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Member Models and Their
       Relation to
          Value
  in a Time of Change

      Jodie Slaughter, FASAE
  President and Founding Partner
         McKinley Advisors
               And
 Michelle Mason, CAE, FASAE, CQIA
         Managing Director
               ASQ
           #ASAE12 LO1
Membership
 is dead!

 Long live
membership!
Is the annualized trend in full, paid
memberships for your association over the
past 5 years higher, lower or flat?


                          F
Is the annualized trend in full, paid memberships
for your association over the past 5 years:
        CESSE          2012 EIA    2011 EIA      2010 EIA
                                                        44%
                                                34%
           Higher                                       44%
                                                        44%

                                           29%
                                         26%
           Lower                                  38%
                                          28%

                                         27%
                                                 37%
                Flat                18%
                                       23%

                       0%    10%   20%   30%     40%    50%
What do you anticipate will happen with
 membership over the next 5 years?
           forward-looking
Same trend with 5 year forward-looking estimate:
forward-looking
Estimate    CESSE      2012 EIA      2011 EIA       2010 EIA

                                                    67%
                                        44%
      Higher                      34%
                                        44%
                                        44%

                         15%
                                29%
       Lower                   26%
                                      38%
                               28%

                       12%
                               27%
           Flat                      37%
                          18%
                            23%

                  0%    20%       40%         60%      80%
What concerns you most about
membership in your association over the
          next five years?
What concerns you most about membership in
your association over the next 5 years?


 Aging Membership/Attracting                      14
          Youth
    Providing/Communicating                  11
              value
          Membership Model           6

                 Competition     4

Lack of Employer/Govt funding    4

        "Open" Journals / Info   4
65 or older     6%

     55-64                 39%

     45-54             30%          Typical age
                                 distribution of an
     35-44           18%
                                   association’s
     25-34      3%                 membership
 Under 25      1%                     TODAY

              0% 20% 40% 60%
65 or older                39%

     55-64            30%            Forecast age
     45-54           18%          distribution for the
     35-44       9%              same association in
     25-34      3%
                                         2025

 Under 25       1%

              0% 20% 40% 60%
Your Value Proposition



• It’s more than what you say.



• It’s also what you deliver.
How we look to some…


Pay us in advance so that you’ll have lots more to read
and the ability to pay us again for access to things that
may or may not be relevant for you…

      …because it’s the “right thing to do” and you’ll feel
                                        guilty if you don’t.
Customer Value Proposition

                      Job to be done: solves an important problem or
                      fulfills an important need for the target customer

                      Offering: satisfies the problem or fulfills the need.
                      This is defined not only by what is sold but also by
                      how it’s sold.




Adapted from Reinventing Your Business Model; Mark W. Johnson, Clayton M. Christensen, Henning Kagermann; Harvard Business Review, December 2008
Compare:
•Networking Opportunities All Year Long

•Meet Your Next Employer, Client, Hire Here

•Keep Up to Date on Trends in the Field

•Easy Ways to Maintain Your Designation/
License/Credential (so you can keep
working, get business, etc.)
is Subjective
• Demographics can matter
   • Career stage
   • Job setting
   • Level of engagement…
• And sometimes they don’t

Q: What affects value in your
  Organization?
Variable Value




Good of the            Personal
  Order                Benefits
How do you determine member
value in your organization?
How do you know?
•   You have to be curious
•   Look at behaviors
•   Study transactional data
•   Link to demographics
•   Ask the right questions
•   And listen
Your Value Proposition


• It’s more than what
  you say


• It’s also what you
  deliver
Living with a mature model
We typically try build our member
value proposition around our
existing processes and resources…


    …this has acute impact on the
   membership value proposition.
Think about:
 Conference committees

 Website navigation

 Presidential initiatives

 Chapter meetings

 e-newsletters
Some of our processes and
decisions that erode the
MVP:

 Product development
 Pricing
 Brand strategy
 Incentive compensation
 Promotional mix
 Technology platforms
 Service levels
 R&D investment
Think about what you offer:


•   Is available EXCLUSIVELY to members?
•   Addresses ONE job to be done, not ten?
•   Is CHEAPER, FASTER or EASIER to obtain?
•   Is relevant to nearly ALL of your target
    audience?



What do you that fits the bill?
Strategies to Enhance the MVP
•   REWORK internal structures
•   Seek BALANCE in the MVP
•   Focus on the USER EXPERIENCE
•   Determine what can be made EXCLUSIVE
•   Test low/no cost CONTENT alternatives
•   TARGET communications (REALLY)
•   Invest in MOBILE
•   Increase FLEXIBILITY in membership
    policies
What should you do next to
enhance your MVP?
The Half-Full Glass:

•     There WILL be markets and potential members
      to serve in the future.
•     Certain membership drivers are ETERNAL.
•     Membership growth is a LAG INDICATOR of a
      viable customer value proposition.
•     Our challenge is to create a BALANCED AND
      COHERENT value proposition for membership.
Really?



  Really?
Not if you offer unique value
and have the tools to make
        it compelling.

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Member Models and Their Relation to Value

  • 1. Member Models and Their Relation to Value in a Time of Change Jodie Slaughter, FASAE President and Founding Partner McKinley Advisors And Michelle Mason, CAE, FASAE, CQIA Managing Director ASQ #ASAE12 LO1
  • 2. Membership is dead! Long live membership!
  • 3. Is the annualized trend in full, paid memberships for your association over the past 5 years higher, lower or flat? F
  • 4. Is the annualized trend in full, paid memberships for your association over the past 5 years: CESSE 2012 EIA 2011 EIA 2010 EIA 44% 34% Higher 44% 44% 29% 26% Lower 38% 28% 27% 37% Flat 18% 23% 0% 10% 20% 30% 40% 50%
  • 5. What do you anticipate will happen with membership over the next 5 years? forward-looking
  • 6. Same trend with 5 year forward-looking estimate: forward-looking Estimate CESSE 2012 EIA 2011 EIA 2010 EIA 67% 44% Higher 34% 44% 44% 15% 29% Lower 26% 38% 28% 12% 27% Flat 37% 18% 23% 0% 20% 40% 60% 80%
  • 7. What concerns you most about membership in your association over the next five years?
  • 8. What concerns you most about membership in your association over the next 5 years? Aging Membership/Attracting 14 Youth Providing/Communicating 11 value Membership Model 6 Competition 4 Lack of Employer/Govt funding 4 "Open" Journals / Info 4
  • 9. 65 or older 6% 55-64 39% 45-54 30% Typical age distribution of an 35-44 18% association’s 25-34 3% membership Under 25 1% TODAY 0% 20% 40% 60%
  • 10. 65 or older 39% 55-64 30% Forecast age 45-54 18% distribution for the 35-44 9% same association in 25-34 3% 2025 Under 25 1% 0% 20% 40% 60%
  • 11. Your Value Proposition • It’s more than what you say. • It’s also what you deliver.
  • 12. How we look to some… Pay us in advance so that you’ll have lots more to read and the ability to pay us again for access to things that may or may not be relevant for you… …because it’s the “right thing to do” and you’ll feel guilty if you don’t.
  • 13. Customer Value Proposition Job to be done: solves an important problem or fulfills an important need for the target customer Offering: satisfies the problem or fulfills the need. This is defined not only by what is sold but also by how it’s sold. Adapted from Reinventing Your Business Model; Mark W. Johnson, Clayton M. Christensen, Henning Kagermann; Harvard Business Review, December 2008
  • 14. Compare: •Networking Opportunities All Year Long •Meet Your Next Employer, Client, Hire Here •Keep Up to Date on Trends in the Field •Easy Ways to Maintain Your Designation/ License/Credential (so you can keep working, get business, etc.)
  • 15. is Subjective • Demographics can matter • Career stage • Job setting • Level of engagement… • And sometimes they don’t Q: What affects value in your Organization?
  • 16. Variable Value Good of the Personal Order Benefits
  • 17. How do you determine member value in your organization?
  • 18. How do you know? • You have to be curious • Look at behaviors • Study transactional data • Link to demographics • Ask the right questions • And listen
  • 19. Your Value Proposition • It’s more than what you say • It’s also what you deliver
  • 20. Living with a mature model We typically try build our member value proposition around our existing processes and resources… …this has acute impact on the membership value proposition.
  • 21. Think about:  Conference committees  Website navigation  Presidential initiatives  Chapter meetings  e-newsletters
  • 22. Some of our processes and decisions that erode the MVP:  Product development  Pricing  Brand strategy  Incentive compensation  Promotional mix  Technology platforms  Service levels  R&D investment
  • 23. Think about what you offer: • Is available EXCLUSIVELY to members? • Addresses ONE job to be done, not ten? • Is CHEAPER, FASTER or EASIER to obtain? • Is relevant to nearly ALL of your target audience? What do you that fits the bill?
  • 24. Strategies to Enhance the MVP • REWORK internal structures • Seek BALANCE in the MVP • Focus on the USER EXPERIENCE • Determine what can be made EXCLUSIVE • Test low/no cost CONTENT alternatives • TARGET communications (REALLY) • Invest in MOBILE • Increase FLEXIBILITY in membership policies
  • 25. What should you do next to enhance your MVP?
  • 26. The Half-Full Glass: • There WILL be markets and potential members to serve in the future. • Certain membership drivers are ETERNAL. • Membership growth is a LAG INDICATOR of a viable customer value proposition. • Our challenge is to create a BALANCED AND COHERENT value proposition for membership.
  • 28. Not if you offer unique value and have the tools to make it compelling.

Editor's Notes

  1. Addressing the “Job to Be Done” is often a complex equation in an association contextOur structures, processes and resources are often out of sync with members’ needs, wants and expectationsTherefore, presenting a coherent membership offering is a struggle for manyA strong MVP begins start with a steadfast commitment from the top and shared understanding membership vs. product drivers
  2. Addressing the “Job to Be Done” is often a complex equation in an association contextOur structures, processes and resources are often out of sync with members’ needs, wants and expectationsTherefore, presenting a coherent membership offering is a struggle for manyA strong MVP begins start with a steadfast commitment from the top and shared understanding membership vs. product drivers