12 Areas Your Association Must Address to Thrive During a Recession
Your association survived the worst of the pandemic. Now, you’re watching the economy and assessing how it might affect your industry, organization, members, and market. But this time, you can be proactive instead of caught off guard like we all were in the spring of 2020. You can better prepare your association for the impact of rising inflation or a worsening recession by addressing these twelve issues.
#1: Budget
If you’re still working on next year’s budget, I’ll state the obvious: go easy. If conditions start changing rapidly, plan for quarterly budget reviews and, possibly, adjustments. Expect inflation to increase expenses. Temper your revenue projections. Anticipate a flattening or decline in attendance levels unless you have great confidence in your marketing.
#2: Revenue Diversification
Here’s where you can offset budget pressures. During the pandemic, many associations were caught short when they had to cancel or transform their major revenue generator—the annual meeting or trade show—and didn’t have a worthy virtual alternative for sponsors and exhibitors.
Since then, I’ve seen many associations rethink their approach to sponsorship. They’re talking with sponsors and exhibitors about their marketing goals and offering year-round opportunities. These revenue partners are getting a chance to educate, not just sell, and are seeing much better returns on their marketing dollars.
#3: Membership Tiers and Pricing
Do your membership tiers and pricing still match the needs and desires of your market? Many associations have revamped their membership structure by offering:
- Both individual and organizational memberships
- Digital-only memberships
- Learning subscriptions
- Tiers designed for professionals or companies with specific needs
I’ve also seen associations instituting an annual cost-of-living dues increase, which eliminates the need to introduce a large increase when expenses rise or revenue falls. In a recessive economy, also think about offering a discounted dues rate for professionals in transition or an extended grace period for those in between jobs.
#4: Reserves
Review and clarify the status and role of reserves with your board. Is it okay to dip into them if you have the opportunity to develop a game-changer benefit or program?
#5: Streamlined Governance
Do your bylaws allow virtual board meetings so your leaders can respond to changing conditions? If you haven’t already, now’s the time to improve governance processes so your organization can quickly invest resources where they’re most needed.
#6: Data vs. Sacred cows
You can’t afford to spend staff time and money on programs that haven’t earned their keep. What delivers value to the majority of members and what doesn’t?
This economic environment gives you permission to be ruthless about lackluster legacy programs—sacred cows that have been given a pass because too many people are invested in their continued existence. Hard data can back up your recommendation to sunset programs that no longer merit resources. Watch out for board or committee bias interfering with these tough decisions. Data can help everyone set their personal feelings aside.
#7: Technology Stack
Where are you still paying for customization and upgrades? I’m admittedly biased, but consultants will back me up here: a change to software-as-a-service (SaaS) technology will save you money and headaches, plus give you access to more frequent, hassle-free updates.
Where can you integrate software instead of spending precious staff time on data entry and other laborious administrative tasks? Look for software with association-friendly API.
Investing in long-term sustainability means making tough but smart decisions like:
- Cutting the cord with customized legacy systems,
- Outsourcing IT to ensure security and backups, and
- Engaging a consultant to conduct a technology assessment and help you develop a technology strategy.
#8: Marketing ROI
Your members and market have many options for their attention, time, and money. The effectiveness of your marketing can make all the difference. This is no time for amateurs. Give your staff the marketing training they need so they know how to prove the value of association membership, products, and services to members, non-members, and industry employers, as well as the value of a relationship with your association to sponsors, exhibitors, and advertisers.
In a tough economy, you must differentiate your association from competitors. Employers and professionals must see your products as an indispensable line item. You also have to help prospective members and customers make a business case for your association and its programs to their employers.
Membership and professional development are usually cut from a budget at the same time. Focus on converting people into regular customers before trying to sell them membership. If you continue to deliver value, membership will be an easier sell. Think about a campaign to bring back those lost members in this similar ‘stepped’ fashion.
#9: Economic Information
Anyone running a business appreciates economic alerts and data concerning market trends, supplies, and the labor market. Bring in experts if you don’t have in-house economists to explain how issues and trends are affecting the industry.
#10: Business Education
Deliver education that helps members run their businesses in a recessive economy. Whether it’s a certificate program in which they learn new skills or a webinar series about operational efficiency, give members the knowledge they need to ride out tough economic times. Ask business owners and professionals who survived the 2008 recession to share their stories in virtual roundtables and town halls.
Create learning packages or subscriptions for recession-buster programs. Offer microcredentials and digital badges that people can earn in six months or less that will increase their job prospects and chance of promotion.
Provide career center resources that help members find jobs, for example, resume and job interviewing tips, support groups, and coaching services.
#11: Listening
Continually talk with and listen to members and non-members so you can stay on top of their changing situations and understand their needs and interests. Gather information via pulse polls, surveys, feedback channels, focus groups, and conversations at virtual and in-person events.
#12: Staff
Talent is your most valuable asset. Retain and attract the best people by giving them what they need and desire in a job: flexibility, professional development, attention to their wellbeing, caring and nurturing workplace culture, camaraderie and connections, and good technology.
Yes, technology. Talented employees won’t hang around if your technology costs them time and causes frustration. Request a demo to see why association professionals appreciate the configurability of MemberSuite.