Designing a Loyalty-Building Membership Model
January 2025
This article is related to a recently completed custom research project ABA conducted on behalf of a member. Our research team is always delighted to speak with members about tailoring research projects to your organization. To learn more or submit a custom research request, simply contact your member advisor or email us at info@advisoryarts.com.
An ABA member was interested in learning how membership models could increase loyalty and/or revenue. To address this question, ABA explored the design and rationale behind two models, tiered-benefit programs and point-based programs, by analyzing existing models in and outside the industry through secondary research and by interviewing six arts organizations that had either well-functioning membership schemes in place or had recently redesigned their membership programs.
The study findings include:
-Loyalty is best fostered through personal relationships: While members appreciate benefits, true loyalty stems from a sense of belonging. Strengthening these relationships is an ongoing trend, even at the lowest giving levels.
-Audiences are experiencing decision fatigue: With memberships integrated into every aspect of life, overly complex models with multiple tiers and overlapping benefits can be overwhelming. Simplicity is key.
-Most audiences prefer immediate benefits: While point-based systems can drive loyalty—especially outside this industry—many audiences seek straightforward and immediate rewards. Additionally, the logistics of managing such systems can be complex and less effective than relationship-building strategies.
-Every model is unique: Organizations must understand their donor base to design or refine a model that best fits their needs. Ongoing internal analysis of membership tiers and benefits is essential for success.
-Communicating change requires sensitivity: When modifying a membership model, clear and thoughtful communication is crucial. Providing a grace period helps donors adjust and fosters continued engagement.
Members can download the full report below.
