Demonstrating value key to retention for nonprofit membership associations

• Date: 01 November 2017
• DOI: http://doi.org/10.1002/nba.30377
• Published date: 01 November 2017

NOVEMBER 2017

5

NONPROFIT BUSINESS ADVISOR

© 2017 Wiley Periodicals, Inc., A Wiley Company • All rights reserved

DOI: 10.1002/nba

Associations

Demonstrating value key to retention for nonprot

membership associations

Nonprot membership-based organizations are

struggling to demonstrate the value of membership,

leading to a lack of personal connection with the

group, according to new research from technology

solutions rm Community Brands. The group’s

Member Loyalty Study, which surveyed over 1,000

association members in the United States represent-

ing all age brackets, found a failure on the part of

such organizations to communicate the benets of

remaining a member, especially in light of rising

costs of membership.

The study found high fees as the biggest concern

and reason for dropping out of an association,

something that associations have few options for

addressing. But the second most commonly cited

factor was a lack of perceived value—which is com-

plicated by the fact that members claim to highly

value intangible benets offered by associations,

such as advocacy, fueling growth in the profession

and promoting innovation in the eld. Tying those

intangibles to personal benets for their members

is critical, according to Amanda Myers, director of

product marketing and membership solutions at

Community Brands.

“These benets are less transactional and harder

to document and communicate the value to mem-

bers,” she said. While many associations deliver

information on the state of the profession, any

regulatory or legislative issues that have arisen and

other pertinent information about the industry, they

need to make a clear connection between how the

organization is involved in these things, and what

members personally gain.

“Associations need to present the information in

context and tie these other issues to the personal

benets offered, like training, networking and job

opportunities.”

As noted earlier, the high cost of membership is

a key concern if associations want to retain their

members. Aside from freezing or lowering their fees,

which few associations are likely to do, there are a

couple of ways they can help alleviate the “sting”

of annual dues, Myers said.

For starters, they can allow members to spread

payments over the course of the year, which makes

them more manageable, Myers said. Similar to how

they approach large cash donations, people are more

likely to accept a small monthly dues payment that

adds up over time than a large lump-sum payment

that hits all at once, she said.

“They can also offer new levels of membership

that come with lower dues,” she said.

Better still, she said, would be to align member-

ship levels (and dues) with some of the programs

and tangible benets of membership that members

want—for example, professional development op-

portunities, or involvement with crafting updated

codes of ethics—so that they feel they are getting

something for their money.

Another way to improve retention of members is

to better target communications to the demograph-

ics that make up your membership, she said. How

exactly the group should be broken down—for ex-

ample, by gender, age, stage of career or some other

factor—largely depends on the strategic goals of the

association at that time, she said.

“If, for example, they are trying to recruit new

members of a certain age or career stage, those are

the demographics to tailor to. But if attrition is the

issue and the goal is to retain the members they

already have, they will want to target those lower

on the loyalty scale,” she said.

According to Myers, the research data was used

to develop proles for three categories of members

based on their level of loyalty to the association:

• Super Members. These are the most connected;

they value what their organization does for the

profession over personal benets like networking

or job opportunities; and they are more likely to be

involved locally, for longer, and in leadership roles.

• Rank and File. These members are satised

but feel less connected to the organization than

Super Members. They value a mix of personal and

(See RETENTION on page 8)