1 Moving Beyond Satisfied Members to Loyal Members.

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Moving Beyond Satisfied Members to Loyal

Members

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1. Understand the key drivers of value and helped them to allocate their time and resources in areas that matter most to members.

2. Loyalty Score is a part of dashboard metrics.

3. Develop new benefits as benefits was the strongest driver of value.

4. More emphasis on community outreach and involvement at the chapter level, as well as chapter newsletters.

5. Using the benefits that members value most, they crafted a retention message.

Results OrientedResults Oriented

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6. Changed procedures for call routing in member services area to reduce hold time and make one person responsible for answering all calls.

7. Disbanded governance for school members as members did not value this. Also allowed them to develop benefits quicker for school members since the layer of bureaucracy was eliminated.

Results OrientedResults Oriented

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1. Characteristics of Satisfaction Studies

2. Characteristics of Loyalty Studies

3. Benefits of Loyalty Studies

4. Why are some members more loyal or less loyal?

5. Measuring Loyalty

6. Takeaways

A. How to calculate the Loyalty Score of your association

B. How to develop a list of profiling characteristics of your loyal, neutral, and vulnerable members

Agenda ItemsAgenda Items

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1. Satisfaction – The degree to which an experience meets or exceeds expectations.

2. A person is satisfied when Outcome > Expectation.

3. Satisfaction can be increased by focusing on one or both elements in the Satisfaction Equation.

4. Satisfaction research does a better job of predicting dissatisfaction rather than satisfaction.

5. Poor predictor of future behavior

6. Appropriate uses for satisfaction studies

A. Feedback for a particular event

B. Marketing purposes

Characteristics of Satisfaction StudiesCharacteristics of Satisfaction Studies

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1. Loyalty – The strength of the relationship between associations and their members.

2. Unlike satisfaction, loyalty measures attitudes and behavioral intentions.

3. Loyalty research uses three survey questions to classify members into one of three relationship categories (e.g. loyal, neutral, vulnerable).

Characteristics of Loyalty StudiesCharacteristics of Loyalty Studies

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1. Renew their membership

2. Recruit new members

3. Serve as a volunteer

4. Generate non-dues revenue (conferences, professional development)

5. Support the association’s mission

6. Be understanding of dues increases

7. Forgive fluctuations in service levels

Loyal members are more likely to ...Loyal members are more likely to ...

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1. Strategic planning direction for Board of Directors.

2. Improve organizational processes (e.g. Member Services, website, conferences, education, Government relations).

3. Needs/Benefits assessment.

4. Marketing and member recruitment.

5. Vulnerable member intervention.

6. Develop internal metrics.

7. Management performance (e.g. dashboard).

Benefits of Loyalty ResearchBenefits of Loyalty Research

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1. The needs for which they joined the association are being met.

2. They believe they are getting a good value for the money and time they give to be a member.

Why are some members loyal?Why are some members loyal?

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1. They recently joined the association and have not had sufficient experiences to form an opinion.

2. They have had a mixture of positive and negative experiences.

Why are some members neutral?Why are some members neutral?

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1. The association does an inadequate job of delivering on its value proposition (i.e. poor performance).

2. Mismatch between the needs of the member and the business model of the association.

3. One or both parties have changed (i.e. the association has evolved, or the needs of the member have changed).

Why are some members vulnerable?Why are some members vulnerable?

12Likely to Recommend (Behavioral Intention)Likely to Recommend (Behavioral Intention)

Q1. If a friend or relative asks you to recommend a professional association, how likely would you be to recommend ABC?

1. Extremely likely

2. Very likely

3. Somewhat likely

4. Not very likely

5. Not at all likely

6. Don’t know

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Q2. When your ABC membership is up for renewal, how likely would you be to renew your membership?

1. Extremely likely

2. Very likely

3. Somewhat likely

4. Not very likely

5. Not at all likely

6. Don’t know

Likely to Renew (Behavioral Intention)Likely to Renew (Behavioral Intention)

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Q3. Considering the benefits you receive from ABC in relation to the price you pay for membership, how would you rate the overall value of your ABC membership?

1. Excellent

2. Very good

3. Good

4. Marginal

5. Poor

6. Don’t know

Value (Attitude) Value (Attitude)

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Likely to recommend Extremely likely

Very likelySomewhat

likelyNot very

likelyNot at all

likely

Likely to renew Extremely likely

Very likelySomewhat

likelyNot very

likelyNot at all

likely

Value Excellent Very good Good Marginal Poor

Loyal Neutral Vulnerable

Assigning Loyalty to Each RespondentAssigning Loyalty to Each Respondent

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8%

27%

65%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

All Respondents

LoyalNeutralVulnerable

Loyalty ScoreLoyalty Score

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10% 9%

32%

58%

79%

12%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Male Members Female Members

LoyalNeutralVulnerable

Loyalty ScoreLoyalty Score

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1. Some profiling characteristics can be determined by internal member data (e.g. from membership application, continuing education classes taken, conferences attended).

2. Other characteristics can be determined from survey questions (e.g. what were the main reasons you joined the association, who/what influenced you to join the association).

Profiling CharacteristicsProfiling Characteristics

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1. Member type

2. Gender

3. Age

4. Licenses and designations

5. Formal Education

6. Chapter

7. Other association affiliations

8. Firm size (# of employees)

9. Reason for joining/belonging

10.Sources of influence for joining

11.Years in the profession

12.Years a member

13.Experienced a problem

14.Chapter meeting attendance

15.Volunteer involvement

16.Annual Conference attendance

17.Continuing education

18.Benchmark comparison

Typical Member CharacteristicsTypical Member Characteristics

2020

More likely to be loyal if:

• the member is female, or is under the age of 25.

• the member has attended 4 or more chapter functions in the past year.

• the member is currently serving, or has served, as a chapter volunteer.

• their main reason for joining is for networking.

More likely to be neutral if:

• their job classification is “employee”.

• they work in firms with more than 500 employees.

• their main reason for joining is for benefits

More likely to be vulnerable if:

• the member has not attended any chapter meetings.

• the member is currently not volunteering for the organization,

• they receive no dues reimbursement.

• their joining was not the result of a referral by an existing member.

Profiling Characteristics - ExampleProfiling Characteristics - Example

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1. Develop marketing programs to attract more members with characteristics of loyal members.

2. Improve organizational processes to strengthen the relationship with neutral members and migrate neutral members to the loyal status.

3. Develop intervention tactics to retain vulnerable members.

Uses for Loyalty ProfilesUses for Loyalty Profiles

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Members who respond that they are extremely likely or very likely to renew their membership, but rate the value of their membership fair or poor.

1.Member benefits are an occupational requirement

2.Lack of suitable alternatives

3.Inertia

4.Dues reimbursement

5.Finish what they started

6.Procrastination

Special Case of Vulnerable Members – Captive MembersSpecial Case of Vulnerable Members – Captive Members

2323

94%

72%

62%

0%

20%

40%

60%

80%

100%

1 Year Later 2 Years Later 3 Years Later

Retention Rate

Special Case of Vulnerable Members – Captive MembersSpecial Case of Vulnerable Members – Captive Members

2424

Imp

act

Performance

Low Performance High Performance

Str

ong

Wea

k

70% Top 2

Mod

erat

e

• Benefits

• Dues• Continuing Education

• Problems

• Advocacy• Member Services

• Staff

• Publications and Research• Communication

• Chapter

• Annual Convention

The quadrant shaded in yellow highlights the areas that are the highest priority for improvement (high impact and low performance).

• Website

MaintainImprove

Association Performance Assessment - Overall

2525

Imp

act

Performance

Low Performance High Performance

Str

ong

Wea

k

70% Top 2

Mod

erat

e

• Ease of finding information

• Ease of Navigation

• Page Load Speed

• Ease of logging onto secure area

• Sufficient Information Available

• Visual Appeal

• Ease of registering online for events

The quadrant shaded in yellow highlights the areas that are the highest priority for improvement (high impact and low performance).

MaintainImprove

Association Performance Assessment - Website

• Ease of updating personal profile

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Moving Beyond Satisfied Members to Loyal

Members

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Questions?

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Larry Seibert, Ph.D.

[email protected]

317-840-2303