Member Segmentation - Advantages & Challenges

Maximizing Member Engagement and Revenue Through Effective Segmentation Strategies

For associations, understanding member behavior is the key to driving meaningful engagement and optimizing sales practices. Member segmentation is a powerful tool that allows organizations to group members based on common characteristics or behaviors, which leads to more personalized, targeted approaches that drive sales, enhance marketing strategies, and improve overall member satisfaction.

What is Member Segmentation?

Member segmentation is the process of dividing an association’s membership into distinct groups based on shared characteristics such as demographics, purchasing behaviors, interests, or engagement levels. By understanding the unique needs and behaviors of each segment, associations can create tailored strategies to engage each group more effectively.

This approach goes beyond simply categorizing members—it provides actionable insights that inform decisions about membership pricing, dues, services, events, and marketing tactics. With segmentation, associations can create more relevant and personalized experiences, ultimately improving engagement and increasing revenue.

How Member Segmentation Drives Sales and Marketing Success

Implementing member segmentation can significantly increase sales by tailoring offerings to different segments’ unique needs. For example, an association might segment members based on the frequency of product purchases, level of engagement, or professional role. These segments can then be targeted with specific marketing campaigns, personalized offers, or customized products that align with their interests and preferences. Here’s how member segmentation can improve sales and marketing:

Improved Targeting: With more accurate data, marketing teams can create campaigns that speak directly to the needs and behaviors of each segment. Rather than a one-size-fits-all approach, associations can send relevant content, offers, or event invitations to each group, leading to higher conversion rates.
Increased Product and Service Relevance: Member segmentation enables associations to provide tailored products and services that appeal to the specific interests or pain points of each group. Whether it’s a specialized training course or a unique networking event, associations can meet the exact needs of different segments, improving both member satisfaction and sales.
Enhanced Member Journey Mapping: By segmenting members, associations can create more accurate and detailed member journeys. This allows for timely and relevant communication that guides members through the membership lifecycle, improving retention and encouraging repeat purchases.
Scalable Marketing Practices: By grouping members based on their behaviors and characteristics, associations can implement scalable marketing tactics. Instead of developing custom campaigns for every individual member, marketing teams can focus on a few key segments and scale their efforts more efficiently.
Optimized Revenue Generation: Through segmentation, associations can develop strategies to grow both dues and non-dues revenue. For instance, certain segments may be more willing to pay for premium services, while others might respond well to fundraising campaigns. Understanding these dynamics enables associations to optimize their revenue models.

Implementing Member Segmentation: Benefits Beyond Marketing

While marketing and sales are the most obvious areas to benefit from member segmentation, it can have a broad impact on other facets of an association as well. Here’s how different departments within an association can leverage member segmentation:

Product Development: By understanding the distinct needs of different member groups, associations can develop new products and services that meet the demands of their most engaged or profitable segments.
Event Planning: Associations can create more targeted and relevant events for specific segments, resulting in higher attendance rates and better engagement.
Member Retention: By identifying the segments with the highest churn rates, associations can develop retention strategies tailored to these groups to improve overall member loyalty.

Common Member Segmentation Criteria

There are various ways associations can segment their membership. Here are some of the most common criteria:

Demographics: Basic characteristics like age, gender, and job title can help create high-level segments that allow for personalized messaging. For example, younger members might be more interested in networking opportunities or digital resources, while more senior members might prioritize industry-specific training.
Interests: Members may be more engaged with certain aspects of the association’s offerings. For instance, some may be more focused on educational opportunities, while others might be drawn to networking events or advocacy programs. Segmenting members based on their interests helps ensure that marketing efforts are more targeted and relevant.
Purchase History: Analyzing past purchasing behavior can give insights into future purchasing tendencies. Associations can segment members based on how much they spend, what types of products or services they purchase, and the frequency of their transactions.
Geographic Location: Segmenting members by location enables associations to offer more localized content and services. It also allows for tailored event planning, as certain regions may have different needs or regulatory environments that associations need to address.
Behavioral Data (Web, Social Media Analytics): Tracking how members interact with the association’s website or social media platforms can provide valuable insights into their preferences and engagement levels. This data can help create segments based on online activity, such as members who frequently visit event pages versus those who engage with educational content.
Volunteer and Committee Participation: Members who volunteer or serve on committees can be segmented into highly engaged groups that may require more direct communication or specific offers. Understanding how involved members are with the organization can help identify key influencers and potential future leaders.
Industry and Organization Profile (for Trade-Based Associations): For trade associations, segmentation can be based on industry, revenue, number of employees, or company size. This helps tailor industry-specific programs and services that are most relevant to different types of businesses.

The Challenges of Member Segmentation

While the benefits of member segmentation are clear, there are challenges to effectively implementing this strategy. Common obstacles include:

Data Silos: Many associations use multiple systems (e.g., AMS, event management, learning management systems) to track member data, which often leads to fragmented or siloed information. Without integration between these systems, creating a unified, comprehensive member profile becomes difficult.
Incomplete or Inaccurate Data: Member segmentation requires accurate, up-to-date information. Incomplete or inaccurate data—such as outdated contact details or missing member interests—can lead to ineffective segmentation and suboptimal marketing efforts.
Complexity in Data Integration: Integrating data from various touchpoints and systems into a centralized database can be a complex and resource-intensive process. Without a fully integrated solution, associations may struggle to gain a comprehensive view of member behaviors and preferences.

How Salesforce Supports Member Segmentation

Salesforce offers a comprehensive suite of tools and features that enable associations to tackle these challenges and leverage member segmentation effectively:

Centralized Member Data: Salesforce integrates member data from various sources into one platform, providing associations with a single, comprehensive view of each member. This data can include demographic details, purchase history, event attendance, and online behavior.
Advanced Analytics: Salesforce’s powerful analytics tools, including Salesforce Reports and Dashboards, allow associations to analyze member data and uncover patterns and trends. This enables better segmentation and decision-making.
Personalized Marketing: Using Salesforce Marketing Cloud, associations can create highly personalized marketing campaigns that are tailored to specific segments. Automation tools allow for targeted messaging at scale, ensuring that each member receives relevant communications.
Integration with Third-Party Tools: Salesforce’s Appexchange and integrations with other platforms (like event management systems or learning management tools) allow associations to bring in data from various systems and create a unified member profile.
Customizable Solutions: Salesforce is highly customizable, allowing associations to create tailored solutions for member segmentation based on their unique needs and goals.

Member segmentation is an essential strategy for associations looking to optimize their sales, marketing, and engagement efforts. By grouping members based on behaviors and characteristics, associations can create more relevant offerings, targeted communications, and personalized experiences that drive both member satisfaction and revenue growth.

While challenges such as data silos and incomplete information can hinder segmentation efforts, leveraging a powerful platform like Salesforce can help associations overcome these obstacles and unlock the full potential of member data. With the right tools and strategies in place, associations can develop a more effective, data-driven approach to serving their members and achieving long-term success.

About Systems Rewired

Systems Rewired is a Salesforce consulting company that specializes in associations and nonprofits. With expertise in Salesforce integrations and customizations, we help organizations harness the power of Salesforce to drive member engagement, improve operational efficiency, and increase revenue. Let us help you transform your member data into actionable insights that can propel your association forward.