introduction defining and tracking value and · 2019. 11. 7. · 16% increasing participation among...
TRANSCRIPT
2019 EIA SPECIAL REPORT: VALUE AND ENGAGEMENT | 2
INTRODUCTION
TRANSLATING PRIORITIES TO ACTION
DEFINING AND TRACKING VALUE AND ENGAGEMENT
THE MEMBERSHIP MODEL OF THE FUTURE
CLOSING THOUGHTS
CHARTS
CONTENTS
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DEAR COLLEAGUES:
You may remember from the full edition of this year’s Economic Impact on Associations (EIA) report that
a few key association indicators have reached all-time highs, such as retention and optimism, yet broader
economic data and public opinion research show mixed perceptions and results. How is this translating into
the strategies and operations of mission-driven organizations?
This second installment of EIA outlines how associations are responding to current conditions, particularly
in the areas of strategy, value and engagement. Highlights include:
• Association priorities have shifted, with a
significant jump in the top-ranked priority of
“strategic planning” (up 10% from 2018) and a
significant decline in the third-highest ranked
priority of “generating non-dues revenue” (down
10% from 2018).
• In a dynamic and unpredictable environment, most associations are focusing on elements within their
control, such as clarifying their priorities, introducing more sophisticated engagement and benefits
models, strengthening communications, keeping up with the fast pace of change in their fields and
industries, and employing data to track performance.
• We are rather disheartened to observe that relatively few associations are embracing promising
approaches to adaptation, including cross-organizational and cross-team work, workplace automation,
ensuring transparency and accountability, managing and planning for risk, ensuring a high-functioning
governance structure, and diversity and inclusion.
• Respondents continued to show an investment in segmentation—both in communications and
product development.
• Interestingly, the strategies least frequently employed by respondents—expanding the use of data/
analytics and redefining the association’s priorities and objectives—were cited as having the greatest
impact, suggesting that associations could be focusing their attention in areas that are less likely to
have an impact or translate into measurable impact.
These studies would not be possible without the association professionals who respond, and we are grateful
for their time and support. To discuss the data in more depth, arrange a presentation for your staff or board, or
participate in future benchmarking presentations, please contact me at [email protected].
We always enjoy hearing directly from our colleagues and friends in the community.
Jay Younger
President and CEO
McKinley Advisors
The greatest danger in times of turbulence is not the turbulence—it is to act with yesterday's logic.”
PETER DRUCKER
2019 EIA SPECIAL REPORT: VALUE AND ENGAGEMENT | 4
Respondents to the 2019 EIA Study indicate a reordering of priorities, placing particular
emphasis on strategic planning this year (up 10% from 2018) and developing new methods for
member engagement (holding steady at 29% in 2019, compared to 30% in 2020) and less explicit
focus on generating non-dues revenue (down a notable 10% from 2018). When considered across
the study, diversification remained a strong theme; there was simply less explicit focus on
revenue diversification and a broader focus on finding diversification across multiple channels,
including increased participation, new products and services, pricing/dues restructuring, and an
expansion of target audiences (such as young professionals and global audiences).
TRANSLATING PRIORITIES TO ACTION
Strategic planning 19%29%
21%
Developing new methods for member engagement 30%
29%
23%
New member acquisition
19%23%
24%
Generating non-dues revenue 33%
23%
26%
New product research and development
1117%
9%
Diversifying membership/attracting new audiences
15%17%
16%
Increasing participation among younger members
10%15%
10%
Website enhancements 9%13%
11%
Improving member retention
18%15%
23%
Branding/increasing awareness
24%15%
21%
Pricing/dues restructuring 11%10%
6%
Member segmentation to create personalized experience
15%10%
13%
Implementing/using digital marketing tools
6%8%
4%
Improving marketing results
8%8%
7%
Increasing meeting attendence
12%8%
12%
Global/international growth
7%6%
8%
Governance changes 7%4%
4%
Other, please specify 10%6%
8%
AMS/database upgrade/conversion
16%4%
16%
Enhancing advocacy programs
13%2%
19%
2019, total responses: 48 2018, total responses: 163 2017, total responses: 156
WHAT ARE YOUR ASSOCIATION'S 3 HIGHEST PRIORITIES FOR THE NEXT YEAR?
*In 2019, McKinley explored some updates to our traditional processes; thus, this question was only shown to half of all respondents
2019 EIA SPECIAL REPORT: VALUE AND ENGAGEMENT | 5
In what other ways are associations ensuring long-term viability and impact? This year, we
asked respondents to rank a series of specific strategies and tactics to understand where
they are investing time and resources. Again, respondents showed a strong commitment to
tightening their strategic direction. This is consistent with the findings outlined earlier in this
report but also indicative of the theme we highlighted in EIA Part I, where many organizations
reported a historically strong performance, but broader economic indicators and public
perception studies revealed high levels of uncertainty and dissatisfaction. Essentially what
we see is a sector in the midst of transformation as most association professionals are
focusing on the dynamics that are within their control to fortify their organizations for the
future. The results below reinforce this trend, including the importance of employing strategy
to implement priorities; introducing more sophisticated engagement and benefits models;
employing stronger communications; evolving the benefits portfolio; keeping pace with the
change experienced within the field or industry, and employing data to track performance.
*see the full data in the Charts section
While it is insightful to look at the highest-ranked priorities, it is just as telling to analyze
the priorities that fall within the bottom segment. These low-ranking priorities reveal gaps
between intention and execution, and between association practices and the innovations that
are happening outside of the sector. Here are some key takeaways:
• “Cultivating cross-team/cross-organizational work” ranks low in importance, yet the
impact of not promoting organization-wide collaboration appears quite frequently in the
member and prospect research we conduct, with respondents citing such challenges as
lack of awareness, uncoordinated communications, and products and services that seem
fragmented or without clear benefit.
Implementing strategic priorities across the organization.
Maintaining an internal pace of change that ensures that the association evolves with the changing field/industry.
Identifying member challenges and creating clear links to the solutions that the association provides.
Clearly defining and articulating the benefits of participating with the association.
Developing a benefits and services portfolio that evolves to meet the changing needs of members.
Developing data-driven practices and tools to track performance.
SIX TOP-RANKED GOALS TOACHIEVE LONG-TERM IMPACT
IN THE NEXT 5 TO 10 YEARS
1
2
3
4
5
6
2019 EIA SPECIAL REPORT: VALUE AND ENGAGEMENT | 6
• As one of the 50 drivers of change identified through ASAE’s ForesightWorks, “automating
work” is described as “inevitable, imminent, and likely far-reaching” and will “disrupt work
structures and push…a rethink of how work is performed and managed—and even of
how people find meaning and engage with society.” Associations are well-positioned to
leverage automation for greater effectiveness and efficiency and attract top talent, yet
they are also at tremendous risk if they are slow to understand and employ automation.
• Ensuring transparency/accountability and managing/planning for risk rank low, despite
the fact that these areas have received significant attention in the for-profit sector in
recent years.
• While volunteer leaders typically represent a small percentage of the overall member
population, these individuals represent the lifeblood of an association. We frequently see
both the personal and organizational impacts of legacy governance structures, as well as
dysfunctional or low-performing boards of directors and structures lacking the diversity of
membership. “Ensuring a high-functioning governance structure” ranked second to lowest.
• Realizing positive outcomes related to diversity and inclusion in the field ranked lowest of
all priorities, which suggests a continuation of the trend identified in the 2018 EIA Study
of associations reporting a disconnect between their intention of introducing greater
diversity and inclusion and their success in achieving it.
Cultivating cross-team/cross-organizational work to achieve increased efficiency and effectiveness.
Assessing, managing and planning for risk.
Automating internal functions and processes to realize increased efficiency and effectiveness.
Ensuring a high-functioning governance structure.
Ensuring that the association has high levels of transparency and accountability to members and the field/industry.
Realizing positive outcomes relative to diversity and inclusion within the field/industry.
SIX LOWER-RANKED GOALS TOACHIEVING LONG-TERM IMPACT
IN THE NEXT 5 TO 10 YEARS
6
5
4
3
2
1
2019 EIA SPECIAL REPORT: VALUE AND ENGAGEMENT | 7
For as long as we can recall, “value” and “engagement” have been among the most commonly
discussed concepts in the association community. These words, however, are rather vague and
open to interpretation. This year, we set out to gain more insight into what these terms mean
by first introducing an open-ended question: “In your professional opinion, what separates an
association that provides true value to members versus one that does not provide much value?”
It should be noted that there are some limitations with open-ended questions (such as they are
unprompted and require more time to answer). McKinley has reviewed these responses and
coded them to identify commonalities. The following chart displays these top-of-mind themes.
Despite the variance among themes, the survey revealed strong trends in two highly specific and
measurable areas: responsiveness to members with content and career development support.
As Elsie Iturralde, CAE and COO of the National Association of the Remodeling Industry, shared,
“If your organization touts itself as elevating the professionalism in your industry and you are not
offering avenues for acquiring that professionalism, then I would say that you are not providing
much value.”
DEFINING AND TRACKING VALUE AND ENGAGEMENT
Acts as a partner to its members
Supports members’ career development
Responds to members’ wants and needs 34%
22%
9%
Engages members
Provides a clear vision for the future of its members, the profession, industry, etc.
9%
7%
Adapts to the needs of new generations
Delivers high impact/value
Promotes transparency and trust in the association 5%
5%
3%
Other
Provides exclusive benefits to members
2%
7%
WHAT SEPARATES AN ASSOCIATION THAT PROVIDES TRUE VALUE TO MEMBERS VERSUS ONE
THAT DOES NOT PROVIDE MUCH VALUE?OPEN-ENDED QUESTION. TOTAL RESPONSES: 65
With a better understanding of the term “value,” we then asked respondents to report how
they prioritize engagement at their associations. Ninety-six percent labeled it a priority, with
17% calling it “the most important priority” for their organizations. In fact, 61% of professional
associations and 53% of trades indicated it was a “top or the most important priority.”*
*This includes 17 responses from trade and 54 professional associations.
2019 EIA SPECIAL REPORT: VALUE AND ENGAGEMENT | 8
What is your current membership retention rate?N = 123
17%
The most important
priority
A top priority, but not the most
important
48%
A priority, but not a top
priority
31%
Not a priority at this time
4%
HOW HAS ENGAGEMENT BEEN PRIORITIZED OVER THE PAST 12 MONTHS AT YOUR ASSOCIATION?
TOTAL RESPONSES: 86
To understand how goals translate into everyday actions, we explored the strategies
associations employ to increase value and engagement. Respondents continued to show an
investment in segmentation—both in communications (57%) and product development (55%).
This was followed closely by new products aimed at the broad membership (54%) and the
use of data and analytics (54%). Redefining the association’s strategic framework—priorities,
objectives, and values—was the least employed strategy.
Interestingly, the bottom two strategies were cited as having the greatest impact, suggesting
that associations could be focusing their attention in areas that 1) are less likely to have an
impact or 2) are less likely to translate into measurable impact.
Developed new products or services aimed at the broad membership
Developed audience-specific products and services
Implemented a more segmented or audience-specific approach to communications
57%
55%
54%
Redefined the association's priorities, objectives, values, etc.
Expanded the use of data and analytics to understand performance and inform future direction
54%
45%
WHICH OF THE FOLLOWING STRATEGIES HAS YOUR ASSOCIATION IMPLEMENTED TO INCREASE
VALUE AND ENGAGEMENT? TOP FIVE RESPONSES. TOTAL RESPONSES: 84
2019 EIA SPECIAL REPORT: VALUE AND ENGAGEMENT | 9
There is a personal connection with the member that is unique and cannot be duplicated elsewhere.”
WENDY-JO TOYAMA, MBA, CAEExecutive Director, American Cleft Palate – Craniofacial Association
IN TERMS OF INCREASING VALUE AND ENGAGEMENT, HOW MUCH OF AN IMPACT HAVE EACH OF THE
FOLLOWING HAD ON YOUR ASSOCIATION? TOP FIVE RESPONSES. TOTAL RESPONSES: 75
Developed new products or services aimed at the broad membership
Developed audience-specific products and services
Implemented a more segmented or audience-specific approach to communications
Redefined the association's priorities, objectives, values, etc.
Expanded the use of data and analytics to understand performance and inform future direction
42% 52% 4%
41% 51% 3%
59% 36% 5%
33% 62% 4%
29% 64% 7%
Major Impact Minor Impact No Impact
2019 EIA SPECIAL REPORT: VALUE AND ENGAGEMENT | 10
As we looked more closely at current priorities and activities, we also reflected on the direction
that association value and engagement models will be headed in the future. Here are some of
our observations and predictions.
Yesterday’s Value and Engagement Model
Tomorrow’s Value and Engagement Model
Legacy membership models — no one can remember the goals or rationale behind them.
Dues models that allow for flexibility of participation and commitment, provide customized benefits, and reflect the current dynamics of the industry or profession.
“Siloed” websites that mirror the association but not how a member or prospect might think.
Member experience or digital “pathways.”
Products and services that are developed by committees.
A strategic, market-driven approach to product development and refinement.
Department-specific strategies and approaches.
Collaborative, coordinated internal strategies and approaches that deliver a streamlined organizational experience for members and customers.
A commitment to segmentation and highly personalized member experiences but processes that must be built “by hand.”
Automating key functions to allow investments in critical areas that will have the greatest impact on the member and customer experience.
My supervisor/colleague told me to become a member.
I joined because I could see the tangible value of belonging and my association reminded me why I do the work that I do.
I have an endless choice of associations I could join and they all do essentially the same thing.
Across all sectors and demographics, associations are working together to promote dialogue and advance critical initiatives to have a significant positive impact on society.
“Everybody is welcome.” Our priorities, governance structure, products and services, communications and values reflect our diverse community.
THE MEMBERSHIP MODEL OF THE FUTURE
2019 EIA SPECIAL REPORT: VALUE AND ENGAGEMENT | 11
From innovative approaches to lessons learned and the short- and long-term return of
specific initiatives, association professionals seek evidence that guides them on where to
focus to realize the greatest return on investment. This is particularly true in the areas of
strategy, value and engagement. But the truth remains that a perfect and universal solution
or innovation does not exist. Each association is unique, and members have built impressions
and notions that impact both what they expect and what they experience from their
associations. We have found that the organizations that keep an eye on emerging trends and
innovations, ask questions (and listen) to their stakeholders, take risks and are not afraid to
leverage emotion to strengthen relationships—these are the associations that excel at value
and engagement. The following resources highlight such achievements and offer guidance in
these areas.
What Top-Performing Organizations Have in Common by Abby Wood, MPA
The Value Equation: 3 Key Areas of Association Success by Suzanna Kelley, MBA, FAIA
Value vs. Cost: How Do Your Dues Compare to Member Value by Liz Williamson
Representative Leadership: How DE&I Practices Enrich the Membership Experience by Alanna
Tievsky-McKee, MSW
Measuring the Impact of Your Strategic Plan by Jay Younger, FASAE
Marketing Maturity: Why Are (Or Aren’t) Your Creative Ideas Driving Growth for Your Association?
by Tracy Talbot
Behind the Member Wall by Caroline Baugher
CLOSING THOUGHTS
2019 EIA SPECIAL REPORT: VALUE AND ENGAGEMENT | 12
CHARTS
GOALS TO ACHIEVE LONG-TERM IMPACT IN THE NEXT 5 TO 10 YEARS
01 Implementing strategic priorities across the organization.
02 Identifying member challenges and creating clear links to the solutions that the association provides.
03 Developing a benefits and services portfolio that evolves to meet the changing needs of members.
04 Maintaining an internal pace of change that ensures that the association evolves with the changing field/industry.
05 Clearly defining and articulating the benefits of participating with the association.
06 Developing data-driven practices and tools to track performance.
07 Ensuring long-term financial sustainability.
08 Fostering loyalty and other emotional connections with members and customers.
09 Narrowing the strategic goals of the association to ensure that the highest priorities are given sufficient focus and resources.
10 Identifying and expanding the association’s target market to include or better serve new audiences.
11 Assessing “legacy” association practices and structures (governance structure, dues model, etc.) and evolving to meet today’s environment and needs.
12 Cultivating cross-team/ cross-organizational work to achieve increased efficiency and effectiveness.
13 Automating internal functions and processes to realize increased efficiency and effectiveness.
14 Ensuring that the association has high levels of transparency and accountability to members and the field/industry.
15 Assessing, managing and planning for risk.
16 Ensuring a high-functioning governance structure.
17 Realizing positive outcomes relative to diversity and inclusion within the field/industry.
The full appendix for the Economic Impact on Associations Study can be found in Part I.
2019 EIA SPECIAL REPORT: VALUE AND ENGAGEMENT | 13
WHICH OF THE FOLLOWING STRATEGIES HAS YOUR ASSOCIATION IMPLEMENTED TO INCREASE VALUE
AND ENGAGEMENT? TOTAL RESPONSES: 84
Developed new products or services aimed at the broad membership
Developed audience-specific products or services
Implemented a more segmented or audience-specific approach to communications 57%
55%
54%
Redefined the association’s priorities, objectives, values, etc.
Expanded the use of data and analytics to understand performance and inform future direction 54%
45%
Assessed the association’s governance structure or volunteer program 42%
Made changes to your membership structure including due rates, categories, eligibility, etc.
Expanded to new audiences/markets
Discontinued existing products, services or initiatives
Assessed your association’s open-access versus members-only strategy for content
Developed universal or audience-specific value proposition statements
Implemented a technology solution (e.g. artificial intelligence, automated marketing, etc.)
Conducted a product portfolio assessment to understand performance and enhance
Other
None of the above
Strengthened the chapter/affiliate structure to enhance value at the local level
39%
36%
32%
29%
29%
26%
24%
23%
6%
2%
2019 EIA SPECIAL REPORT: VALUE AND ENGAGEMENT | 14
IN TERMS OF INCREASING VALUE AND ENGAGEMENT, HOW MUCH OF AN IMPACT HAVE EACH OF THE
FOLLOWING HAD ON YOUR ASSOCIATION? TOTAL RESPONSES: 75
Developed new products or services aimed at the broad membership
Developed audience-specific products or services
Implemented a more segmented or audience-specific approach to communications
Redefined the association’s priorities, objectives, values, etc.
Assessed the association’s governance structure or volunteer program
Expanded to new audiences/markets
Made changes to your membership structure including due rates, categories, eligibility, etc.
Discontinued existing products, services or initiatives
Assessed your association’s open-access versus members-only strategy for content
Developed universal or audience-specific value proposition statements
Strengthened the chapter/affiliate structure to enhance value at the local level
Conducted a product portfolio assessment to understand performance and enhance
Implemented a technology solution(e.g. artificial intelligence, automated marketing, etc.)
Expanded the use of data and analytics to understand performance and inform future direction
42% 52% 4%
46% 51% 3%
59% 36% 5%
33% 62% 4%
29% 64% 7%
35% 56% 9%
63% 33% 4%
23% 62% 15%
14 82% 5%
17% 75% 8%
39% 56% 6%
32% 63% 5%
39% 49% 12%
46% 43% 11%
Major Impact Minor Impact No Impact
