Matrix Group International

Tag: Membership

  • The Looming Membership Cliff: What Associations Can and Should Be Doing

    The Looming Membership Cliff: What Associations Can and Should Be Doing

    Over the last year, I noticed an alarming trend popping up in my interviews with CEOs on my podcast, Associations Thrive. CEOs in the healthcare space were worried about nurses and technicians leaving the industry. Michael DiFrisco, Executive Director of the American Academy of Cosmetic Dentistry, surveyed members and found that 52% of accredited members were planning to retire in the next five years. Kelli Baxter, then Executive Director of the American Translators Association, surveyed members and found that 62% of members were close to retirement! I could go on and on.

    I realized that many (granted, not all) associations are facing a membership cliff in the coming years. And this cliff is not just a distant concern – it’s here. What’s contributing to this cliff and what are associations doing to combat this cliff?

    To explore this more, I hosted a webinar through UST Education on the membership cliff. I was joined by Michael DiFrisco of AACD, and Tracey Moorhead, CEO of the American Association of Post-Acute Care Nursing. Here’s what we learned:

    Demographic Shifts are Accelerating

    Demographics are playing a significant role in shaping membership trends. These shifts mean fewer professionals are entering industries and, by extension, associations.

    • Baby Boomers retiring: With this generation leaving the workforce in record numbers, their participation in associations is waning.
    • Gen X retiring earlier: The pandemic has prompted some Gen Xers to exit the workforce sooner than expected.
    • Fewer younger professionals: Low birth rates and political resistance to immigration have created a smaller pipeline of potential members.

    Membership Models Are Under Strain

    The traditional membership model is facing scrutiny. There’s a lot of hand-wringing about Millennials and Gen Zers who are not “joiners.”

    • Low student-to-professional conversion: Many associations struggle to transition discounted or student members to full membership.
    • Perceived value gap: Younger professionals often question the ROI of membership, believing they can access similar resources online for free.
    • Competition from for-profit offerings: Private companies are creating compelling, alternative benefits tailored to niche needs.
    • A la carte preferences: Members are gravitating toward customizable and flexible benefits rather than one-size-fits-all membership models.

    The Private Equity Impact

    Private equity is reshaping industries, often at the expense of associations. This trend surprised me the most. Once private equity was mentioned during the webinar, the chat lit up. It seems private equity is impacting industries in a HUGE way.

    • Reduced memberships: Mergers and acquisitions result in fewer independent companies, shrinking the pool of potential members.
    • Less investment in associations: Private equity firms frequently provide internal training, certifications, and resources, diminishing the perceived need for association offerings.
    • Staff reductions: When private equity acquires firms, workforce cuts often follow, reducing the number of individual members.

    Strategies for Mitigating the Membership Cliff

    So how are associations addressing membership challenges and declines? We had nearly 100 people in the webinar and the chat was going crazy with insights and comments! Many execs realized that they are not alone in facing a looming cliff, many realized the need to survey their members about demographic trends, and many shared the strategies they’re exploring and executing. Here are my notes from the chat:

    1. Associations Are Learning to Make Data-Driven Decisions

    • Analyze demographic and membership trends.
    • Share insights with boards and leadership to align strategies.
    • Monitor competition and member needs to stay ahead.
    2. Associations Are Experimenting with New and Different Membership Models
    • Experiment with subscription-based or incremental pricing.
    • Pilot “free membership with paid events” models to attract new participants.
    • Offer flexible, tiered options tailored to varying member needs.
    3. Associations are Refining Their Value Proposition, Especially to Different Audiences
    • Highlight exclusive benefits like certifications, networking, and education.
    • Craft offerings that resonate with different demographics—young professionals, mid-career changers, or retirees.
    4. Associations are Connecting Members to Deepen Engagement
    • Launch mentorship programs to bridge generations and foster loyalty.
    • Invest in localized and hybrid networking opportunities to meet members where they are.
    5. Associations are Building Strategic Partnerships
    • Collaborate with private equity firms to underscore the value of associations.
    • Partner with universities, corporations, and other nonprofits to develop pipelines for new members.
    • Co-develop educational events and certifications with industry leaders.

    Facing the Future with Confidence

    The membership cliff may be imminent, but it’s not inevitable. Associations have the opportunity to adapt, innovate, and reassert their value. How are you navigating the membership cliff? What strategies is your organization exploring to safeguard its future? 

  • Verifiable Credentials: New Technology for Association Membership?

    Verifiable Credentials: New Technology for Association Membership?

    Our online identities are, unfortunately, not in our control.

    The internet was created for communication between computers, but our presence as individuals on the internet is less formally defined. We create online accounts and over time we may forget they exist, if we haven’t already forgotten our passwords.

    Technology advocates argue that we need an identity layer for the internet. We need a new way of managing our digital identity so that it’s in our control. Decentralized identity and verifiable credentials can provide this identity layer.

    What is a Verifiable Credential?

    Think of a verifiable credential like a diploma or driver’s license, but digital. This digital credential is cryptographically signed by its issuer for its specific holder. In other words, it’s practically impossible to fake.

    How Could Associations Use Verifiable Credentials?

    In many ways! Verifiable credentials could be used for membership, continuing education, certifications, credentialing, and more. Today, let’s explore how it could be used for membership:

    When an association accepts a new member, it could issue a proof of membership credential to that member. The member would store that credential in a digital wallet, either on their phone or computer, and would later be able to present that membership credential to prove their membership to a particular association.

    Why would a membership credential be useful? For starters, it could erase the need for passwords. Rather than creating a new account on an association’s website, members could use their membership credential to login by simply scanning a QR code. A member’s personal information could be restricted to that membership credential and that member would have the authority to decide who can access their data and when.

    Membership credentials could make it straightforward to provide vendor discounts for specific associations. Members would present their credential to a vendor. The vendor would then check whether the credential has been issued by an association they offer a discount to and seamlessly grant the discount.

    It could also be used to verify member application requirements. Perhaps an association requires proof of certification to become a member. If the certification is a verifiable credential, that association can trust that that certification is valid without the hassle of checking with the certifying authority.

    The Current State of Verifiable Credentials

    There are a lot of exciting possibilities for verifiable credentials, but the technology is still maturing. There’s a lot more work to be done in the space before it can be put into practice.

    Right now, Indy and AnonCreds credentials require a distributed blockchain ledger, which is a sizable barrier to entry. In order to interact with a mobile wallet, that wallet needs to be set up to work with the distributed ledger chosen by the credential issuer. Other credential types work without a blockchain ledger, but with a loss in other privacy-preserving aspects. Additionally, issuing and verifying credentials is a two step process. First you establish a connection, and then you can complete an action.

    But, we’re getting closer! This summer, as a Matrix Group intern, I researched verifiable credentials and have learned a lot about how to manage our digital identities. I even have a proof-of-concept WordPress plugin to show for it that allows users to login to their accounts with a verifiable credential, rather than a username and password. It interacts with a separately running “agent” that handles the actual credential issuance logic, however troubleshooting issues with this agent is difficult, and is one of the barriers to widespread implementation of this technology, for now.

    Eventually, verifiable credentials will simplify membership and membership management for associations, but we’re not there quite yet. Here at Matrix Group, we’re monitoring the state of verifiable credential technology and we continue to experiment with new options. We will be sure to keep associations in the loop as this decentralized identity technology develops!

    Check out our proof-of-concept WordPress plugin for verifiable credentials!