9 Ways to Rethink Your Membership Dues Structure in a Post-Pandemic World
The pandemic sparked a universal reset that’s changed our lives in both dramatic and subtle ways. Now, with increasing inflation, we’re still tweaking our routines and habits, especially our spending habits. People are questioning the value of memberships, even ones they’ve held for a long time. They’re paying more attention to ROI, especially if they’re paying for dues out of their own pocket. If they’re not getting the membership value they expect, it’s hard to rationalize paying those dues.
Associations are part of this great reset too. You should reassess your existing membership model to see if it’s still meeting the needs and preferences of your market. It’s a good time to also expand membership to new market segments by offering something different.
Membership Tier Possibilities
In my last post, I suggested creating a flexible membership model with a range of tiers and pricing that appeal to the different segments of your target audience. For professional societies, your market includes professionals with different career and membership interests, needs, and goals. A trade association’s market has companies of different sizes, budgets, and membership goals.
Here are 9 ideas for membership models and tiers that might be a good fit for your association and market.
#1. Hybrid Membership Model
I see more associations offering a hybrid membership model because it increases member engagement and retention. ASAE started out as an individual membership society but now offers organizational memberships with dues based on the number of staff. Members who find value as part of an organizational membership are likely to purchase their own membership if they change jobs.
Many company-based membership organizations (trade associations) offer individual memberships too. A member who works for a non-member company can talk about the benefits of membership with colleagues—an example of word-of-mouth marketing.
#2. Common Membership Tiers
Specialized membership tiers have been around for decades. Consider whether your association might find success with:
- Student memberships with dues based on their year: sophomore, junior, senior, or graduate student.
- Recent graduate: dues increase each year after graduation for a limited number of years.
- Early-career professional: dues are discounted for a limited number of years or until the member reaches a certain age or career milestone.
- Professionals in transition: dues are discounted for people who have been laid off or entering the profession from another career.
#3. Trial Memberships
Many subscriptions try to get us hooked with a no-risk trial. Since it takes more effort to cancel, if we’re receiving enough value, we’re likely to let the trial turn into a regular subscription. The same principle works for memberships. Since events are one of the top membership recruiting methods, try coupling a trial membership with a discounted or free first event.
#4. Virtual Membership
Lots of people, not just young professionals, prefer an online content subscription because they’re not interested in other membership benefits. This affordable subscription could include your members-only website, newsletters, and perhaps a webinar series. Hopefully, it also serves as a stepping stone to deeper commitment at a higher membership level.
A virtual membership also appeals to those who, because of changes in their lives, need to pull back on their commitment, but don’t want to lose their connection to their community. Members who might downgrade to this type of membership have a higher propensity to rejoin later, when conditions have improved in their lives.
#5. Book Club
Offer book club subscribers full or limited access to e-books, two to four print publications per year, and book club membership.
#6. Webinar Club
Provide a webinar subscription that includes access to post-webinar online discussion groups.
#7. Learning Pass
This membership tier is growing in popularity since it encourages member engagement, promotes learning as a habit, and builds loyalty. The corporate version offers licensing deals for compliance, frontline, and introductory training; professional development; and certificate programs. Education continues to be one of the top reasons for joining, so think about how learning goals might motivate someone to convert to a full membership in the future.
#8. Premium Tiers
Some associations offer a selection of extra benefits in a premium tier or allow members to purchase upgrades providing access to:
- Niche memberships by job role: C-suite, HR, sales/marketing, etc.
- Benchmark compensation or operations survey reports
- Consultation or coaching services
- Specialized tools or platforms
- Exclusive events
With the increased attention in the association community on new sponsorship arrangements, I’m seeing more memberships tiers for industry partners. This exclusive membership includes perks like access to purchasing decision makers and exclusive sponsorship rights.
#9. Cadillac Membership
In this high-dollar membership tier, companies or individuals pay one annual fee and get access to everything: content, information, education, and events. Of course, you could carve out exceptions where it makes sense.
Membership Tier and Pricing Decision Factors
Decisions to change your membership model must be based on data analysis, market research, and financial modeling. Find out:
- How different segments use member benefits
- What’s valued most by different segments
- Which segments have the lowest retention rates
- Who’s paying dues (individual or employer)
- Who’s paying for professional development and event registration
If particular membership segments have low retention rates, try to schedule exit interviews with them to find out why they didn’t achieve their membership goals and how membership didn’t meet their expectations.
Conduct focus groups with members, former members, and never-members to learn about their:
- Work and career challenges and goals
- Needs and interests
- Preferences for receiving information and participating in education and networking, for example, virtual and/or in-person
- Reasons for joining (or not joining)
- Benefits they value
- Benefits they wish you provided
- Thoughts on your existing and potential membership models
These conversations will help you determine if you have a membership value or a membership cost issue to resolve.
Many associations use the Van Westendorp Price Sensitivity Model to gauge pricing sensitivity, i.e., what people are willing to pay. Your finance team can analyze revenue and do financial modeling to help you determine sustainable pricing. For example, project how many members might opt for a lower price tier than the one they pay now and whether you can offset that loss with new or higher price memberships. Membership and pricing consultants in the association community can help you with these complex decisions.
But your membership and pricing options are limited if your AMS can’t handle the changes you’re considering. A configurable AMS, like MemberSuite, can manage complex membership structures and pricing, such as different dues pricing within an individual or organizational membership type. Flexibility is key as we continue to navigate the post-pandemic environment. With a configurable AMS, your association is not locked into one membership structure, so you can experiment and change as the needs and preferences of your members and market change.
If you’re having trouble finding an AMS that can accommodate complex membership tiers and dues pricing, watch a demo of the most configurable AMS on the market.