Over the years, we’ve gotten thousands of questions from association leaders – from implementing growth strategies to increasing impact, from optimizing resources to how to best embrace change.
Welcome to the first of the Kellen Question of the Week series. At Kellen, we are fortunate to work with many associations – those in healthcare to food and nutrition, manufacturing to energy – and we want to share how associations deal with challenges just like you may face.
Our industry is facing a lot of consolidation and membership dues are declining. What can we do to ensure we remain financially stable as an association?
Answer:
Navigating financial stability in the face of industry consolidation and declining membership dues is indeed a challenge many associations are currently facing. Here are a few strategies that we recommend to help ensure your association remains financially solvent:
Diversify Revenue Streams:
Relying solely on membership dues can be risky. Explore alternative revenue sources such as sponsorships, advertising opportunities, educational programs, and certification courses. Hosting webinars, workshops, and conferences can also bring in additional income while providing value to your members. Read more about Kellen client partner AMRPA and expanding their non-dues revenue program.
Optimize Resource Allocation:
Conduct a thorough review of your current expenses and identify areas where you can cut costs without compromising on member value. This might include renegotiating contracts with vendors, adopting more cost-effective technologies, or streamlining administrative processes. In addition, it may be investing time and resources to effective financial reporting and tracking.
Enhance Member Engagement and Value:
Focus on delivering exceptional value to your members to retain and attract new members. Personalized communications, exclusive content, networking opportunities, advocating on behalf of the profession or industry, and professional development resources can increase member satisfaction and loyalty, potentially stabilizing or even increasing membership dues revenue. See how Kellen’s strategic advocacy helped delay a costly regulation for the cleaning product industry.
Leverage Strategic Partnerships:
Form alliances with other organizations, industry leaders, and businesses to create joint ventures, co-host events, or develop member benefit programs. These partnerships can open up new revenue channels and enhance your association’s value proposition.
Implement Data-Driven Decision Making:
Utilize data analytics to understand member behaviors, preferences, and trends. This insight can help you tailor your offerings to meet member needs more effectively, improve engagement, and identify new revenue opportunities. Regularly measuring and analyzing key performance indicators (KPIs) and Objectives and Key Results (OKRs) will also help in making informed financial decisions.
By implementing these strategies, your association can navigate the current challenges and build a more resilient financial foundation.
What do you think? What has worked (or didn’t work) for your association? Continue the discussion on LinkedIn.
If you’d like to discuss these strategies in more detail or explore other ways Kellen can support your association, let’s find a time to connect.
