Skip to main content

Do you want your association to be Walmart?

Earlier this week, I had a small Twitter discussion with Kevin Holland (@associationinc) regarding aggregation as a value proposition.

@associationinc - Deciding your role is to aggregate other people's value is like George Costanza wearing sweatpants. "You're telling the world, 'I give up.'"

@cardcat - Interesting comment about aggregating. Don't you think it is a viable option for a small association who can't afford it?

@associationinc - Nothng wrong with aggregating content as long as you don't perceive it to be your value proposition. There's no real future in it.

@cardcat - Don't think it is THE value proposition, but I think it could be A value to members, a big value.

@associationinc - A big value is something you offer that nobody else can or that u can do better. Aggregating content is easy, there4 unsustainable.

@cardcat - True, it isn't sustainable. But I almost think if you don't act as an aggregator, you risk folks going somewhere else.

@associationinc - And if you don't do your members' taxes, you risk folks going to H&R Block. :) ... Like I said, nothing wrong with it.

@cardcat - Ok, ok. Now you are just getting carried away ;) Yes, nothing wrong with it, but not a long term value prop. Agreed.


That got me thinking more about value in general. Wikipedia talks about value proposition primarily in terms of Benefits and Costs. And many would define value strictly in terms of Benefits and Costs. However, I want to bring up one other word that is key: Expectations.

There is an expected value in a transaction. You expect that Benefits > Costs or you wouldn't do it in the first place. You expect certain benefits for your costs. Although anyone can aggregate data then distribute it, association members tend to expect their association to be the place to go for information (the bigger value proposition). Therefore, you may need to aggregate to meet those expectations. And if someone else aggregates the same info, chances are you are still going to be preferred because of the other things you are doing and your reputation as an industry representative.

If you don't do it, then you may not be filling members' biggest need and expectation, which risks them walking away from the other values that you offer, simply because of convenience. It is why a lot of people go to Walmart. I may have better selection and quality somewhere else, and maybe even price, but at least I can do it in one stop. The question you have to ask yourself is, do you want your association to be Walmart?

**For the record, I am not saying being Walmart is good or bad. It's just one of the many options out there.

Comments

Lindy Dreyer said…
I'm gonna go ahead and say that aggregating content is NOT always so easy, actually--especially as the velocity of publishing continues to accelerate. Can associations do it better? Maybe. Maybe they can do it in a more trusted/vetted environment, too.

Great post. And a great exchange between you and Kevin. I see where you're both coming from.
Kevin said…
I'm just embarrassed that I actually used the phrase "value proposition."
I agree on all parts. Do you choose to be the botique shop and provide trinkets of lovleiness that your members can't find anywhere else or do you try to become the one-stop-shop, Walmart? You have to know what your members want and expect and let that guide your short term strategy (change is inevitable), right? Imagine though your member saying to you, "I belong to your xyz association, but I don't go to you for my information." OUCH and for us right now... no thanks- we'll continue to aggregate and find relevancy in the scads of information for them. Of course we tend to handhold anyway... It's what they expect other than to get more and pay less!

Popular posts from this blog

10 Thoughts on #ASAE10

Ok, so I could have spelled out the title, but chose the hashtag - #asae10. Supposedly there were over 8,000 tweets with the hashtag, but probably countless more direct messages of messages that left out the hashtag but were conference related. Two years ago, we were using twitter as a backchannel to talk about speakers. Now, over 800 people sent conference related tweets. If you aren't on Twitter, you are already late to the party. Anyway, on with the post... In no particular order, my thoughts on this years ASAE Annual Conference: 1. LA was a good venue. Lots to do. Hotels close by. Only downside was the rooms were a bit of a hike. 2. I missed Sunday because of family obligations. That really put me behind the 8 ball. Since I led a session, that meant I only got to go to 3 true sessions. Sorry, I don't count Joy Behar and the closing session. Although Marshall Goldsmith was good, I probably wouldn't have gone to see that speech as a Learning Lab. 3. Based on #

Sunk Costs, Marginal Costs and Economics

When I was in college, I hated Economics. Then, several years later, I found myself teaching undergrad Econ and learned an appreciation for it. Now today, I have an even bigger appreciation for it. I have also noticed that not enough people have a solid grasp of some basic econ concepts that can be applied to everyday life. Two of these are cost related. Here are some basic definitions from The Economist website : Sunk Costs - When what is done cannot be undone. Sunk costs are costs that have been incurred and cannot be reversed, for example, spending on ADVERTISING or researching a product idea. They can be a barrier to entry. If potential entrants would have to incur similar costs, which would not be recoverable if the entry failed, they may be scared off. Marginal Costs - The difference made by one extra unit of something. Marginal revenue is the extra revenue earned by selling one more unit of something. The marginal cost (or whatever) can be very different from the AVERAGE c