PART 1: CROSS-POLLINATING CUSTOMER ACQUISITION & RETENTION: PROFESSIONAL SERVICES & MEMBERSHIP BODIES

Every business needs loyal customers to exist, survive and thrive.  In their quest for customer attraction and retention, two seemingly disparate sectors - the professional services industry and membership-based industry bodies share more commonality than many realise.  While the nature of their offerings differs, the underlying principles of customer and member retention are strikingly similar.

Drawing Parallels: Customers and Members

Having earnt my stripes in the dynamic and ultra-competitive professional services world, a few years ago I moved into the realm of industry bodies.  Instead of talking ‘customers’, the terminology turned to ‘members’, however the parallels underpinning these different business models is fascinating.  To the point I have decided to write a short series about how each of these two business models can draw inspiration from each other to better thrive.  Similarities span the articulation of a compelling value proposition, differentiation through business model innovation or even just go-to-market considerations.  Leaders of each type of organisation could learn a lot by putting themselves into the shoes of a CEO or a marketing executive of the other – if you run a professional services organisation, pretend for a minute your clients are members whom you must entice to join your tribe.  And conversely, if your daily job centres around attracting and retaining members – try to view your organisation as a professional services company through which you provide valuable services to your constituents.  

Consider a professional services firm, say an international IT services company like a DXC Technology (www.dxc.com), a medium sized consulting organisation, or even a much smaller local services provider in the marketing strategy or digital services space. Their clients primarily consist of corporate entities seeking expert advice in navigating complex business challenges. The value proposition on face value seems clear: tailored solutions backed by strong technical and industry expertise, and a proven track record of delivery. The client's expectation is not just about problem-solving, but also the acquisition of knowledge and strategies that can be applied long after the engagement ends.

On the other hand, membership bodies, such as a branch of the National Electrical & Communication Association (NECA) in Australia (www.necavic.asn.au), cater to entities seeking to be part of a larger community that offers networking opportunities, professional development resources, and industry-specific insights. Members joining the industry body seek a sense of belonging, continuous learning, and understanding of industry trends, as much as getting access to relevant and quality services relevant to running their daily contracting businesses.

Staying Relevant: A Challenge for Both Sectors

Despite the differences in their offerings, both types of organisations operate in a highly competitive environment, where the value proposition is key to gaining and maintaining the interest of customers or members. In some ways being able to define, and more importantly articulate the value proposition is harder for a membership body – often the ethos behind the company and the skillsets are not akin to promoting services, or maximising value.  But equally, membership bodies despite all odds are often more successful in evolving their offerings to align with changing market dynamics and member expectations, compared to traditional services businesses.

The challenge of how to stay relevant and ‘ahead of the pack’ is a holy grail topic in business.  Let's take the example of a professional services firm that specializes in digital transformation. Their value proposition might be their unique methodology and successful case studies. However, as digital transformation becomes a standard practice across industries, the firm needs to innovate and expand its services to stay relevant. Perhaps they could offer post-implementation support or develop proprietary technologies to give them a competitive edge vs their competition.

Not dissimilarly, a membership body like NECA also needs to continuously reassess its offerings. As online learning platforms become more prevalent, the association's traditional seminars and workshops may no longer attract members. They might need to look at different ways of offering their resources, staying ahead of other niche providers – often ironically professional services companies competing for the same customers whom the industry body tries to attract as members.  Membership bodies often don’t have the lucrative marketing budgets, the high-end skillsets nor the abilities of many of their niche service provider competitors, but they have something that often is overlooked in the professional services segment – an inner realisation that to be successful, the membership body must ensure offer industry relevancy.  This could be through tailoring products and services or creating new ways to drive engagement to meet the changing needs of their members – often in very creative and much more intimate ways than professional service organisation bother with – often to their own detriment.  

The Goal: A Loyal Base that Advocates for Your Brand

The journey of customer – client or member retention - by both types of organisations relies therefore on a solid empathy with the target audience, a compelling organisational value proposition, a nimble and relevant business and pricing model, and consistency in delivery of promised value.

So, growing a successful client base in a professional services environment is no different to growing membership in an association/industry body sense.  In fact, professional services organisation could often take inspiration from some of the creative thinking that membership bodies are forced to do, to better understand the needs and expectations of their audience, tailor products and services to their constituents, and continuously innovate their offerings and go-to-market strategy.

Remember, the goal is not just to attract and retain but to create a loyal base that sees value in your offerings, advocates for your brand, and contributes to your growth.

Looking Ahead: The Importance of a Solid Value Proposition

In the next part of this multi-part discussion, we’ll look closer at some practical examples of the criticality of a solid value proposition, and how each type of industry can cross-pollinate experiences from each other, to maximise their value statements and differentiation to their markets.  Remembering that often membership bodies and professional services organisations compete for the same customers, a clear articulation of the differences becomes arguably one of the more critical success factors in enhancing their customer and member retention strategies.