Moving Beyond Satisfied Members to Loyal Members

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Moving Beyond Satisfied Members to Loyal Members
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Results Oriented

1. Understand the key drivers of value and helped
   them to allocate their time and resources in
   areas that matter most to members.
2. Loyalty Score is a part of dashboard metrics.
3. Develop new benefits as benefits was the
   strongest driver of value.
4. More emphasis on community outreach and
   involvement at the chapter level, as well as
   chapter newsletters.
5. Using the benefits that members value most, they
   crafted a retention message.

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Results Oriented

1. Changed procedures for call routing in member
   services area to reduce hold time and make one
   person responsible for answering all calls.
2. Disbanded governance for school members as
   members did not value this. Also allowed them to
   develop benefits quicker for school members since
   the layer of bureaucracy was eliminated.

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Agenda Items

• Characteristics of Satisfaction Studies
• Characteristics of Loyalty Studies
• Benefits of Loyalty Studies
• Why are some members more loyal or less loyal?
• Measuring Loyalty
• Takeaways
• How to calculate the Loyalty Score of your
  association
• How to develop a list of profiling
  characteristics of your loyal, neutral, and
  vulnerable members

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Characteristics of Satisfaction Studies

• Satisfaction The degree to which an experience
  meets or exceeds expectations.
• A person is satisfied when Outcome gt
  Expectation.
• Satisfaction can be increased by focusing on one
  or both elements in the Satisfaction Equation.
• Satisfaction research does a better job of
  predicting dissatisfaction rather than
  satisfaction.
• Poor predictor of future behavior
• Appropriate uses for satisfaction studies
• Feedback for a particular event
• Marketing purposes

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Characteristics of Loyalty Studies

1. Loyalty The strength of the relationship
   between associations and their members.
2. Unlike satisfaction, loyalty measures attitudes
   and behavioral intentions.
3. Loyalty research uses three survey questions to
   classify members into one of three relationship
   categories (e.g. loyal, neutral, vulnerable).

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Loyal members are more likely to ...

1. Renew their membership
2. Recruit new members
3. Serve as a volunteer
4. Generate non-dues revenue (conferences,
   professional development)
5. Support the associations mission
6. Be understanding of dues increases
7. Forgive fluctuations in service levels

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Benefits of Loyalty Research

1. Strategic planning direction for Board of
   Directors.
2. Improve organizational processes (e.g. Member
   Services, website, conferences, education,
   Government relations).
3. Needs/Benefits assessment.
4. Marketing and member recruitment.
5. Vulnerable member intervention.
6. Develop internal metrics.
7. Management performance (e.g. dashboard).

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Why are some members loyal?

1. The needs for which they joined the association
   are being met.
2. They believe they are getting a good value for
   the money and time they give to be a member.

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Why are some members neutral?

1. They recently joined the association and have not
   had sufficient experiences to form an opinion.
2. They have had a mixture of positive and negative
   experiences.

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Why are some members vulnerable?

1. The association does an inadequate job of
   delivering on its value proposition (i.e. poor
   performance).
2. Mismatch between the needs of the member and the
   business model of the association.
3. One or both parties have changed (i.e. the
   association has evolved, or the needs of the
   member have changed).

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Likely to Recommend (Behavioral Intention)

• Q1. If a friend or relative asks you to recommend
  a professional association, how likely would you
  be to recommend ABC?
• Extremely likely
• Very likely
• Somewhat likely
• Not very likely
• Not at all likely
• Dont know

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Likely to Renew (Behavioral Intention)

• Q2. When your ABC membership is up for renewal,
  how likely would you be to renew your membership?
• Extremely likely
• Very likely
• Somewhat likely
• Not very likely
• Not at all likely
• Dont know

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Value (Attitude)

• Q3. Considering the benefits you receive from ABC
  in relation to the price you pay for membership,
  how would you rate the overall value of your ABC
  membership?
• Excellent
• Very good
• Good
• Marginal
• Poor
• Dont know

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Assigning Loyalty to Each Respondent
Loyal
Neutral
Vulnerable
Likely to recommend Extremely likely Very likely Somewhat likely Not very likely Not at all likely
Likely to renew Extremely likely Very likely Somewhat likely Not very likely Not at all likely
Value Excellent Very good Good Marginal Poor
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Loyalty Score
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Loyalty Score
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Profiling Characteristics

1. Some profiling characteristics can be determined
   by internal member data (e.g. from membership
   application, continuing education classes taken,
   conferences attended).
2. Other characteristics can be determined from
   survey questions (e.g. what were the main reasons
   you joined the association, who/what influenced
   you to join the association).

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Typical Member Characteristics

1. Member type
2. Gender
3. Age
4. Licenses and designations
5. Formal Education
6. Chapter
7. Other association affiliations
8. Firm size ( of employees)
9. Reason for joining/belonging

1. Sources of influence for joining
2. Years in the profession
3. Years a member
4. Experienced a problem
5. Chapter meeting attendance
6. Volunteer involvement
7. Annual Conference attendance
8. Continuing education
9. Benchmark comparison

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Profiling Characteristics - Example

• More likely to be loyal if
• the member is female, or is under the age of 25.
• the member has attended 4 or more chapter
  functions in the past year.
• the member is currently serving, or has served,
  as a chapter volunteer.
• their main reason for joining is for networking.
• More likely to be neutral if
• their job classification is employee.
• they work in firms with more than 500 employees.
• their main reason for joining is for benefits
• More likely to be vulnerable if
• the member has not attended any chapter meetings.
• the member is currently not volunteering for the
  organization,
• they receive no dues reimbursement.
• their joining was not the result of a referral by
  an existing member.

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Uses for Loyalty Profiles

1. Develop marketing programs to attract more
   members with characteristics of loyal members.
2. Improve organizational processes to strengthen
   the relationship with neutral members and migrate
   neutral members to the loyal status.
3. Develop intervention tactics to retain vulnerable
   members.

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Special Case of Vulnerable Members Captive
Members

• Members who respond that they are extremely
  likely or very likely to renew their membership,
  but rate the value of their membership fair or
  poor.
• Member benefits are an occupational requirement
• Lack of suitable alternatives
• Inertia
• Dues reimbursement
• Finish what they started
• Procrastination

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Special Case of Vulnerable Members Captive
Members
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Association Performance Assessment - Overall
Maintain
Improve

• Member Services

• Advocacy

• Publications and Research

• Communication

• Staff

• Website

• Chapter

• Annual Convention

The quadrant shaded in yellow highlights the
areas that are the highest priority for
improvement (high impact and low performance).
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Association Performance Assessment - Website
Maintain
Improve

• Ease of logging onto secure area

• Ease of updating personal profile

• Visual Appeal

• Sufficient Information Available

• Ease of registering online for events

• Page Load Speed

The quadrant shaded in yellow highlights the
areas that are the highest priority for
improvement (high impact and low performance).
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Moving Beyond Satisfied Members to Loyal Members
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Questions?
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Larry Seibert, Ph.D. larry_at_associationmetrics.co
m 317-840-2303