Emerging Hybrid Membership Models for Associations

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Master Mind: Emerging Hybrid Membership Models

August 9, 20143:30 to 4:30

Tony RossellMarketing General Incorporated

Krista Barnes, CAECouncil for Exceptional Children

Greg Melia, CAEASAE

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Traditional association model

• Individual or Company membership

• All members pay similar, annual dues

• Many “checkbook” members with limited usage

• Sponsors and advertising subsidize education, meetings, and publications

• Joining is the operative norm

Photo credit: Angusf on flickr

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Some Hybrid Strategies

• Group sales

• Tiered service levels

• Hyper-bundling by adding benefits to membership

• Focus on market creation/affinity program value

• Specialized offers for segments within existing membership or new markets

• Differentiated value for individuals & organizations

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FriendsTiers:•Individual through Advisor

Benefit bundles:•Conference call updates•Access to committee services•Customized GR web portal

& Members

US Chamber Of Commerce

• Institutional Membership

• 10 “personal membership groups” in specialty areas like healthcare engineering, risk management, and human resource administration. Personal membership includes access to some (but not all) AHA benefits, such as members only website and hospital literature.

• American Bankers Association too!

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• Individual ($50 - $90)– Build Job Skills (development programs and networks)– Manage Your Career (member logo, mentoring)– Stay Informed (magazine, e-news)– Save Money (registration discounts, fellowships)– Make the Case for Museums (advocacy)

• Museum Membership (Pay what you can - $8,000)– Strive for Excellence (standards, resources)– Distinguish Your Museum (directory listing) – Stay Informed (magazine, e-news)– Save Money (registration discounts, fellowships)– Make the Case for Museums (advocacy)

What ASAE is doing

• Adding an organization focus to existing individual membership

• Focusing on the 15,000 staffed member-based professional c3s and c6s

• Developing persuasive offers for organization purchases – from basic membership to Circle Club

• Adding a Career Portal to introduce ASAE to potential members and foster engagement

All Approaches at a Glance

Career - Freemium model, which promotes value of ASAE membership, programs, and services to help advance an association professional’s career.

Individual Membership – Gives access to all ASAE content, community and career resources.

Organizational Membership – Gives all employees at an association the option of accessing ASAE content, plus the option of participating in the ASAE community and career resources. Also, bundled pre-purchase savings options.

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What are the trends in hybrid memberships for associations?

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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

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A Data Source

• Sixth Year Produced by MGI

• Up Front Disclaimer….

What, not why.

11

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Dues Structure by Membership Type

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

36%

35%

15%

1%

13%

70%

15%

5%

2%

9%

49%

19%

19%

3%

11%

Combination (n = 197)

Trade (n = 223)

Individual (n = 346)

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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%

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What are the opportunities?

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MEAN MEMBERSHIP RENEWAL RATE

Less than 80%

renewal80% renewal

or higherIndividual Member Trade Combination

Mean 64% 88% 76% 85% 80%

Median 70% 88% 80% 88% 82%

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MEAN NEW MEMBER RENEWAL RATE

Less than 80%

renewal80% renewal

or higherIndividual Member Trade Combination

Mean 52% 78% 62% 79% 66%

Median 52% 82% 64% 85% 66%

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What are the challenges?

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Response rate analysis

Return on investment (ROI)Source code or keycode capture

and analysisCost of acquisition

Liftetime value analysis

A/B split marketing testsComputer matchback to prospect

databaseRecency/Frequency/Monetary

amount analysisRegression analysis

Data mining/modeling

None

Other

52%

34%

22%

21%

13%

17%

11%

18%

29%

2%

49%

37%

25%

24%

17%

16%

15%

5%

4%

31%

2%

0.49

0.29

0.16

0.2

0.15

0.07

0.06

0.4

2012 (n = 667)

2013 (n = 691)

2014 (n = 743)

HOW TO YOU MEASURE YOUR MEMBERSHIP MARKETING?

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CEC’s New Membership Model—Transforming Our Organization

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How We Knew It Was Time

• Long term membership decline

• Background research– Membership analysis– Market share analysis– Membership survey– Review of other membership models– Pricing analysis

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Process to Develop

• Member Workgroup• Feedback sessions• Pricing models• Recommendation to Board

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CEC’s Membership Options

Individual Tiers: Premier, Full and Basic

School District Package– Includes 1 administrator and 5 professionals– Incorporates professional development

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Motion Approved, Then What?

• Business Rules• Database programming• Renewal strategy – Upgrade!• Recruitment strategy• Communication timeline• Sales strategy for package• Collateral

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Launched July 2014

• Members “upgraded”• Strong communication still

needed• Developing champions among

our units• Incredible energy around

organization's growth potential

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Contact usTony Rossell

Marketing General Incorporated

Tony@marketinggeneral.com

703.706.0360

Krista Barnes, CAE

kristabarnes360@gmail.com

703-304-2068

Greg Melia, CAE

ASAE

gmelia@asaecenter.org

202-626-2821