Most economists agree based on recent reports on GDP and
unemployment that we are entering a recession. And many association executives
are wondering how this downturn will impact their membership numbers and what
to project for the future.
Amidst the current challenges, there is data to provide some
hope and insights. For over a decade the Membership Marketing Benchmarking
Report has captured association membership best practices and statistics. One
of the major disruptions impacting association membership was the Great
Recession in 2009. Looking back at the benchmarking survey data can serve as a guide
on how associations responded to this recession. The data suggest that there are
some near term challenges for some groups in the current environment but for
most associations they can look forward to a strong membership rebound in the
future.
Past Recessionary
Membership Results
The findings from the 2010 benchmarking report published showing
results for this recessionary time found that the percentage of associations
seeing increases in membership counts dropped to a low of 36%. While an
all-time high of 48% of associations reported an actual decline in their
membership counts. Membership renewals were also a challenge. A total of 44% of
respondents said that their renewal rate declined for the year. Using these
past results as a guide it is likely that in 2020 many associations will see a
dip in their renewal rates and total membership.
However, the data did show that even during that time of
economic dislocation, over a third of professional and trade associations still
reported that their membership increased. And 42% reported that they improved
their new member input. These groups were able to sustain growth and add new
members because they found a way to provide value and to continue to effectively
reach prospects. I remember one association executive described how members
regularly hired other members who were out of work. His association shared with members the
effectiveness of their networking with the message that the cheapest
unemployment insurance they could get was joining the association. Likewise,
today we are aware of some clients seeing the biggest new member months in
their history by providing members and prospects with critical information,
advocacy, and community during this pandemic. For some associations, growth is
still achievable right now.
For other organizations facing declines in the current
environment, there is still long-term hope from our benchmarking data. The
results from our research following the Great Recession shows that membership
counts made a remarkable recovery in subsequent years. Following the economic
downturn, the proportion of associations reporting increased membership rapidly
rose from a low of 36% in the 2010 report to nearly 50% and higher in the following
benchmarking years.
Additionally, the driver for this rapid improvement appears
to be associations refocusing on membership recruitment. Each of the four years
after the Great Recession produced the best new member recruitment years to
date in our research. Just three years after the low point, an all-time high of
63% of associations reported that their new member acquisition had increased.
Membership
Strategy Going Forward
The encouraging news from the trends in our longitudinal benchmarking
data shows that there is light at the end of the tunnel. Associations that have messages and services
to help members' immediate needs can flourish even in this challenging time. For
those that are seeing a drop in membership and struggling with renewing members,
the data provides hope for the future.
In either case, what should your membership marketing
playbook look like for right now? For those associations that are currently
offering indispensable services that are bringing in new members the plan
should be to aggressively market to gain market share by reaching out as
broadly as possible to your house prospects and third-party databases. For
groups that are facing membership challenges, the strategy is to do everything
you can to hold on to the members that you have worked so hard to gain over the
years. Just like there was panic selling in the stock market you likely have many
lapsed members who might leave in a cost-cutting panic. These are prime prospects
to invite back with a special offer. Reach out to them with all the tools you
have available including email, telephone, texting, and digital media.
Going forward it is a time for all associations to invest in
building the foundation and capacity for future growth. Maintain a presence in
the marketplace, gather knowledge of member needs through research, test new
marketing messages, and tactics to see what works. Build your marketing plan
now so that you are ready to capitalize on the coming membership growth
opportunities.
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