New Products and Services Drive Revenue Growth
According to the American Society of Association Executives (ASAE), trade and membership organizations generate, respectively, between 59% and 65% of total revenue from sources beyond membership dues.
Non-dues revenue can be generated by both products and services that include, among other offerings: Educational Programs, Events and Conferences, Information Products, Evaluation and Certification Programs, Affinity Products, etc. As with any organization, developing new initiatives requires a disciplined process to identify new sources for revenue growth that will support the mission of the organization, help to grow and maintain members, and generate sufficient financial returns to support its goals.
The key elements of the New Product or Service Development Process include:
Identifying Key Initiatives that Fit with the Mission and Goals of the Organization – Good ideas can come from both inside or outside of the organization.
Assessing the Market Opportunity – identify and prioritize potential business opportunities. Understand the market size, how it is segmented, who the potential target audience is, and their need and willingness-to-pay for your solution.
Understanding the Market Needs and the Commercial Viability of the Initiative – Solve the member/customers’ problems, ideally on a recurring basis.
Defining the Product or Service Concept and Business Model – Define the details and how the organization will make money.
Building and Testing the Prototype – Get feedback on your concept from members and the marketplace.
Developing the Final Product or Service and Introducing it to the Marketplace – Finalize your offering and develop an integrated marketing program to launch it.
Providing Operational Service and Support for the Product or Service – Coordinate and align internal and external resources that will fulfill the offering.
Monitoring the Results and Making Adjustments – Act on member and audience feedback.
Developing and implementing a disciplined approach for New Product Development will ensure the effective and efficient vetting of new product and service ideas and turn them into effectively monetized, viable sources of sustainable revenue growth for the nonprofit organization.