Making the Case for a Dues Increase

The Utilities Technology Council (UTC) faced the challenge of implementing a substantial increase in dues for its members in 2017. To minimize member churn and avoid sticker shock, UTC employed various communication strategies. Dues increases are a crucial part of an association’s financial life cycle, typically adjusted annually for inflation. However, the COVID-19 pandemic disrupted this rhythm, with many organizations forgiving dues or suspending increases. Associations that had neglected dues adjustments before the pandemic found themselves in financial difficulty, necessitating significant increases over several years. In such cases, effective communication is essential to justify the value of membership and explain the need for the increase. Associations should consider phasing in the increase, gradually raising dues percentages, and engaging in extensive communication with members. UTC implemented a relatively modest 5 percent increase and employed physical letters, phone calls, and emails to explain the calculation and offer the option to postpone the increase to the next fiscal year. Associations making smaller annual increases should also communicate them, typically through renewal notices or publications. However, when a dues level reaches a significant new price point, additional communication may be required. Associations should assess their members’ price sensitivity to anticipate their response to an increase. Retention rates can serve as a metric to gauge the effectiveness of the value proposition and determine whether it is the right time to increase dues. By effectively communicating the dues increase and mitigating its impact, UTC achieved high renewal percentages. The association is now planning another dues increase for its associate members, incorporating lessons learned from previous experiences. According to a membership marketing report, while some associations choose not to announce dues increases, most employ various methods such as letters, emails, renewal notices, articles, and website postings to inform their members.