Posted December 9, 2014

 

Along with employees and companies, associations are also putting the wraps on 2014 and planning for next year. As such, I’d like to alert my friends in the association world to an article I read recently about member value, forwarded to me by a colleague who heads a textile industry group. The article, “The Membership Value Myth” by Ed Rigsbee, CSP, CAE, is adapted from his book, “The ROI of Membership – Today’s Missing Link for Explosive Growth.”

 

Rigsbee makes a number of relevant points regarding perceived value by members and perceived value by association leaders – which are often divergent. If someone says that membership in their organization is “priceless,” it actually means they “have no idea of the monetary value received from membership dollars,” he writes. That is a huge problem, he opines, because if members see their membership as an expense, their dues are one of the first things to go during tough times.

 

Most trade associations and professional societies in North America have not determined the actual dollar value delivered to members, which forces members to have to justify annual dues, Rigsbee writes. He continued that two ways to determine real-dollar value exist: staff determined and member determined. The problem with the former method is that staff “creates arbitrary numbers derived from industry research comparisons and staff perceptions of what services and products should be worth, or the value from obtaining these at member-discounted prices.” But member-driven numbers are closer to the truth, he writes, because, through facilitative sessions, they determine the actual value from each of the organization’s activities, products and services.

 

A big mistake associations often make is they don’t have member-only benefits, according to Rigsbee. They may have valuable products, services or privileges – such as emailed information and news articles – but these are ineffective for member recruitment if they get the value without holding membership, he writes. They are “getting the milk without buying the cow,” he added. He concluded that member-only benefits should be used to measure the real-dollar value of membership – and members, not staff, should be the ones determining the value. He also laid out a formula for coming up with a membership return on investment (ROI) number.

 

Now, I don’t know Rigsbee and am not trying to sell his book. But I agree with his sentiments about association membership value. He does make some excellent points. As you prepare for next year and try to figure out ways to retain members, attract new ones and add more value (real over perceived), I’d like to challenge you to make time for some introspection. A self-appraisal is a good starting point, but, reiterating Rigsbee’s thoughts, that should be followed up by a membership assessment. Perhaps a good time is at your annual meeting, with a scheduled breakout session for members to examine line items of the organization’s benefits. Rigsbee and others offer templates for these type of meetings. A resulting ROI, in real dollars, would be a great marketing tool for recruitment and retention.

 

Generally, as an industry, we have trouble attract younger members to our companies and, in effect, our associations. So we should continue to seek better ways to enlist the next generation in our ranks. It’s no longer good enough to ask members to join our groups “to support your industry.” A measurable value would certainly help draw in Millennials, as well as others. Everyone’s time is more valuable today than ever before, and prospects need real reasons to spend time being involved in associations.

 

As with all sectors, associations make the textile industry strong and, I’m convinced, help keep the industry competitive and on the cutting edge of the latest technology and trends. Networking opportunities offered through organizations are invaluable, but they aren’t enough in and of themselves to keep and get members. We need all of our associations to stay valuable and viable as we continue to make our way in this competitive world.