Research, THEN Revamp.

Change--so often needed in heavy doses to help associations meet members' evolving needs--must be rooted in sophisticated research.

MEMBER DEFECTION HAS RISEN TO UNNERVING LEVELS AT SOME ASSOCIATIONS, CREATING the need for more sophisticated analyses of what people want from associations.

Many associations have tried to stay relevant to the needs and expectations of their core constituencies by updating member benefits and services. While these fine-tuning changes have helped with member retention, numerous organizations have found that more fundamental changes to their membership structures are needed if these groups are to maintain membership levels and be successful in recruiting in this new environment.

We worked with a number of these forward-looking associations during the past several years, using research to help them reevaluate the member value incorporated in their memberships. Research results also helped inform critical decisions regarding revisions to dues structures. Following are ways in which two of these associations made dramatic and necessary changes consistent with a fact-based analysis of member and market needs.

Virtual and tiered membership

The International Facility Management Association, Houston, established in 1980, has nearly 20,000 members-- most in the United States, with approximately 16 percent in Canada and other countries. When we began working with IFMA, it had been sustaining a 5-6 percent domestic membership growth for several years but believed it had far greater potential for growth. In addition, IFMA had seen tremendous interest in the association internationally, most notably within Europe, Africa, and the Middle East.

IFMA leaders had determined that the greatest potential for stronger membership growth resided with the Internet. Believing that the Internet could be used not only to more effectively serve the domestic market but also to improve access to the international market, IFMA leaders wanted to consider the feasibility of virtual membership.

Key objectives of our research for IFMA were to test the market's interest in a virtual membership and to test the concept of an unbundled membership structure with member access to other menu-driven, optional, fee-based products and services. Based on these objectives, we developed a comprehensive research plan incorporating qualitative and quantitative elements that would cost effectively develop a strong fact base of decision support for IFMA. Research consisted of detailed interviews with leaders, members, nonmembers, and former members to identify key issues and alternatives, followed by a questionnaire to a membership sample to validate the best options.

Overall, members were evenly divided between those who saw positive potential in the concept of virtual membership and those who were neutral or negative about it. Notably, though, younger members were overwhelmingly positive about the idea, as were those located at some distance from local programming. Another key finding was that to meet member expectations of a virtual membership, the delivery mechanism--the association's Web site--would need strengthening. The association would have to upgrade the site to be more useful and more engaging.

Testing the virtual waters. Based on the research findings, IFMA's leadership decided to try out the concept with a small pilot project. The association will have to make a considerably greater commitment to Web resources if it is to expand beyond the pilot in the future, but at this small level, the project looks positive.

"Early in the pilot program we are already starting to see measurable results in offering virtual membership," reports David Brady, IFMA executive vice president and chief operating officer. "This has been particularly true in our development efforts outside of North America, where economic considerations and less-than-adequate mail service dictate our considering a less expensive and more timely means for providing benefits and services."

Giving members more choice. Research findings also supported a change in the association's membership structure to a tiered cafeteria approach. This would give members more flexibility, enabling them to access whichever services they needed, based on their available resources. IFMA leaders approved recommendations to unbundle the association's membership structure and to offer certain options for enhanced membership. The options include chapter membership, council membership, and mail delivery.

The Member Choice program is now being piloted in five IFMA chapters (encompassing 7 percent of IFMA's membership). If the pilot is successful, the new program will be offered to the entire membership.

Membership and chapter structures

Another association case provides insight into the value of membership research. A large international trade association asked us for assistance in researching and revising its membership structure to more closely meet the needs and expectations of members. Members are for-profit and nonprofit entities in more than 100 countries, with the majority outside of the United States. The group had an extremely complex membership structure consisting of 38 member categories, each with multiple dues formulas and levels. Even staff had difficulty explaining this structure to members and prospects. The association wanted to simplify the structure while keeping any changes revenue-neutral for the association--any new dues structure would have to bring in the same revenue as the old one.

Customizing the methodology we had used with IFMA, we conducted research to develop a fact base of needs for each key member segment and a value proposition for each. The Inter net proved invaluable in soliciting informal preliminary feedback to relevant issues and in giving members quick and convenient access to the survey. As strategies began to emerge from the survey results, we conducted several focus groups with members to identify other potential strategies and political issues that needed to be addressed prior to developing our final report.

Ultimately, we recommended membership categories and member services to be included with each. Along with these recommendations, our report included the survey findings and a three-year implementation plan to transition in changes so that the effect of any potential dues increase on individual members would be minimized. (This association had not raised dues in five years, but because of currency devaluation and dues payment in U.S. dollars, the cost of dues was increasing for members outside of the United States.) To help the association understand how alternative dues scenarios would affect each member segment as well as the association itself, we developed financial analyses of the several alternative scenarios, showing the net effect of dues changes on members and on association revenues.

The association board approved the final report with all recommended changes. The group is now in the second year of its implementation plan.

Modernizing the chapter model. Next we looked at this association's relationship with its 120 chapters, aiming to develop a more contemporary and stronger model. We assessed individual chapters around the world in terms of their support of the association's goals and interviewed (by phone and via the Web) board members and chapter leaders. Doing so helped us identify the contributions and work of each chapter on behalf of the entire organization, each chapter's needs and expectations relative to the parent organization, and relevant political and cultural issues.

Working closely with staff liaisons, we developed several alternative models whereby the parent organization would provide certain types of administrative and financial support to chapters that met formal performance criteria. These included membership development and retention and other assistance to the association in implementing its mission and goals. The association leadership reviewed the report, the member feedback generated from the research, and the pros and cons of each model, then selected the model that best positioned the association with its members and strengthened its brand worldwide.

Linking experiences

From these and other experiences, we've developed a list of requirements related to effective market research.

* Strong fact base. A strong fact base--created through solid, objective research with rank-and-file members and other key constituencies--is necessary decision support for association leadership when contemplating significant change to its membership and dues structure. The fact base can be especially effective in defending the decision with any members who oppose any change.

* Customization. A research process customized for each association's unique membership and environment is critical to the success of these complicated projects.

* Ample study time. Sufficient time must be allowed to ensure high quality research results. A six month period, at minimum, is required, but depending on the association, the location of its members, and the complexity of its membership structure, this research can take up to 10 months or more.

* Implementation lead time. The implementation of significant changes often requires an extended lead time to let the staff and the member champions get buy-in from all constituencies. Any chapters need to be included in the information dissemination. In multitiered associations, this pre-implementation period is critical to working out all the administrative procedures and ensuring smooth transitions.

* Teamwork. Strong teamwork between the consulting team and association staff is extremely helpful to ensuring the best research results and their on-time delivery.

Arlene Farber Sirkin is president and Miriam T. Meister, CAE, is senior consultant, of the Washington Resource Consulting Group, Bethesda, Maryland.