The Neuroscience Of Member Loyalty Sept 2012

WHITE PAPER The Neuroscience
of Member Loyalty
Executive Summary
The lifeblood of any association is its membership. The healthier and stronger
an organization’s membership is, the greater its ability to fulfill its mission.
Effective recruitment and retention strategies are critical components for
membership growth and development. Retention strategies are especially key
as more resources (time and money) are needed to recruit members than to
retain them. Members that choose to renew each year obviously come back
because they understand the value of the organization in their lives and /or
professions and are loyal customers and evangelists. What separates these
individuals from the others?

In some ways, membership retention is more of a science than an art.
Associations are made up of people with different motivations for their actions.
The field of neuroscience gives association executives a better understanding
of how people make their decisions. Neuroscience research helps executives
understand how associations can develop programs that will form deeper
relationships, stronger connections and ensure member loyalty.

One such type of program is a loyalty rewards program. Rewards, or points,
programs exploit the four principles of neuroscience—rewards, emotion,
memories and social interaction—to achieve higher results in member renewal
rates. They engage members on a regular basis, building on the desire by
people to stay connected and be rewarded for the right behaviors. This
strengthens the relationships—beyond attending conferences or meetings—
tapping into everyday life. In addition these programs can bring in new revenue
and associations can easily implement and manage them.

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@2012 Affinity Center International LLC, All Rights Reserved.

Membership Retention dominate executives’ top five
areas of concern for the coming
Challenges year: membership retention, value Top Five
of investments, membership Membership Concerns:
After spending 20 years as executive
recruitment, annual meeting/
director of Society of Marketing
conference attendance and
Professional Services (SMPS), one
sponsorship revenue.1
would expect Ron Worth has seen
In fact, the same study
a few things change. And he has,
reported that 33% of
though perhaps nothing as big as
association CEOs said they
how challenging it has become to get
are more concerned about
members to renew.
member retention in 2012
“It used to be members joined and than they were in 2011.
stayed with it because it was what
A fresh perspective on
you did as part of your career,” Worth
membership retention
explained. “It was automatic.”
is to view it as more
Now Worth and his team are of a science than
constantly challenged to figure out an art. Association
new ways to keep members engaged members all join for
so that when renewal time comes different reasons. The SOURCE: Associations in Uncertain Economy:
Attitudes and Behaviors Among CEOs and
around, members recognize the field of neuroscience gives Members Impact Study, ASAE Foundation

value they get from the association association executives a better
and respond by renewing. SMPS understanding of how people make
orchestrates a series of touches their decisions. Neuroscience research
throughout the year either in-person, can help executives understand how
on the phone, via email and direct associations can develop programs
mail or through the Chapters. They’ve that will form deeper relationships,
run contests, built an in-house social stronger connections and ensure
media platform and conducted survey member loyalty.
after survey to anticipate what the
members will want next.
Where Member Retention
The ultimate goal is for members to
think, “I can’t give up my membership, Stands Industry-wide
because I can’t find this value It’s getting harder to keep members.
anywhere else.” While statistics show that, ultimately,
If Worth’s story sounds familiar, it’s most members renew, associations
because it’s a common reality many are spending more to keep them. Association Average
More associations are increasing the
associations face today. Retention
number of contacts they make with
Expenditure on Renewals
efforts continue to demand more
of an association’s resources, and their members, be it email, direct mail
many associations already work or other, regarding renewals. In 2012,
within limited means. This growing 23 percent of associations sent seven
allocation of resources specifically to nine renewal contacts, up from
to membership retention efforts is 18 percent in 2011.2
severely impeding associations’ Associations also spent an average
abilities to advance their missions of $40,358 on renewals in 2012,
overall. compared to $24,943 in 2011 and
SOURCE: 2012 Membership Marketing Benchmarking
According to the American Society $27,520 in 2010.2 Study, Marketing General Incorporated

of Association Executives (ASAE),
membership issues continue to

@2012 Affinity Center International LLC, All Rights Reserved. www.affinitycenter.com | 2

An Association’s Success Is Based members outside their role within the
on the Engagement of its Members association, and take into account
things like their job demands and their
While there are a myriad of reasons
personal needs, and then develop
for members not to renew their
programs to reward membership and
membership, active members
drive loyalty. Neuroscience can help,
are more loyal and renew their
by providing an understanding of how
memberships at higher rates than
people’s brains process information
less active members.3 Therefore,
to make buying decisions or become
member engagement is a critical
loyal joiners.
factor in strong member retention and
achieving association goals.
Member Minute
Organizational psychologist Rensis How the Brain Works
Likert said, “The greater the loyalty of
a group toward the group, the greater
toward Loyalty Jack has been in his job for
15 years and loves what he
is the motivation among the members To describe loyalty we have looked
to achieve the goals of the group, and does. He used to belong to
at four principles from the field of
the greater the probability that the neuroscience—rewards, emotions, four industry associations but
group will achieve its goals.” memories and social interaction. with budget cuts this year
he is narrowing it down to
Member engagement takes on a A study of MRI scans of loyal and
variety of forms ranging from very the two that matter most to
less loyal customers found that in
committed and time-consuming to him—one for his current job
the case of loyal customers the
minor, daily interactions. It could be presence of a particular brand serves and one for his future career
• Volunteering on a board as a reward during choice tasks, moves. Which two should he
but less loyal customers do not choose? Which would bring
• Attending a conference
exhibit the same reward pathway. him the most value, beyond
• Joining a Chapter It also found that loyal customers the monthly publication and
• Purchasing a product had greater activation in the brain
annual conference?
areas concerned with emotion and
• Calling an 800 number for memory retrieval suggesting that loyal
assistance customers develop an affective bond
• Downloading research or other with a particular brand, which serves
resources as the primary motivation for repeat
• Purchasing from an affinity partner purchases.5
or sponsor company In order to become loyal to a brand
the brain must make a decision of
ASAE and the Center’s “Decision brand A over brand B, a process
to Join” report shows there is very which relies on the brain to make
little statistical difference between predictions based upon expected
non-engaged members and reward and then evaluate the results
lapsed members. “Those who are to learn loyalty. The brain is required to
not involved lie perilously close to remember both positive and negative
former members in their overarching outcomes of previous brand choices
assessments of the value they derive in order to make accurate predictions
from associations. If former members regarding the expected outcome of
are thought of as being dead, the future brand decisions. For example, a
uninvolved are close to comatose.”4 helpful salesman or a points program
may serve as a reward to encourage
To bring non-engaged members future customer loyalty.6
back to life and improve member
retention, associations must look at


Rewards Communication Through the Lens of
A reward is the positive value Neuroscience”:
someone assigns to an object or Because dopamine greatly aids
behavior. Primary rewards include memory and information processing,
those that are necessary for the you could say the Post- It note reads
survival of species, such as food, ‘Remember this!’ Getting the brain
to put a chemical Post-It note on a
sexual contact, or successful
given piece of information means
aggression.7 Secondary rewards that information is going to be more
derive their value from primary robustly processed.12
rewards. Money is a good example.
They can be produced experimentally Brain systems work in parallel, mixing
by pairing a neutral stimulus with a emotional and rational functions
known reward. in various ratios. Unconsciously, Member Minute
emotions color how the association
Neuroscience portrays a conflict and programs are viewed, and Leah sits at her desk thinking
in the brain between the desire whether people feel motivated to of all she has to do—at
for immediate gratification from buy more, advocate for, work harder,
work, home and for the trip
a small reward versus delayed bond with others ... or join the
gratification from a greater reward. disengaged who simply “bear with” to see her mother—while at
The limbic system causes people the organization. the same time needing to get
to be temporarily inclined towards the quarterly reports done.
the immediate gratification, but the In addition, people’s emotions,
How is she going to get it all
reasoning cortex of the brain can attitudes and moods impact others
and their social group as a whole.13 done and still have time for
overcome this inclination by reminders
This phenomenon of “emotional herself? She feels like with
of the better delayed reward.8,9
contagion” goes beyond face-to-face each promotion she loses
In loyalty programs, this conflict is interaction. As several studies have some of her spark and now
diminished by creating a balance shown, emotions, including happiness she asks “How do I move
between the immediate gratification and loneliness, can be spread through
forward with what I was
that can occur when points are social networks.14
meant to do with my life?
themselves framed as mini-rewards
with the delayed gratification of the Memories How can I afford to do what
sizable reward that can only be had I want to do?”
For humans, it is highly pleasurable
by a considerable accumulation
to remember past enjoyment. People Is she thinking of her
of points. In short, adding the
respond to current experiences
“earn” experience to the “burn” associations as a resource to
and make decisions based upon
experience allows the member to help create a path forward?
remembered past experiences.
have their cake and eat it too.
Memory is a critical factor in
determining behavior and attitudes.
Emotions People remember better what is
“When it comes to shaping decisions charged with emotion.15
and actions, feeling counts every bit
as much—and often more—than When a person perceives an object,
thought.”10 The brain chooses what groups of neurons in different parts of
data to store and to retrieve based, in the brain process the information about
part, upon emotion.11 its shape, color, smell, sound and so
on. The brain then draws connections
When the brain detects an emotionally among these different groups of
charged event, the amygdale neurons, and these relationships
releases dopamine in to the system. constitute perception of the object.
Jill Eichwald quotes John Medina Subsequently, whenever someone
in the Maritz Institute white paper, wants to remember the object, they
“The Dynamics of Effective Business reconstruct these relationships.


Neuroscientist Jeff Hawkins points given register, our key relationships
out, “The brain doesn’t remember or can gradually mold certain neural
recall things with complete fidelity— circuitry.17
not because the cortex and its People pay enormous attention to
neurons are sloppy or error-prone, what other people think, feel, say and
but because the brain remembers the do. There are many influencers that
important relationships in the world, drive people’s behavior and choices.
independent of details.”16 People, for the most part, do not
make decisions independently. Rather,
In addition, isolated pieces of they are influenced by the behavior
information are memorized less of others.18 And by those they view
effectively than those associated as credible, reliable, well-intentioned
with existing knowledge. The more or well-informed, and by people
associations between the new they identify with in some way.19
information and things that someone
already knows, the better he or she Cooperation and social acceptance
will learn it. are so important to people that when
excluded it is physically painful.
Creating meaningful experiences that
form positive memories will contribute
to an association’s success. If people
enjoyed interactions with a brand, and Applying the
felt good about themselves during Neuroscience Research
the experience; these feelings will be
remembered and triggered in future Why People Join Associations
interactions, and will prompt people to
Associations exist because people
want to continue to do business with
are wired to be social. To understand
the brand.
what causes members to be loyal to
an association, one can look to the
Social Interaction
research of neuroscientists about how
Neuroscientist Daniel Goleman the brain processes information. The
explains: field’s findings show that member
The social brain is the sum of the loyalty, or the need to join, is tied to
neural mechanisms that orchestrate the member’s level of engagement
our interactions as well as our with the group.
thoughts and feelings about people
and our relationships. The most telling People make decisions rationally and
news here may be that the social emotionally at the same time without
brain represents the only biological even knowing it. Matthew Lieberman,
system in our bodies that continually a neuroscientist at UCLA, says we
attunes us to, and in turn becomes are aware of rational processes. They
influenced by, the internal state of require effort and conscious intent.
people we’re with. All other biological Rational processes are experienced
systems, from our lymphatic glands
as self-generated thoughts. But,
to our spleen, mainly regulate
their activity in response to signals
automatic processes, or emotional
emerging from within the body, processes, operate outside of our
not beyond our skin… Our social awareness and conscious intention.
interactions even play a role in They require very little effort and are
reshaping our brain, through usually experienced as perceptions
“neuroplasticity,” which means that or feelings.20 While members search
repeated experiences sculpt the rationally for the value an association
shape, size, and number of neurons brings to their lives, they also need
and their synaptic connections. By to have positive feelings toward the
repeatedly driving our brain into a


association to actually renew their When people encounter new Four Principles of
membership. information, it’s the working memory
that takes it in and matches it
Neuroscience
against old information stored, or
Don’t Leave Member
memorized, in a different part of the
Engagement to Chance brain. The greater the number of
When it comes to the active related associations between new
participation of new members, and existing information over time,
associations must start with the end in the stronger the memory will be.21
mind and decide what they are driving Similarly, people can remember a new
piece of information better if they can
towards and then create an image of
associate it with previously acquired
what true member engagement looks
knowledge that is already firmly
like and drive towards that vision. anchored in their memory.22 And the
more meaningful the association is
To build member engagement and
personally, the more effectively it will
in turn member loyalty, associations be remembered.
should ask themselves:
• Are we bringing value to the What is a Loyalty Program?
members beyond the expected? Many options are available to
• Is the value obvious or is it hard to associations seeking new programs
experience and see? that engage members. One such
type of program is a loyalty rewards
• Are we determining what members program. Rewards, or points,
value or are we getting input from programs exploit some of the research
them? of neuroscience to achieve higher
• What we are asking from members? results in member renewal rates.
• Are we being truly creative or are we By definition, loyalty programs are
just restating what has been done? structured marketing efforts that
• Do we understand our members? reward, and therefore encourage,
• Are we creating positive memories loyal buying behavior—behavior,
for our members? which is potentially beneficial to the
organization.

Loyalty is Based on Loyalty programs are common in the
Members’ Memories retail, travel, and financial sectors.
Most people have come into contact
Loyalty and member engagement
with one and may participate in many.
programs are successful when
They either offer discounts upfront
they arouse positive emotions in
or a collection of points for coupons,
members and cause them to find
free products or services, and
the relationship to be rewarding.
other rewards. Retailers use loyalty
Those positive emotions help
programs to engage customers and
transition memories from temporary
prompt them to associate a positive
to long-term memory storage.
emotion with the organization.
The goal is to attain members’
long term storage of positive To date, the association industry
interactions with the association so as a whole hasn’t utilized loyalty
that renewal becomes automatic. programs to improve member
retention, but there is no clear reason
Eichwald quoted research that
why. Consumers love them. Smart
describes the brain’s process of
Money reports, “In the aggregate, U.S.
converting memories:
consumers now hold about 2.1 billion
memberships, up 60% since 2007.”23


Mike Spellecy is a vice president • Let association executives
at Maritz who has worked with collect detailed member profiles
loyalty and reward programs for and member segmentation so
over 30 years. He translates this they association executives can
concept from a business and understand more about their
retail perspective to associations: segments of members and can
“Loyalty programs should be seen treat them according to their
by association executives as a long needs and wants. For example,
term vehicle for driving members communicating with members in
to consider the association first the ways or frequency they want,
when they need a product or or even creating the type of content
service the association offers.” or events they’re interested in.

• Allow members to connect and Member Minute
Enhancing Member Engagement
and Association Membership socially engage with others who
Carolyn had forgotten that
share a similar interest and wish to
As Spellecy explains, associations share information and insights. she joined an association
are created when a collection of last year. She paid her
individuals come together around a dues and then life got busy.
common interest or problem. But, Cutting through the Clutter
Recently, the association was
members’ needs are divided. First, Like other programs, a loyalty rewards
there are the people who sign up to asking her to renew and pay
program cannot be successful if
gain access to a particular seminar people don’t know about it. The white her dues. She asked herself,
and are never heard from again paper “Understanding What Makes “Why renew? I didn’t utilize
because they have fulfilled their People Tick” applies neuroscience the benefits when I belonged
specific need. The second group has research to human’s capacity for the first time.” What is the
a vested interest in the goals of the attention. It points out two important value of the membership to
association and returns to discuss all facts: “people can’t pay attention
issues facing the members. her? She didn’t feel that the
to everything at once and people
need help breaking through the association offered anything
The loyalty program is an association communications clutter.”24 that enhanced her life or her
benefit that all members consider career. She was going to
highly valuable. It is the glue that Associations often implement a pass this year.
helps members stick with the number of programs that end up
association. Through regular, even competing for members’ attention,
daily, interactions with the loyalty and worry about adding one more.
rewards program, members keep Loyalty programs can align with and
their associations on the top of their complement other existing programs.
minds. In addition, they link a positive
experience with their associations In addition, message delivery is
each time they earn a reward. critical. By using a combination of
existing communications channels
Loyalty programs can help member that members are used to applying
engagement because they: attention to, and unexpected
• Offer a platform that tracks, communications techniques that can
monitors and evaluates members’ grab attention just by virtue of their
activities, allowing associations to novelty, associations can effectively
quickly modify programs to keep cut through the clutter. Regardless of
members engaged at higher levels how communications are delivered,
and reduce attrition or disengaged ensuring that messaging design is
members. personally relevant, motivating and
honest, with a clear call to action, can
drive attention.


Three Ways to Improve the Bond Associations that implement programs
with Members Right Away based on neuroscience research can
While loyalty programs should be form deeper relationships, stronger
viewed as a long term retention connections, and ensure member
strategy, there are ways to jump start loyalty. Loyalty rewards programs
member engagement. help associations connect with
their members in different ways and
• Talk, treat and reward. Based on more often. They provide regular,
the insights gained from loyalty positive interactions within the normal
program activities, associations stream of business and life, and are
can recognize members differently opportunities to remind members
and provide relevant discussions, of the value of their membership.
according to how they want to be It reminds them of why they chose
treated. Member Minute
this particular association over the
others. Each little interaction makes Ella’s association recently
• Through loyalty programs,
a member more likely to renew.
associations can create a dialogue added a loyalty program
or strengthen their member that rewarded her for
community. Many associations participation. She was eager
already ask for input and feedback, Loyalty is the End
to get more value from
poll members on areas of content/ Result of Effective her membership dues and
information, or conduct surveys
for member satisfaction, but the
Retention Strategies while she hadn’t been an
most critical step is to take action Members are not one dimensional, nor active member previously,
based on results and input. are the behaviors they demonstrate she became involved in the
or the ways they make decisions. program. She found that
• Test new and unique engagement
Members connect from self to not only was the loyalty
tactics that are built on
industry, from career today to career program itself engaging;
understanding the neuroscience of
tomorrow. The need to motivate, and
people’s behaviors. Make engaging but there were a lot of other
drive behavior at these different levels
with the association interesting association benefits she’d
is key to moving a member from an
and fun. Loyalty programs been missing—things that
occasional supporter to an advocate
can add a new, and perhaps
for the association; and from a yearly could help her with her life
unexpected, dynamic to the typical
member to a lifetime supporter. and career.
interaction with associations
that members are used to. For Ron Worth and the SMPS team, She was getting value
implementing a loyalty rewards
Loyalty programs can exploit these everyday, making her
program brings hope that they
four principles of neuroscience to will be able to offer a new value to association membership
achieve higher results in member their members and the firms with indispensable to her lifestyle.
renewal rates. They engage members which they work. The regular, even
on a regular basis, building on people’s daily, engagement a loyalty rewards
desire to stay connected and be program can offer the association’s
rewarded for the right behaviors. This 6,000 members helps take the
strengthens the relationship—beyond pressure off of the team to provide
attending conferences or meetings— constant interaction. They can
by tapping into everyday life. In focus instead on their mission and
addition, these programs can bring member services such as helping
in new revenue and associations can firms develop marketing programs
easily implement and manage them. that help them stand out and aiding
members searching for jobs.


References:
1. “Associations in Uncertain Economy: Attitudes and 15. Joseph LeDoux, Emotional Brain: The Mysterious
Behaviors Among CEOs and Members,” Impact Study, ASAE Underpinnings of Emotional Life, New York, 1996.
Foundation, Washington, Winter 2012, p. 8.
16. Jeff Hawkins, On Intelligence, New York, 2004.
2. Erik Schonher et al. “2012 Membership Marketing
Benchmarking Study,” Marketing General Incorporated, 17. Daniel Goleman, Social Intelligence: The Revolutionary New
Alexandria, 2012, p. 9. Science of Human Relationships, New York, 2006.

3. “Member Retention Strategies,” ASAE Associapedia, http:// 18. Matthew J. Salganik, “Experimental Study of Inequality and
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4. “Decision to Join: How Individuals Determine Value and How 19. E.J. Wilson & D.L. Sherrell, “Source Effects in Communication
They Choose to Belong,” ASAE Press, Washington, 2007, p. and Persuasion Research: A Meta-Analysis of Effect Size,”
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26(2): pp. 151-175. Processes: A social cognitive neuroscience approach” in
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337:a2338


The Neuroscience Of Member Loyalty Sept 2012

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