It's no surprise that many associations have credentialing programs. Certifications and certificate programs increase the need for study guides, continuing education, practice exams, and other products and services. They also elevate the profession and position associations as the stewards for high standards.

Yet, regardless of which type of credential or credentialing body exists for a particular community, certification programs rarely receive the full recognition they deserve for the financial and nonfinancial benefits they generate.

An analysis of data from a dozen associations that ITPG, Inc., has served, in diverse professions, revealed that credential holders contribute a disproportionate share of association revenue when compared to noncertified members, and they do so even in areas not associated with the certification program.

• Eleven of 12 association leaders questioned credited their certification programs for at least 20 percent of new member growth.
• Certified members were more likely to renew membership. Data showed a range of 15 percent to 40 percent higher retention rates for certified members versus noncertified members.
• One chapter-based technology association faced stagnant member growth for 10 years. After launching a certification program, the organization doubled its membership in the next five years.
• Similarly, a business continuity association added an exam component to its educational offerings and saw its membership double in just five years.

Certification programs rarely receive the full recognition they deserve for the financial and nonfinancial benefits they generate.

Financial Attribution is Myopic

Financial attribution of certification revenue is largely limited to direct revenue from exams, practice tests, and recertification fees. At the same time, these programs are assigned the full scope of related costs, including market research (which yields other benefits), test development, delivery, proctors, subject matter experts, and staff. As a result, when a profits-and-losses statement is produced, certification programs often appear financially bleak, as their true return isn't being documented. Credit for member retention, event attendance, education sales, and other benefits enabled by the certification program "belongs somewhere else" from an accounting standpoint.

Intangible Benefits of Certification Are Hard to Ignore

Nonfinancial, intangible benefits can be even harder to pin down, but they are there if you look for them. Higher member engagement can be found by examining the number of certificants who serve as volunteers, on committees, and in leadership positions and who attend association events. While certificants made up just 8 percent of the membership of one medical organization, for instance, they represented nearly three times the percentage of its annual conference fees. Another membership organization surveyed its 1,500 event attendees and found that more than 80 percent were certified and specifically seeking continuing education.

Certification programs also create an opportunity to build alliances and brand leadership. It is common to find comarketing programs that generate shared revenue with associations in adjacent professions. Corporate and government relationships also expand when certification serves as a workforce solution.

So, What Does This Mean for Your Organization?

Well for starters, if your association doesn't have a certification program, perhaps it's time to consider one. If there is a program in place, either internally managed or via a sister association group, it's a good idea to dig into the data to determine the true monetized value of the program. Compare member retention rates, event attendance rates, and other revenue contribution between certified members and noncertified members. Look at ratios of certified people on the boards, active committees, and key volunteer groups, too. Take the time to document and understand the complete value of such programs, as this will often be an eye-opening discovery for association leaders.

Proper attribution of the financial return on a certification program is critical to understanding the real value and its potential for additional gain.