WELCOME!WELCOME!

How to Create, How to Create, Promote and Sustain Promote and Sustain a Non-Dues, Revenue a Non-Dues, Revenue

ProgramProgramPresented by:Presented by:Paul M. MeesePaul M. MeeseVice President, Client RelationsVice President, Client RelationsSingleSource ServicesSingleSource Services

What we will accomplish What we will accomplish during this session:during this session:

Define what an affinity program is for Define what an affinity program is for your membersyour members

What to ask a vendor when negotiatingWhat to ask a vendor when negotiating Your time: How to make this program a Your time: How to make this program a

success!success! How to decide which vendors to choose How to decide which vendors to choose

for your membershipfor your membership

What is an Affinity What is an Affinity Program?Program?

““Affinity” defined: a natural attraction or Affinity” defined: a natural attraction or feeling of kinship feeling of kinship

Affinity services – services offered by an Affinity services – services offered by an association for it’s membersassociation for it’s members

Affinity programs – can be revenue Affinity programs – can be revenue generating or not, a common service all generating or not, a common service all members can use or utilizemembers can use or utilize

What is an Affinity What is an Affinity Program? (cont)Program? (cont)

An opportunity for the Association to:An opportunity for the Association to: Offer members an exclusive benefitOffer members an exclusive benefit Offer members a discount on services that Offer members a discount on services that

they probably use or need anywaythey probably use or need anyway Offer members a way to be more profitableOffer members a way to be more profitable Offer members a reason to stay (Retention Offer members a reason to stay (Retention

is a good thing!)is a good thing!)

What An Affinity Program What An Affinity Program is not!is not!

A headache makerA headache maker An easy fixAn easy fix The entire retention strategyThe entire retention strategy

What Makes a Good What Makes a Good Affinity Program?Affinity Program?

Does it make sense for your members?Does it make sense for your members? The same or a similar program, should The same or a similar program, should

not be readily available elsewherenot be readily available elsewhere The supplier must be reputableThe supplier must be reputable Is there a revenue potential for the Is there a revenue potential for the

association?association?

Value Based Business Value Based Business OutcomesOutcomes

Define what you want for an outcomeDefine what you want for an outcome Define what value can be produced as a Define what value can be produced as a

result of this programresult of this program Define the functional requirementsDefine the functional requirements Define the technical requirementsDefine the technical requirements

Do we or Don’t we?Do we or Don’t we?(7 questions to use to survey those (7 questions to use to survey those members!)members!)

1.1. When it comes to reviewing and controlling When it comes to reviewing and controlling costs within my company or organization, I costs within my company or organization, I would classify myself as:would classify myself as:

A.A. A hawk; I watch every dimeA hawk; I watch every dimeB.B. A lion; If something better walks in front of me, I A lion; If something better walks in front of me, I

would look and maybe pounce on itwould look and maybe pounce on itC.C. A Tigger; I bounce from program to program A Tigger; I bounce from program to program

looking for the best deallooking for the best dealD.D. A hibernating Bear: It’s all on auto-pilot and it’s all A hibernating Bear: It’s all on auto-pilot and it’s all

good. No need to rock the boat.good. No need to rock the boat.

Survey (cont.)Survey (cont.)

2.2. If we as your association, could offer you discounted If we as your association, could offer you discounted programs in the following areas, which programs programs in the following areas, which programs would you consider:would you consider:

A.A. Payroll for a flat fee of $2.69/checkPayroll for a flat fee of $2.69/checkB.B. Background screening servicesBackground screening servicesC.C. Drug TestingDrug TestingD.D. HR Legal Helpline®HR Legal Helpline®E.E. Employee surveysEmployee surveysF.F. Exit interviewsExit interviewsG.G. Human Resources Management SystemHuman Resources Management SystemH.H. Review of trash removal costs for freeReview of trash removal costs for freeI.I. Discounts on shippingDiscounts on shippingJ.J. Something else (Please tell us.)Something else (Please tell us.)

Survey (cont.)Survey (cont.)

3.3. My top priority this coming year is to:My top priority this coming year is to:A.A. Control costs, at every opportunityControl costs, at every opportunity

B.B. Increase sales/incomeIncrease sales/income

C.C. Increase my customer baseIncrease my customer base

D.D. Maintain what I have and be happy for it. Maintain what I have and be happy for it. Flat is the new up.Flat is the new up.

Survey (cont.)Survey (cont.)

4.4. If the association offered a program that If the association offered a program that could save me money by getting tax credits could save me money by getting tax credits for the employees I hire, could save me for the employees I hire, could save me overhead costs, or could reduce costs in overhead costs, or could reduce costs in other areas like shipping, car rentals, trash other areas like shipping, car rentals, trash removal, etc.:removal, etc.:

A.A. I would be all over it. Anything to help the bottom I would be all over it. Anything to help the bottom lineline

B.B. I would look at the amount of work versus the I would look at the amount of work versus the credit/savings and then decide it I wanted to do itcredit/savings and then decide it I wanted to do it

C.C. Programs are like shell games. They come and Programs are like shell games. They come and go but don’t really workgo but don’t really work

Survey (cont.)Survey (cont.)

5.5. Should we as an association even try to help Should we as an association even try to help you be more profitable, or are we simply here you be more profitable, or are we simply here for educating and networking and throwing a for educating and networking and throwing a great conference?great conference?

A.A. Yes, I think you have an obligation to help me Yes, I think you have an obligation to help me save money and be more profitablesave money and be more profitable

B.B. Educate me, help me to network and send me the Educate me, help me to network and send me the newsletter. That is all you are responsible for and newsletter. That is all you are responsible for and all I expect.all I expect.

C.C. Some combination. If you can do it all, I would Some combination. If you can do it all, I would think that is better for me.think that is better for me.

Survey (cont.)Survey (cont.)

6.6. Do you know what an Affinity Program Do you know what an Affinity Program is?:is?:

A.A. YesYes

B.B. NoNo

C.C. I mightI might

Survey (cont.)Survey (cont.)

7.7. An Affinity Program would help the An Affinity Program would help the association keep your costs down (keeping association keep your costs down (keeping dues stable), would offer services to save you dues stable), would offer services to save you money, and would bring you quality national money, and would bring you quality national providers that you might not have been providers that you might not have been aware of. This would beaware of. This would be

A.A. A good thingA good thingB.B. A very good thingA very good thingC.C. Something I might look at if I have the timeSomething I might look at if I have the timeD.D. I have no interest in an affinity program of any I have no interest in an affinity program of any

sort.sort.

Listen and Compile the Listen and Compile the Short ListShort List

Create a short list of vendors that will Create a short list of vendors that will meet the need for:meet the need for: Functional outcomesFunctional outcomes Technical requirementsTechnical requirements Assist you to build your credibility as an Assist you to build your credibility as an

associationassociation

The Vendor RelationshipThe Vendor Relationship

Option 1: The Marketing fee - $1000 - Option 1: The Marketing fee - $1000 - $10,000$10,000 This puts heavy responsibility on you to This puts heavy responsibility on you to

deliverdeliver You may only have a vendor for a year if the You may only have a vendor for a year if the

fit is not rightfit is not right You will need high communication and a You will need high communication and a

game plan moving forward, plus a marketing game plan moving forward, plus a marketing guru to support this approachguru to support this approach

The Vendor Relationship The Vendor Relationship (cont.)(cont.)

Option 2 – The vendor does all the work and Option 2 – The vendor does all the work and you do nothingyou do nothing Upside – if you have a smaller staff, minimal Upside – if you have a smaller staff, minimal

intrusion or commitment from themintrusion or commitment from them Downside 1 – you lose a bit of control on what gets Downside 1 – you lose a bit of control on what gets

sent to your members and how often they are sent to your members and how often they are getting solicitedgetting solicited

Downside 2 – you do not have immediate incomeDownside 2 – you do not have immediate income Benefit – easier sell to the boardBenefit – easier sell to the board Benefit – probably will sustain longer, if a true Benefit – probably will sustain longer, if a true

partnershippartnership

Now what?Now what?

Assuming that the survey has positive results Assuming that the survey has positive results and you have a 10-15% response rate, you and you have a 10-15% response rate, you have to get board buy inhave to get board buy in Ask for 2-5 company specific proposals so the board Ask for 2-5 company specific proposals so the board

can see that one size fits all, or doesn’t!can see that one size fits all, or doesn’t! Discuss the marketing plan AND get ideas from the Discuss the marketing plan AND get ideas from the

board as to what they would like to see, and what board as to what they would like to see, and what they would notthey would not

If you are going to limit calling members, realize that If you are going to limit calling members, realize that you will then have to have a higher level of you will then have to have a higher level of communication to the members so they can communication to the members so they can comprehend the programcomprehend the program

Survey turns to Success!Survey turns to Success!

Once you have the survey, if the results are Once you have the survey, if the results are positive, how do you assure success:positive, how do you assure success: Conference: Have the partner speak and have a Conference: Have the partner speak and have a

booth at your conferencebooth at your conference Have the board members get in contact with the Have the board members get in contact with the

partner so they understand what the benefit is and partner so they understand what the benefit is and can talk it upcan talk it up

Newsletters, webinars, mailers – anything else that Newsletters, webinars, mailers – anything else that can help you get that name in front of the members. can help you get that name in front of the members. Familiarity breeds support.Familiarity breeds support.

Survey turns to Success!Survey turns to Success!

Use your newsletter to promote the Use your newsletter to promote the partnershippartnership Have a rotation or articles if possibleHave a rotation or articles if possible Have a person’s name as a contactHave a person’s name as a contact Have a toll-free number if possibleHave a toll-free number if possible Have a co-branded web site if possibleHave a co-branded web site if possible Keep the contact info as easy as possibleKeep the contact info as easy as possible

In choosing programs a checklist is necessary to determine:

Commitment – Are you striving for added value or just filling up on products/services to look good in the eyes of members?

Knowledge – Benchmarking your programs – a must that includes time, the people, and the cost of the benefits. You may determine that perhaps the benefit outweighs the cost.

Research – As demographics of members change the need to get outside the box is evident.

Strategy – A must have to develop a balanced strategy identifying the key objectives and goals in offering a member value program

In choosing programs a checklist is necessary to determine:

Implementation Plan – Likely one of the most critical items in running an affinity program. The plan to achieve the objectives must be aligned with the strategy.

Revitalize –If the program is stale – revitalize it Eliminate – Saturated programs based on

competitive market conditions are no longer a perceived value to members

Evaluate - Evaluate….Evaluate Retention Tool – Use the affinity program as an

added value to members. Not a member? No longer a benefit.

Questions?Questions?

Paul M. MeesePaul M. Meese 800-713-3412800-713-3412