Protecting and Enhancing Trade Association Value
In today’s dynamic and competitive business environment, members of trade associations frequently face the (internal) question: “What value does our trade association bring, and why do I pay so much?” This question is asked of almost every Public Affairs Director I know, often several times a year! This then leads members to ask their Association. It underscores a critical challenge for companies and trade associations—to continuously protect and enhance their value proposition. So, what are some ways to do this;
Demonstrating Tangible Benefits
Trade associations serve as vital pillars for their industries, offering a plethora of benefits that are often intangible but immensely valuable. These include advocacy on legislative and regulatory issues, industry research and insights, professional development opportunities, and networking events. However, to address the pressing question from members, associations must effectively communicate these benefits, ensuring that members recognize and appreciate the tangible and intangible returns on their investment.
Advocacy and Influence
One of the most significant roles of trade associations is advocacy. By representing the collective voice of their members, associations can influence policy decisions that directly impact their industries. For members, understanding and witnessing the tangible impact of this advocacy is crucial i.e. Association’s need to articulate what success looks like and then communicate both the journey and the outcome.
Showcasing and Communicating
Associations and members (to be honest mostly members) need to communicate and showcase the work and success of Associations. Firstly, Associations need to communicate (regularly) on their successes and then members need to share and have this recognized internally in their organizations. If you don’t communicate your Association’s value internally don’t be surprised when you are questioned about it.
Objectives / Metrics / Value
Trade Associations need to embrace the challenge of better articulating their WHAT i.e. what success looks like for them and their members. They then need to translate this into solid objectives and KPIs all of which will form the basis of ongoing reporting. For Associations this is a bigger challenge than it is for organizations (their members) but it is critical to tackle.
Members need to know what they want
Association members will get more value from their Association if they know i) exactly what they want from the Association and ii) how this complements / adds value to what they are already doing. If this is hard-wired then understanding value is easier.
Proactive Value Demonstration / Communication
To remain relevant and indispensable, trade associations need to proactively demonstrate and communicate their value. Starting with a clear and agreed articulation of value, supported by objectives / KPIs and timelines can then be followed by regular newsletters, annual reports, and member testimonials. Associations then need to follow up to make sure the communication is reaching the right audience(s) within their members.
Public Affairs costs are increasingly scrutinized, so as one of the biggest ticket items in a Public Affairs budget, trade associations must rise to the challenge and demonstrate their value. Associations and members need to step up together in how they align on, articulate and communicate value. By consistently delivering tangible benefits and effectively communicating their impact, trade associations can justify membership fees and ensure sustained member engagement and loyalty.
