Here’s a simple truth we sometimes overlook – trade associations and individual membership organizations (IMO) are not the same. They share some characteristics, but their missions, membership, dues structure and benefits, among other things, are often quite different.

And the differences take on new significance when you examine the membership data generated by the two types of associations. In an IMO, for example, individual members act on their own behalf. If one member changes jobs and drops their membership, that decision isn’t likely to influence other association members from the same company to drop their memberships, even if the company pays their dues. Monitoring changes in job titles, therefore, won’t provide additional insights about member satisfaction or signal large-scale membership terminations.

[Read our blog, Discover What Lapsed Members Have in Common & Why It Should Matter to You, for more insights on membership data analysis for IMOs.]

With trade associations, however, companies often have one primary contact person who interacts with the association. This person often has more knowledge about the association than anyone else at the member company and, consequently, makes recommendations about continued membership.

This person may control the budget that funds the company’s membership. Membership dues are often substantially higher in trade associations than in IMOs, and losing the revenue from even one member company can be critical to the association. The company contact may also manage the use of association benefits, help shape the company’s view of the association and complete association satisfaction surveys. And when a company contact changes jobs, your membership team may need to take action.

If you have a great relationship with company contacts, they might share news of their promotion with you. Otherwise, one of the most practical ways to stay informed about company contacts is to monitor changing job titles.

We recently examined the data for a trade association and noticed that personnel changes in the human resources department were almost always a warning sign that a company’s membership might  need to be monitored more closely. When we examined historical data comparing terminated memberships to changes in job titles, we found a strong correlation in the data between the two. We also discovered anecdotal evidence that supported our theory that changes in HR could predict membership termination.

Here’s why changes in HR staffing often led to membership terminations. To serve their industry, this trade association offered a wide range of educational courses and certifications. HR staff members tended to manage the complex educational function for their companies and developed strong bonds with the association. When HR staff members changed jobs, however, the association couldn’t necessarily count on the same level of good will from the new staff members. Without that relationship, the association ran the risk of losing a member company.

To help make the case for membership, the association developed a special outreach plan designed to establish relationships with new HR staff members. When they were alerted to personnel changes, membership contacted the new staffers to demonstrate the excellence value proposition the association offered to member companies and to make the case for continuing membership. Their results have been excellent so far.

What should we look for in the data?

Changing job titles is only one indicator that a company may be thinking about terminating their membership. Your data can indicate other issues that indicate a desire to leave. By analyzing what  companies that have already left the association have in common, you can help strengthen your value proposition.

In addition to monitoring job titles, here are six additional ways to discover why companies may be leaving your trade association. This type of research doesn’t require high-tech methods. You can analyze data in an AMS, CRM or a spreadsheet. The key to success is being able to sort your members by a variety of variables.

1.     Job Changes in Association Staff – You might find that companies terminate their memberships if their contact within the association leaves. This is especially true for associations where personal relationships are strong between the primary contact at the member company and an association staff member. It may not happen quickly, but if frustrations grow, member companies may look elsewhere to solve their challenges. Staff changes, however, are inevitable. As you transition from one staff member to another, make sure you communicate with your member companies, introduce the new person early and make it easy for your members to do business with you.

2.     Decrease in Engagement: Monitoring member engagement metrics such as company-wide participation in events, committees, forums and webinars can reveal declining interest. A drop in engagement throughout a company can indicate dissatisfaction or disinterest among members, and that can lead to termination.

3.     Decrease in Product & Educational Purchases – A change in purchasing patterns for products, services or educational offerings can indicate a decreasing interest. Look at educational offerings like certification and credentialing, as well as product purchases, and compare the purchase levels year over year. If you see decreasing trends over time, it may be time for a conversation with the company contact about how well you’re meeting expectations.

4.     Decrease in Fundraising Contributions – If companies stop giving to your foundation or other charitable efforts, ask why. Monitor changes in contribution levels across several years. Decreasing contributions is one of the most telling changes we see, and it often leads to membership termination.

5.     Monitor Industry Changes – Analyze the state of the industry you serve. Is it declining or expanding? For example, the newspaper business has shifted in the past 20 years, forcing newspapers to consider new delivery and revenue models and associations to consolidate or change their membership structure. Other professions such as accounting, banking, real estate and healthcare have also seen shifts in their influence and business models. Trade associations serving industries on the rise, such as  artificial intelligence and machine learning, space exploration and e-commerce, must meet the needs of their member companies in a constantly shifting environment. Changes in the industry you serve may affect your membership dramatically.

6.     Develop New Member Categories – Companies and industries change over time, and the member categories that were critical in the early 2000s may not be as relevant now. When you see companies leave your association, do some research about their core business to see if it has expanded or changed. You might have an opportunity to expand your membership categories to include new and related business ventures, thereby keeping existing companies as members and attracting new ones.

Act On Your Findings

These are not the only methods to analyze your membership data, but they are simple ways to learn more about your member companies. With new understanding from your research, you can take a deeper look what your association offers to member companies. Your value proposition and benefits may need an overhaul, but knowing which companies are leaving and why can help you strengthen both value and benefits.

At Intellidata, we love to help associations better understand their member companies with the help of data analysis. Contact us at info@intellida.tech if you’d like to discuss your data needs.