In a recent survey of over 80 trade associations, professional bodies and membership organisations, participants acknowledge that they are now operating in a very different economic and business environment to that of 3 years ago. Many participants spoke about the challenges that they are facing in today’s tough environment; membership numbers have fallen, subscription revenues have declined and members are demanding greater support than ever. Participants reported that they have lost members due to businesses closing down. Employee numbers have fallen, impacting the membership rates charged. Members are looking to reduce their business costs and if they cannot attribute a Return on Investment (ROI) to their subscription fee they are sometimes opting to leave the organisation. Membership Managers and Marketing Managers have reported an unprecedented increase in the number of requests to reduce subscription fees, to discount existing fees or to waive fees altogether!
Membership organisations are reacting differently to the challenges posed. Some are promoting their existing benefits to members, relying on the tried and trusted. Others are improving on what’s there already; updating their website, increasing their activity on social networking sites like Linkedin and Twitter. Unfortunately some membership organisations have felt the pressure to reduce their subscriptions fees without fully understanding the members’ issue. By asking for a reduction in fees the member is saying to the organisation I don’t feel that I am getting value for my money. A discount or reduced fees won’t address this.
Membership organisations need to address the real issue. Members are looking for support that will provide their business with significant and quantifiable benefits rather than a 5% or 10% discount on their subscription fee. They are looking for new and innovative services that will add value to their business or reduce their overall business costs. Membership organisations that are proactive in offering new and tangible business supports and really listen to their members will lead the way.
Let us know what you think and check out how MemberTender.com is innovating to improve membership organisations here.