September 13, 2011   |   Vol. 10   |   Issue 9
Tony Rossell, Senior Vice President

Benchmarking Study Reveals Association Turnaround

Membership growth, a key indicator of the economic health of the association industry, shows strong signs of a rebound from the severe effects of the multiyear recession, according to the just released 2011 Membership Marketing Benchmarking Report.

Of the 650 association executives who responded to the survey, 57% reported new member acquisition increased from the year before as well as significant improvement from two years ago.

The Benchmarking Report is an annual study of association membership conducted by Marketing General Incorporated that serves as a bellwether for the industry’s fiscal fitness.

Positive indicators overall

The Benchmarking Report found that the major indicators of membership health—total membership, new members acquired, and members renewed—all showed substantial improvement from the 2010 findings.

In fact, just under half of the respondents—49%—said they recorded an increase in members over the previous 12 months, the highest percentage since the inception of the Benchmarking Report in 2009.

Percentage Change in Entire Membership Over Past ONE Year

2011 2010 2009  Percentage Increased   Overall 49% 36% 45%  Percentage Unchanged   Overall 16% 14% 16%  Percentage Declined Overall 34% 48% 35%  Not Sure 2% 3% 5%

 

57% of association executives surveyed reported that new member acquisition increased over the past year. Renewals were also up from prior years with 32% of respondents saying they had an increase in overall continuation rates.

Cross tabulations reveal impediments to growth

New this year, the Benchmarking Survey uncovered correlations between perceived barriers to growth and actual performance over the past five years. Eight categories of impediments were examined for their effects on association membership performance. Some challenges, such as weak products or service offerings, insufficient budget, and lack of marketing expertise, had significantly more effect on membership outcomes than did others.

Membership Growth Challenges Over the Past Five Years

Challenge Past Five Years Membership Increased Past Five Years Membership Unchanged Past Five Years Membership Decreased  Insufficient staff        Weak product or service offering     X  Insufficient budget     X  Lack of strategy or plan   X    Market saturation X      Inadequate association management   database X      Lack of marketing expertise     X  Inadequate research X

 

Measuring the degrees of engagement

Member involvement with association products, services, and activities is known to be a strong motivator for membership renewals and overall association health. It’s generally accepted that the more a member is involved in an organization, the deeper the member’s loyalty and likelihood to remain a member.

The 2011 Benchmarking Survey listed more than a dozen activities common to associations to discover which were most used as engagement devices. More than a dozen categories were included.

Percentage of Members Engaged With Each Type of Activity

N 0% 1% – 5% 6% – 10% 11% – 15% 16% – 20% 21% – 30% 31% – 40% 41% – 50% Over 50% Mean Attend your annual convention 592 7% 15% 14% 10% 13% 14% 8% 8% 12% 22% Attend at least one of your professional development meetings 540 10% 18% 12% 9% 14% 13% 9% 7% 8% 19% Acquire or maintain a certification with your organization 480 47% 14% 9% 6% 7% 4% 2% 3% 8% 11% Attend at least one of your webinars 519 25% 27% 14% 10% 7% 7% 6% 3% 3% 11% Participate in your public social network 539 12% 35% 23% 9% 7% 7% 3% 2% 2% 10% Purchase a non-dues product (other than previously checked) 494 29% 25% 16% 10% 5% 5% 4% 1% 4% 10% Volunteer with your organization 581 8% 39% 25% 10% 9% 5% 2% 1% 1% 9% Purchase a book or directory 505 34% 24% 16% 8% 6% 5% 3% 2% 4% 9% Participate in your private social network 511 34% 24% 16% 8% 5% 4% 4% 2% 3% 9% Purchase a non-dues service (other than previously checked) 473 36% 27% 13% 8% 5% 3% 2% 2% 4% 9% Purchase or maintain insurance through your organization 479 52% 22% 8% 7% 3% 3% 2% 1% 4% 7% Upgrade their membership 472 48% 24% 12% 4% 3% 4% 2% 1% 2% 6% Participate in your young professional program 447 57% 25% 9% 4% 3% 1% 0% 0% 0% 3%

Raising dues

The Benchmarking Report also analyzed the impact of rising dues rates on membership growth, almost always a sensitive issue as associations balance revenue needs against member price sensitivity.

The 2011 Survey found that 30% of organizations expect to raise member dues in 2011, and 71% of those that raise them will increase dues between 1% and 10%. The majority of associations raise dues as needed and do not have a regular dues increase schedule.

How to find out more

The 2011 Membership Marketing Benchmarking Report includes dozens more key findings that can provide insights and new directions for membership marketing programs. If you would like a copy of the report contact its co-author, MGI Senior Vice President Tony Rossell, at tony@marketinggeneral.com, or go to https://marketinggeneral.com/knowledge-bank/reports/ to download a copy.

To express our thanks to those organizations who participated in the 2011 survey, we have just put in the mail a complimentary printed copy of the final report.