This post is an excerpt from the just-released 2024 Membership Marketing Benchmarking Report. You can download your copy here.
Our 2024 Membership Marketing Benchmarking Report shows that associations are continuing to rebound from the challenges of the past few years and are steadily expanding their membership. Perhaps one of the most telling signs of this renewed stability in association membership programs is that only 21% of the nearly 700 individual, trade, and combination associations that participated in our research report membership declines—the lowest percentage in the 16-year history of this report. Additionally, 31% of associations indicate no change in their membership counts, the highest percentage reported since 2009. Together, these two findings paint a picture of steadiness in the aftermath of the pandemic.
However,
this stability does not mean that membership programs are not advancing.
Rather, it is serving as a foundation for continued expansion. Nearly half of
the respondents (47%) say their membership counts grew this past year.
Furthermore, 49% of respondents report growth in total membership over the past
five years, versus 46% in our 2023 report and 41% in our 2022 report.
What
are the drivers of these positive results? Our benchmarking report explores the
practices and characteristics of associations that correlate with membership
growth while also identifying the challenges that impede growth. The analyses
of our 2024 data provide insight into five association practices associated
with membership growth. These membership drivers include providing value,
adding new members, engaging in continuous innovation, reaching emerging
generations, and increasing member engagement.
1.
PROVIDING VALUE
Year
after year, value appears as one of the best predictors of membership growth.
The good news is that associations report positive trends in the value that
they provide to members. 58% of associations describe their value proposition
as very compelling or compelling, up from 51% reported in 2023. Additionally,
associations that report gains in their one- and five-year membership counts,
as well as increases in overall renewal rates, are significantly more likely to
believe their value proposition is very compelling or compelling to members.
These findings underscore the power of a strong value proposition in driving
membership growth.
Conversely,
associations with declines in membership levels over the past year and the past
five years, and declines in overall renewal rates, are significantly more
likely to indicate that their value proposition is not very compelling or not
at all compelling. These associations are also significantly more likely to
have overall renewal rates below 80% and first-year renewal rates below 60%. In
fact, two-thirds of association executives indicate that prospects do not join
because they do not see value in the membership (66%, up from 60% reported in
2023).
The
most common reason association executives give for not having a more compelling
member value proposition is not that their association does not provide value
but because they have challenges in effectively articulating it (48%, up from
45% reported in 2023). Renewal rates provide compelling evidence that many
associations deliver exceptional value to their members. Our data show that
median renewal rates remain steady at 85%, indicating that members recognize
the value and are willing to invest in maintaining their memberships.
So,
the issue for associations is how to find ways to better understand and
communicate their value. Our data suggest that many associations turn to market
research to address this challenge. Our data show that 38% of associations
conduct member research annually, and 29% conduct member research at an even
greater frequency. Additionally, nearly one-quarter of associations conduct
member research every two years (22%). The use of research positively
correlates with encouraging membership numbers. Associations reporting
increases in their five-year membership numbers are more likely to conduct
regular member surveys than those reporting declines.
Member
research can significantly influence how an association communicates its value
proposition. More than half of associations (53%) that conduct member research
say that doing so has helped them articulate their value proposition more
effectively, and 41% say that it has prompted the addition of new products and
services to better serve members.
2.
ADDING NEW MEMBERS
Providing value to attract and retain members remains the foundation of growing membership, but effective recruiting of new members remains critical. The positive news is that half of associations report increases in new member acquisition over the past year (51%, on par with 50% reported in 2023 and up from 43% reported in 2022).
Putting new members at the top of the funnel
continues to drive total membership growth. Associations reporting increases in
new members are significantly more likely to report increases in total
membership over the past year and the past five years. Similarly, associations
reporting declines in new members over the past year are more likely to report
decreases in their overall membership numbers over the past year and the past
five years.
This year’s data amplify some aspects of why members decide to join an association. The top reason members join an association is to network with others in their chosen profession (67%, up from 64% reported in 2023). Continuing education (42%, up from 39% reported in 2023) and accessing specialized and current information (32%, up from 29% reported in 2023) are also top reasons.
The
channels for reaching and inviting prospects to join are evolving. One method
that shows promise in supporting recruitment efforts is paid digital marketing.
The landscape of digital marketing tools continues to grow, with Facebook and
LinkedIn advertising remaining prevalent. Search engine marketing has seen a
slight increase in adoption (32%, up from 30% reported in 2023). In particular,
a higher percentage of individual membership organizations (IMOs) report using
paid digital advertising (49%, up from 39% reported in 2023) and consider paid
digital advertising a highly effective recruitment tool (21%, on par with 20%
reported in 2023). Results also show that associations reporting increases in
membership over the past year and the past five years consider paid digital
advertising to be one of their most effective methods for gaining new members.
3.
ENGAGING IN CONTINUOUS INNOVATION
Innovation
remains a focal point for associations and positively correlates with
membership growth. Associations that consider their organization extremely or
very innovative are more likely to report increases in their one-year and
five-year membership levels and new member acquisition. They are also
significantly more likely to report increases in member renewals. However, we
note a downward trend in associations identifying as innovative. For example,
18% of associations consider their organization extremely or very innovative
(down from 25% reported in 2023 and 30% reported in 2022).
Given that the current percentage aligns with pre-pandemic levels (20% reported at the beginning of 2020 and 13% reported in 2019), one possibility is that this trend reflects the need to consolidate the products and services introduced during the pandemic.
One new area of innovation we investigated this year is
how associations adopt and use artificial intelligence (AI). 18% of
associations are currently using or are in the process of implementing AI for
membership marketing, and another 18% are discussing the possibility of using
AI. Nearly half of association executives (43%) say they are open to
considering the use of AI in their membership marketing plans. Of the
associations considering using AI for membership marketing, more than half are
exploring using it for content generation (76%), data analysis (64%), or
real-time personalization (54%). Of the 9% of associations not open to using AI
for membership marketing, 49% indicate that their staff does not have the
expertise or bandwidth for this task.
Notably,
several participants highlighted AI efforts as the most innovative initiative
their association is working on. One IMO participant told us they are
“currently looking at using AI to increase staff efficiency.” Another said they
are “leveraging AI to assist in building products and producing copy.”
4.
REACHING EMERGING GENERATIONS
One of the benefits of our ongoing benchmarking research is the ability to evaluate changes over time. One key area we assess is the participation of different generations in membership. We often hear considerable concern that the younger generations are not interested in membership. However, our findings report a different story as we continue to see associations reporting a gradual generational shift. Until recently, Baby Boomers have made up the lion’s share of individual membership organizations (IMO) membership. Since the previous year’s report, however, the representation of Gen-Xers in IMO membership rivals that of Baby Boomers (31% and 32%, respectively, reported in 2023). In this year’s data, we see further increases in Gen-Z membership (11%, up from 9% reported in 2023 and 6% reported in 2022) and a decline in Baby Boomers and Gen-Xers (29% and 26%, respectively, down from the 32% and 31% reported in 2023).
This shift is likely due to
younger generations entering the workforce while Baby Boomers are nearing or
entering retirement. Interestingly, millennials have remained constant since
2020, at 21%. Traditionally, our benchmarking research has found a positive
correlation between overall membership numbers and the generational makeup of
membership, with associations reporting membership growth also reporting higher
proportions of younger members.
The
ability to reach younger members may be supported by some of the engagement
practices that associations have developed. In response to the question of how
member participation has changed within the past year, two areas that serve
younger members rise to the top. Young professional programs continue to be one
of the top services seeing increased participation, with 56% of associations
reporting more engagement (up from 52% reported in 2023). Additionally, 55% of
associations report increases in their public social media participation (up
from 50% reported in 2023). These generational shifts are vital for
associations to continue to thrive in the future.
Associations
are using various strategies to reach and engage younger generations
effectively. This shift in strategies is exemplified in the words of an IMO
respondent, who told us, “We’ve greatly expanded our emerging professionals’
program and are actively reaching out to community colleges and universities to
grow our student and recent graduate participation.”
5.
INCREASING ENGAGEMENT
Let’s look at a few areas where engagement has increased over the past year. The continuing rebound of in-person conference attendance has further supported association budgets, with 62% of associations reporting increases in attendance (up from 58% reported in 2023 and 26% reported in 2022). This upward trend in attendance and participation also applies to other association activities. For example, 53% of associations report an increase in professional development registrations (up from 44% reported in 2023), and 56% of associations saw an increase in the acquisition and maintenance of certifications (up from 47% reported in 2023).
Our data show that these increases in member engagement
positively correlate with membership growth. Associations that report increases
in in-person conference attendance, professional development registrations, and
certifications are more likely to report one-year and five-year membership
growth and increases in new member counts and overall renewal rate in the past
year. Enhanced engagement not only boosts participation and non-dues revenue
but also significantly contributes to membership growth and retention.
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