Meeting ROI and Member
ROI are two completely different issues; however for associations and
societies they are quite related. Recently, I have sat in on ROI
webinars and read a number of articles on meeting ROI. Most of the work
that I have experienced has been around particular formulas. The math is
the easy part.
What’s
Missing
The missing element is
the valuation methodology; most do not get into much detail
here—I’ve asked. This is the important and more difficult part.
Assigning real-dollar numbers to elements seems to be where much of the
available ROI information falls short.
Meetings
without Members
The primary challenge
that associations and societies are experiencing is membership
hemorrhaging. The reason for this is perceived value, or lack there of.
Few organizations have been successful in their effort to determine the
yearly sustainable real-dollar value of membership. Without an honest
number there is no way to determine a truthful ROI of their membership
dollar and time investment. It is difficult to have meetings without
members.
Facilitated
Process
For over a decade I
have been teaching membership organizations a simple but honest method
to determine the yearly sustainable real-dollar value that members
receive from their membership investment. The method is simple—I ask
them. In a real-time live environment, asking members what the various
services that their organization delivers yields truthful answers.
Why
not use technology?
The reason I do not
believe in technology for this process is because the technology removes
risk. I want members to own their valuation answers. I’m not looking
for an average of blind numbers but rather a face-to-face discussion on
the actual real-dollar value received from any particular organization
delivered line item benefit.
The
Missing Link
The link that I believe
is missing in all the hoopla around meeting ROI is the membership ROI.
Without members there is no meeting. Sure meeting ROI is a great number
to have, however it is such a small part of the total equation. The
meeting ROI math has no honest meaning without the total equation.
Today, members of membership organizations are looking at the total
value proposition of membership, not just the meeting ROI.
Membership
ROI
To discover the honest
membership ROI that your organization delivers, you will want to conduct
a facilitated session with a reasonable representation of your
membership; demographics, psychographics, etc. The executive director,
any paid staff member, or volunteer officer CANNOT be the facilitator,
period!
First
be clear on the idea that this is art and science. As such, you are
only attempting to get “ball park” numbers. You cannot drill
down to the last nickel. Also determine if you want to include the
annual meeting value. If only a small percentage of your members
attend the annual meeting, leave that value and cost out of the
steps below.
Using
a flip pad or electronic imaging, first ask attendees what benefits
the organization offers and add each to the list (without any dollar
value).
After
the attendees are done offering the benefits, move into the
valuation process. Take one item at a time, saving networking for
last, and discuss the yearly sustainable real-dollar value of the
item. Complete agreement is not necessary. If the majority say the
number is X, then go with X.
This
same process must be completed for every item mentioned. And guess
what? Some items will be valuated at zero. No worries about the
zeros, however those should be placed on the agenda for the next
board of directors meeting. Also, the facilitator must keep things
moving and not allow any one person to grandstand—too much.
If
the value is something that non-members in the industry also
receive, you unfortunately have to value the item as zero. Not that
the item (like advocacy) is of no value, since non-members also
receive the value, it cannot be listed in the “member” ROI
column.
If
an item is offered to non-members, then the difference between
member and non-member price is the valuation number. Again, we are
trying to determine the honest ROI of paying dues every year.
When
all items have been valuated, add the total value and divide by the
cost of membership for an X times ROI. I realize that some others
use a different formula, and that’s fine. Use any formula you
want. The end result is: for “$Y” in your yearly membership
investment, you get “? x $Y in return” and the ultimate question
is this…Is it a good business decision to belong to Y Association
or Society?
Does
it Work?
Yes! I have been
working with associations and societies for over a decade, helping them
to determine their yearly sustainable real-dollar membership investment
ROI. It is this number that delivers the gold. It is this number that
will help members to both recruit new members and remain members
themselves.
In
addition to his international celebrity as a expert speaker on partnering, Ed
Rigsbee, CSP is the Chief Member Evangelist at Rigsbee Research Consulting Group and the
Executive Director of the Cigar PEG, Inc., (US Internal Revenue Service
recognized public charity). He has authored three books and over 1,500
articles on business and organizational collaborations. He travels
internationally delivering keynote presentations and multi-day workshops
on collaboration, partnering, and strategic alliances to Corporate and
Association/Society audiences. Rigsbee is frequently engaged by
associations and societies to facilitate various boards of director
meetings and his proprietary, Member
Value ProcessTM.
Ed
has received the coveted Certified
Speaking Professional designation from the National Speakers
Association, one that is enjoyed by only about 10% of the membership in
the International Federation for Professional Speakers. When you are
looking for a keynote speaker, Rigsbee may be
contacted through the Rigsbee Research Consulting Group Web Site: www.rigsbee.com
or through the Cigar PEG Web Site: www.cigarpeg.com
or Ed@Rigsbee.com.
