The core of growth strategy, at least in the for-profit realm, is the product-market growth matrix developed by Igor Ansoff, the late distinguished professor of business and applied mathematics. Essentially, according to Ansoff’s matrix, you can increase customer share by getting existing customers to buy more products or new products, or you can increase market share by getting new customers to buy existing products or new products.
Associations that employ growth strategy, then, are putting into action a plan that they hope will increase market share or customer share (in this case, for members, vendors or other shareholders). It sounds pretty simple. However, many associations struggle with this formula. Here’s why:
Lack of Clarity. If you and your board are not clear about your real goals, you run the risk of picking a strategy that not only doesn’t achieve your goals but actively impedes the organization. For instance, associations always want more members, right? But associations tend to talk about membership growth when what they really mean is revenue growth. If your association truly seeks membership growth, that might lead you to consider strategies that include free or low-cost memberships to certain groups. But if what you actually need is a boost in revenue growth, a growth strategy that includes free membership would be actively counterproductive.
Likewise, associations need clarity about their true audiences. Let’s assume there are 10,000 companies within your industry. Chances are they aren’t all genuine prospects. Let’s further assume you have a marketing budget of $10,000. If you aren’t clear about your real audience, you’ll probably waste that money. You might put $1 toward marketing to each of the 10,000 companies, whereas the smarter decision would be to earmark $5 for each of the 2,000 companies that appear to be more ready, willing and able to buy from you.
Associations need to get over trying to be all things to all people. Product development is based on realistically delivering something that you can provide and that your audience needs. Pepsi doesn’t try to sell cars. Pepsi’s customers buy cars, no doubt, but not from Pepsi. From Pepsi, they buy soft drinks. Likewise, your association needs to provide its audiences something that no other group can. What’s your special product or service?
Lack of Commitment. Setting goals isn’t enough. You also have to make a public commitment to achieving them. One way to commit to a goal is to assign it a specific numeric target, such as a percentage increase. This might feel like you’re pulling something out of the air, but the process of pairing a goal with a hoped-for numeric outcome and sharing this expectation with members and vendors drives energy and efforts.
Let’s say your association has a goal of increasing paid annual conference registration by 20 percent this year. Setting that goal is only the first step, and telling your staff is only step 1.5. The spark for growth comes when you share that goal with your board, your volunteer leaders and your members. Invite them to participate in your vision, explain why that increase is a good thing for them (not just for you) and ask them to contribute their creativity, ideas and energy to help realize it.
Lack of Execution. So, you know what your association’s real goals are, you know who your audience is, and you know what you can provide for them that no one else can. You’ve set measurable goals, and you’ve shared those goals widely. You’re all set, right? Just about.
There’s one more step you must take on the path toward successful growth: You have to execute. You can have clear, amazing goals that everyone is excited to reach, you may have done your research and know exactly who you want to target, and you know precisely what your unique value proposition is, but if you fail to actually get your product or service out there in a timely fashion, it’s all pointless. The window of opportunity closes and your members and vendors go elsewhere.
Your association can thrive with your existing products or new ones. But to be successful, marketing efforts require clarity, commitment and execution. Master these and your group will be positioned for explosive growth.