3 Association Growth Strategies

3 Association Growth StrategiesSluggish global growth and U.S. growth, the race for talent, and disruptive innovation create opportunities for Associations and Professional Societies to become more essential. It’s all about alignment with industry and professional outcomes that your members care most about. Those organizations who utilize these 3 Association Growth Strategies can help impact member outcomes and as a result better position their members and their organizations for long term success.

3 Association Growth Strategies

1. Secure Actionable Research

Securing forward looking data is essential. Utilizing “Impact” Surveys instead of member satisfaction surveys will help your organization determine the desired future outcomes that members seek to address their “up at night” issues. These issues must also be examined segment by segment.

The Global Cold Chain Alliance, GCCA, utilized both qualitative and quantitative research in order to align itself with its stakeholders. Through this process the organization aligned its internal team and they have transformed themselves into strategic partners for the Global Refrigerated Warehouse Industry. In doing so, GCCA is helping its members drive future outcomes.

3 Association Growth StrategiesAccording to Corey Rosenbusch, President and CEO, GCCA, the organization is taking its partnership a step further. The organization conducts qualitative research with their member’s customers to help align GCCA and their industry with the business outcomes their customers seek. Here again the organization impacts member outcomes.

Association revenues have grown by 25% in the last year and a half.

2. Demonstrate Strategic Alignment

Strategic alignment with your member’s industry and its professional outcomes is key to your organization’s long term durability and growth. Without a recognized level of strategic alignment members will not perceive the important connection between your organization and their business outcomes.

3 Association Growth StrategiesAt the National Wooden Pallet and Container Association, Brent McClendon, President and CEO, continually seeks ways in which he can help accelerate member engagement. He does this by making sure that NWPCA listens closely to its members and then aligns its resources with the appropriate company and industry outcomes. One example of aligning its resources is through its software platform. Their proprietary software, “Pallet Design System” is both a product specification and engineering design tool as well as a professional marketing tool, and educational tool to serve the wood pallet industry. This platform accelerates member engagement and it’s a concrete example of how a product can drive future outcomes.

NWPCA has experienced 60% revenue growth over the last three years.

3. Design the Industry’s Future

Serving as a leader and convener for your industry creates the strongest possible link between your organization and the member’s your serve.  The link is reinforced when you provide a safe space for your members to collaborate and design their future together.

3 Association Growth StrategiesThe Smart Electric Power Alliance, SEPA, brings companies together in all aspects of power generation to design and build the industry of the future. Julia Hamm, President and CEO, and the SEPA team link the industry’s all stakeholders to develop, share, and build future focused solutions for their industry. The organization facilitates important conversations, doesn’t take sides, and serves as an industry convener. SEPA is all about helping members determine how to best drive future outcomes.

For example, SEPA created a 51st State Initiative that creates ongoing opportunities for experts and industry leaders to share, test, and provide feedback on direction and innovation to support an evolving utility sector. Through the 51st State initiative, all stakeholders have can participate in designing “Sustainable market structures from the ground-up, rather than attempting to make wholesale or partial changes to something that has been in place for decades.”

The Smart Electric Power Alliance has seen annual revenues grow 23% (2015 to 2016) and also in 2016 experienced a 62% increase in total staff (to 35 employees from 22).

3 Association Growth Strategies

In a September 2016 interview in Fortune Magazine, GM’s CEO Mary Barra was asked “What would you tell your younger self to do differently?” She replied “Focus more on speed. Time is not our friend.” These 3 Association Growth Strategies will give your organization greater speed and help your organization impact industry and professional outcomes that your members care most about.

3 Association Growth Strategies

 

Free eBook “Accelerating Strategic Member Engagement” is available upon request for all Association Executives at Potomac Core – Association Consulting

 

The Recession Ready Association

It’s been seven years since the end of the great recession and one economist thinks there is a 60% chance of a recession next year. As global uncertainty and slow U.S. economic growth dominate the landscape, CEO’s should assess whether or not they are leading a recession ready association. While the next recession may not be as severe as the last one, be rest assured that business leaders are continually increasing scrutiny over expenditures not related to corporate performance.

Disruptive Innovation Creates Association Opportunities

Disruptive Innovation “describes a process whereby a smaller company with fewer resources is able to successfully challenge established incumbent businesses.” In a slowing and uneven global economy, are your members looking somewhere else for lower cost and innovative solutions? Are your members less confident about their growth opportunities than they were a year or two ago? Does your membership perceive your association as being aligned with their business and professional goals? Having actionable data that answers these questions is more important than ever for associations in a world of disruptive innovation.

Traditional Association Thinking?

Traditional Association Thinking?  Is there an Association that isn’t yet facing a for profit competitor? Both before and after the end great recession for profit competitors are aggressively marketing their way into Association markets. In what was once sacred ground Associations face existential threats to their long term competitive positioning. Commercial firms are investing heavily in tech savvy marketing and they are making their way into the C Suites of small, medium, and large firms across the United States.

Engagement as a Sales Strategy?

When your Association’s founders first convened, did they envision hiring staff that would sell products and services? No, they identified like minded companies who shared the same challenges understanding that they could achieve greater impact together that individually. 

Association Alignment Can Drive Growth

Engaging boards in strategy development is powerful; the strategic member engagement survey (see results http://bit.ly/1g8g1J2) reports that those Associations who have this capability more often report upward 3 Year business trends. However, when actionable member data (through impact surveys) is discussed with boards, it helps Association’s create great conversations on how to align with their member’s business outcomes.

Competitive Positioning and Engagement

Competitive Positioning and Engagement. As domestic and international for profit competitors attempt to eat into services and product offerings once only delivered by Associations, Competitive Positioning (http://bit.ly/1g8g1J2) is a must. However, a key first step forward is knowing and understanding member “up at night” issues.

Up at Night Issues

Whether obtained in surveys, focus groups, interviews, roundtables, online community dialogue, social media tracking or other mechanisms, it’s essential to understand how the association is currently impacting member objectives. This requires securing actionable data about member perceptions of their environmental and operational challenges. Associations must structure their organizations to fluidly address rapidly changing member needs.

Rapidly Changing Priorities

Actionable data and fluidity opens doors to help Associations shift gears and respond quickly. Working together, staff and connected members provide both fluidity and responsiveness to address rapidly changing member business priorities. These shifts increase relevance and help make the case for increased engagement.

Competitive Positioning

Competitive Positioning and EngagementFor profit competitors are real and Associations should take their threat seriously. For example, ACCA, the Air Conditioning Contractors of America,www.acca.org, is increasing its capacity to quickly learn and adjust. Paul Stalknecht, President and CEO, and his senior team are leveraging what they’ve learned about member “up at night” issues to adapt and magnify the Association’s impact with more online educational programming. Competitive Positioning is Key Member Perspective Identifying “Up At Night” Issues Shift to Online Educational Programming.

Competitive Positioning And Engagement

Knowing Member “Up at Night” Issues Accelerates Association Growth & Positioning (http://bit.ly/ThjGjy). Having a firm grip on Member “Up at Night” Issues has game change potential for Associations. Aligning organizations with the things that their members really care about enhances their competitive position, accelerates engagement, and favorably impacts operating results.

Free eBook “Accelerating Strategic Member Engagement” for Association Executives upon request at www.potomaccore.comwww.verticalleapconsulting.com, and www.icimo.com.

Competitive Positioning and Engagemen

Success Stories

Success Story
New Member Growth

Situation

An established Association looking to expand its membership base decided to dedicate resources to membership growth. Looking to expand industry representation, increase the number of members and grow revenues the organization saw this move as a good starting point. At this juncture, the new member recruitment function was part of the membership operation’s overall responsibility. Adding a new member sales team created turf and coordination battles with the existing membership staff. In addition, the new member sales effort had minuscule data, no strategy or adequate internal support to deliver consistent new member sales outcomes.

Core Assessment

Building Data Driven Strategies were essential. A comprehensive profile was developed to help the Association understand its impact with the membership and develop target market strategies:

  • Which industries were already members.
  • Which Board leaders were actively participating.
  • Identified why these companies and Board members were active.
  • Reviewed issue survey data to identify member “up at night” issue concerns.
  • Understood why they participated in the Association and how they defined value.
  • Examined which committees, programs and activities members were most active.
  • Reviewed which industries and companies were not members.
  • Researched which issues most impacting these industries and confirmed  the       Association’s involvement in these activities.
  • Competitive analysis.

Strategy Implementation

The business intelligence aligned  the association’s recruitment strategies to member’s “up at night” issues. This data defined a “total available new member market by industry segment” helping prioritize and focus its market and sales campaigns.

Operationally the team added marketing research support, lead tracking and lead generation technology to drive and track efforts throughout the year.

Organizationally the new member sales team were structured and partners with the member renewal team. Job descriptions, performance goals and bonus compensation emphasized and rewarded team success.

However, it was two key strategies that drove above plan success for the new member recruitment effort:

  1. Association staff leadership engaged active Board Members to recruit members. Board members wanted to spread the cost of the association around more companies and to accelerate legislative lobbying efforts. Board members were acknowledged for helping grow membership at executive committee meetings.
  2. Motivating policy and other staff to provide introductions and go on appointments was key.  New member success was celebrated and shared at staff meetings. Staff helping the sales team recruit new members were publicly acknowledged.

Growth Results

Using actionable data, the Association achieved $1 million in new member revenue for the first time in its history. Soon thereafter:

  • Additional sales staff were added and new member revenue grew to represent almost 50% of total new revenue.
  • First year new member renewals improved from under 80% to over 90% (as part of an Association wide retention improvement initiative).


 Success Story
Association Growth  

Situation

With growing expectations for return on dues investment, the Association required additional funding and new members in order to build out its value proposition. The Association was not visible in its marketplace and required membership, sponsorship and annual conference attendance growth at its annual conference. Up to this point the Association was perceived as a best kept secret in its market space. Leadership wanted to see brand standards implemented with a coherent brand and strong media presence established.

Core Assessment

The Association embarked upon a competitive and market positioning and member needs assessment process. They also reviewed historical data, member benefits and annual conference program and sponsor offerings in order to determine its connection point to its core markets. Promotional materials and messaging on the Association’s website were also reviewed to determine the connection point to member and market needs.

The assessment identified the core market strength of the organization as well as its gaps and its opportunities to better serve members and sponsors.

The team utilized its findings to formulate a coordinated promotional branding strategy to establish the Association as the preeminent leader in its core markets. Creating new core market positioning, leveraging unique differentiators and a new logo formed the foundation of an aggressive and multi faceted promotional strategy.

Strategy Implementation

Working with a Public Relations firm, the Association implemented a marketing plan to build out its brand awareness among current members, prospective members and sponsors.  The results included collateral materials and website presence reflecting the Association’s new strategies.

Market positioning included a first ever integrated marketing effort for the annual conference, through the design and writing content for marketing pieces including flyers, brochures, postcards and emails to targeted audiences.

As one of its key drivers, the Association utilized a thought leadership strategy. Studies and surveys were publicized, and created news through well-known industry partners.

Through its Public Relations firm, the Association negotiated strategic alliances and in-kind sponsorship’s with leading trade publications to boost the Association’s visibility. Representative News outlets, included among many others, branded newspapers and major broadcast. The Association achieved considerable coverage in markets including current and prospective members and sponsors as well as conference attendees.

Growth Results

The Association achieved mentions in thousands of news articles and participated in up to two dozen television interviews. The new business model organization delivered double digit membership growth, its revenues more than doubled and its conference attendance also doubled in slightly more than two years.

 

Success Story
Transform Business Model to Drive Growth

Situation

Following a good string of member revenue growth performance result, one national Association endured its worst revenue performance ever. Staggering dues losses, weak retention along with lackluster new member recruitment delivered a shock wave throughout the organization. Minor changes would not work, the Association needed a transformational effort.

Core Assessment

Conducted an extensive core review of historical data of member renewals, retention, dues and new member growth, member engagement, market positioning and unique differentiators, staff coordination and delivery of services, value proposition, marketing collateral, member renewal and recruitment processes, performance descriptions and performance goals, training programs and capabilities, base and incentive compensation. The connection and coordination of membership operations to the Association’s marketing, media, policy and public affairs apparatus was also assessed.

Data identified core market strength and also confirmed performance gaps in all aspects of the Association’s member value delivery system. The assessment identified departments functioning as individual entities instead of as part of one larger Association strategy.

From a membership operations perspective, conflicting goals and inconsistent direction were confusing front line membership staff on priorities. At the same time training, compensation and technology needs were not adequately addressed. Membership staff morale suffered and turnover of key personnel hampered renewal and sales efforts.

Strategy Implementation

The Association united around its mission, opened lines of communication between staff functions and focused its resources on helping the membership achieve its business objectives.

Staff leadership made member engagement, satisfaction and growth an Association wide strategy. Everyone on staff  was now expected to satisfy and renew members and to help open doors and recruit new members. Silos once a fabric of the organization’s culture were no longer part of the culture.

The Membership operations group deployed new performance expectations,  restructured its management team, management transparency was practiced, technology resources improved and a performance based compensation program were instituted. Regular training and idea sharing dominated team meeting discussions. Collaboration, mutual respect and coordination among membership staff became the new norm. New staff complimented existing staff and communication among the team accelerated.

Staff outside the Membership team were acknowledged for their success in renewing members and recruiting new members. Weekly coordination calls were conducted to coordinate member services and maximize opportunities to advance the Association’s policy agenda.

Board leaders were included in the unified core strategy. They were engaged in policy development and encouraged to participate regularly in grassroots and other lobbying activities. Board members were also encouraged to:

  1. Engage other Association members in meetings with elected officials.
  2. Communicate the Association’s value to their peers.
  3. Help recruit new members to drive key policy objectives.

Growth Results

The Association’s member retention accelerated to over 90%, new member and dues increase revenues grew as well. The new business model helped drive dues multimillion dollar dues in a four year timeframe.

 

Associations Can Outlast Competitors

associationsAssociations Can Outlast Competitors. In a world where competition moves like the speed of sound, Associations need solid differentiation. Competitive intelligence helps you direct budget investments and keep Association products and services current with member business and professional objectives.

360 Competition

New coalitions, and organizations are created almost weekly. Law firms and public relations firms are providing lobbying and communications products similar to Associations.  For profit companies are aggressive competitors too as they enter the market providing conference, sponsorship and other products to would be Association members.

Everywhere Associations look, competitors are ready and waiting to eat into their market share.

5 Competitive Game Changers

Competitive intelligence is a must. Know what competitors are doing and how they are driving value into your Association’s marketplace.  And, be prepared to measure your impact, establish your Association’s uniqueness and unleash high impact media and marketing to highlight value:

  1. Use annual surveys, qualify and quantify member, prospect and sponsor business objectives.
  2. Keep only those advocacy, product and service initiatives that match with “pain point” issues.
  3. Partner with name brand companies to develop and release research accelerating your marketplace’s competitiveness and profitability.
  4. Collaborate with social and business media to share and communicate cutting edge research.
  5. Engage members, prospects and sponsors in a transformed “we” culture.

Run Like A Business

More and more Association Leaders are and have transformed their Associations into finely tuned businesses. On a consistent growth trajectory and determined to compete aggressively, the Technology Association of Georgia (TAG), www.tagonline.com, uses annual market data to keep advocacy, products and services connected to market “pain points.” TAG also aligns the Association’s Strategic plan, operating plan and employee performance objectives. Over an eight year period they grew membership by 600%.

Associations Can Outlast Competitors

A number of Associations have convincingly made a strong business case and grown membership and sponsorship despite fierce competition. In addition to the Technology Association of Georgia, the American Occupational Therapy Association (AOTA), www.aota.org,grew membership by 40% (http://bit.ly/13toV3I).

For a free copy of the “Accelerating Strategic Member Engagement” eBook, request your copy at www.potomaccore.com.

Should Associations Revisit Sponsorship? Maybe.

Should Associations Revisit Sponsorship? Maybe

 Although U.S. reports 3% GDP growth in the first quarter, financial news out of Europe is not encouraging. Companies especially maintain a watchful and wary eye on expenditures. Some Associations report single digit revenue growth, others show no year over year increase. Yes, Associations are facing stiff headwinds as they aggressively secure existing revenue, and, work diligently to grow new revenue. Before the great Recession Sponsor Revenue was more reliable, but not anymore. It makes sense for CEO’s to revisit the strategy and definition of Sponsor programs.

Sponsors similar to members and prospects face smaller corporate budgets and immense pressure to deliver ROI.   However, there is one key factor Associations need to be mindful of; In hard times membership and sponsorship both are on the chopping block. There is a way to reposition and strengthen Associations to drive renewals and new members. The good news? There is an innovative way to reposition and grow Association Sponsor revenues too!

Strategic Review of Sponsor Programs

One Association Executive recently bemoaned, “Sponsor revenues aren’t nearly what they once were and we’re losing money.” Clearly a time to reassess the strategy and be prospective.

The three step Assessment model works as effectively for Sponsors as it does for renewals and new member recruitment:

Data Driven Strategies. What were sponsor revenues from 2006 through 2008?  What were sponsor revenues 2009 through 2011? Which companies participated pre recession and which no longer participate? What changed in the Company Sponsor evaluation process pre and post recession? What are the Sponsor’s business objectives post recession versus pre recession? Does your Association work with a C Level Executive or are you working with the Marketing Department?  What program or attendance dynamics at your Association events changed pre and post recession? What are your Association’s competitors doing differently now versus pre- recession?  Does your Association utilize post event Sponsor Surveys?  If so,  what are the takeaways? In meeting with CEO or C Level executives, what message do they convey?

Core Connections. All of the Data will inform Associations and uncover opportunities including the need to build allies in the C Suite of Sponsors as much as you do members and prospects.  In addition, Associations could realize that Sponsors are most interested in being partners and supporting an industry key to their business success.  This is the NEW Core Connection and requires a new strategy; instead of the Sponsor Program, Associations reposition to a Corporate Partner Program. This is a transition allowing these companies to fully partner with your Association.

Corporate Partner Engagement. As Corporate Partners, C Level executives will be able to interact on equal footing. Associations may consider creating a Corporate Partner Advisory Council and provide these investors a seat at the table.  If they perceive an ability to impact the direction of the Association and they perceive a welcoming community, the strategic transition is complete. Sponsors are a thing of the past, Corporate Partners achieve the same status as members, they are part of the fabric of the larger Community.

Should Associations Revisit Sponsorship?  Maybe.

It was an “ah ha” moment for one Association. Suffering considerable sponsor revenue losses, the staff engaged Sponsors directly. What was learned? The Sponsor wanted a strong industry but indicated that one of the first cuts is in the Sponsor area. Consequently it was the Sponsor who   helped the Association see a new path. This particular Association drives over $1 million annually in Corporate Partner Revenues.

In a booming economy Sponsor revenue was more reliable, but that is no longer the reality.  Uncertain times require a new look at how Association’s drive revenues. Although some argue that hard work is the best growth strategy, working smarter could hold the key to a brighter future.  In this instance, a strategic shift to a Corporate Partner program is the smarter strategy to grow and maintain an important Association revenue stream.

revisit sponsorshipFree eBook “Accelerating Strategic Member Engagement” is available for all Association Executives at www.potomaccore.com,www.icimo.com,and www.verticalleapconsulting.com.