Is your association experiencing a decline in membership?
In a report published by Wild Apricot, surveyors found 68% of organizations had difficulty growing their organization in 2019 — 11% of those shrunk, and 25% experienced no growth. The remaining 32% grew only 1-5%.
Declining membership in professional organizations is a reality for many association leaders. But why? And what can you do to reverse the trend? In this post, we’ll explore a few causes of membership decline and strategies that can help drive engagement and prevent member churn.
While there are many factors behind declining membership, some of the biggest factors that associations should factor into their retention strategies include financial uncertainty, changing member needs and interests, and struggles to connect with younger members, among others.
Even before the furloughs and layoffs ushered in by the COVID-19 pandemic, economic instability was a major concern for potential members. For example, a 2017 study on membership trends by Kenes Group noted, “The decision to become a member of a professional association has always been a factor of perceived value, that is, what is the cost of membership and what benefits are obtained in return. The changes to the economic climate have meant that individuals place greater emphasis on the perceived value of any membership and examine in more detail if membership of an association provides value to them.”
Essentially, many potential members aren’t sure what the future holds for them financially, so they need to ensure the benefit of membership is worth the price. Associations are also under pressure to compete with free resources and prove why a paid membership is more valuable than joining a free LinkedIn community or Facebook group.
One way to combat this, which we’ll dive into further below, is creating that unique value that makes your membership un-missable. Whether that means networking opportunities, mentorship or exclusive experiences at your events, creating value beyond your free resources should be a top priority for your staff.
The millennial generation has been the largest generational group in the American workforce since 2016. However, many associations and professional organizations are struggling to reach and relate to these younger audiences. And coming right behind them is Gen Z, who is estimated to make up over 27% of the workforce by 2025.
Their interests and concerns also vary greatly from that of your membership today. Understanding this generation’s values, addressing their concerns and pain points, and communicating in a way that resonates with them are important to win them over.
While we’ve covered what it takes to hire Gen Z staff, those same strategies can also apply to the focus of your association. As an example, Gen Z prioritizes DEI initiatives and hands-on activities that move the needle. Developing opportunities and educational offerings that align with those interests can help your organization grow that young professional demographic.
One of the leading reasons for the Great Resignation is that professionals are looking for newer opportunities that align with their needs both professionally and personally. While this can affect associations on the staff side, it also creates an opportunity for their member offerings.
In order for your members to continue to grow and fit the needs of their new roles, education and professional development are needed. While many organizations have set training and certification, expanding those offerings can be a great tool to combat declining membership.
Best of all, coming up with those ideas doesn’t need to fall solely on the staff. Instead, look at hiring trends in your industry and survey your membership to ask what they’re most interested in and what they need to advance in their careers.
In some instances, it’s a matter of updating your existing offerings, while member answers can also create opportunities for completely new programming.
Combatting membership decline in professional organizations requires forward-thinking and a willingness to change and adapt new strategies. Additionally, not every strategy may work for your specific association or needs, so understanding your pain points and looking for the reasons behind your member churn can help you choose a path to explore.
Retaining existing members is your low-hanging fruit. It’s a lot more cost-effective to keep your current audience happy than it is to start fresh attracting, nurturing, and converting a new one.
Stay in touch with your existing members, and hold their hand every year to remind them to renew. Canceling a membership you never use doesn’t require a second thought, so be sure to target your existing members with engagement campaigns showing them how to maximize their membership.
Keep in mind that membership numbers aren’t the only way to grow your association. In fact, experts suggest that approaching your constituencies as only members vs. nonmembers is an easy way to stifle your opportunities. Additionally, thinking outside the box to find other ways to generate revenue can help your association grow even when membership is on the decline.
When considering membership decline and association membership trends, try not to get too tied up in the thought of members versus nonmembers. The truth is your association’s publics go a lot further than these two categories.
Amith Nagarajan’s Open Garden approach turns these two audience divisions into four:
As you can see, approaching your organization from the restrictive lens of members vs. nonmembers eliminates important stakeholders from the equation. People who are not members may still:
So how do you connect with everyone? For starters, segmentation can become a handy tool for your content distribution and marketing efforts.
Finally, and often most importantly, getting back in touch with your value proposition is critical. Understanding why your members signed up and what you promised them – aka your value proposition – you can reassess whether or not you’re providing said value.
This can be as simple as updating your content to address any new changes in the industry – take for example changes stemming from COVID-19 – and ensuring that your members are as up to date as possible on the issues that can affect their jobs and career growth.
Just like your initial value proposition is important, so is innovation. If your organization is failing to adapt to the times and address changes that are impacting the industry as a whole, your members will likely look for organizations that are doing that.
One way to help combat declining membership is to offer new opportunities to your members. Things like:
Essentially, you want your association to become the one-stop for your members to accomplish their goals and satisfy their professional needs. Many of these adjustments stem from a strong relationship with your members, which is why open communication and transparency continue to be important tools.
As we evaluate declining membership in professional associations, remember that your association should not be depending solely on churn rates to dictate your growth and stability. Instead, keep in mind that there are other ways to drive revenue in your organization and that non-dues revenue can be critical to sustainable growth.
The Wild Apricot report showed that most membership-based organizations either slightly increased or experienced the same levels of revenue in 2019 as the previous year. According to the report, revenue leaders were those who were less likely to rely on their members for funding.
This creates a more sustainable path forward for your organization. Here are a few ideas for increasing revenue that don’t depend on dues:
If you’re a victim of the trend of declining membership in professional organizations, don’t panic. It’s not a dire situation, but it is a reason to innovate. Rethink how you engage your existing members, don’t neglect younger audiences, and start brainstorming creative ways to generate revenue that aren’t dependent on dues. Sidecar members have access to exclusive resources that help them buck the trend of declining membership in professional organizations. Our online courses and worksheets will guide you through defining your member of 2030, implementing the Open Garden approach, and more. Find out how we can help you and your organization grow.
At Sidecar, we create the professional development tools a leader needs to grow their career and their purpose-driven membership organization, like associations and nonprofits. The skills you’ll learn within our growing community, interactive workshops and from our step-by-step courses will drive innovation, empower strategic thinking and institute cultural changes wherever your career takes you.
If you’re ready to increase your membership organization’s revenue, connect with an entire community of purpose-driven leaders and grow yourself, we’re ready to help you do it.Learn More