Over the past decade I have seen a wide range of membership bodies move away from the traditional ‘one size fits all’ membership offering to a more tiered membership offering.
To be clear I am not talking about a categorized (Associate, Member or Fellow) or a more personalised approach, but different tiers linked to the provision of member benefits. E.g. Basic, Standard and Advanced.
Here’s an overview of the likely benefits that could be assigned to a 3-tiered approach to membership:
Basic – Access to basic member benefits linked to professional local networking, monthly newsletter, paid-for eLearning opportunities and/or conference/event/product discounts.
Standard – Access to inclusive benefits and more comprehensive help and support (perhaps via email or phone). It is likely that this tier would also include inclusive access to a regular publication or journal to add extra value over and above Basic. Ideally Standard membership should provide limited access or paid-for access to a product/service with a unique selling point. E.g. Basic online CPD tool or insurance.
Advanced – Access to key products/services provided inclusively as benefits rather than stand-alone paid-for product/service. Ideally this tier would include comprehensive access to a product/service with a unique selling point. E.g. Comprehensive CPD tool or insurance. Inclusive conference/event tickets may feature.
At first glance this looks like a really sensible idea as it aligns neatly to a more personalised approach that could generate increased annual membership fee income. However, be warned – a number of well known trade associations and professional bodies have made ‘the jump’ and the result is not pretty.
In 2013 a well-known medium size UK-based trade association (representing over 25,000 members) transitioned from a one-size fits all membership model to a 3-tiered scheme following over two years of surveys, discussion and focus groups. The new fee structure was implemented and a reported 75% of members actually downgraded their membership to the basic option instead of opting for the more comprehensive/expensive grades.
By my reckoning this was both unexpected and equated to an immediate reduction in annual membership fee income of £500,000
What seven key lessons can we learn about getting a tiered approach to membership right?
1) When conducting member/non-member research into the provision of proposed new tiers you should consider that in the current economic climate short term cost savings may appeal more than access to a more comprehensive or personalised offering. Remember – What a member or non-member says in a focus group/online membership survey may not translate when he/she is asked to actually ‘put their hand in their pocket’ at renewal time.
2) If members are provided with the opportunity to pay reduced membership renewal fees without a significant member value proposition (MVP) or unique selling point (USP) in place, they may well opt for the cheaper option (like in the above case study).
3) Consider that your current generic membership offering becomes the ‘Basic’ tier to avoid possible downgrade risk/costs.
4) If a lower tier option is to be offered you have to make damn sure downgrades will not occur. Empathy and engagement levels towards the organisation will play a part along with the tangible benefits of membership.
5) Tiers linked to enhanced professional status should feature within the medium/advanced offering.
6) Ensure you have buy-in right from the top and ensure a formal consultation is conducted with key stakeholders.
7) Gain wider membership sector insight, knowledge and experience in order to make robust, structured, well-informed and future-proof decisions. The MemberWise Network can help
This article was written in December 2013 and updated in April 2020. Interestingly all of the principles still stand true!
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