Association membership is still in an impressive post-pandemic rebound, according to MGI’s annual Membership Marketing Benchmark Report, with steady growth and increasing virtual engagement spurring cautious optimism among membership professionals. However, economic uncertainty and barriers to member communication pose persistent challenges in the ways in which we can build member loyalty, and future success will depend on innovative approaches to member acquisition, communication, and retention
The era we live in is characterized by an abundance of consumer choice and mobility, which has been further accelerated by the growth of digital engagement and e-commerce during the pandemic. This trend has resulted in reduced constituent retention and loyalty across various sectors, including associations and membership organizations. For these institutions, renewing members is crucial for revenue generation and long-term sustainability.
As the saying goes, "It costs five times more to acquire a customer than to keep an existing one," data backs that up. While attracting new audiences is important, investing in the satisfaction of current visitors yields a higher return on investment. By providing a positive visitor experience, the likelihood of an individual becoming a repeat visitor, member, and eventually a loyal advocate of your institution increases significantly.
To achieve sustainable support and cultivate enthusiastic champions of your mission, here are nine strategies that associations can implement:
1. Be an Active Listener
A recent three-year survey from McKinsey found that consumer satisfaction has been in a sharp decline, exacerbated by organizations and brands that failed to keep up with the mass pivot to digital during the pandemic and the consequent shifts in consumer preferences.
Consumers are changing on the individual and macro level, with new trends overwhelmingly driven by the mass shift to digital over the past decade and accelerated by the pandemic. More people are online and on digital devices more often, which can be helpful in reaching your constituency – if you can cut through the noise and competition to connect with them in a genuinely impactful way and develop a meaningful relationship.
As consumer behavior has evolved and digitalization taken over the past decade, brands are struggling to keep up! According to McKinsey's three-year survey, satisfaction levels among customers have plummeted. With more people spending time online than ever before due to COVID-19, it is becoming increasingly challenging for organizations and businesses alike to break through this noise in order build meaningful relationships with their consumers that drive real impact.
People want their voices heard, and so many organizations and service are pivoting to be more attuned to individual feedback and demands. Subscription services have seen a meteoric rise across sectors, proving the power of really listening to customers - rather than guessing what they want. Listening closely and responding to their needs is key to keeping your members engaged for the long haul.
Pro Tip: Get feedback through clear avenues like comment boxes, webpages, or surveys so they can express what works best for them and feel appreciated in return.
2. Communication is key
Listening to your members is inseparable from effective communication and is equally significant. To develop a loyal member, it is important to remain consistently present in their thoughts, which validates their commitment. According to a recent study from Culture Track, trustworthiness is the top motivator for loyalty among members, with 61% of respondents citing it as the most critical factor.
Transparency and clarity about renewals and expirations are integral to building trust through communication. By ensuring that members are informed about their access and benefits, you can keep them engaged and reduce the amount of member churn attributed to members simply forgetting to renew. Additionally, this opens up opportunities for ongoing communication that you can nurture over time.
In a society that is increasingly mobile-first, the channels and tools used to reach members are of utmost importance. Advanced mobile communication tools like SMS text messaging, with its 99% open rate, can help keep members up to date on time-sensitive issues, special events, and benefits, and have been proven to increase engagement and improve loyalty
3. To build member loyalty you need to Get Personal
As the collection of user data and customization of user experiences continue to grow, consumers expect digital services to be tailored to their specific needs. Personalization not only enhances member satisfaction and loyalty, but also helps you understand your constituents better and serve their needs more effectively.
With the aid of tools such as Digital Membership Cards, you can personalize your outreach by segmenting your audience based on factors ranging from demographics to loyalty motivators. For instance, a 2020 study in the Journal of Brand Management identified three distinct types of loyalty: Heart, Head, and Hand. Heart-loyal customers are committed to a brand based on their idealism, identity, or mission. Head-loyal customers make decisions based on practical, rational cost-benefit analysis. Hand-loyal customers tend to stick with a brand due to habit and resistance to change. It is essential to understand the unique characteristics and preferences of these different constituent profiles and tailor your approach to each group by offering incentives that align with their respective values and objectives.
4. Engage & Delight
Loyalty programs are gaining immense popularity, with businesses offering various membership benefits and points-based systems to cater to consumers' desire for tangible rewards and gamified experiences. However, the market has become saturated, leading to a plateau in engagement as only 50% of loyalty program members remain active, according to recent data from McKinsey & Company. To increase loyalty, it is crucial to provide diverse channels for engagement, including virtual entertainment, digital communication, and live events and opportunities. Renewal rates are positively linked to the frequency of member visits and their level of in-person engagement. Therefore, it is essential to provide innovative ways to engage with members and maintain an active and loyal member base.
5. Expand Your Time Horizon
A recent study from McKinsey revealed that loyalty programs often fail to deliver value, with two-thirds of initiatives falling short and some even degenerating value for the institution that implemented them. However, the study also shows that even if these programs do not directly drive revenue, they can generate user data that can benefit other organizational initiatives and promote long-term loyalty. This is supported by data that demonstrates the long-term value of members, whose lifetime value increases with each renewal.
In essence, loyalty investments build stronger relationships with members that yield returns over time. Balancing the provision of enough value, such as discounts and perks, to attract and retain members while not compromising the bottom line in the short term is critical.
6. Emphasize Exclusivity
Providing economic value alone is not enough to promote loyalty, data from the arts and culture sector suggests. It is crucial to offer perks that demonstrate exclusivity and emphasize the value of membership to your organization. People tend to place a higher value on something when it is scarce, and they want to feel included and valued as loyal members. One way to achieve this is by implementing a tiered membership system with varying incentives, perks, and features. However, despite the increasing trend towards digital or virtual membership, as of 2020 only 5% of associations had virtual memberships available as an option.
For instance, American Society of Baking offers a virtual membership option for baking enthusiasts seeking to connect with industry leaders and peers and engage in remote conversations. This plan provides unlimited access to networking events like Coffee Breaks and Trivia Nights. Similarly, the Indiana Society of Association Executives also offers a virtual membership program which includes a library of exclusive content and discounts on webinars.
By offering exclusive membership options and highlighting members' unique value, organizations can incentivize renewals and promote long-term loyalty.
7. Provide Mutual Value
Did you know that according to MGI's 2022 benchmarking report, word-of-mouth recommendations are the most powerful way for organizations to grow their memberships? 9 out of 10 customers trust these special endorsements from their peers – so why not tap into digital referral programs and incentives as a great way to capitalize on this potential?
Guest pass referrals are a proven way to drive member retention: A study from Harvard Business Review found that you can expect at least 16% more in profits from referrals, and referred constituents have an 18% lower churn, or rate of attrition, than those acquired through other channels – with a 37% higher retention rate. And while retention does not necessarily always imply loyalty, in this case it does: referrals have a higher lifetime value and greater loyalty than other customers.
Famously leveraged by fast-growing companies like Slack, Dropbox, Uber, and Airbnb, a referral program is an approach to growth “that seeks to encourage existing customers to recommend a brand to their friends, family and colleagues....it seeks to supercharge natural or latent word of mouth with easy to use sharing tools and referral rewards.”
Tesla, the electric vehicle manufacturer, employed a word-of-mouth referral program that multiplied their ROI by 40X – with zero advertising budget. Referral programs are proven to nurture loyalty among constituents, so it’s no surprise that Tesla leads its industry in customer loyalty.
You can also initiate referral incentives, such as:
Membership discounts to members who refer others who join
Loyalty points to apply towards conference fees
Free or discounted guest passes to meetings and events - Learn more about digital guest passes.
In short, digital can help you reach the full potential of word-of-mouth recommendations, enabling you to grow your membership at an accelerated pace.
8. Prioritize the User Experience
Offering convenience is one of the most significant advantages when trying to build member loyalty. In today's fast-paced, digitally-driven world, a seamless user experience has become a basic expectation, whether it's online or offline. However, arts and culture organizations often struggle to provide the ease and efficiency that their audiences demand. Outdated or complicated technology can result in a disjointed user experience, confusion regarding benefits and access, and declines in member loyalty. To combat this, organizations must offer a top-notch user experience that caters to their members' needs, provides clear value, and streamlines engagement processes.
As a result, many associations are opting to switch to all-in-one self-service systems that enable members to access their information and benefits, purchase tickets and guest passes, and more with ease and speed.
9. Innovate and Evolve
The 2022 Commerce Innovation Report states that brands that fail to innovate experience a decrease in constituent loyalty. Over half of consumers have a strong preference for brands that adapt to meet changing customer preferences, payment methods, and digital devices. Furthermore, nearly 75% of consumers will switch to a different brand if they feel their expectations are not met. Millennials are the most likely generation to abandon a brand if they are dissatisfied, and since they have $2.5 trillion in spending power, organizations that want to increase loyalty and prevent customer loss should pay attention to their preferences and needs.
Understanding your members' expectations, priorities, and values is essential for nurturing loyalty. With this knowledge, associations and membership organizations can strengthen relationships with their constituents, convert visitors into lifelong members and advocates, and consistently deliver value to both new and returning audiences over an extended period.
Interested in learning more about digital solutions to build member loyalty? Request a free, no-pressure demo today!