The benefits of free benefits
I have been doing a lot of thinking lately about the challenging times that may be hitting many associations and how it will impact our membership strategies. In addition to changing our messaging to even more directly point out to our members why the hard times are the worst time for them to let their membership lapse, I have been wondering whether it would make sense for us to provide some free benefits for a period of time to certain segments of members who have not renewed.
My thinking is that if there are certain segments of your membership that you know have a high likelihood of coming back once the economy improves doesn’t it make sense to tell them, and show them, how much you value them as members by providing them a limited amount of their benefits for free for a limited period of time.
I think it is critical that you figure out what benefits you can afford to continue to provide for free (e-newsletters, access to members-only portion of the website, member pricing at conferences or webinars, etc.) and make sure that as you deliver them you remind recently lapsed members that you are doing this for free for a period of time in the hopes that they will eventually return to the organization. You can put subtle, or not so subtle, win-back offers in everything you give them in case they decide they want to renew before the end of the free period. Of course, once the free period is over, you will want to reach out to them and remind them it is over and that you want them to re-join.
I also think it is critical to determine what segments will receive this offer and how you will promote it. Will you offer it to long-term members who you noticed have dropped after extended tenure with the association? New members who you really want to help get through those first few years so you have them hooked long term? Will you promote it widely? Will you do it on a one to one basis? Personally I feel it really needs to be done on a one to one basis based on likelihood to renew which could be determined by past participation, volunteer status, etc. Otherwise you may end up extending the offer to many folks who never really intend to come back but really want the free benefits.
What do you think about this strategy? I think that if it is done right, the staff effort and minimal cost involved in doing it could position an association way ahead of its competition once things turn around.
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Comments
This sounds a bit preachy, but my own inclination based on reviewing many membership programs is that we should do this--offering some form of free benefits--in good times & bad. But the best "free" benefit is the steady, low pressure, low cost regular contact rather than open access to member discounts.
If one's e-newsletter pulls well as a member benefit, doing a second version with a banner citing it as a special service for non-members but crippling it a bit... Either truncating articles that link back to the general website, and sometimes linking to members-only resources are great ways to keep the non-member (prospect or former member) in the loop, give them some value, and also to remind them that they ARE not members and they ARE still missing some things. The advantage of this approach is to incur minimal staff cost in repurposing things already being done, with zero incremental costs of providing the service on an ongoing basis.
If one did pursue this option, I don't believe that a mass announcement is ever necessary for taking this kind of approach--rather begin to provide it to individuals as a 'pleasant surprise' .. better because then you don't run the risk at all of training reliable members to defect or plant the seed in their mind that it MIGHT be okay to drop their membership in tough economic times and/or when their employer changes policies and cuts back on their reimbursement for association memberships.
If properly managed this 'teaser' approach should engender good will, raise awareness over time among folks who have never chosen to belong before, and to accomplish your goal--to keep former members in the loop in a humanitarian way.
Posted by: Kevin Whorton, WM&R | November 18, 2008 8:10 AM
This strategy not only makes sense, well implemented it's essential to the livelihood of your association. While it’s probably less about "free" benefits than it is about benefits valued by the specific member, evidencing a willingness to work closely with your members through a difficult financial time is vital. For example, an association offering alternate billing cycles for members (monthly, quarterly or semi-annual) to avoid the big bite of lump sum annual dues, extending renewal cycles, 15 months for the price of 12 or other similar incentives will go a long way toward strengthening member loyalty. Since associations belong to their members, finding ways to provide relief to shareholders in difficult circumstances makes good business sense.
For a number of trade groups that offer group buying programs such as insurance, credit services, service contracts and the like keeping struggling members involved can be the difference between a successful program year or one which hurts all of the program group members.
Last point. As you suggest, this issue cries out for a "one-to-one" approach. In today's economic climate now would be the right time to reach out to every member to assess their business conditions and the likelihood of this year’s renewal. Without a clear gauge it might turn out that the association and not just the members will find themselves hurting as well.
Posted by: Kerry C. Stackpole, CAE | November 18, 2008 11:26 AM