Can Associations Adapt to the Revolution in Marketing?

 A marketing revolution is transforming today's advertising agencies, as highlighted in a recent Wall Street Journal article. The piece focused on the diminishment of marketing's creative aspects and the ascendence of the science of marketing. As one agency executive shared, “Whether we like it or not, the ‘Mad Men’ era is receding in our rearview mirror while we drive at full speed into the age of the ‘Math Men and Women.’”[1] 

While this shift occurs in agencies, associations are experiencing similar changes that demand new strategies and approaches. And the pace of change is accelerating. The article shared that the emerging roles in marketing will focus on expertise in digital marketing and data analytics. It noted that today, “the hot hires instead crunch numbers, run experiments, and use algorithms to analyze data and predict what kind of message will resonate, where it should appear, and even when someone is most likely to click ‘buy.’”[2]

The research findings in the latest Association Outlook Report support these trends. Respondents told us that their goals in 2025 are to increase operations effectiveness and marketing efforts through technology innovations. Some of the changes they noted include adding data visualization and dashboards to improve marketing campaign reporting and doing member and customer engagement scoring.

Additionally, the research highlighted the emerging use of AI technology. Almost two-thirds (63 percent) of respondents either use AI technology, plan to use it in the coming year, or will explore implementing it.[3] Some of the proposed uses of AI include supporting marketing, creating content, delivering more personalized member experiences, and automating responses to inquiries and support requests.

What does this ongoing marketing revolution mean for your marketing efforts? How will you need to change and adapt to remain relevant and effective?

Here are some areas that associations will need to evaluate going forward.

Staffing and Expertise: Building a Skilled Team

The first area to address will be staffing and expertise. Associations will increasingly need staff with abilities in digital marketing, data analytics, and AI. Traditional roles focused on creativity and general marketing strategy may diminish. New staff will need to be added with specialized skills. The new hires may require higher compensation because of more competition, as the private sector will also seek to fill these roles. Associations will also want to invest in training and professional development to ensure existing teams are equipped with more technology-focused skills.

Partnering for Success: Using External Experts

A second strategy will be leveraging outside experts: Associations may need to rely more heavily on consultants, agencies, and technology providers. This approach could allow them to access specialized knowledge without hiring full-time staff to accomplish some advanced technology and marketing functions. Associations might want to explore flexible, hybrid collaboration models with these external partners to implement digital marketing, data analytics, and enhanced reporting. At the same time, internal teams could focus more attention on strengthening member engagement and content development.

Harnessing Data: Personalization and Microtargeting

Additionally, association marketing must evolve beyond traditional segmentation and personas to focus on personalization and microtargeting driven by data analytics for prospect and engagement scoring. This analysis can identify the prospects to join, which members are likely to lapse, and what products and services are most relevant and engaging. The good news is that data will strengthen marketing effectiveness through testing, analyzing, and optimizing, empowering the association's responsiveness to market feedback and changes.

Budgeting for Innovation: Investing in the Future

No one wants to hear this, but budgets may need to substantially increase to keep up with these marketing and technology shifts. Marketing that relied on inexpensive email sends kept costs low. However, to maintain growth in this new era, the strategy must be upgraded with media spending for digital advertising and the accompanying data analytics tools to optimize campaign results. Planning for AMS enhancements and data integration tools will also be required.

Continually adapting to changes and innovations in marketing has been and will remain constant. For example, as early as the 1920s, marketing pioneer Claude Hopkins wrote in his book Scientific Advertising that in the past, “advertising was then a gamble – a speculation of the rashest sort. One man’s guess on the proper course was as likely to be as good as another's.”   In contrast, he asserted that “the time has come when advertising has in some hands reached the status of a science.”

Today, the science of marketing will continue reshaping how associations connect with their audiences, transforming the skills, tools, and strategies they require to succeed. By embracing this revolution—through strategic hiring, external partnerships, data analytics, and smart budgeting—associations can stay ahead of the curve.

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[1] Suzanne Vranica, “Sorry, Mad Men. The Ad Revolution Is Here.”

[2] Suzanne Vranica.

[3] Wasserman et al., “The 2025 Association Outlook Report.”

Membership Marketing in a Digital Age: Evolving Tools, Unchanging Principles

Imagine transporting a membership marketer from 1988 to 2024. They would marvel at our digital tools—email, websites, social media. However, looking closely, they would realize that the core challenges and opportunities are unchanged. The foundations of membership marketing have remained remarkably consistent over the decades. The core principles of providing value, planning effectively, and testing remain the levers for growth as they did in the past. 

The Evolution of Marketing Technology

Here is a short list of the most significant marketing technology developments over the decades. 

• Email. This ubiquitous marketing tool did not come into common usage until the mid-90s. Today, the median number of weekly emails sent to members is three, and associations rate email as the most effective recruitment channel.
• Internet. The ability to make purchases and conduct financial transactions began in the late 1990s, with the first recorded secure transaction in 1994. Today, virtually all associations allow members and customers to purchase through their websites. 
• Search Engine Marketing (SEM). Google founded its AdWords program in 2000, focusing on keyword-based advertising and pay-per-click (PPC). Today, 32 percent of associations have search engine marketing as part of their marketing mix.
• Social Media. The ways we now commonly connect online developed in the early 2000s, with LinkedIn in 2003, Facebook in 2004, and YouTube in 2005. Today, 68 percent of associations use social media for their membership recruitment marketing campaigns.
• SMS. Companies began to use text marketing in the mid-2000s. Today, 13 percent of associations use texting in their marketing efforts.

This evolution of marketing technology is a crucial aspect of our field, and staying informed about these changes is essential. However, let’s also look at examples of how leading association marketers in the past have described the core aspects of membership marketing. They remain relevant to us today. By combining the opportunities presented with technological innovations and actively addressing the foundational principles of membership marketing, we can make significant progress in building a powerful membership program. 

The Enduring Need for Membership Value

Decades ago, the critical need to maintain a powerful value proposition was at the forefront of association challenges. In the 1995 publication Keeping Members: The Myths and Realities, Arlene Farber Sirkin and Michael P. McDermott highlighted the critical requirement of a powerful value proposition. They wrote, “Simply put, members will want to retain membership in your organization if they believe it’s valuable to them.” 1

ASAE’s 2007 landmark study, The Decision to Join, affirmed the critical nature of membership value. The study's data confirms, “As you might expect, the failure to deliver the expected value is by far the most prevalent reason for dropping membership.” 2

The value issue also dates back to the earliest Membership Marketing Benchmarking Report. The 2009 Report noted that the number one reason members did not renew was the “perceived lack of value.” Focusing on a powerful value proposition continues to serve as a priority to establish and sustain membership growth.

The Ongoing Challenge of Effective Planning and Sustained Outreach

Planning challenges were also present decades ago. Even in a somewhat less complex period, the paralysis of analysis plagued the implementation of marketing efforts. The ASAE book Membership Marketing highlighted this challenge. In the chapter on planning by Lauren L. Corbin and Rick P. Whelan, they explained to readers that “Doing something is better than doing nothing. Don’t let the process of producing an annual marketing plan take the place of marketing. Marketing must be a continuous process in today’s marketplace.” 3

The Continued Importance of Tracking, Testing, and Analysis

The critical requirement for market testing and tracking goes back to the 1920s. Claude Hopkins, one of the first direct marketers, maintained that “Mail order advertising is traced down to the fraction of a penny. The cost per reply and cost per dollar of sale show up with utter exactness. One ad is compared with another, one method with another . . . So no guesswork is permitted.” 4

For years, the need for these practices held a critical place for many associations. In the 2008 edition of ASAE’s Membership Essentials, we see the essential nature of market testing and tracking. “Perhaps the most important but most overlooked discipline in membership recruitment is testing and then tracking the results of marketing tests. Effective testing and tracking point you to where you can best deploy your resources most effectively and economically among the vast array of marketing options available.” 5

Without testing and tracking, we cannot discover the best approaches and offers to acquire new members.

The landscape of membership marketing has transformed dramatically with the rise of digital tools like email, social media, and search engine marketing. Yet, despite these innovations, the core principles—delivering a solid value proposition, sustained recruitment, and regular testing—remain as crucial as ever. As association marketers, we must embrace the latest tools while staying grounded in the principles that drive growth.

This article is an edited excerpt from the forthcoming book, The Seven Deadly Sins of Membership Marketing.

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[1] Sirkin and McDermott, Keeping Members.

[2] Dalton and Dignam, The Decision to Join.

[3] Nicholais, Membership Marketing.

[4] Hopkins, My Life in Advertising & Scientific Advertising.

[5] Jacobs and Assante, Membership Essentials.

New Research Paints Picture of Association Growth Through Innovation

In the annual Association Outlook Report, hundreds of association professionals shared their expectations for 2025. Their responses reflect an optimistic view for the coming year.

Here are some highlights from the findings.

Positive Membership Growth Expectations

The survey results highlight positive expectations in the area of membership. According to the findings:

·       68 percent of associations expect increases in new member acquisition.

·       63 percent anticipate growth in total membership counts.

·       41 percent predict improved membership renewals.

While boosting marketing budgets has historically been a key driver of growth, fewer associations plan to increase their membership marketing spending in 2025 (30 percent, compared to 44 percent in 2024). Instead, associations will focus on innovation and operational efficiency to drive these outcomes.

Innovation to Drive Member Engagement

Respondents revealed several planned innovations designed to deliver more value to members in 2025:

·       62 percent intend to conduct member needs assessments to guide the development of new initiatives.

·       63 percent plan to enhance member engagement through personalized experiences.

·       49 percent aim to develop new products and services tailored to member needs.

Associations also say they will prioritize efficiency by re-evaluating and streamlining internal processes (65 percent). Data analytics will play a role in these efforts, with respondents citing plans to use tools like data visualization, dashboards, marketing campaign analytics, and engagement scoring to improve operations and outreach.

Exploring AI for Member Services

Implementing Artificial Intelligence (AI) is another emerging trend. Nearly half (44 percent) of associations plan to explore or implement AI technologies in 2025. Key areas of AI application include:

·       Content creation and curation.

·       Delivering personalized member experiences.

·       Automating responses to member inquiries and support requests.

These technologies represent an opportunity for associations to scale their services, improve efficiency, and enhance the member experience.

The 2025 Association Outlook Report includes insights on how associations plan to navigate the year ahead, from membership engagement strategies to technology adoption, dues changes, staff hiring, and operational challenges. You can access the full report here. 

Coming Soon: The Seven Deadly Sins of Membership Marketing

I’m thrilled to share some exciting news! My latest book, The Seven Deadly Sins of Membership Marketing, will be published early next year.

Why Another Book on Membership Marketing?

Many association executives found my previous book, Membership Recruitment, to be a valuable resource. I am grateful for the thoughtful reviews and feedback it received, including a 4.9 out of 5 customer rating on Amazon. One reader shared:

“I’m new to an association. Rossell provided a wide range of means to increase membership with clear explanations and examples without overstating matters. Refreshing to find a thorough resource written in less than 400 pages.”

While Membership Recruitment offered a holistic strategic framework for building a membership program, some readers found it overwhelming. Readers often ask me, “Where do we start?” and “How do we prioritize these strategies?”

Solving the Core Challenges

The Seven Deadly Sins of Membership Marketing addresses these questions head-on. It defines the specific challenges—or marketing “sins”—that frequently hinder membership growth and provides actionable solutions to overcome them.

With over 30 years of consulting experience and more than a decade of industry research, I have observed that even well-established membership programs often stumble due to one or two critical barriers. These impediments prevent organizations from optimizing their efforts, slowing or halting growth. Associations can unlock their full potential by pinpointing and addressing these high-impact challenges.

A Real-World Example

Let me share a story to illustrate. I worked with an association with a stellar renewal rate of 90 percent. They offered an impressive portfolio of member services, had a talented staff, and operated in a market with thousands of potential members. Yet their membership numbers were declining year after year.

When we dug into their data, spoke with staff, and reviewed their research, everything seemed solid—except for two areas. We asked, “What’s your membership recruitment budget, and who are you targeting in your outreach?”

The answers revealed the problem:

• Their recruitment budget was minimal.
• Their marketing efforts targeted only a fraction of the market by reaching only those in their database.

They had fallen into two of the seven deadly sins: underfunding their membership efforts and limiting their market outreach. Based on these findings, the board approved a significantly larger marketing budget, enabling a more aggressive recruitment campaign. The result? A turnaround in their membership numbers.

What You’ll Learn in The Seven Deadly Sins of Membership Marketing

This new book identifies the core barriers to growth and offers practical solutions to overcome them. The goal is not to try and fix every problem but to focus on the high-leverage issues that retard growth.

I am excited to share this book with you early next year. Until then, if you’re looking for a comprehensive resource on membership strategies, my earlier book, Membership Recruitment, is still available. Stay tuned for more updates about the release of The Seven Deadly Sins of Membership Marketing.

 

How NOT to Calculate the Cost to Serve a Member

A frequently asked question by membership professionals is how to calculate membership servicing costs. Accurately determining this is essential for building and sustaining a successful membership marketing program. However, how you answer the question can have profound implications.

Here is a real-life story on how NOT to calculate the cost of serving a member.

In a recent conversation with an executive at an individual membership association, he noted they could not obtain additional funding to support recruitment or renewals because leadership claimed the association “lost money on every member.” The organization’s annual dues are $175, but leadership calculated that it costs $217 to serve a member. The servicing cost was calculated by dividing most of the salaries and overhead by the number of members. Based on this economic philosophy, the membership manager received limited funding to support acquisition efforts.

I have engaged in this conversation with associations many times over the years. This budgetary perspective is severely flawed. If this analysis is correct, the association should ask all its members to leave to save money. Their calculation method seriously undermines the association’s ability to grow membership.

In this case, we recommended an approach that better represents the cost of serving members by conducting an incremental cost analysis, also known as marginal cost analysis. This method attributes only the variable costs incurred by adding a new member. With this approach, we define variable costs as changing directly with the number of members. The costs for a new member include welcome packs, printed materials, and mailing and distribution for magazines, newsletters, and renewal notices. On the other hand, we saw the fixed costs remaining constant for this organization when they added new members. These costs include staff wages and salaries, which do not increase directly with each new member. Likewise, costs for office space and utilities generally remain stable regardless of changes in membership numbers, along with general administrative expenses, such as IT infrastructure.

Based on these definitions, here is how we presented our analysis of this one association’s cost of serving its members. With the fixed cost formula, If they added 100 members, their projection showed they would have additional fixed expenses of $21,700 annually to serve these members using their $217 per member calculation. However, here is how we calculated the servicing cost for them using the incremental method for these additional 100 new members. We found that they would spend $500 for the additional printed materials and welcome packs and $1,500 for increased mailing and printing costs for their membership services over the year. So, the total incremental cost for 100 new members is $2,000, resulting in an incremental cost of $20 per new member.

With this understanding, calculating the new dues revenue minus the incremental cost to serve a member demonstrates how financially beneficial a new member would be to this association. Calculating the incremental cost to serve a trade association member adds complexity because of the likely increased customer service demands a company may require. However, even with these considerations, there will still only be a marginal increase to serve these members.

The other approach to calculating servicing costs is to define the “real” costs of serving a member. The challenge is that what those actual costs are is highly subjective. Should the servicing costs include some portion of the CEO’s salary? What about the editorial staff that works to publish the magazine for members? Should only the office space occupied by the membership department be assigned to the cost, or should some portion of the space used by others? Are marketing communications sent to members a cost, and if so, does the membership revenue budget get credited with the non-dues purchases made by members? How is the cost of insurance, software, and staff travel assigned?

In theory, all these costs can be assessed and monitored over time. However, does this provide a clearer picture or reflect someone’s arbitrary judgment call?

Of course, over time, the incremental cost method poses some problems in a rapidly growing association. Additional staff will be required to serve members at some point, and if staff work on-site, office space might need to expand. However, I have witnessed clients growing membership by 30 percent and not adding staff or requiring additional space.

The bottom line is that for most associations, serving members is why the organization exists. In addition to dues revenue, most product purchases, registrations, exhibits, and advertising revenue are driven by the existence of members. So, understanding the costs of providing services to members must be factored into any economic calculation. However, following a simple incremental cost method will provide the fundamental information required and save considerable time and effort from establishing a more granular formula subject to potential daily change. 

Customer Satisfaction, Commitment, and Loyalty Drivers

For-profit corporations can learn much from association membership practices, and associations can, similarly, learn from corporate practices and research.

That’s why I found the study of what drives customer satisfaction, relationship commitment, and loyalty intention in online communities of interest. The study's results appeared in the article "Creating Customer Loyalty in Online Brand Communities" in the journal Computers in Human Behavior.[1]

The research recruited participants from two online brand communities and surveyed them about their experiences. A total of 627 submitted their responses to an online questionnaire using a five-point Likert scale from 1 (strongly disagree) to 5 (strongly agree) on the elements that supported the commitment to the brand's products.

The research explored many hypotheses but found four top correlations to these community commitment characteristics.

The top finding supporting customer satisfaction and loyalty focused on how well the brand provides comprehensive product information to the participants. Meeting this need requires good community management with detailed brand and product insights for the community.  

Likewise, the second significant predictor of customer satisfaction and relationship commitment is the need for what the authors call “bridging social capital.” By this, they mean consumers' desire to connect with new people who will share different perspectives and offer new thoughts about the products. They want to engage with those outside their immediate circle for additional views.

Respondents next stated that they wanted a pleasurable emotional experience. Ideally, community managers should identify the elements that cause customers to feel positive emotions. This outcome may suggest that eliminating divisiveness from the community is necessary.

Finally, the fourth significant predictor of customer commitment requires a perceived critical mass in the community. No one wants to be involved in an echo chamber, so there needs to be a substantial level of interaction and discussion.

Reviewing these findings, I found them applicable to my online community experience. As a Washington Nationals baseball fan for years, I have participated in a team blog. In the community, I find insights on the team that I cannot get elsewhere. I do not know any of the participants, but I find them very knowledgeable, even if I do not agree with each perspective. Additionally, the blog eliminates those who cannot participate respectfully, making it a pleasurable community. And finally, there is a substantial activity with up to a thousand comments on any given day. These elements combined have made me a more committed and loyal fan, even considering the disappointing losing record for the Nationals in the past seasons.

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[1] Fei-Fei Chenga, Chin-Shan Wub,*, Yi-Chieh Chena, “Creating Customer Loyalty in Online Brand Communities.”

 

July 25th Webinar Registration

Please join us for our webinar on the Key Takeaways and Insights from MGI's 2024 Membership Marketing Benchmarking Report. Sign up now.

Over 700 associations responded to our survey and shared their practices, experiences, and solutions in this year's report. The data we gathered helps to answer critical questions like: 

•           What is the trend in membership counts by association type?
•           How much did membership marketing budgets increase?
•           Which products and services are driving member participation?
•           What renewal rates did associations see this past year?
•           How have conference attendance registrations improved?

Please join us. Here is the link to register. 

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Five Top Findings from the 2024 Membership Marketing Benchmarking Report

 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. 

Growth through New Membership Models

This article is an edited excerpt from the book Membership Recruitment: How to Grow Recurring Revenue, Reach New Markets, and Advance Your Mission. Find it on Amazon.

Many associations hamper membership growth because they are operating with an antiquated membership model. Research shows that the majority of associations either have a single dues level that everyone pays, or very limited options (i.e., student membership or dues based on attributes like company size). It brings to mind Henry Ford’s approach to standardizing his Model T for efficiency purposes by famously stating, “You can have any car color you want as long as it is black.” The result was that Ford unwittingly provided an opportunity for General Motors to gain market share by offering customers a choice of car colors. Many associations find themselves in this same situation by essentially offering a “black Model T Ford” membership with no options on prices or the packages of benefits.

As an alternative to those following a one-size-fits-all membership approach, associations that have updated their membership models by allowing prospects to select the option that best meets their needs and budgets have tapped into a significant growth opportunity. Launching new membership models has helped associations to respond to new market conditions, to offer members choices, and to allow for more competitively priced options. Benchmarking data supports the claim that adopting a new model gives a membership program a significant lift. Specifically, associations that have implemented a new model are 50 percent more likely to report an increase in the number of new members compared to those who have not. New membership models that have proven particularly effective include versions of either a combination membership or a tiered membership approach.

Combination Membership

Traditionally, associations operate either as an individual membership organization (IMO) or as a trade association with companies or organizations as their members. However, many IMOs are creating a hybrid model where they continue to make an individual membership available while also adding an institutional membership option. This hybrid model is called a combination membership. An association with a combination membership gives prospective members a choice to join as an individual (like a typical IMO) or to sign up their company or organization (like a typical trade association). It appears that the movement to embrace this model is growing. In the 2011 edition of the Membership Marketing Benchmarking Report, only 13 percent of respondents identified their association as having a combination structure. By 2020, 27 percent of respondents identified as a combination membership association. The combination structure also appears to be working. Combination membership associations have the highest median growth over the past five years.

One of the best examples of an association successfully moving to a combination membership model is the American Society of Association Executives (ASAE). For over 90 years, ASAE offered an individual membership. Over time, its membership grew to 23,000.

However, ASAE was only reaching a fraction of the staff employed in the association field. Working on the assumption that an association could improve its performance by giving its staff access to the knowledge and tools that ASAE provided, the association launched its combination model. While they continued to offer individual membership, ASAE provided the option of an organization membership that made services available to the entire staff of an association. They based dues levels on the number of full-time employees in the association. With this change, in just a few years, ASAE membership doubled, growing to 46,000 and providing the association with access to many more potential attendees and purchasers.

Tiered Membership Models

The other successful membership model that associations have moved to is a tiered membership structure. This option has been the most popular, in the last five years, among those associations who have reported a change in their membership model. A tiered membership is not based on attributes of individuals or organizations; instead, it allows members to choose the option that best satisfies their needs and budget. One way to view a tiered membership model is to think of it as offering silver, gold, and platinum membership levels.

Tiered membership speaks to typical psychological buying patterns. Some people will always want the top of the line car, wine, or computer. At the same time, some consumers are budget conscious and will choose the least expensive or basic product or service. Associations offering a tiered membership structure maximize their revenue by allowing members to step into the level that they desire. Most associations have highly committed members who want access to almost everything an association produces. These are candidates for the top or premium membership level. There are others on a budget who want a no-frills option. The basic membership might be perfect for them and provide them with an attractive alternative to join or continue with the association.

For many associations, adopting a tiered structure does not require the development of entirely new products and services to be added for these new membership levels. Most associations who move to this model repackage the products that they already have available; however, instead of selling them independently, they incorporate them into the top membership levels. For example, an association might usually charge members for webinars, but be able to provide them at no additional cost to those at the premium level. Other organizations include a selection of the books they publish as part of a membership tier. They increase the press run to accommodate the premium members. And, by putting the books in the hands of these influential members, they find that they drive additional sales of the books to non-members. Interestingly, associations that have established a tiered structure find that members at the premium tier, in addition to the services included in the membership, are typically the top purchasers of other products. They also usually maintain the highest renewal rate.

Tiered membership, however, is not an “a la carte” membership. A totally customized benefits package is complicated to implement and would likely increase servicing costs. Instead, a tiered structure offers a series of defined membership packages from which a prospect can choose their preferred option.

This article is an edited excerpt from the book Membership Recruitment: How to Grow Recurring Revenue, Reach New Markets, and Advance Your Mission. Find it on Amazon.