. 19. • Going “Together” – Group Membership
  20. 20. We Need More Revenue… 2009 2015 Challenge: Industry Merger 2011 2014 2015 2020 $ $ ?
  21. 21. What can get us there • Individual Memberships – $75 for Individual Members • Training Courses – More than 30 online training courses • Leadership Programs – 2 week long leadership programs
  22. 22. The Original Plan • Partner Funding – Pay an upfront “dues” fees to further discounts • Minimum number of members required – 25% of total workforce had to be members • Benefits of this “Fund” – Input into our programs – Discounts on programs – Specialized Reporting • LAUNCH IT WITH NO INPUT OR FEEDBACk
  23. 23. The Original Plan Backlash • Partner Funding Has No ROI – We always get questions on our value proposition • Membership Minimum Not an Option – 25% of total workforce had to be members • Biggest Benefit of this “Fund” was the most damaging – All members expected to be listened to • Some Positives…Everyone liked the discounts and specialized reporting
  24. 24. Going From Old to New • Define What Makes a Partner – Spend significant dollars with us • What Does Our Current Data Say? – Identify organizations that we could identify as partners • Level the Playing Field of Partnership – Ensure that all companies can be a partner, regardless of size • Vet the Program with the Industry – Get Feedback on value, partner benefits • Set Internal Goals to Remain Focused On – New Goal was about engagement
  25. 25. The New Plan • Spending Thresholds Established – Spending for Partnership Dependent on the Org Size • Show the Historical Data – Let Organizations Understand What They do with Us Already • Simplify Further Engagement – Create “Account Executives” to Present Partnership • Incentivize Future Involvement – Provide benefits to get more involved • Create Internal Tracking – Understand if our Partnerships are working
  26. 26. ORGANIZATION X: SCTE INVOLVEMENT 2014 Corporate Alliance Partner Historical Spend with SCTE (Membership, Online Training, & SCTE Leadership Institute) Year Membership Dues Total Members Online Training Registration Fees Online Total Individuals Trained SCTE Leadership Institute Total Spend 2014 $32,844 483 $3,873 11 $47,600 $84,317 2013 $33,796 497 $7,333 25 $53,550 $94,679 2012 $34,000 500 $9,584 27 $23,800 $67,384
  27. 27. GCI SPENDING THRESHOLD AND BENEFITS • In 2015, an operator the size of Org X must reach a spending threshold of $75K annually for CAP eligibility. • As a CAP organization, you will receive: • Discounted pricing on Membership, Training and SCTE Leadership Institute Program (See next slide) • Customized communications to employees highlighting approved training/programs • A dedicated SCTE account executive • Dashboard to show employee engagement and involvement
  28. 28. BENEFITS OF CAP • As a CAP member, you can immediately begin taking advantage of discounts on: • Training • Individual Memberships • SCTE Leadership Institute programs Online Course Training Discounts Number of Students 0 - 25 26 - 49 50 - 99 100 - 250 250 - 500 500+ CAP Pricing Discount for On-Demand Training 10% off Member Price 15% off Member Price 20% off Member Price 25% off Member Price 30% off Member Price 35% off Member Price SCTE Individual Membership Types Member Type 1 Member CAP 1 - 200 (5%) CAP 201 - 1,000 (10%) CAP 1,001 - 4,500 (15%) CAP 4,501+ (20%) Individual Member Rate $68 $64.60 $61.20 $57.80 $54.40 SCTE Leadership Institute Program Full Price CAP Discount (5%) Based off of 2014 Rates SCTE-Georgia Tech Management Development Program $5,950 $5,652.50 SCTE-Tuck Executive Leadership Program $10,250 $9,737.50
  29. 29. The Result Pre-Corporate Alliance Program Post-Corporate Alliance Program Memberships 14,000 18,800 Leadership Seats 37 average participants 44 average participants Training Revenue Slightly > $1 M Approx. $2.2 M • Annual Planning Meetings with CAP Partners for Budgeting • Approximately 7 other organizations nearing CAP threshold
  30. 30. Introduction • Addy M. Kujawa, CAE, executive director • American Association of Orthopaedic Executives (AAOE) • Indianapolis, IN • Members: Just under 1,400 • Individual membership • Six (6) staff members • Council Member, Membership Section Council
  31. 31. Why I’m Up Here $- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 2013 2014 2015 Group Spend Membership Spend Additional Spend Total Spend
  32. 32. AAOE - Background • Old boys’ club • Only top level executives • Cliques • Increasing costs of doing business • Reduced reimbursements • Increasing difficulty with insurance companies • Physician changes
  33. 33. Try #1 and Try #2 • 2011: Opened membership…a little – Senior management – Lots of requirements and proof needed of responsibilities – Added affiliate category with limited benefits – Results • 2012: Opened membership…a little more – Mid-level management – Less requirements – Benefits issue – Results
  34. 34. The Third Times the Charm! • Research • Models we explored • Hurdles • Questions we needed to answer • Criteria revamp
  35. 35. Pricing Model • Our (second) pricing model
  36. 36. Dollars and Sense
  37. 37. Dollars and Sense $- $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 2013 2014 2015 Group Spend Membership Spend Additional Spend Total Spend
  38. 38. Lessons Learned • Don’t rush it • Practice your math skills • Communication • Track and correct • Small associations CAN make this change
  39. 39. Contact Us Tony Rossell Senior Vice President Marketing General, Inc. Tony@MarketingGeneral.com Phone: 703-706-0360 Twitter handle:@TonyRossell Bill Schankel, CAE Vice President, Marketing Society of Cable Telecommunications Engineers bschankel@scte.org Phone: 800-542-5040 Twitter handle: @SchankelCAE Addy M. Kujawa, CAE Executive Director American Association of Orthopaedic Executives akujawa@aaoe.net Phone: 317-472-2541 Twitter handle: @AddyKujawa

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