If you’re an Association CEO are you thinking about the next recession? Since 1947 historical data shows a recession, averaging every 6-7 years in the United States. With a U.S. recovery in 2009 might 2015 or 2016 be the time frame when the next recession occurs? Even though economic forecasting can be inconclusive, being ready for the next downturn might be a prudent move for Associations.
Mergers and Dues Losses
In the meantime, some Associations are experiencing dues losses resulting from consolidation within industries. Through June of 2014 Dealogic reported $786 billion worth of mergers and acquisitions in the United States. With so much capital parked on the sidelines, ongoing mergers could also remain problematic for Association revenue streams.
Alignment or Satisfaction
As CEO’s anticipate future directions for their Association’ should they take a different look at their Strategic Planning and Member Feedback data? With additional corporate consolidation likely and the possibility of a recession next year or the year after, could it justify a new and different approach?
Should Association CEO’s focus on satisfaction data or member impact data? According to Strategic Member Engagement data (http://bit.ly/1g8g1J2) , Organizations with upward trending 3-year operating results reported the strongest capabilities are far more likely to better understand member up-at-night issues and then engage members in acting upon those needs. These Association Executives were far more likely to report strong performance in Member Retention, Annual Operating Revenue, Registrations to Primary Annual Meetings, Annual Revenue from Fee for Service Offerings, and Timely Membership Renewals.
Next Recession: Keeping You Up At Night?
Due to economic cycles and company consolidation (from mergers and acquisitions), connecting Associations to member outcomes aligns Association’s with the things their member’s care most about. It also helps member companies view money spent as strategic investments instead of dues payments.