How Dues Reimbursement Affects Perceptions of Membership Value

How Dues Reimbursement Affects Perceptions of Membership Value

By: Larry J. Seibert, Ph.D.

Whether your members' dues payments are reimbursed by their employers has a significant impact on members' price sensitivity and thus your renewal rate, particularly in times of economic ups and downs. Research shows that reimbursed members are more loyal, but many of them wouldn't be if their dues were no longer reimbursed.

It is well documented in consumer behavior literature that individuals are less price sensitive when their expenditures are reimbursed. It is human nature to be more willing to upgrade air fare, stay at nicer hotels, rent a larger car, and dine at finer restaurants when business travel expenses are reimbursed than when leisure travel expenses are not reimbursed....