future membership investment models

THE FUTURE: MEMBERSHIP INVESTMENT MODELS

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about us Dowell Stute and Associate’s Mission:

Driving business associations to be relevant, profitable, and innovative.

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We provide business associations services in the following areas: > Full Association Management > Organizational Leadership > Back-Office > Events

> Membership > Research and Development > Marketing/Communications > Public Affairs

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our services

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Membership Trends

MEMBERS AREN’T JOINING – THEY’RE BUYING!

TIME POVERTY

EXPECTATION OF ROI

A MORE DEMANDING CUSTOMER

> They are not involved, engaged, or connected – members perceive value when they are actively involved and engaged

> They don’t know what the chamber offers

>What they don’t understand, they don’t use – the assumption is that members can and will access information if they are interested, when in reality, most of them won’t take the time to do so

>Their expectations aren’t met

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Why Chambers lose members

> The traditional dues structure is usually based on the number of employees – these scaled amounts match to a dues amount, which sometimes varies with the industry.

PROBLEMS 1. Benefits are the same regardless of investment

2. If members can’t pay that amount, they’re out.

3. Does not differentiate members

4. A la carte purchasing requires multiple asks

5. Punishes businesses for growing, incentivizes lying

6. Difficult to explain what members are paying for or show ROI

(un) fair-share model

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What do members want?

> To feel welcome and a part of the organization

> Their contribution and business is appreciated at any level

> Customization (they get it everywhere else)

> To get benefits without having to show up

> Bottom-line benefits, ROI

> Quality, not quantity

Membership principles

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> Tiered dues models

> “Freemium” Memberships

> Electronic Only Memberships

>Multitier Memberships

> A La Carte/ Fee for Service Memberships

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So, what are the alternatives?

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Tiered Dues

Big Idea

Tiered dues are the most natural next step for chambers seeking a

change, and has proven results.

> Membership tiers are packages of benefits at various prices which entice larger investments in dues organizations.

> Based on choice, benefits increase with investment

> Segments and differentiates membership

> Simplified annual planning and purchasing

> Easy to see what members receive for dues

> Requires more face time with members, technology

Tiered Dues

Tiered Dues

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Freemium/Open Memberships

Big Idea

People love free stuff, and a free level of

membership can be an excellent gateway to

chamber activity

> Membership does not require the payment of dues

> Can be tied to tiered dues as most limited benefit level, often for individuals only

> Pros: Leads to substantial membership growth (more people exposed to chamber)

> Cons: People perceive there’s no value because there’s no cost to join

Freemium/Open Memberships

Freemium/Open Memberships

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Electronic Only Memberships

Big Idea Everyone is online, and people a low cost option

allows them to be involved and see what their missing from full

members.

> Membership restricted to web-based resources and programming

> Often offered to individuals, as well as companies

> Pros: New streams of revenue are added with incurring expenses (e.g., printing)

> Cons: Memberships provide limited access so they generate less revenue

Electronic Only Memberships

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Multitier Memberships

Big Idea

This is the ultimate niche marketing, and people

feel catered to.

> Menu of membership options based on interests, professional designation, budget

> Pros: Members like being able to choose which options best suit their needs

> Cons: Requires the ability to manage multiple benefits for multiple audiences

Multitier Memberships

Multitier Memberships

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A La Carte / Pay for Service Memberships

Big Idea

Giving people exactly what they want echoes the way members are

buying nearly everything else.

> Members only buy the services or programs that fulfill their interests and needs (modest base membership + add-ons, or add-ons only)

> Pros: Members analyze how they want to use their membership, which leads to higher engagement

> Cons: Members may not value the add-ons or use them , tracking benefits becomes more difficult

A La Carte Memberships

> Lifetime Membership: opportunity for members to never have to pay for dues again

> Career Transition Membership: allow professionals to maintain memberships during a time of transition (retirement, job loss, or transitioning from college to career

> Student Membership: offer a community where students go for resources or support

>Trial Membership: Opt-in (initial promotion for specified amount of time), Forced Free (free membership for a period of time), No Obligation Trial (agree to be invoiced and could cancel beforehand)

>Multi-Year: Members receive a % discount for signing up and paying for multiple years in advance

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Dues for Special Memberships

Study your membership, conduct focus groups and surveys, don’t assume you know what members want and need.

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Changing Membership Changes Everyting No matter your strategy, the steps you must take :

RESEARCH strategy create Promote & Implement Take time to do it right. Altering membership will effect all areas of your organization.

Don’t create a new system in a vacuum – be sure to test it before implementation.

Take the time to explain your new system to prospective members and existing ones.

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get in touch Contact us

(+651) 221-0850

www.dowellstute.com

Larry@dowellstute.com