4 Steps to Identifying Membership Needs
Many associations struggle to identify what their members want. What problem they have that the association can solve.
Determining the needs of your membership is an analytical and intuitive process that requires answering four essential business questions.
By understanding each area and the intersection between these areas you can create a clear picture of which markets to serve, understand the challenges these markets face, recognize how these challenges impact their relationship with your association, and assess competitive threats to potential solutions.
Question 1 Market Profile: How is my membership market defined and what are important segments within this market that represent substantive opportunities?
The existence and practicality of a market is evaluated by assessing the following criteria:
A good market segmentation strategy will result in segment members that are internally homogenous and externally heterogeneous; that is, as similar as possible within the segment, and as different as possible between the segments.
A detailed market profile should include individual and organizational descriptors. Individual descriptors of people within the market may include title, age or education. Organizational descriptors may include geographic location, gross revenue or number of offices.
Your goal is to segment your market universe by variables that are important to decision making.
Question 2 Environmental Scanning: What is the business or professional environment within which these markets operate and how does this environment impact your members?
Think about watching a tree blow in the wind outside. Is the tree moving gently or bent over? In which direction is the tree swaying? While you can see the tree move, you cannot see the wind. This illustrates the impact of environmental and competitive forces on your membership markets; you may not see these forces, but they affect how your members behave.
Environmental scanning is simply the process of monitoring the environment for changes that may have an impact on the association’s members.
The goal of environmental scanning is to inform the association of potential changes that may impact members’ needs.
While there are many models of environmental scanning, Association Laboratory’s model looks at environmental factors in a hierarchy from macro to micro based on the ability of the members to influence each area.
Environmental scanning identifies and assesses the following five areas:
These areas are not mutually exclusive. A particular factor, for example technology, might exist within several different areas. The more frequent a strategic factor is identified the more significant its impact on your market.
Question 3 Competitive Profiling: What is the influence of competing resources on your membership?
The environment within which your members operate drives their needs and a critical aspect of this environment is the influence of competing, complementary or substitute organizations. These organizations represent threats and potential partners.
Michael Porter is considered the leading expert on competitive analysis. His seminal work identified Five Forces that were important to the understanding of the competitive environment and use of this information in decision making . These forces are:
By answering the five questions outlined in Porter’s Five Forces, you develop a comprehensive picture not only of the direct competitive threats but of other forces, such as the relationship between buyer and seller; this leads to completely different solutions to your existing members’ needs.
Question 4 Member – Association Relationship: What is the relationship between your members and important segments and your association?
Your association fulfills a distinct role in the professional and business life of your members. Evidence of this role is found in how they interact with the association.
For example, if your members primarily interact at the local chapter level and consider the chapter the primary aspect of their membership, this provides evidence that local issues and challenges are paramount. If your members primarily engage the association for CEUs for a specific credential, there is evidence that the association is an arbiter of quality and credibility within the market.
Member behaviors provide evidence of where your association is already successful at serving member needs. The farther you stray from what you know what to do, the more difficult it becomes and the more you must adjust your expectations.
In summary, at the completion of this process, whether through sophisticated research or simply a round table staff discussion, you have four essential pieces of information.
You have identified a specific market. You understand the environmental forces that impact their needs. You have an understanding of the relationship between buyer and seller and how competitors and potential substitutes impact this relationship. Finally, you have a clear understanding of how the market currently uses your association to address its needs, and most importantly, your success at helping them.
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