Marketing Tips Vol 4:
Amplify Your Associations Perceived Value
by Cary Kanno
I was recently discussing some member retention issues with a new association client. Their sales and recruitment numbers were pretty good, but after a year of membership they were noticing a lot of non-renewals. Initially they chalked it up to the poor economy, that members were being squeezed tighter and were forced to drop expendable costs. Immediately I was thinking that the economy was not the problem, the problem lay in the perceived value of a membership to this association.
After a little research, we discovered that indeed many members felt like their membership to this particular association was expendable. Their practice’s had survived before they were members and will survive after. While they said they appreciated their membership, we noticed that many members who failed to renew were not very active in the association. They didn’t attend conferences, there were no blogs for them to participate in, and they didn’t connect with their peers.
I believe annual dues at this particular association were around $500/ year for the average individual membership. That’s can be a lot of money in a tight economy. It can be a struggle to convince prospects to take a risk on your association. If you do convince them to sign up, you need to make a good first impression. They say that a first impression is usually a lasting impression, so soon after the initial signup the association must hit the new member with what I call reinforcement collateral. It is a high quality direct mail piece that reinforces the purchase decision. You need to let the new member know that you care about them and that they are an important member in an important association. In the past I have seen some pretty unimpressive welcome kits, ranging from a bulk mailed photocopied letter and member benefits statement, to an email welcome kit. After spending $500 on membership these low budget first points of contact are very underwhelming.
Many marketing departments spend a lot of time, money, and energy recruiting members but once they are in the doors, marketing corners are cut. This is the beginning of the drop in perceived value. Constant points of contact are necessary to keep the member engaged in the association, to feel like they are not just a number but a member of a community. In this way an association needs to be constantly selling their members. The good associations will be so effective at this that they will convince their members that they not only want a membership, but need one to make it in their industry.
Getting back to our client, we gave them this advice and suggested a few ways to boost their perceived value. Hopefully soon their members will begin to think of their membership as necessary instead of expendable.
For the past 10 years Cary Kanno has been the Marketing Director for Imagine Creative Group, Inc. in Chicago, IL. He has worked with a wide variety of clients including: National Association of Realtors, Underwriters Laboratories, American Psychological Association, Starbucks, Siemens, American Dental Association, and Alzheimer’s Association. He holds a Marketing Degree from the University of Wisconsin.
Imagine Creative Group, Inc. is a full service marketing agency
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cary@imaginecreativegroup.com