Why Demonstrating Membership Value is Key to Increasing Member Retention

The perceived value of an item is often more important than its actual value. Take diamonds, for example; there is no difference between lab-grown and natural diamonds. Lab-grown diamonds are real diamonds, and the average person cannot distinguish between the two; only scientists using specialised equipment can tell them apart. Even then, the distinction is based on origin rather than quality. The only difference between these diamonds is where they come from.

Even so, lab-grown diamonds are 60% to 85% cheaper than natural diamonds simply because people perceive natural diamonds to be more valuable, even though there is no difference between the two. 

Therefore, people happily pay up to 85% more for the same product simply because they perceive it to have more value. That’s what we’re here to discuss today. The key to reducing member churn and addressing complaints about your membership being too pricey isn’t to lower your prices but rather increase the perceived value of your membership. 

So today, we are going to cover: 

• Why you should show your members the value of your membership
• How to identify the value of your membership
• How to demonstrate the value of your membership to your members 

Why You Should Show Your Club Or Association’s Members The Value Of Your Membership 

A member's perceived value directly influences their willingness to invest in your club or association. If members or potential members are expressing concerns about how much your membership costs and are unsure if it is worth it, the key is not to lower your price but to show them why your membership is worth that amount. 

Peak Design provides an excellent example of this principle. In 2021, they released a 90-second video, A Tale of Two Slings: Peak Design and Amazon Basics, in response to Amazon's introduction of a significantly cheaper, yet strikingly similar, bag.

Instead of engaging in a price war, Peak Design highlighted their bag's superior quality and craftsmanship. They detailed the premium materials used, the extensive research and development invested, the comprehensive warranties offered, and the overall commitment to excellence that justified their pricing. This approach effectively addressed customer concerns by showcasing the inherent value that set their product apart.

Similarly, if your club or association faces member questions about the cost of membership, focus on articulating the 'why' behind your pricing. Clearly communicate the exclusive benefits, unique experiences, and outcomes that members gain. By demonstrating the true value of your membership, you can reinforce its worth and foster long-term loyalty.

How To Identify The Value Of Your Membership

To show your members the value of your membership, you need to work out the value of your membership for yourself. You might already know every benefit you provide for your members, but this step is still worth looking over to ensure you haven’t missed anything. 

So, take a top-down look at your organisation and work out everything you provide to your members. 

Tangible Benefits

• Events & Education: Detail the types and quality of events and training, focusing on member outcomes (e.g., skill development, networking).
• Resources & Tools: List exclusive resources (databases, tools) and quantify their value.
• Member Discounts: Highlight any financial savings or exclusive offers that you offer. 

Intangible Benefits

• Community: Emphasise networking opportunities and the sense of belonging.
• Advocacy: Showcase how your organisation represents member interests and achieves wins.
• Prestige: If relevant, highlight the reputation and professional recognition associated with membership.

Other Things To Consider

• Member Feedback: Use surveys to understand your current members and what they feel they get from your organisation. 

It’s a great idea to survey your members to find out what they think are the biggest benefits of being a part of your organisation. Your members may surprise you and mention benefits you hadn’t considered before. 

Your goal is to end up with a description sort of like this.

“Our rock climbing club offers members fortnightly opportunities to venture into the outdoors, enhance their skills, learn new techniques, and challenge their limits within a friendly, supportive, and open-minded community. The club empowers its members to learn, get fit, and form lifelong friendships, allowing them to embark on self-guided adventures using the skills they've learned at the club. Membership comes with fortnightly climbing trips, a 10% discount on climbing gear in our store and the discounted cost of any climbing lessons or courses. Membership dues support climbers and volunteers, advocate for the protection of crags, and help maintain a clean environment.”

This comprehensive and appealing description will help justify the rock climbing club’s membership cost. Your description doesn’t need to be as polished as this; you just need to write down all the benefits of your membership before we move on to the next step. 

How To Demonstrate The Value Of Your Membership

Once you've clearly defined your membership's value, it's crucial to communicate that value to current and prospective members effectively.

A great idea is to create a dedicated resource explaining your membership costs. Something like a page or blog called "Why Our Membership Costs What It Does" can be highly effective. On this page, break down the various elements that contribute to the membership fee. 

This could include expenses related to website hosting, your membership management system, member cards, communication systems, event management, facility hire, and merchandise. While a detailed financial breakdown isn't necessary, clearly outlining these costs helps members understand that their dues are invested in enhancing their experience.

If your organisation has paid staff, explain this. If your organisation relies on volunteers, talk about keeping the generous people who make your club a reality stocked in coffee, tea and scotch fingers. 

 

 

Then, go on to talk about the benefits of your membership. Showcase your events, courses, learning opportunities, discounts, and the strong community your organisation fosters.

There are a lot of different things you can do with this information once you have written it all out. Here are just a few ideas: 

1. Create a dedicated page or blog post on your website to showcase info about membership costs and what you get in return. Make sure to link this page from your membership sign-up and renewal emails.
2. Share what makes membership awesome in your newsletters and other member updates. 
3. Mix things up with different formats; try using videos, interviews with current members, and social media posts to show off your value in fresh ways.

While the format may vary, the essential idea is to ensure that information about your membership's value is readily accessible to members when they are purchasing and renewing their memberships. 

If you are a little worried about the process of writing out the value of your membership, I’d recommend using AI Tools like ChatGPT or Gemini. These tools can be a great way to help write engaging content for your club or association. 

As an example of this, I took the short description of the value that fictional rock climbing club I mentioned before and the above few paragraphs of me describing what you should write and talk about, put them both into Gemini and asked it to write something for me. This was the result: 

Is it perfect? No. Is Gemini American, so it doesn’t know what fortnights are or when to use an S in a word? Yes. Is it a brilliant start that, with some light tweaking, could be super useful? Yes. 

I’d recommend using a tool like Gemini to help you put this together if you are hesitant to do it on your lonesome.  

You could also consider creating a video explaining why your membership costs what it does, similar to the Peak Design example I shared earlier. At the end of the day, it doesn’t really matter how you demonstrate your value to your members; what matters is that you actually show it. Whether it’s a page, as I described before, newsletters, social media posts, interviews with current members, or videos, it doesn’t really matter as long as you have some resources available to discuss your value when members need it. 

How Else You Can Reduce Your Organisation's Member Churn

For more ways to increase your club or association’s membership renewal rate, check out How To Reduce Member Churn This Renewal Season.

For some tips on how to raise your membership prices in a way that won’t upset your members, read Why Your Club Or Association Should Be Raising Its Prices.