Emerging Hybrid Membership Models

Greg Melia, CAETony Rossell

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

• Technological advances

• Demographic, gender and age diversity

• Globalization

• Mass customization

• Changing nature of work & careers

Changing world

Definitions

• Professional Society — represents individuals with a common background in a subject or a profession such as law, medicine, and accounting.

• Trade Association —represents a group of companies having a business or trade in common. Companies work together to accomplish goals that no single firm could reach by itself.

• Hybrid membership model — serves a combination of individuals and organizations engaged in a cause, industry, or profession

What are the trends for hybrid memberships for associations?

Selecting a Growth Strategy

Status Quo Market Expansion

Product Expansion

Diversification

Markets

Products

Current New

New

Current

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

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)

Tiered Membership

Going “Economical” – Basic Membership

Going “Mainstream” – Full Membership

Going “First Class” – Premium Membership

Combination Organizational and Individual Membership

“My Way”– Organizational and Individual

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%

Shift to Combination Memberships

Choice of Individual or Organizational

Online E-Membership OR Freemium Membership

•

Going “Green” – Online Membership

Over the past decade “freemium”—a combination of “free” and “premium”—has become the dominant business model among internet start-ups and smartphone app developers. Users get basic features at no cost and can access richer functionality for a subscription fee. If you’ve networked on LinkedIn . . . . you’ve experienced the model firsthand.Harvard Business Review, May 2014

Group Membership

•

Going “Together” – Group Membership

Results of SCTE Group Program

Pre-Corporate Alliance Program

Post-Corporate Alliance Program

Memberships 14,000 18,800

Leadership Seats 37 average participants 44 average participants

Training Revenue Slightly > $1 M Approx. $2.2 M

• Annual Planning Meetings with CAP Partners for Budgeting• Approximately 7 other organizations nearing CAP threshold

Group Enrollment - Save Money, Simplify Enrollment, and Reduce Hassles

Groups of five or more physicians: 100% participation, 30% discount 90% participation, 20% discount 80% participation, 10% discount 75% participation, 5% discount

Additional benefits include Valuable practice benefit to new-hire prospects by offering free MMS membership

American Society of Travel Agents

• Dual membership structure: Hi tech, and Hi touch• Core membership - geared to provide a relevant and

immediate response to members' most frequent questions through peer assistance and a sophisticated online knowledge system . $250

• Premium membership - access to an account management team which provides advanced business consulting, customized research, public relations consulting, peer assistance, and a professional e-journal. $2500

US Chamber Of Commerce

Tiers: Individual through Advisor Benefit bundles: Conference call updates, Access to committee service, Customized GR web portal

Friends

Members

National Defense Industry Association

• Government members were an underserved segment – changes grew membership from a handful to 21,000

• Data-mining & Business Intelligence from AMS enabled segmentation

• Open membership & value engagement• Automation of join process removed barriers to joining

• Example: allow individuals to join, then sell upgrade to organizational membership

• Results: Doubled revenue with same staff

• 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!

• 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.

Do you have a hybrid opportunity?

• What membership structure changes can expand your organization beyond its current focus?

• How will you identify membership prospects?• Who funds membership, participation & content?• What is the core portion of the market? Is there a

high end subset or lower part of the market?• How can membership growth create new product

and market opportunities?

Potential Directions

• Create a portfolio of engagement options – from customer to a variety of membership opportunities

• Appeal to both individuals and organizations – maintain a connection to individuals, while providing economy of scale to organizations

• Leverage technology – to allow for targeted, customized information delivered quickly in cost-effective ways

• Serve many niches – create a model and systems that provide value to demographic and functional niches.

In conclusion …

• Understand what your members want and need. • Develop member benefits that solve the problems. • Assess the costs to provide those benefits and get rid of

anything that does not provide a benefit.• Put a membership model in place that both aligns with

the way your audience wants to pay and makes it easy for your offering to sell.

• Test these offerings and revenue models with members and nonmembers. Adjust accordingly.

Source: The End of Membership as We Know It (ASAE Press)

Questions? Contact us!

Greg Melia, CAEChief Member Relations and Strategy Development OfficerASAEgmelia@asaecenter.orgTwitter: @gmeliacae

Tony RossellSenior Vice PresidentMarketing General, Inc.Tony@MarketingGeneral.comTwitter: @TonyRossell