Trends Shaping Associations Today and Tomorrow

Greg Melia, CAEChief Member & Volunteer Relations Officer

ASAE@gmeliacae

The Agenda

• What is causing people to look at association membership differently?

• What is causing association executives to have rising concerns about parts of the association business model?

• What are associations doing differently to respond?

First, a little background ….

Traditional association business model

• Annual Individual or Company membership

• All members pay similar dues, receive similar benefits Photo credit:

Angusf on flickr

• Many “checkbook” members with limited usage

• Sponsors and advertising subsidize education, meetings, and publications

• Joining is the operative norm

Annual Mtg/Conf Participation

Live Education Participation

Volunteer Participation

Membership Recruitment

Sponsorship Revenue

Membership Retention

22.5

22.5

22.9

25.6

27.9

37.9

50.9

50.9

56

52

47.2

45.9

26.5

26.5

21.1

22.3

24.9

16.2

More Concerned Same Concern Less Concerned

What concerns are troubling association execs?

Members’ Responses on Association Value(on a 1-5 scale, 5 = “strongly agree”)

3.563.50

3.35

3.233.19

2.96

3.68

3.50

3.62

3.313.25

3.06

3.83

3.723.81

3.57

3.32

3.49

2.9

3.1

3.3

3.5

3.7

3.9

In an economic downturn my

association(s) will be needed to help me

network with others for professional or business

help.

When money is tight the value of my association affiliation(s) is generally GREATER than the cost

of dues.

My employer is LESS likely to pay association dues in a tight economy.

It is more important to support my

association(s) when the economy is down than when the economy is

better.

In an economic downturn my personal

participation in association activities is

curtailed.

My association(s) provides me wIth the

resources I need to cope with a down economy.

Winter 09 Summer 09 Winter 11

Recru

it

Members Likely Action on Next Renewal

• Time squeeze• Value expectations• Market Structure:

Consolidation & Specialization

• Competition• Technology• Generational

Differences

6 marketplace realities

https://www.facebook.com/RaceForRelevance

Instant Access

2006 2011 Net changeSocial media n/a 7.2 7.2E-newsletters 52.3 57.4 5.1

Communities of practice 11.9 14.6 2.7Blogs or podcasts 2 4 2Internet searches 17.6 18.7 1.1Peer networks 12.5 13.1 0.6Association website 47.2 45.4 -1.8Print newspapers 3.3 3.4 0.1

General interest magazines 4 3.4 -0.6Other print sources 6.7 6 -0.7

Conferences/meetings 53.3 49.5 -3.8Magazines/Journals 63.6 50.8 -12.8

Formally Edited

2006 2011 Net changeE-newsletters 52.3 57.4 5.1Print newspapers 3.3 3.4 0.1

General interest magazines 4 3.4 -0.6Other print sources 6.7 6 -0.7Association website 47.2 45.4 -1.8

Conferences/meetings 53.3 49.5 -3.8Magazines/Journals 63.6 50.8 -12.8Social media n/a 7.2 7.2

Communities of practice 11.9 14.6 2.7Blogs or podcasts 2 4 2Internet searches 17.6 18.7 1.1Peer networks 12.5 13.1 0.6

Addressing the Time Squeeze

• Design programs and volunteer experiences that respect member time.

• Provide tools and resources that help members save time.

• Make help easy and quick to find.• Incorporate added-value when possible.

Value expectations

Credit: Brett L on flickrCredit: Brett L on flickr

Value Proposition Car Rental Discount:

$55

Insurance Discount: $150

Payroll service: $400

Magazine: $65

Website access: PRICELESS

Membership saves you over $670!

Value Proposition Car Rental Discount:

$55

Insurance Discount: $150

Payroll service: $400

Magazine: $65

Website access: PRICELESS

Membership saves you over $670!

What is this organization about?• Win a Free Hertz Car Rental

Certificate and AMEX Gift Card• Quicken WillMaker Discount• Credit and Debt Counseling• Maintaining Your Standard of Living

in Retirement• Importance of Risk Management -

Insurance• Financial Literacy Lessons in English

and Spanish from Wells Fargo• Member Discounts for Bose Radio

Systems.

• California Casualty – 20 Year Partnership.

• Protect Your Home While on Vacation.• One Credit Class Coming – “Keys to

Financial Health.”• Win Free Stuff in May and June

from ??? Member Benefits.• ??? Delegate Assembly Showcases

Member Benefits.• The Green Book – 39% Discount.• Save This Summer with Your ???

Access Card.

• BENEFITS OF MEMBERSHIP– ??? represents its members' interests, provides money-saving services, promotes them in this country and across the world, and alerts them

to the pitfalls of current legislation and regulation. We are proactive on their behalf, taking the lead in matters affecting the trade, seeking to articulate their views and taking new initiatives to support them and the ??? trade as a whole. As well as the Association's advice and active support, members are entitled to a wide range of benefits:

• FINANCIAL BENEFITS:– Insurance; Free legal advice; Free Tax advice; Healthcare; Credit and Debit Card processing; further discounts; free entry for

all members on the Association's site; and Gift Vouchers and Wedding Present Service: available to the public and only redeemable through a ??? member.

• PROMOTIONAL BENEFITS: – ??? Logo; :Code of Practice recognized by the buying public and press as the trade standard.; Due Diligence Guidelines;

Conciliation; Publicity; Directory of Members; Publications; Government Representation; and Conferences and seminars.

What is this organization about?

Addressing Value Expectations

• Get people to join for the right reasons.• Design programs that do something for

members that they cannot easily do for themselves.

• Regularly ask your members about their biggest challenges and provide programs that help address those needs.

• Communicate how you help members succeed.

Changing market structure

• Employee tenure is decreasing

• Specialization raising the need for differentiated knowledge

• Mergers and acquisitions consolidating the market

• Increased competition from afar

Addressing Market Change

• Help members tackle nuances of the changing marketplace (training new employees; competing in internet/global market).

• Ensure your dues structure does not unduly constrict your success in case of mergers.

• Consider differentiated dues structure for differentiated benefits (pay less, get less; get more, pay more).

Competition

From three basic TV and radio stations to millions of options

Addressing Competition

• Be realistic that everything that competes for the time, attention and money from your potential members is competition.

• Understand the importance of affiliation and leverage your core supporters.

• Carefully choose when (and with whom) to collaborate.

• Ensure strong ROI for members and sponsors.

Evolution of Technology

Addressing Technology

• Use technology to better serve members 24/7.

• Move beyond the limitations of “lowest common denominator” technology.

• Understand how tech leaders in your membership are using technology, and help extend that learning to others.

Generational Change

Typical age distribution of a professional

society

…today

McKinley Marketing Member Research

Generational change

Typical age distribution of a professional

society

…in 10 yearsMcKinley Marketing Member Research

What about Millenials?

• Overall, less favorable attitude about Associations• Looking for immediacy that is lacking in traditional model• Different motivations to learn

•Top motivation: “To increase competence in your job”•6th out of 13 motivation: To receive a promotion or pay raise (versus near last for others):

• Different preference in instructors•Less interested in suppliers, vendors and practitioners•More interested in academics and professional trainers

Legislative & Regulatory Issues

• Revision of tax code

• Relative prioritization of nonprofits

• Government employee meeting participation

• Association participation in democratic process

• Implementation of Affordable Care Act

Learn more and get involvedwww.thepowerofa.org

Thank you!

Email: gmelia@asaecenter.org @gmeliaCAE

Let ASAE help you succeed.www.asaecenter.org

www.associationsnow.com (Subscribe to FREE daily e-Newsletter)

Greg Melia, CAEChief Membership & Volunteer Relations OfficerASAE: The Center for Association Leadership