The time has finally come. You’ve discussed the topic with staff and board members for a few years but have yet to fully embrace and address it. You’ve known there have been opportunities, but now you’re committed to making it a priority—you need to restructure your dues model. With that settled, you’ve moved on to the truly difficult part—where do you start?
Restructuring your dues model can provide you with a host of new opportunities, or it could prove counterproductive and backfire. Avoid the latter and reap the benefits of a successful dues model restructuring by keeping the following key elements in mind:
Avoid making decisions without data. It may seem obvious, but it does happen. This is a significant investment that will have long-term effects tied to it—be sure you and your team are gathering information to help guide your decisions.
Establish priorities and identify the nature of your dues model restructuring. Do you want to increase revenue, increase membership numbers, simplify your current system, or perhaps all three? Will you change dues prices or create a new membership category? Will you do both? The nature of your restructuring should be directly tied to your priorities.
Gather information to inform specific changes. Regardless of your goals, understanding what your members want (i.e., when creating a new membership category) or their tolerance for change (i.e., a 5% dues increase) is essential. Use input from your members to ensure you are delivering on the wants and/or needs of your customer base.
When creating a new membership category, you may need to consider governance changes as well. If a new membership category is created for a new audience, will the new member category have voting rights? Will they be able to serve on your association’s board? Considering governance implications in parallel with a new membership model might be necessary.
Make sure your new member model considers not only the ideal future state but also the current state. A new model that is drastically different from the current model may “check all of the boxes,” but too much change all at once could result in a lot of volatility for existing members. Look for ways to ease members into a new model. A multi-year on-ramp to phase in a new dues structure or adoption of an “extenuating circumstance” policy could help members who are facing the most significant change from a dues model change.
Spread the word. Make sure your hard work pays off by communicating your dues model changes effectively with your stakeholders. This requires a strategically crafted communications plan not only to ensure members are aware of the changes but also to facilitate their buy-in.
Starting the process of restructuring your dues model can be a daunting task, but it doesn’t have to be. If you gather data from your members, assess pricing sensitivities and tolerances, align changes with your priorities, test your market, and think creatively about ways to both include new prospects and further engage current members, you’ll be well on your way to a new, improved dues model.
