Thanks to widespread digitalization, largely accelerated by the pandemic, many associations have had the ability to reach and interact with audiences on other continents, essentially making the world a much smaller place. This increase in worldwide engagement led many to the exploration of international expansion. How do you know if your association is ready to meet prospective members or customers from around the globe? Consider these seven factors before you start developing your global strategy.
1. Market research: Conducting thorough market research is a critical first step to expanding your association’s presence internationally. Not only will this process help you identify potential markets to engage with, but it’ll also help you learn more about market trends, assess the demand for your benefits and products, understand the competition, and gain insight on local culture and economic factors.
The research process should also include an assessment of any potential operational challenges that might occur within your association. Evaluate whether your organization has the resources to scale operations and support an expansion. Considerations can include availability of funds, staff, technology and infrastructure.
One tool associations can use to help determine expansion viability is the Global Maturity Assessment, a guide and questionnaire — developed by ASAE and MCI — that helps assess your organization’s readiness and capacity for global operations against validated effective practice.
2. Cultural understanding: Understanding and respecting the culture of the target country your association plans to enter is paramount to its success. Local customs, traditions, communication styles and business etiquette can have a significant impact on business strategies, and associations must consider how cultural differences may influence their operations, decision-making processes and relationships in the international market. Building genuine relationships, ensuring transparent communication and fostering an environment of collaboration are critical across the board, no matter which country you’re expanding to.
3. Compliance and legal requirements: Organizations must be aware of the compliance, regulatory and legal requirements of the target country, including tax laws, employment regulations, licensing requirements, permits, data privacy laws and intellectual property protections. Associations should also complete a risk assessment to flag any potential risks such as political instability, economic volatility, etc. Having contingency plans can help associations prepare for unexpected challenges, navigate uncertainties and protect their interests.
4. Economic capabilities and consumer behavior: Understanding the purchasing power and economic conditions of your association’s international target audience is vital for pricing strategies, product development and overall market positioning. Align your offerings with the economic capabilities and preferences of the customers and members you want to reach.
5. Country-specific strategies: While your association may be thinking about venturing into a certain region, your strategy should be determined country by country. Different countries within a region may have distinct cultural, economic and legal characteristics that require tailored approaches, so learn about the unique aspects of each country within a region and develop strategies that align with those specific contexts. Your marketing and branding should follow this as well. Adapt your messaging and visuals, as well as the channels you use, so they resonate with your prospective members. Ensure that images, verbiage and body language in your marketing materials are relevant and unoffensive to your target audience.
6. Local partnerships: Establishing partnerships and building local networks with key stakeholders will not only help your association navigate complex compliance laws and regulations, they will also provide expertise, support and act as an advocate on your association’s behalf. Cultivating a strong relationship with a local champion who can influence and share valuable insights, resources and connections will further your organization’s growth in that market and help establish credibility.
7. Board and leadership alignment: Developing a global expansion strategy for your association should not be delegated to one team member, and it is important that the board and executive leadership have buy-in. For international organizations, having a global presence on the board can help ensure a successful growth strategy. Also, make sure there’s an understanding of the strategy at all levels of the organization and that all staff members know their role in its execution.
Planning for global expansion can be a daunting task, but with thorough research, realistic goals, a deep understanding of the target country and a good deal of patience, it can be a tangible aspiration for your association.
Contact us today to learn more about how MCI can help your associations grow its international presence.
Frances Moffett is the editorial content director at MCI USA.
