The First Question to Ask to Improve Nondues Revenue

In the pursuit of increasing non-dues revenue, association professionals often seek new programs and products. However, it is equally important to address the underlying issue if revenue from existing programs is declining or not meeting expectations. Rather than solely focusing on acquiring more revenue, it is crucial to identify why revenue from current programs is not reaching its potential. Just as fixing a leaking bucket requires identifying the source of the leak, understanding and resolving the issues with existing programs is essential.

While sales teams often face pressure to boost revenue, sustainable growth cannot be achieved solely through a strong sales force. It also requires engaging relevant prospects, offering appropriate products and services, providing positive experiences, and fostering customer loyalty and advocacy. A comprehensive and exceptional customer journey from start to finish is vital. If the focus remains solely on the sale and neglects the overall experience, revenue will continue to escape.

It is common for organizations to overestimate their performance in delivering a great customer experience. Hence, it is essential to identify and rectify any cracks or issues in the customer experience. A positive customer experience yields measurable benefits such as increased customer retention, expansion, acquisition of new customers, and improved employee engagement.

Statistics from the for-profit sector demonstrate the impact of prioritizing the customer experience. Customer-obsessed companies grew 2.5 times faster and retained 2.2 times more customers annually. Positive experiences lead customers to spend 1.4 times more and remain loyal for five additional years. Furthermore, delivering positive experiences can reduce service costs by up to 33 percent. Companies that excel in customer experiences are five times more likely to have engaged employees.

To identify and address the leaks in revenue generation, five key areas of the customer journey need evaluation and optimization. These areas include awareness, consideration, engagement/conversion, delivery/fulfillment, and renewal/expansion/churn. By assessing and improving these aspects from the perspective of sponsors, exhibitors, and advertisers, associations can enhance the customer experience, retain and expand their customer base, and ultimately increase non-dues revenue.

Many fixes to improve the customer journey can be accomplished without significant investment, such as website updates, streamlining processes, and enhancing communication channels. By prioritizing the customer journey, associations can boost revenue, making new programs even more successful.