I have worked with several trade associations over the past few years. Each of them confuse their strategy for their goal. It is understandable given the fact that most trade associations are run by successful people in the trade. Most of those successful people are incredibly talented and have a wish to help. But in many cases, the skills that brought them such great success in their business hinder their effectiveness in a non-profit organization (NPO).
Assuming that the NPO does not have a critical capacity constraint of Money or Time, then what is it? You have to look critically at the organization and ask, what keeps it from being 100% effective at its goal? There is something, trust me: if there were not, the NPO would be a household name, like the IRS or congress. And even then, those organizations have constraints that stop them from being 100% effective.
In many NPO, the constraint is policy. This can be a good thing, in that the scope of actions is severely limited by the NPO’s charter, or it can be a negative in that the NPO turns a blind eye or has built in redundancy on a given issue. Recognizing that the NPO is not going to be suited for every possible member, what steps can be taken to triple membership? What stops people from saying “yes” to a membership?
Worse; recognizing that the NPO is not going to be suited for every possible member, why are the people responsible for membership chasing those who will be an obvious “NO”? How much time is spent trying to get a new member?
Here is my idea for Monday. If you are a NPO, take a deep breath and this entire week, do not chase a single new member. Step back and see how much time was spent prospecting and instead, spend 1/2 hour or an hour with a current member and find out what they like, dislike, would change, would keep. Have your membership person set aside 20 hours and do nothing but meet with current members. They will take the time. If they won’t, it tells you how weak your relationship is with the member.
How is this an improvement? You are currently spending about $125 to get a new member. That is $200 of current member money. Yes, I know you believe that your prospect is going to pay their way. But the problem is that you see 10 prospects for every new member. It costs you $100,000 to run your membership department. Divide that by 2,000 hours and you get $50. Assuming that it takes 15 minutes to meet with a prospect to get a “NO”, you are currently investing 2 hours and 15 minutes to get the 15 minutes of yes. Think about it: 2.5 hours at $50 per hour.
Your current members, by the way, are thinking of leaving. They don’t feel loved. You don’t give them attention. You never call or write. You already invested the time to get them and then you ignore them. It doesn’t matter how much the membership is: you are competing with the most dangerous competitor in the world! Apathy!! By the way, your current member also knows 2 or 4 or 50 other people who should belong to the trade association and you giving love and attention to the member will result in new members. Trust me.
Now that is the easy solution. New members will come, but your existing members are feeling like you don’t care. Take it from an expert who brought in new ones only to see ideal clients walking out the back door because the business didn’t show them the love and attention they deserved. Plus, you get the added benefit of a happy member telling 1 other and convincing them to join. 30 minutes, or $25, translating into a new member, instead of $125. How is that for an improvement?
The more interesting and challenging solution? Write me and lets discuss. johnc@constprofit.biz
Constant Profit Advisors 