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Private Sector Membership Models: What’s New and What It Means to Associations by Robbie Kellman Baxter and Seth Kahan In preparation for a recent conference for top association CEOs in Washington, D.C., Peninsula Strategies’ Robbie Kellman Baxter teamed up with Seth Kahan, founder of Associaton Transformation, to co-write this piece. For today’s association, leaving well enough alone is not good enough. Associations have established advantages: history, credibility, a membership base and insight into the benefits that at least some segment of their membership values. Many associations provide benefits that are still highly desirable: a sense of community, proprietary research, credentials, aspirational awards and a recognized and respected voice in public affairs. However, associations are up against new competition. Opportunities for professional development, connection and involvement are as close as the nearest keyboard or smartphone. Many of the most successful membership organizations are also grappling with a demographic shift. Stalwart members are retiring and dying. Private sector companies learned the value of building member loyalty from associations. What can associations learn from how the private sector has continued to build relationships? How can they take advantage of their head start in membership to continue to grow? Associations tend to keep membership offerings static. They misinterpret the lack of feedback from membership as satisfaction. Members may not be clamoring for innovation, but they recognize it when presented with a pricing change or a competitive option. Suddenly, your offering can seem shabby by comparison. Worse, being associated with you becomes passé. Being a member of the American Marketing Association is less desirable than Marketo, to the professional who wants access to the latest software, credentials and cutting edge content. So what can a professional association do to take advantage of their head start in membership and strengthen relationships to continue to grow? What’s Working in the Private Sector? Enables members to share underutilized assets. Tiered pricing is linked to prestige and benefit. Introduces new acquisitions and benefits often. Taps network effect for acquisition. iCloud technology creates a “forever transaction.” Upgrades loyalty programs to deliver unique experiences and celebrity access. Offers professional networking tool to physicians. Allows doctors to earn CME credits online, easily.

Private Sector Membership Models. What's New and What it Means to Associations

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Page 1: Private Sector Membership Models. What's New and What it Means to Associations

Private Sector Membership Models:What’s New and What It Means to Associations

by Robbie Kellman Baxter and Seth Kahan

In preparation for a recent conference for top association CEOs in Washington, D.C., Peninsula Strategies’ Robbie Kellman Baxter teamed up with Seth Kahan, founder of Associaton Transformation, to co-write this piece.

For today’s association, leaving well enough alone is not good enough.

Associations have established advantages: history, credibility, a membership base and insight into the benefits that at least some segment of their membership values. Many associations provide benefits that are still highly desirable: a sense of community, proprietary research, credentials, aspirational awards and a recognized and respected voice in public affairs.

However, associations are up against new competition. Opportunities for professional development, connection and involvement are as close as the nearest keyboard or smartphone.

Many of the most successful membership organizations are also grappling with a demographic shift. Stalwart members are retiring and dying.

Private sector companies learned the value of building member loyalty from associations. What can associations learn from how the private sector has continued to build relationships? How can they take advantage of their head start in membership to continue to grow?

Associations tend to keep membership offerings static. They misinterpret the lack of feedback from membership as satisfaction.

Members may not be clamoring for innovation, but they recognize it when presented with a pricing change or a competitive option. Suddenly, your offering can seem shabby by comparison. Worse, being associated with you becomes passé. Being a member of the American Marketing Association is less desirable than Marketo, to the professional who wants access to the latest software, credentials and cutting edge content.

So what can a professional association do to take advantage of their head start in membership and strengthen relationships to continue to grow?

What’s Working in the Private Sector?

Enables members to share underutilized assets.

Tiered pricing is linked to prestige and benefit.

Introduces new acquisitions and benefits often.

Taps network effect for acquisition.

iCloud technology creates a “forever transaction.”

Upgrades loyalty programs to deliver unique

experiences and celebrity access.

Offers professional networking tool to

physicians.

Allows doctors to earn CME credits online, easily.

Here are ten areas of exploration that may lead to stronger connections between members and associations.

1. Who are your ideal members?

Who are your best members? How are you serving their needs and interests? When it the last time you asked them? What do active members have in common? And who are your ideal new members? They may not look like or think

like yesterday’s movers and shakers.

For example, if one of your premier benefits has been a major event, this is not a draw for younger professionals who feel face-to-face gatherings are not worth the time or money. If your core membership is middle management, this will not attract the ambitious newcomer in search of mentoring.

What if you seek more established professionals? They are more likely to respond to access to peers, packaged data and benchmarking, best practices, salary surveys, and big-name speakers who will push them intellectually.

A hint that your offering is no longer cutting-edge is a decline in acquisitions. That signals a problem even if retention remains high.

2. What new segments can you identify?

Can you identify new segments targeted to your most attractive members (e.g., thought leaders, professionals affiliated with cutting edge organizations)?

What is more attractive to them, a single subscription/fee or a la carte access to events and other benefits?

In introducing different channels, services and benefits, you will need to optimize your offering for every new tier, but limit the segments because this adds cost and effort.

3. How do you define “competition”?

Do you know who your real competition is? Think beyond other associations and professional organizations.

Who else delivers desirable services (including information) to your members? Who else is earning wallet and mind-share? The answer might be an online publication or forum, an app, a user group, a certification provider, a virtual community, or a podcast series.

LinkedIn is an obvious threat. Social and community elements -- such as content marketing and loyalty activities -- built around B2B SaaS organizations such as Salesforce and Marketo may also encroach on benefits your association used to “own.”

4. How might you embrace technology?

Brainstorm and probe technological advances. You may discover new ways to use resources you already have.

Associations cannot afford to ignore mobility, social networking and visual networking such as Pinterest and Instagram, which have created both new communities and new points of entry to the Internet.

You must learn how the new social networks of membership are being facilitated and enabled through technology, and then build that capacity in your organization.

There is a strong need to evolve along the lines of Facebook and the other powerful social media tools. However, members and staff, including CEOs, are used to traditional structures that don’t apply these new forms of community building

5. What are your collective assets?

As technology lowers the cost of providing some benefits, what were once differentiators are now commodities. As the cost of certain benefits approaches zero (and people come to expect them as a given) you have to offer new value.

What resources does your membership have that can become products and services?

Can you leverage the sense of community in your association to help members share underutilized equipment or resources? For example, would members of a professional photographers association be interested in allowing a fellow member to use a specialized lens? Could the association facilitate that?

6. Does your image (and interface) need an upgrade?

A glossy magazine or respected journal may have been your public face for decades, but your online presence shapes how members and potential members see you now.

Is your site dynamic? Interactive? Easy to navigate? Full of new and refreshed content? Do you make it easy for members to connect, share content and express themselves? Is it a place people visit frequently?

Members trust associations to keep them at the forefront of their professional or industry. If your look is outmoded, functionality is lacking and the communication is in one direction, that trust begins to erode. If members can’t interact easily on your site, they will join other virtual communities that are more welcoming.

7. Can you make relationships stickier through partnerships?

Can your association leverage its size to create partnerships that are relevant to members? Can you reach out to organizations that could offer discounts for relevant products, free subscriptions or preferred access to information or services? What problem or pain point could you help your members solve? Where are they already doing business?

8. What services or benefits could you adapt from LinkedIn?

LinkedIn is a good model for how business people choose to connect today. With more than 300 million members, LinkedIn appeals to virtually all professionals in the U.S. (More than 40% of them check in on LinkedIn each day.)

The site launched as a static repository for resumes. Today, it has expanded to connect people with communities that foster professional exchange. Most benefits are provided as part of free registration.

LinkedIn membership offers many benefits similar to associations, including:

Networking. The site helps professionals across the country connect. Members find jobs, people and opportunities Members can view who visited their profile page. New contacts are automatically recommended based on background, title and interests.

Employment Opportunities. Employers list jobs and job-seekers and review the profile of hiring managers and discover which of their contacts might make an introduction. Members can bookmark jobs of interest. They can view recent hires at a company, which provides insights into the company’s strategy.

Research. Members can post photos and view photos of others to aid in identification. They can follow different companies and receive notifications about new members and offers. They have easy access to profiles on business trends based on aggregate data.

Community. Members build relationships. They can “like” and “congratulate” others based on their status updates. Members can join – and invite others – to professional groups and discussions.

9. Can you help members channel their expertise in ways that matter to them?

Can your association empower members to become a think tank that addresses critical global issues?

For example, the leadership of the Institute of Food Technologists extended its vision to ask: How can our specialized knowledge benefit the world? How can our expertise solve the problem of feeding 9 billion people by 2050? The IFT initiated summits with multinational aid organizations and some of the largest food distributors on the planet to explore the interlocking demands for food, energy and water.

Members gained a voice in debating global issues, enhancing the power and prestige of the organization. Amplifying the voice and influence of your members may be a benefit no one else can deliver.

10. What other loyalty-building ideas are working in the private sector?

Businesses are attracting new customers and retaining fickle ones by offering a range of features and benefits, including:

• Tiered pricing linked to special privileges or offers

• Freemiums such as guest passes and free trials

• Incentives for referrals

• Valuable data and content offered as a loss leader to software sales

• Daily deals and limited-time offers

• Online or in-person access to celebrities and experts

• Showcased user-generated visual content and curated content

• Crowdsourced data for reviews and referrals.

There is no “one-size-fits all associations” answer.

A willingness to ask questions – even about the most fundamental aspect of how your association functions – can help you shift hearts and minds. This renewed member-centric perspective can guide you to creative breakthroughs that allow you to your community and contribute irresistible value.

Page 2: Private Sector Membership Models. What's New and What it Means to Associations

Private Sector Membership Models:What’s New and What It Means to Associations

by Robbie Kellman Baxter and Seth Kahan

In preparation for a recent conference for top association CEOs in Washington, D.C., Peninsula Strategies’ Robbie Kellman Baxter teamed up with Seth Kahan, founder of Associaton Transformation, to co-write this piece.

For today’s association, leaving well enough alone is not good enough.

Associations have established advantages: history, credibility, a membership base and insight into the benefits that at least some segment of their membership values. Many associations provide benefits that are still highly desirable: a sense of community, proprietary research, credentials, aspirational awards and a recognized and respected voice in public affairs.

However, associations are up against new competition. Opportunities for professional development, connection and involvement are as close as the nearest keyboard or smartphone.

Many of the most successful membership organizations are also grappling with a demographic shift. Stalwart members are retiring and dying.

Private sector companies learned the value of building member loyalty from associations. What can associations learn from how the private sector has continued to build relationships? How can they take advantage of their head start in membership to continue to grow?

Associations tend to keep membership offerings static. They misinterpret the lack of feedback from membership as satisfaction.

Members may not be clamoring for innovation, but they recognize it when presented with a pricing change or a competitive option. Suddenly, your offering can seem shabby by comparison. Worse, being associated with you becomes passé. Being a member of the American Marketing Association is less desirable than Marketo, to the professional who wants access to the latest software, credentials and cutting edge content.

So what can a professional association do to take advantage of their head start in membership and strengthen relationships to continue to grow?

Here are ten areas of exploration that may lead to stronger connections between members and associations.

1. Who are your ideal members?

Who are your best members? How are you serving their needs and interests? When it the last time you asked them? What do active members have in common? And who are your ideal new members? They may not look like or think

like yesterday’s movers and shakers.

For example, if one of your premier benefits has been a major event, this is not a draw for younger professionals who feel face-to-face gatherings are not worth the time or money. If your core membership is middle management, this will not attract the ambitious newcomer in search of mentoring.

What if you seek more established professionals? They are more likely to respond to access to peers, packaged data and benchmarking, best practices, salary surveys, and big-name speakers who will push them intellectually.

A hint that your offering is no longer cutting-edge is a decline in acquisitions. That signals a problem even if retention remains high.

2. What new segments can you identify?

Can you identify new segments targeted to your most attractive members (e.g., thought leaders, professionals affiliated with cutting edge organizations)?

What is more attractive to them, a single subscription/fee or a la carte access to events and other benefits?

In introducing different channels, services and benefits, you will need to optimize your offering for every new tier, but limit the segments because this adds cost and effort.

Achieves viral growth as product use drives customer

acquisition.

Free members drive paying members; free trial begets

volume begets usage.

Facilitates members’ desire to share and connect.

Delivers eyeballs to sponsored content vs. ads.

Develops valuable content for target buyers.

Provides industry data and content as loss leader for

software sales.

Publishes user-generated content.

Online delivery drops operating costs to virtually

zero.

Moved from packaged software to a subscription and community model.

Members access latest software and support

through the cloud

3. How do you define “competition”?

Do you know who your real competition is? Think beyond other associations and professional organizations.

Who else delivers desirable services (including information) to your members? Who else is earning wallet and mind-share? The answer might be an online publication or forum, an app, a user group, a certification provider, a virtual community, or a podcast series.

LinkedIn is an obvious threat. Social and community elements -- such as content marketing and loyalty activities -- built around B2B SaaS organizations such as Salesforce and Marketo may also encroach on benefits your association used to “own.”

4. How might you embrace technology?

Brainstorm and probe technological advances. You may discover new ways to use resources you already have.

Associations cannot afford to ignore mobility, social networking and visual networking such as Pinterest and Instagram, which have created both new communities and new points of entry to the Internet.

You must learn how the new social networks of membership are being facilitated and enabled through technology, and then build that capacity in your organization.

There is a strong need to evolve along the lines of Facebook and the other powerful social media tools. However, members and staff, including CEOs, are used to traditional structures that don’t apply these new forms of community building

5. What are your collective assets?

As technology lowers the cost of providing some benefits, what were once differentiators are now commodities. As the cost of certain benefits approaches zero (and people come to expect them as a given) you have to offer new value.

What resources does your membership have that can become products and services?

Can you leverage the sense of community in your association to help members share underutilized equipment or resources? For example, would members of a professional photographers association be interested in allowing a fellow member to use a specialized lens? Could the association facilitate that?

6. Does your image (and interface) need an upgrade?

A glossy magazine or respected journal may have been your public face for decades, but your online presence shapes how members and potential members see you now.

Is your site dynamic? Interactive? Easy to navigate? Full of new and refreshed content? Do you make it easy for members to connect, share content and express themselves? Is it a place people visit frequently?

Members trust associations to keep them at the forefront of their professional or industry. If your look is outmoded, functionality is lacking and the communication is in one direction, that trust begins to erode. If members can’t interact easily on your site, they will join other virtual communities that are more welcoming.

7. Can you make relationships stickier through partnerships?

Can your association leverage its size to create partnerships that are relevant to members? Can you reach out to organizations that could offer discounts for relevant products, free subscriptions or preferred access to information or services? What problem or pain point could you help your members solve? Where are they already doing business?

8. What services or benefits could you adapt from LinkedIn?

LinkedIn is a good model for how business people choose to connect today. With more than 300 million members, LinkedIn appeals to virtually all professionals in the U.S. (More than 40% of them check in on LinkedIn each day.)

The site launched as a static repository for resumes. Today, it has expanded to connect people with communities that foster professional exchange. Most benefits are provided as part of free registration.

LinkedIn membership offers many benefits similar to associations, including:

Networking. The site helps professionals across the country connect. Members find jobs, people and opportunities Members can view who visited their profile page. New contacts are automatically recommended based on background, title and interests.

Employment Opportunities. Employers list jobs and job-seekers and review the profile of hiring managers and discover which of their contacts might make an introduction. Members can bookmark jobs of interest. They can view recent hires at a company, which provides insights into the company’s strategy.

Research. Members can post photos and view photos of others to aid in identification. They can follow different companies and receive notifications about new members and offers. They have easy access to profiles on business trends based on aggregate data.

Community. Members build relationships. They can “like” and “congratulate” others based on their status updates. Members can join – and invite others – to professional groups and discussions.

9. Can you help members channel their expertise in ways that matter to them?

Can your association empower members to become a think tank that addresses critical global issues?

For example, the leadership of the Institute of Food Technologists extended its vision to ask: How can our specialized knowledge benefit the world? How can our expertise solve the problem of feeding 9 billion people by 2050? The IFT initiated summits with multinational aid organizations and some of the largest food distributors on the planet to explore the interlocking demands for food, energy and water.

Members gained a voice in debating global issues, enhancing the power and prestige of the organization. Amplifying the voice and influence of your members may be a benefit no one else can deliver.

10. What other loyalty-building ideas are working in the private sector?

Businesses are attracting new customers and retaining fickle ones by offering a range of features and benefits, including:

• Tiered pricing linked to special privileges or offers

• Freemiums such as guest passes and free trials

• Incentives for referrals

• Valuable data and content offered as a loss leader to software sales

• Daily deals and limited-time offers

• Online or in-person access to celebrities and experts

• Showcased user-generated visual content and curated content

• Crowdsourced data for reviews and referrals.

There is no “one-size-fits all associations” answer.

A willingness to ask questions – even about the most fundamental aspect of how your association functions – can help you shift hearts and minds. This renewed member-centric perspective can guide you to creative breakthroughs that allow you to your community and contribute irresistible value.

PRIVATE SECTOR MEMBERSHIP MODELS: WHAT’S NEW AND WHAT IT MEANS TO ASSOCIATIONS

2

Page 3: Private Sector Membership Models. What's New and What it Means to Associations

Private Sector Membership Models:What’s New and What It Means to Associations

by Robbie Kellman Baxter and Seth Kahan

In preparation for a recent conference for top association CEOs in Washington, D.C., Peninsula Strategies’ Robbie Kellman Baxter teamed up with Seth Kahan, founder of Associaton Transformation, to co-write this piece.

For today’s association, leaving well enough alone is not good enough.

Associations have established advantages: history, credibility, a membership base and insight into the benefits that at least some segment of their membership values. Many associations provide benefits that are still highly desirable: a sense of community, proprietary research, credentials, aspirational awards and a recognized and respected voice in public affairs.

However, associations are up against new competition. Opportunities for professional development, connection and involvement are as close as the nearest keyboard or smartphone.

Many of the most successful membership organizations are also grappling with a demographic shift. Stalwart members are retiring and dying.

Private sector companies learned the value of building member loyalty from associations. What can associations learn from how the private sector has continued to build relationships? How can they take advantage of their head start in membership to continue to grow?

Associations tend to keep membership offerings static. They misinterpret the lack of feedback from membership as satisfaction.

Members may not be clamoring for innovation, but they recognize it when presented with a pricing change or a competitive option. Suddenly, your offering can seem shabby by comparison. Worse, being associated with you becomes passé. Being a member of the American Marketing Association is less desirable than Marketo, to the professional who wants access to the latest software, credentials and cutting edge content.

So what can a professional association do to take advantage of their head start in membership and strengthen relationships to continue to grow?

Here are ten areas of exploration that may lead to stronger connections between members and associations.

1. Who are your ideal members?

Who are your best members? How are you serving their needs and interests? When it the last time you asked them? What do active members have in common? And who are your ideal new members? They may not look like or think

like yesterday’s movers and shakers.

For example, if one of your premier benefits has been a major event, this is not a draw for younger professionals who feel face-to-face gatherings are not worth the time or money. If your core membership is middle management, this will not attract the ambitious newcomer in search of mentoring.

What if you seek more established professionals? They are more likely to respond to access to peers, packaged data and benchmarking, best practices, salary surveys, and big-name speakers who will push them intellectually.

A hint that your offering is no longer cutting-edge is a decline in acquisitions. That signals a problem even if retention remains high.

2. What new segments can you identify?

Can you identify new segments targeted to your most attractive members (e.g., thought leaders, professionals affiliated with cutting edge organizations)?

What is more attractive to them, a single subscription/fee or a la carte access to events and other benefits?

In introducing different channels, services and benefits, you will need to optimize your offering for every new tier, but limit the segments because this adds cost and effort.

3. How do you define “competition”?

Do you know who your real competition is? Think beyond other associations and professional organizations.

Who else delivers desirable services (including information) to your members? Who else is earning wallet and mind-share? The answer might be an online publication or forum, an app, a user group, a certification provider, a virtual community, or a podcast series.

LinkedIn is an obvious threat. Social and community elements -- such as content marketing and loyalty activities -- built around B2B SaaS organizations such as Salesforce and Marketo may also encroach on benefits your association used to “own.”

4. How might you embrace technology?

Brainstorm and probe technological advances. You may discover new ways to use resources you already have.

Associations cannot afford to ignore mobility, social networking and visual networking such as Pinterest and Instagram, which have created both new communities and new points of entry to the Internet.

You must learn how the new social networks of membership are being facilitated and enabled through technology, and then build that capacity in your organization.

There is a strong need to evolve along the lines of Facebook and the other powerful social media tools. However, members and staff, including CEOs, are used to traditional structures that don’t apply these new forms of community building

5. What are your collective assets?

As technology lowers the cost of providing some benefits, what were once differentiators are now commodities. As the cost of certain benefits approaches zero (and people come to expect them as a given) you have to offer new value.

What resources does your membership have that can become products and services?

Daily deal site creates excitement with limited time offers, earning daily repeat visits and accepted

emails.

Builds community around software skills, provides job

listings, content and credentialing valuable to

marketing pros.

Developed metrics for subscription success.

Focuses on providinggreat video content.

Uses membership and community to provide new entry point to the Internet.

Showcases user-generated and curated content.

Recruited world class experts to answer user

questions.

Can you leverage the sense of community in your association to help members share underutilized equipment or resources? For example, would members of a professional photographers association be interested in allowing a fellow member to use a specialized lens? Could the association facilitate that?

6. Does your image (and interface) need an upgrade?

A glossy magazine or respected journal may have been your public face for decades, but your online presence shapes how members and potential members see you now.

Is your site dynamic? Interactive? Easy to navigate? Full of new and refreshed content? Do you make it easy for members to connect, share content and express themselves? Is it a place people visit frequently?

Members trust associations to keep them at the forefront of their professional or industry. If your look is outmoded, functionality is lacking and the communication is in one direction, that trust begins to erode. If members can’t interact easily on your site, they will join other virtual communities that are more welcoming.

7. Can you make relationships stickier through partnerships?

Can your association leverage its size to create partnerships that are relevant to members? Can you reach out to organizations that could offer discounts for relevant products, free subscriptions or preferred access to information or services? What problem or pain point could you help your members solve? Where are they already doing business?

8. What services or benefits could you adapt from LinkedIn?

LinkedIn is a good model for how business people choose to connect today. With more than 300 million members, LinkedIn appeals to virtually all professionals in the U.S. (More than 40% of them check in on LinkedIn each day.)

The site launched as a static repository for resumes. Today, it has expanded to connect people with communities that foster professional exchange. Most benefits are provided as part of free registration.

LinkedIn membership offers many benefits similar to associations, including:

Networking. The site helps professionals across the country connect. Members find jobs, people and opportunities Members can view who visited their profile page. New contacts are automatically recommended based on background, title and interests.

Employment Opportunities. Employers list jobs and job-seekers and review the profile of hiring managers and discover which of their contacts might make an introduction. Members can bookmark jobs of interest. They can view recent hires at a company, which provides insights into the company’s strategy.

Research. Members can post photos and view photos of others to aid in identification. They can follow different companies and receive notifications about new members and offers. They have easy access to profiles on business trends based on aggregate data.

Community. Members build relationships. They can “like” and “congratulate” others based on their status updates. Members can join – and invite others – to professional groups and discussions.

9. Can you help members channel their expertise in ways that matter to them?

Can your association empower members to become a think tank that addresses critical global issues?

For example, the leadership of the Institute of Food Technologists extended its vision to ask: How can our specialized knowledge benefit the world? How can our expertise solve the problem of feeding 9 billion people by 2050? The IFT initiated summits with multinational aid organizations and some of the largest food distributors on the planet to explore the interlocking demands for food, energy and water.

Members gained a voice in debating global issues, enhancing the power and prestige of the organization. Amplifying the voice and influence of your members may be a benefit no one else can deliver.

10. What other loyalty-building ideas are working in the private sector?

Businesses are attracting new customers and retaining fickle ones by offering a range of features and benefits, including:

• Tiered pricing linked to special privileges or offers

• Freemiums such as guest passes and free trials

• Incentives for referrals

• Valuable data and content offered as a loss leader to software sales

• Daily deals and limited-time offers

• Online or in-person access to celebrities and experts

• Showcased user-generated visual content and curated content

• Crowdsourced data for reviews and referrals.

There is no “one-size-fits all associations” answer.

A willingness to ask questions – even about the most fundamental aspect of how your association functions – can help you shift hearts and minds. This renewed member-centric perspective can guide you to creative breakthroughs that allow you to your community and contribute irresistible value.

PRIVATE SECTOR MEMBERSHIP MODELS: WHAT’S NEW AND WHAT IT MEANS TO ASSOCIATIONS

3

Page 4: Private Sector Membership Models. What's New and What it Means to Associations

Private Sector Membership Models:What’s New and What It Means to Associations

by Robbie Kellman Baxter and Seth Kahan

In preparation for a recent conference for top association CEOs in Washington, D.C., Peninsula Strategies’ Robbie Kellman Baxter teamed up with Seth Kahan, founder of Associaton Transformation, to co-write this piece.

For today’s association, leaving well enough alone is not good enough.

Associations have established advantages: history, credibility, a membership base and insight into the benefits that at least some segment of their membership values. Many associations provide benefits that are still highly desirable: a sense of community, proprietary research, credentials, aspirational awards and a recognized and respected voice in public affairs.

However, associations are up against new competition. Opportunities for professional development, connection and involvement are as close as the nearest keyboard or smartphone.

Many of the most successful membership organizations are also grappling with a demographic shift. Stalwart members are retiring and dying.

Private sector companies learned the value of building member loyalty from associations. What can associations learn from how the private sector has continued to build relationships? How can they take advantage of their head start in membership to continue to grow?

Associations tend to keep membership offerings static. They misinterpret the lack of feedback from membership as satisfaction.

Members may not be clamoring for innovation, but they recognize it when presented with a pricing change or a competitive option. Suddenly, your offering can seem shabby by comparison. Worse, being associated with you becomes passé. Being a member of the American Marketing Association is less desirable than Marketo, to the professional who wants access to the latest software, credentials and cutting edge content.

So what can a professional association do to take advantage of their head start in membership and strengthen relationships to continue to grow?

Here are ten areas of exploration that may lead to stronger connections between members and associations.

1. Who are your ideal members?

Who are your best members? How are you serving their needs and interests? When it the last time you asked them? What do active members have in common? And who are your ideal new members? They may not look like or think

like yesterday’s movers and shakers.

For example, if one of your premier benefits has been a major event, this is not a draw for younger professionals who feel face-to-face gatherings are not worth the time or money. If your core membership is middle management, this will not attract the ambitious newcomer in search of mentoring.

What if you seek more established professionals? They are more likely to respond to access to peers, packaged data and benchmarking, best practices, salary surveys, and big-name speakers who will push them intellectually.

A hint that your offering is no longer cutting-edge is a decline in acquisitions. That signals a problem even if retention remains high.

2. What new segments can you identify?

Can you identify new segments targeted to your most attractive members (e.g., thought leaders, professionals affiliated with cutting edge organizations)?

What is more attractive to them, a single subscription/fee or a la carte access to events and other benefits?

In introducing different channels, services and benefits, you will need to optimize your offering for every new tier, but limit the segments because this adds cost and effort.

3. How do you define “competition”?

Do you know who your real competition is? Think beyond other associations and professional organizations.

Who else delivers desirable services (including information) to your members? Who else is earning wallet and mind-share? The answer might be an online publication or forum, an app, a user group, a certification provider, a virtual community, or a podcast series.

LinkedIn is an obvious threat. Social and community elements -- such as content marketing and loyalty activities -- built around B2B SaaS organizations such as Salesforce and Marketo may also encroach on benefits your association used to “own.”

4. How might you embrace technology?

Brainstorm and probe technological advances. You may discover new ways to use resources you already have.

Associations cannot afford to ignore mobility, social networking and visual networking such as Pinterest and Instagram, which have created both new communities and new points of entry to the Internet.

You must learn how the new social networks of membership are being facilitated and enabled through technology, and then build that capacity in your organization.

There is a strong need to evolve along the lines of Facebook and the other powerful social media tools. However, members and staff, including CEOs, are used to traditional structures that don’t apply these new forms of community building

5. What are your collective assets?

As technology lowers the cost of providing some benefits, what were once differentiators are now commodities. As the cost of certain benefits approaches zero (and people come to expect them as a given) you have to offer new value.

What resources does your membership have that can become products and services?

Can you leverage the sense of community in your association to help members share underutilized equipment or resources? For example, would members of a professional photographers association be interested in allowing a fellow member to use a specialized lens? Could the association facilitate that?

6. Does your image (and interface) need an upgrade?

A glossy magazine or respected journal may have been your public face for decades, but your online presence shapes how members and potential members see you now.

Is your site dynamic? Interactive? Easy to navigate? Full of new and refreshed content? Do you make it easy for members to connect, share content and express themselves? Is it a place people visit frequently?

Members trust associations to keep them at the forefront of their professional or industry. If your look is outmoded, functionality is lacking and the communication is in one direction, that trust begins to erode. If members can’t interact easily on your site, they will join other virtual communities that are more welcoming.

7. Can you make relationships stickier through partnerships?

Can your association leverage its size to create partnerships that are relevant to members? Can you reach out to organizations that could offer discounts for relevant products, free subscriptions or preferred access to information or services? What problem or pain point could you help your members solve? Where are they already doing business?

8. What services or benefits could you adapt from LinkedIn?

LinkedIn is a good model for how business people choose to connect today. With more than 300 million members, LinkedIn appeals to virtually all professionals in the U.S. (More than 40% of them check in on LinkedIn each day.)

The site launched as a static repository for resumes. Today, it has expanded to connect people with communities that foster professional exchange. Most benefits are provided as part of free registration.

Unlocks the unused value of assets.

Combines third party research and consumer

reviews to determine fair price of specific repairs and

recommended vendors.

Crowdsourced data makes pricing of services

transparent.

Grows communities through APIs and

marketplace for services that build on their software.

Liberates users from corporate purchasing by offering SaaS model of

software.

Leverages network effect and free offers for viral

growth.

Builds community through content marketing around

Human Capital Management.

LinkedIn membership offers many benefits similar to associations, including:

Networking. The site helps professionals across the country connect. Members find jobs, people and opportunities Members can view who visited their profile page. New contacts are automatically recommended based on background, title and interests.

Employment Opportunities. Employers list jobs and job-seekers and review the profile of hiring managers and discover which of their contacts might make an introduction. Members can bookmark jobs of interest. They can view recent hires at a company, which provides insights into the company’s strategy.

Research. Members can post photos and view photos of others to aid in identification. They can follow different companies and receive notifications about new members and offers. They have easy access to profiles on business trends based on aggregate data.

Community. Members build relationships. They can “like” and “congratulate” others based on their status updates. Members can join – and invite others – to professional groups and discussions.

9. Can you help members channel their expertise in ways that matter to them?

Can your association empower members to become a think tank that addresses critical global issues?

For example, the leadership of the Institute of Food Technologists extended its vision to ask: How can our specialized knowledge benefit the world? How can our expertise solve the problem of feeding 9 billion people by 2050? The IFT initiated summits with multinational aid organizations and some of the largest food distributors on the planet to explore the interlocking demands for food, energy and water.

Members gained a voice in debating global issues, enhancing the power and prestige of the organization. Amplifying the voice and influence of your members may be a benefit no one else can deliver.

10. What other loyalty-building ideas are working in the private sector?

Businesses are attracting new customers and retaining fickle ones by offering a range of features and benefits, including:

• Tiered pricing linked to special privileges or offers

• Freemiums such as guest passes and free trials

• Incentives for referrals

• Valuable data and content offered as a loss leader to software sales

• Daily deals and limited-time offers

• Online or in-person access to celebrities and experts

• Showcased user-generated visual content and curated content

• Crowdsourced data for reviews and referrals.

There is no “one-size-fits all associations” answer.

A willingness to ask questions – even about the most fundamental aspect of how your association functions – can help you shift hearts and minds. This renewed member-centric perspective can guide you to creative breakthroughs that allow you to your community and contribute irresistible value.

PRIVATE SECTOR MEMBERSHIP MODELS: WHAT’S NEW AND WHAT IT MEANS TO ASSOCIATIONS

4

Page 5: Private Sector Membership Models. What's New and What it Means to Associations

Private Sector Membership Models:What’s New and What It Means to Associations

by Robbie Kellman Baxter and Seth Kahan

In preparation for a recent conference for top association CEOs in Washington, D.C., Peninsula Strategies’ Robbie Kellman Baxter teamed up with Seth Kahan, founder of Associaton Transformation, to co-write this piece.

For today’s association, leaving well enough alone is not good enough.

Associations have established advantages: history, credibility, a membership base and insight into the benefits that at least some segment of their membership values. Many associations provide benefits that are still highly desirable: a sense of community, proprietary research, credentials, aspirational awards and a recognized and respected voice in public affairs.

However, associations are up against new competition. Opportunities for professional development, connection and involvement are as close as the nearest keyboard or smartphone.

Many of the most successful membership organizations are also grappling with a demographic shift. Stalwart members are retiring and dying.

Private sector companies learned the value of building member loyalty from associations. What can associations learn from how the private sector has continued to build relationships? How can they take advantage of their head start in membership to continue to grow?

Associations tend to keep membership offerings static. They misinterpret the lack of feedback from membership as satisfaction.

Members may not be clamoring for innovation, but they recognize it when presented with a pricing change or a competitive option. Suddenly, your offering can seem shabby by comparison. Worse, being associated with you becomes passé. Being a member of the American Marketing Association is less desirable than Marketo, to the professional who wants access to the latest software, credentials and cutting edge content.

So what can a professional association do to take advantage of their head start in membership and strengthen relationships to continue to grow?

Here are ten areas of exploration that may lead to stronger connections between members and associations.

1. Who are your ideal members?

Who are your best members? How are you serving their needs and interests? When it the last time you asked them? What do active members have in common? And who are your ideal new members? They may not look like or think

like yesterday’s movers and shakers.

For example, if one of your premier benefits has been a major event, this is not a draw for younger professionals who feel face-to-face gatherings are not worth the time or money. If your core membership is middle management, this will not attract the ambitious newcomer in search of mentoring.

What if you seek more established professionals? They are more likely to respond to access to peers, packaged data and benchmarking, best practices, salary surveys, and big-name speakers who will push them intellectually.

A hint that your offering is no longer cutting-edge is a decline in acquisitions. That signals a problem even if retention remains high.

2. What new segments can you identify?

Can you identify new segments targeted to your most attractive members (e.g., thought leaders, professionals affiliated with cutting edge organizations)?

What is more attractive to them, a single subscription/fee or a la carte access to events and other benefits?

In introducing different channels, services and benefits, you will need to optimize your offering for every new tier, but limit the segments because this adds cost and effort.

3. How do you define “competition”?

Do you know who your real competition is? Think beyond other associations and professional organizations.

Who else delivers desirable services (including information) to your members? Who else is earning wallet and mind-share? The answer might be an online publication or forum, an app, a user group, a certification provider, a virtual community, or a podcast series.

LinkedIn is an obvious threat. Social and community elements -- such as content marketing and loyalty activities -- built around B2B SaaS organizations such as Salesforce and Marketo may also encroach on benefits your association used to “own.”

4. How might you embrace technology?

Brainstorm and probe technological advances. You may discover new ways to use resources you already have.

Associations cannot afford to ignore mobility, social networking and visual networking such as Pinterest and Instagram, which have created both new communities and new points of entry to the Internet.

You must learn how the new social networks of membership are being facilitated and enabled through technology, and then build that capacity in your organization.

There is a strong need to evolve along the lines of Facebook and the other powerful social media tools. However, members and staff, including CEOs, are used to traditional structures that don’t apply these new forms of community building

5. What are your collective assets?

As technology lowers the cost of providing some benefits, what were once differentiators are now commodities. As the cost of certain benefits approaches zero (and people come to expect them as a given) you have to offer new value.

What resources does your membership have that can become products and services?

Can you leverage the sense of community in your association to help members share underutilized equipment or resources? For example, would members of a professional photographers association be interested in allowing a fellow member to use a specialized lens? Could the association facilitate that?

6. Does your image (and interface) need an upgrade?

A glossy magazine or respected journal may have been your public face for decades, but your online presence shapes how members and potential members see you now.

Is your site dynamic? Interactive? Easy to navigate? Full of new and refreshed content? Do you make it easy for members to connect, share content and express themselves? Is it a place people visit frequently?

Members trust associations to keep them at the forefront of their professional or industry. If your look is outmoded, functionality is lacking and the communication is in one direction, that trust begins to erode. If members can’t interact easily on your site, they will join other virtual communities that are more welcoming.

7. Can you make relationships stickier through partnerships?

Can your association leverage its size to create partnerships that are relevant to members? Can you reach out to organizations that could offer discounts for relevant products, free subscriptions or preferred access to information or services? What problem or pain point could you help your members solve? Where are they already doing business?

8. What services or benefits could you adapt from LinkedIn?

LinkedIn is a good model for how business people choose to connect today. With more than 300 million members, LinkedIn appeals to virtually all professionals in the U.S. (More than 40% of them check in on LinkedIn each day.)

The site launched as a static repository for resumes. Today, it has expanded to connect people with communities that foster professional exchange. Most benefits are provided as part of free registration.

LinkedIn membership offers many benefits similar to associations, including:

Networking. The site helps professionals across the country connect. Members find jobs, people and opportunities Members can view who visited their profile page. New contacts are automatically recommended based on background, title and interests.

Employment Opportunities. Employers list jobs and job-seekers and review the profile of hiring managers and discover which of their contacts might make an introduction. Members can bookmark jobs of interest. They can view recent hires at a company, which provides insights into the company’s strategy.

Research. Members can post photos and view photos of others to aid in identification. They can follow different companies and receive notifications about new members and offers. They have easy access to profiles on business trends based on aggregate data.

Community. Members build relationships. They can “like” and “congratulate” others based on their status updates. Members can join – and invite others – to professional groups and discussions.

9. Can you help members channel their expertise in ways that matter to them?

Can your association empower members to become a think tank that addresses critical global issues?

For example, the leadership of the Institute of Food Technologists extended its vision to ask: How can our specialized knowledge benefit the world? How can our expertise solve the problem of feeding 9 billion people by 2050? The IFT initiated summits with multinational aid organizations and some of the largest food distributors on the planet to explore the interlocking demands for food, energy and water.

Members gained a voice in debating global issues, enhancing the power and prestige of the organization. Amplifying the voice and influence of your members may be a benefit no one else can deliver.

Offers tiered pricing and freemiums and benefits

from network effect, even among free users.

Transformed pricingmodel across industry by replacing electric fence

with magnetic pull.

Represents the backend for subscription models.

Taps into how people buy, onboard and pay for

subscriptions.

Offers online and in-person experiences and tools.

Varies pricing for “active” vs. “maintenance” status.

Offers freemiums and layered services.

10. What other loyalty-building ideas are working in the private sector?

Businesses are attracting new customers and retaining fickle ones by offering a range of features and benefits, including:

• Tiered pricing linked to special privileges or offers

• Freemiums such as guest passes and free trials

• Incentives for referrals

• Valuable data and content offered as a loss leader to software sales

• Daily deals and limited-time offers

• Online or in-person access to celebrities and experts

• Showcased user-generated visual content and curated content

• Crowdsourced data for reviews and referrals.

There is no “one-size-fits all associations” answer.

A willingness to ask questions – even about the most fundamental aspect of how your association functions – can help you shift hearts and minds. This renewed member-centric perspective can guide you to creative breakthroughs that allow you to your community and contribute irresistible value.

PRIVATE SECTOR MEMBERSHIP MODELS: WHAT’S NEW AND WHAT IT MEANS TO ASSOCIATIONS

5

Page 6: Private Sector Membership Models. What's New and What it Means to Associations

Private Sector Membership Models:What’s New and What It Means to Associations

by Robbie Kellman Baxter and Seth Kahan

In preparation for a recent conference for top association CEOs in Washington, D.C., Peninsula Strategies’ Robbie Kellman Baxter teamed up with Seth Kahan, founder of Associaton Transformation, to co-write this piece.

For today’s association, leaving well enough alone is not good enough.

Associations have established advantages: history, credibility, a membership base and insight into the benefits that at least some segment of their membership values. Many associations provide benefits that are still highly desirable: a sense of community, proprietary research, credentials, aspirational awards and a recognized and respected voice in public affairs.

However, associations are up against new competition. Opportunities for professional development, connection and involvement are as close as the nearest keyboard or smartphone.

Many of the most successful membership organizations are also grappling with a demographic shift. Stalwart members are retiring and dying.

Private sector companies learned the value of building member loyalty from associations. What can associations learn from how the private sector has continued to build relationships? How can they take advantage of their head start in membership to continue to grow?

Associations tend to keep membership offerings static. They misinterpret the lack of feedback from membership as satisfaction.

Members may not be clamoring for innovation, but they recognize it when presented with a pricing change or a competitive option. Suddenly, your offering can seem shabby by comparison. Worse, being associated with you becomes passé. Being a member of the American Marketing Association is less desirable than Marketo, to the professional who wants access to the latest software, credentials and cutting edge content.

So what can a professional association do to take advantage of their head start in membership and strengthen relationships to continue to grow?

Here are ten areas of exploration that may lead to stronger connections between members and associations.

1. Who are your ideal members?

Who are your best members? How are you serving their needs and interests? When it the last time you asked them? What do active members have in common? And who are your ideal new members? They may not look like or think

like yesterday’s movers and shakers.

For example, if one of your premier benefits has been a major event, this is not a draw for younger professionals who feel face-to-face gatherings are not worth the time or money. If your core membership is middle management, this will not attract the ambitious newcomer in search of mentoring.

What if you seek more established professionals? They are more likely to respond to access to peers, packaged data and benchmarking, best practices, salary surveys, and big-name speakers who will push them intellectually.

A hint that your offering is no longer cutting-edge is a decline in acquisitions. That signals a problem even if retention remains high.

2. What new segments can you identify?

Can you identify new segments targeted to your most attractive members (e.g., thought leaders, professionals affiliated with cutting edge organizations)?

What is more attractive to them, a single subscription/fee or a la carte access to events and other benefits?

In introducing different channels, services and benefits, you will need to optimize your offering for every new tier, but limit the segments because this adds cost and effort.

3. How do you define “competition”?

Do you know who your real competition is? Think beyond other associations and professional organizations.

Who else delivers desirable services (including information) to your members? Who else is earning wallet and mind-share? The answer might be an online publication or forum, an app, a user group, a certification provider, a virtual community, or a podcast series.

LinkedIn is an obvious threat. Social and community elements -- such as content marketing and loyalty activities -- built around B2B SaaS organizations such as Salesforce and Marketo may also encroach on benefits your association used to “own.”

4. How might you embrace technology?

Brainstorm and probe technological advances. You may discover new ways to use resources you already have.

Associations cannot afford to ignore mobility, social networking and visual networking such as Pinterest and Instagram, which have created both new communities and new points of entry to the Internet.

You must learn how the new social networks of membership are being facilitated and enabled through technology, and then build that capacity in your organization.

There is a strong need to evolve along the lines of Facebook and the other powerful social media tools. However, members and staff, including CEOs, are used to traditional structures that don’t apply these new forms of community building

5. What are your collective assets?

As technology lowers the cost of providing some benefits, what were once differentiators are now commodities. As the cost of certain benefits approaches zero (and people come to expect them as a given) you have to offer new value.

What resources does your membership have that can become products and services?

Can you leverage the sense of community in your association to help members share underutilized equipment or resources? For example, would members of a professional photographers association be interested in allowing a fellow member to use a specialized lens? Could the association facilitate that?

6. Does your image (and interface) need an upgrade?

A glossy magazine or respected journal may have been your public face for decades, but your online presence shapes how members and potential members see you now.

Is your site dynamic? Interactive? Easy to navigate? Full of new and refreshed content? Do you make it easy for members to connect, share content and express themselves? Is it a place people visit frequently?

Members trust associations to keep them at the forefront of their professional or industry. If your look is outmoded, functionality is lacking and the communication is in one direction, that trust begins to erode. If members can’t interact easily on your site, they will join other virtual communities that are more welcoming.

7. Can you make relationships stickier through partnerships?

Can your association leverage its size to create partnerships that are relevant to members? Can you reach out to organizations that could offer discounts for relevant products, free subscriptions or preferred access to information or services? What problem or pain point could you help your members solve? Where are they already doing business?

8. What services or benefits could you adapt from LinkedIn?

LinkedIn is a good model for how business people choose to connect today. With more than 300 million members, LinkedIn appeals to virtually all professionals in the U.S. (More than 40% of them check in on LinkedIn each day.)

The site launched as a static repository for resumes. Today, it has expanded to connect people with communities that foster professional exchange. Most benefits are provided as part of free registration.

LinkedIn membership offers many benefits similar to associations, including:

Networking. The site helps professionals across the country connect. Members find jobs, people and opportunities Members can view who visited their profile page. New contacts are automatically recommended based on background, title and interests.

Employment Opportunities. Employers list jobs and job-seekers and review the profile of hiring managers and discover which of their contacts might make an introduction. Members can bookmark jobs of interest. They can view recent hires at a company, which provides insights into the company’s strategy.

Research. Members can post photos and view photos of others to aid in identification. They can follow different companies and receive notifications about new members and offers. They have easy access to profiles on business trends based on aggregate data.

Community. Members build relationships. They can “like” and “congratulate” others based on their status updates. Members can join – and invite others – to professional groups and discussions.

9. Can you help members channel their expertise in ways that matter to them?

Can your association empower members to become a think tank that addresses critical global issues?

For example, the leadership of the Institute of Food Technologists extended its vision to ask: How can our specialized knowledge benefit the world? How can our expertise solve the problem of feeding 9 billion people by 2050? The IFT initiated summits with multinational aid organizations and some of the largest food distributors on the planet to explore the interlocking demands for food, energy and water.

Members gained a voice in debating global issues, enhancing the power and prestige of the organization. Amplifying the voice and influence of your members may be a benefit no one else can deliver.

10. What other loyalty-building ideas are working in the private sector?

Businesses are attracting new customers and retaining fickle ones by offering a range of features and benefits, including:

• Tiered pricing linked to special privileges or offers

• Freemiums such as guest passes and free trials

• Incentives for referrals

• Valuable data and content offered as a loss leader to software sales

• Daily deals and limited-time offers

• Online or in-person access to celebrities and experts

• Showcased user-generated visual content and curated content

• Crowdsourced data for reviews and referrals.

There is no “one-size-fits all associations” answer.

A willingness to ask questions – even about the most fundamental aspect of how your association functions – can help you shift hearts and minds. This renewed member-centric perspective can guide you to creative breakthroughs that allow you to your community and contribute irresistible value.

Enables chat and community among employees. Builds relationships and

memberships inside organizations.

Premium pricing for special features.

Leverages geo-location and big data to maximize use of

assets.

Identifies niches in large markets where needs are not

met and delivers focused offering.

Uses flash sales to entice users to accept emails for

perceived benefits.

PRIVATE SECTOR MEMBERSHIP MODELS: WHAT’S NEW AND WHAT IT MEANS TO ASSOCIATIONS

Seth Kahanseth@associationtransformation.comwww.associationtransformation.comPhone: 301-229-2221

Robbie Kellman [email protected]

www.peninsulastrategies.comPhone: 650-322-5655