Communication Strategies Drive Growth

May 20, 2013

communication strategies drive growth

Communication Strategies Drive Growth

 As Associations evaluate new paths to member engagement, conference attendance and revenue growth, Communication Strategies must be on the table. Many agree that driving association messaging is especially challenging. After all, the complexities of today’s news cycle clogs Social and Traditional Media lanes like a Long Island Expressway rush hour. While no one admits to beating the rush hour, some Practitioners have a path to incorporate Communication strategies into an overall Association member engagement and growth strategy.

At a time when Association dollars require ROI, having the right Comms Strategies can improve competitive position, strengthen market positioning and drive revenue growth.

Navigating the complex nature of the media landscape is both art and science for Associations. For Bill Haynes, Founder and President of Boston based BackBay Communications,  a focused and well thought out communication strategies approach is a game changer for Associations.

As a two decade plus veteran of numerous media campaigns, Haynes decided to put a flag in the marketplace, starting his firm in June of 2005, a strategic branding, marketing and public relations firm focused on the financial services sector. Haynes saw a future defining companies and Associations as practical solutions to achieve business growth. A track record defined by client satisfaction and business growth expanded BackBay from Boston to New York and London.

3 Step Content Foundation

Associations can move the needle forward, engage their members, grow conference attendance and increase membership using BackBay’s content driven formula.

Is there a starting point? “Yes,” says Haynes, “Associations have a great opportunity to develop original content that leverages and broadcasts the association’s expertise in the marketplace, offering actionable insights to members, prospects and partners.”

3 Communication Strategies Drive Member Engagement and Growth

  1. Identify unique differentiators. An association’s brand identity, marketing collateral and website should reflect the uniqueness for the association’s brand and underscore the expertise and resources it provides its members.
  2. Develop proprietary branded data. Membership surveys focused on marketplace trends and issues and offering predictions for the near future are very attractive to the media and to the membership base. These survey can be co-branded with media partners or universities, or even member organizations as part of a sponsorship package. Insightful data can be utilized in multiple ways, such as media interviews, bylined articles, white papers, webinars, conferences, newsletters and videos. All of these activities reinforce brand value with current and potential members, board members and sponsors. They also help elected officials recognize the industry’s value in the marketplace.
  3. Build strategic alliances. Associations can magnify their insights and clout through strategic communications alliances with other organizations with strong brands, such as universities, companies, stock exchanges, media outlets and data providers. These alliances add credibility and can significantly boost distribution of your news, insights, brand name and value proposition.

These 3 steps “should be reinforced year-around with timely topical content,” says Haynes, with media pitches to key publications and submission of Association authored articles on relevant topics.

Put to the Test

Hired by a finance Association to boost annual conference attendance in the height of the Great Recession, BackBay Communications was tasked with elevating awareness, attracting attendance and sponsorship. Haynes and his team developed and executed an integrated marketing campaign including print and online advertising, direct mail, email, event marketing, affiliate marketing, website content, video and media relations.

The Conference regardless of the tough economic times, achieved the second highest attendance ever. In reflection, Haynes sees inclusion of his Firm’s 3 Communication Strategies are integral to success.

Communication Strategies Drive Growth

Developing unique differentiators, creating proprietary branded data to share with the media, and building strategic alliances are three strategies that move the member engagement and growth needle for associations. 

While Haynes doesn’t see his firm’s strategies as the solution to traffic congestion on New York’s legendary Long Island Expressway, he does agree that the right Communication Strategies drive membership, sponsorship and conference growth.

For a free copy of the “Accelerating Strategic Member Engagement” eBook, request your copy at www.potomaccore.com.

communication strategies drive growth

Changing Your Association Management Changes Your Culture

May 17, 2013

This is the ninth in a series on Association culture, its role, how it is shaped, and how it can be changed.

Changing Your Association Management Changes Your Culture

 As you likely know, the concept of “management as a system” is not commonly talked about even among experienced Association leaders and academics. However, if you understand that a process is a collection of activities that target a specific output, and that a system is a collection of processes that target a larger aggregated output, then buying the concept of a management system isn’t much of a leap.

Why does this matter?

association managementWhen we understand that management itself is in fact a collection of specific processes, it allows us to apply process thinking and tools to the work of management. So, like any other process, the management process can be understood, assessed, measured, and improved.

It took a long time for me to understand the connection between an Association’s  management system and its culture. In fact, I learn something new about that relationship almost every day as I interact with customers and discover things I had not seen.

What is clear is that as an Association moves from an informal management system to an intentional and effective one, such as the Now Management System®, the leaders start to actually gain control over their results. This happens because process improvement is all about transparency (seeing where things are breaking down), accountability (measuring results and making it clear who has the responsibility to fix problems), problem solving (ensuring that process owners know how to fix processes), and the elimination of fear (which creates the safety to risk taking action on the problems).

NOW Management System

While the Now Management System systematically creates clarity, it shifts culture by establishing clear norms of accountability, new routines for transparency, and standard disciplines for solving problems. Our system achieves its maximum return on investment by shifting culture at the heart of these dimensions.

Changing Your Association Management Changes Your Culture

Association Management

John M. Bernard, Founder & Chairman, Mass Ingenuity

Culture is all about patterns, roles, routines, language, and expected behaviors. A good management system addresses every one of those dimensions of organizational functioning. As an example, one of our clients recently held their Quarterly Target Review and reported improvement in 46% of their processes measures quarter over quarter.  This organization has dramatically shifted its culture to one of transparency, accountability, problem solving, and shared success.

All in all, I have never seen anything change culture as effectively and as positively as changing an Association’s management system.

Next week, the final post on this 10-part series on Association culture.

Association Speed to Market

May 15, 2013

Association Speed to Market

 As Associations compete for the seemingly smaller pool of corporate dollars, CEOs, senior managers, and boards want every possible competitive advantage.  With Conference and Training vendors fighting for their piece of the pie, they know how to leverage a powerful CRM (Customer Relations Management) and custom databases to get at the market place quickly. In order to remain competitive, Associations too need the same speed to market. There are plenty of technology tools and alternatives, however CEO’s and Senior Managers should begin the process with an information scan.

Start at the Beginning

Regardless of Association size, the effort  should start with a full inventory of member, sponsor and prospect data. Determine what exists and develop a smart list of what else is required. Most importantly, make sure that the Association is capturing “up at night issues“ and company participation. This is the information that helps formulate Data Driven Strategies for organizations.

Know Thy Marketplace

Maintaining a full profile on key aspects of members, prospects and sponsors is essential.  Sir Francis Bacon noted that “Knowledge is power ” and for Associations, updated market information is omnipotent.

Every database should at a minimum contain the following information about members and sponsors, and have a treasure trove of data on prospective members:

Members and Sponsors

  • Issue and regulatory concerns that impact member or sponsor company’s ability to achieve their business objectives.
  • Participation in up at night issue activities, i.e. committees, calls to action.
  • Updated contact information for executives who approve member dues or sponsorship’s.
  • Complete descriptions of member and sponsor products and services and industries they serve.
  • Record of significant staff interaction with member and company executives.
  • Staff relationship owner.

Prospects

  • Issue and regulatory concerns that impact prospective member or sponsor company’s ability to achieve their business objectives.
  • Complete descriptions of products and services and industries they serve.
  • Board Members in similar industries or who have similar issue or regulatory concerns.
  • Participation in up at night issue activities, i.e. committees, calls to action.
  • Updated contact information for executives who approve member dues or sponsorship’s.
  • Inventory of Associations prospective members or sponsors participate in.
  • Record of significant staff interaction with member and company executives.
  • Staff relationship owner.

Ready to Add Speed to Market 

With complete member, prospect and sponsor profiles, Associations are then ready to add capacity.   The updated database is complete but not capable of driving speed to market. As the marketplace moves in real time, Associations require the capacity that only an effective CRM capable resource provides.

CRM capability should provide Association’s the ability to deliver:

  • Analytics reflecting member engagement and participation.
  • Net performance trends.
  • Member and prospective member or sponsor business outcomes.
  • Capacity to segment data and deliver focused messaging.

If an Association database and CRM are missing any of these elements they should identify new technology solutions that will complement their existing infrastructure.

Association Speed to Market

For Associations making the plunge adding speed to market at your association makes a difference. Leveraging updated data and CRM capacity, one Association doubled grass roots program participation and another Association achieved record conference profits.

Vendors are competing more aggressively than ever for their share of conference, sponsor, training, education and certification dollars. Although budget investments face increasing scrutiny, adding CRM capacity will enhance an Associations speed to market.

For a free copy of the “Accelerating Strategic Member Engagement” eBook, request your copy at www.potomaccore.com.

association speed to market

 

Great Strategy Deserves Strong Execution

May 13, 2013

great strategy

Great Strategy Deserves Strong Execution. After a rough patch, board members are confident that their new strategic plan brings the Association closer to their business objectives.  Board leaders are energized too, and they’ve debriefed their CEO and have requested a three year action plan with measurable results.

Genius Inventor Thomas Edison knew that transformation required more than good ideas when he said “Vision without execution is hallucination.” In a 24-7 world, execution is no longer a tactic, it must be a strategy for any Association or business venture. After all, Boards measure results and these are achieved on the basis of solid execution.

Execution is a Strategy and Not a Tactic

“Execution has to be in the culture” notes Larry Bossidy, former Chairman and CEO, Honeywell International, and Corporate Strategist Ram Charan, publishers of  EXECUTION, The Discipline of Getting Things Done, 2002 and 2009. The authors convey powerful examples of CEO’s who succeeded and failed based on their capacity to execute strategies.

Board members live in corporate cultures where metrics and data driven strategies define success or failure for their companies and their shareholders. They bring this proclivity into Association Board rooms and expect Chief Executives and their leadership team to provide them with action plans including metrics, dates and measurable results.

When the Board enthusiastically presents the newly minted strategic plan, they expect a power packed action plan matching and exceeding their expectations. Now what?

Execution Delivers Measurable Results

Measurable results are not about instilling fear, but about building a culture of expectation for Association staff. As leaders, CEO’s have the capacity to recalibrate and define expectations throughout the year. They can shift gears and utilize the new strategic plan to swing into immediate action.

CEO & Senior Management Teams own their execution, however it’s the Chief Executive who sets the tone and manages to the new expectation.

4 Steps to Strong Execution

1. Define Execution – Meet off-site with Senior Managers to formulate execution strategies. Be clear, the success measurement of the session is action plans, dates and measurable results. CEO’s should accept nothing less, and lead an energizing and optimistic session making execution the only outcome that matters. Capture specifics and schedule a second meeting.

2. Put Pieces in Place to Execute Effectively – At this meeting the CEO and Senior Managers need to align position descriptions, performance objectives and compensation. Each amplifies the execution mandate and the compensation plan should motivate the staff team to always exceed expectations.

3. Staff Assessment – Steps 1 and 2 are crucial, yet execution is only possible when Associations have the skills that match the execution expectation in place.   As leaders, an honest and objective review will insure that they are putting the best team possible on the field to compete and win.

4. Communication – W. Edwards Demming guides leaders to “inspect what you expect.” If execution and measurable results are expected,  then CEOs, Senior Managers and Supervisors must meet with direct reports on a regular basis, offer balanced feedback and focus on execution of objectives.  

Great Strategy Deserves Strong Execution

Following a record revenue losing year from weak execution, an Association Senior Manager embraced a similar 4 step approach and never looked back. Multi year growth performance followed while everyone reveled in a new culture of execution.

In the 2004 movie depiction of the 1980 U.S. Hockey Team’s breathtaking win over the mighty Soviet Hockey team, Coach Herb Brooks said that “Great moments are born from great opportunity.”  CEOs’ opportunity rests inside a culture of execution. If Board members expect their Associations to heed their clarion call, then Associations need a culture of execution to deliver measurable results.

For a free copy of the “Accelerating Strategic Member Engagement” eBook, request your copy at www.potomaccore.com.

great strategy

What Accelerates Association Cultural Change?

May 10, 2013

This is the seventh in a series on Association culture, its role, how it is shaped, and how it can be changed.

What Accelerates Association Cultural Change?

No single leadership factor is a more essential prerequisite to successful change than trust. Every new change raises the underlying question that Association leaders must answer which is “Why?” People who will be impacted by a given change, need and deserve to understand the answer to that question. If trust is not present, much time and energy will be lost trying to figure out the real reason for the cultural shift.

If a change at an Association is well reasoned, it shouldn’t be that hard to explain the why behind it. But the test that determines how quickly the change gets underway is whether or not people believe the answer is the whole truth and nothing but the truth.

The Association Staff Trust Challenge

Employees may have good reasons not to trust their leaders. The trust challenge you face may have little or nothing to do with you. It may be based upon past experiences either inside or outside your organization.

We humans are often skeptical, and life sometimes has a way of giving us good reason to be so. So, as a leader you have to talk straight. Then, we have to demonstrate the truth through our actions.

The Why Opportunity

Cultural ChangeEven if the reason for change is delicate, leaders who want their culture to change cannot ignore the reason for change. People will trust leaders who explain why the organization needs to get its costs down in order to stay competitive, or the fact that the budget is not growing as fast as the demand for services requiring cost control.

What Accelerates Association Cultural Change?

Our people need and deserve the truth, and in my experience they’ll support the change if they understand it is the right and/or necessary thing to do.

With the truth on the table, people will likely find the change is for the better. And if it’s better, acceptance will help it move faster.

Next week I’ll explore the question, “What does it take to create a culture that actively supports Association change?”

Associations’ Non Dues Revenue Puzzle

May 8, 2013

Associations’ Non Dues Revenue Puzzle

 Associations must keep pace in salary, benefits and member service offerings in order to remain competitive. While there is general agreement that  membership renewals and new member growth are essential for Associations, there is a growing need for alternate revenue streams, too.  Non dues revenues are increasingly more important for CEOs, Senior Managers and Boards of Directors’, they see the need to grow and understand there is no easy answer.

Definitions of non dues revenue are different from one Association to another. In some cases Training, Education, Digital Published Information and Conferences all contribute to revenue streams. However the definition and the focus of the revenue stream must be data based and member focused.

Yes, Associations can increase revenues but first they need to define and understand the existing member market first.  In “Profit From the Core, Growth Strategy in an Era of Turbulence” Chris Zook and Jim Allen, copyright 2010 Bain and Company(updated edition),  the authors present a compelling review process whereby a business develops boundary definitions, and determines marketplace differentiation to define new revenue growth opportunities.

Non Dues Revenue Checklist

Data Driven Strategies, Core Connections and Member engagement are as effective in identifying and growing non dues revenues as they are in retaining and recruiting new members. Boards utilize similar processes inside their companies and will appreciate the same thoughtful and deliberate approach at their Association:

1. Data Driven Strategies – Identify member business objectives, determine products, services, education, training, standards and certification that enhance member market performance. Conduct competitive market analysis understand what other Associations offer, conduct beta tests and develop robust offering which complement a strong policy, advocacy and regulatory offerings.

2. Core Connections – The strategic partnership is enhanced with a suite of value added resources. Associations can reinforce their credentials as a destination location with the most appropriate services.

3. Member Engagement – As is the case with policy and advocacy engagement members want to know they have an impact on outcomes. Provide opportunities to test new products and services and engage them in developing and designing your new offerings.

Associations should continually evaluate the efficacy of their offerings.  This process will help keep non dues revenue initiatives focused on member business objectives.

Associations Can Profit from the Core

Yes it really works! Associations are devising and developing leadership roles that complement their policy and advocacy work:

The Air Conditioning Contractors of America (ACCA) leads the HVAC industry with research and technical materials as well as online training.

Technology Association of Georgia (TAG) continually creates Societies to help their members address arising business needs.

National Institute of Investor Relations (NIRI) is building a certification program for its global membership.

A number of  Associations note that networking is a key element of the non dues revenue value proposition. In a number of cases, Associations utilize registration software allowing members to make networking appointments ahead of time.

Associations’ Non Dues Revenue Puzzle

When it comes to non dues revenue the Jerry McGuire “Show Me the Money” approach is a non starter. Why? Market competition, the rise of single issue coalitions and new Associations. Members expect connections to their business objectives, especially on products and services. Or they will vote with their check book and seek other solutions.

Market turbulence is now a part of the business landscape for Associations which means, any new products require the same type of due diligence before they go to market. Although there are no quick fixes, there is at least a method to make and build a case for products or services that add to member success.

non dues revenueFree eBook “Accelerating Strategic Member Engagement” is available for all Association Executives at www.potomaccore.com,www.icimo.com,and www.verticalleapconsulting.com.

 

Why Mentors Matter to Association CEO’s

May 6, 2013

Why Mentors Matter to Association CEO’s

For years, hard working executives build a path to the corner office. Then the day arrives, they’ve achieved their professional ambition and become an Association CEO.  Where do they turn for unfettered strategic guidance? What about Chief Executives struggling to achieve revenue growth, or the CEO wanting to take the Association to the next level of performance?  Clearly an effective board and skilled senior management team make a difference, but one question remains.  Do CEO’s, regardless of circumstances, have a safe space they can go to obtain good feedback?

In today’s uncertain environment being at the top of the staff pyramid is challenging on good days and daunting on bad days.  Wary Association Executives also know they need to tread lightly as there might be a political agenda hiding behind issues. Having a mentor, an objective impartial perspective, can make a big difference in how things work out for CEO’s.

Mentors Provide Safe Space

Whether be symptoms or even perceived red flags, CEOs need perspective in order to make sure the Association satisfies its members, grows revenues and achieves its mission. One Association staff leader likened his environment to a busy day to a walk through the world’s busiest airport, “chaotic with everyone going in their own direction.” Another leader defined their experience as  “herding cats in a thunder storm.”

Interestingly enough the August 2012 issue of Workforce Magazine, a University of Phoenix Alumni Association publication, cited a Fortune 500 Survey that “75% of Fortune 500 CEOs cited mentoring as one of the top three factors in their own career success.” Knowing this, Association CEOs could also be well served with effective mentors.

How does a CEO determine what Type of Mentor they Need?

Regardless of time in the position or tenure at an Association, identifying one or more mentors  is something every CEO can and should do.  First, however, an executive needs to develop a self profile based on the following:

 1. What is the current situation?  New CEO, first time CEO, promoted from within, etc.

 2. Are the issues facing the Association strategy or management and execution related?

 3.  What is the feedback from Board Leadership, colleagues and staff?

 4. An inventory of skills, strengths and weaknesses.

Develop four buckets, determine the drivers within each of the four categories and formulate a theme of issues that need to be addressed. Now a CEO is ready to determine the type of mentor that can be most helpful.

Next and Necessary Steps

A mentor can be a CEO colleague, a retired Executive, or a working professional not connected with the Association space. What matters most is a current Association Executive having the capacity to take a step back and assess what can be done to grow, improve and become a high performing leader.

Recruiting a mentor is straightforward, but it’s critical to have a one page summary outlining the 4 bucket strategy with clearly focused objectives.  The person you approach wants to know you’ve thought it through and you want their honest and objective guidance moving forward. There is no time limit, that is something a CEO and the prospective mentors determine in their work together.

A former colleague asked if more than one mentor could be helpful. Yes, as long as the objectives and desired outcomes are understood by both parties, more than one mentor can also be an effective strategy.

Why Mentors Matter to Association CEO’s

In a July 7, 2006 CEO Update article reflecting the complexity of issues facing today’s Executives  ” CEO Departures: What Went Wrong?” CEO tenure mirrors corporate America with an average span of only five years. While there are other factors that weigh heavily on CEO transitions, having a mentor can help a busy Chief Executive avoid the inevitable pitfalls.

 Mentors can, do, and will matter for Association CEOs. Having skilled, qualified and impartial observers provides the right level perspective and objectivity that makes a difference.

mentorsFree eBook “Accelerating Strategic Member Engagement” is available for all Association Executives at www.potomaccore.com,www.icimo.com,and www.verticalleapconsulting.com.

 

What’s Culture’s Affect on Association Change?

May 3, 2013

This is the sixth in a series on organizational culture, its role, how it is shaped, and how it can be changed.

 What’s Culture’s Affect on Association Change?

As a leader setting out to sponsor change, it is important to understand what that change will bump into in the Association’s culture. The more conscious the potential collisions are made, the more they can be avoided.

Professor Edgar Schein, a former MIT professor, identified 10 factors that transmit and embed culture. They are:

Formal statements of organizational philosophy (mission, values, imperatives, goals, etc.).

Design for physical spaces.

Deliberate role modeling, teaching, and coaching by leaders.

Explicit reward and status system, and promotion criteria.

Stories, legends, myths and parables about key people and events.

What leaders pay attention to, measure, and control.

Leader reactions to critical incidents or organizational crisis.

Organization design and structure.

Organizational systems and procedures (such as its management system).

Criteria used for recruitment, selection, and promotion.

Association Leaders

As a leader, this checklist is useful in assessing the gap between where the Association is, how it got there, and where it wants to go. By walking through these potential collisions, an Association leader can significantly improve the odds of success.What’s important in these assessments and subsequent communications about them is to not cast judgment on the past. The past just is what it is – we can never understand the motives of people nor fully appreciate the circumstance in which things happened. If we offer criticism we set a judgmental tone – even condemnation. That approach does nothing to increase the sense that the coming change will be safe to embrace and that related struggles will not be subject to the same criticism.

What’s culture’s affect on Association change?

Association ChangeAs we work with customers on the Now Management System® we directly and overtly address items 1, 3, 6, and 9. But we encourage, advise and support addressing every single item in order to ensure their culture change sticks and that it delivers the business results that led to the desired change in the first place.

What are the attributes that allow an Association to make changes quickly? I’ll share some thoughts on that next week.

 

 

Association Member Engagement Mountain

May 1, 2013

Association Member Engagement Mountain

 For Associations, one of the most important and critical challenges facing them is Member Engagement. CEO’s and Senior Managers agree, the more the company is engaged the better the chance of member renewal. However, weak member participation, sinking retention, falling conference attendance and sponsor revenues are symptoms of a bigger and potentially dangerous challenge.  The Association’s Member Engagement Strategy may require a deep dive by CEOs and the Management team.

It’s important that in this day and age that Associations not “leave well enough alone.” The Stay or Go Imperative could impact an Association’s financial health and well being. If membership is a distraction instead of ROI, Corporations vote with their feet and instead invest in a different solution.

Yes,  Corporations have smaller corporate staff, in some instances one executive may wear multiple hats. However, if this executive makes the dues decision, then a strategy or a change is  necessary.

Read the Tea Leaves

Companies look for the connection to business objectives as part of their membership evaluation process. If these connections don’t exist, it’s difficult for any Association to execute an effective strategy to engage members. Metrics are like tea leaves they both paint a picture and they tell a story.

If Associations observe that conference attendance is equal or less to prior years, educational meetings and fly-in attendance is significantly lower, and member retention is down for three consecutive years,  it is time for an intervention. The marketplace could also signal one or more of the following: 

  • Negative view of the culture and overall effectiveness of an Association.
  • The Association is perceived as not being as impactful in educational, policy or advocacy programs.
  • Other solutions including coalitions, conference providers or other Association programs deliver greater value.

Never Hit The Panic Button

Associations should embrace the challenge and convert the situation into a strategic opportunity. When diagnosing, member participation and revenue fall-off rebuild the path to engagement: one company at a time, obtain clarity on business and policy objectives, and understand what members really must achieve from participation achieve.

CEO’s can keep in mind that success and failure are never final, the road forward offers hope, and a more definitive path to member engagement.

Develop Data Driven Strategies

Associations need to build a data set to help them understand why participation and revenues have fallen.  However, it’s key to put heavier weight on relationships; in a complex world the human connection matters. One member at a time, collect the following information:

  • Is the Association perceived as staff or member driven?
  • Does participation help executives achieve company business objectives?
  • Why do executives participate in other Associations or Coalitions?
  • How important is networking?
  • Would Social Media engagement on platforms such as LinkedIn reflect an attractive alternative?
  • Are educational and or certification programs relevant to career advancement?

While Associations may develop additional or different questions, these open the door to constructive dialogue with disengaged members. Tally the responses, create internal task forces of senior managers and key staff, develop solutions and new strategies, assign performance metrics and then execute.

Association Member Engagement Mountain

For Association CEO’s who have or who are looking into the abyss, there is light at the end of the tunnel. An Association Executive confronting the worst dues loss in decades once reported record gains in member participation, advocacy effectiveness and revenue growth. Stepping back, building an Association wide member focus with data driven strategies proved to be a year long process worthy of the effort. Yes, the participation, retention and growth outcomes were record highs but the data really reflected stronger member connectivity.

Climbing the Member Engagement Mountain is vital and necessary for every Association. It can also be the determining strategy helping Associations achieve revenue growth.

member engagementFree eBook “Accelerating Strategic Member Engagement” is available for all Association Executives at www.potomaccore.com,www.icimo.com,and www.verticalleapconsulting.com.

 

Should Associations Revisit Sponsorship? Maybe.

April 29, 2013

Should Associations Revisit Sponsorship? Maybe

 Although U.S. reports 3% GDP growth in the first quarter, financial news out of Europe is not encouraging. Companies especially maintain a watchful and wary eye on expenditures. Some Associations report single digit revenue growth, others show no year over year increase. Yes, Associations are facing stiff headwinds as they aggressively secure existing revenue, and, work diligently to grow new revenue. Before the great Recession Sponsor Revenue was more reliable, but not anymore. It makes sense for CEO’s to revisit the strategy and definition of Sponsor programs.

Sponsors similar to members and prospects face smaller corporate budgets and immense pressure to deliver ROI.   However, there is one key factor Associations need to be mindful of; In hard times membership and sponsorship both are on the chopping block. There is a way to reposition and strengthen Associations to drive renewals and new members. The good news? There is an innovative way to reposition and grow Association Sponsor revenues too!

Strategic Review of Sponsor Programs

One Association Executive recently bemoaned, “Sponsor revenues aren’t nearly what they once were and we’re losing money.” Clearly a time to reassess the strategy and be prospective.

The three step Assessment model works as effectively for Sponsors as it does for renewals and new member recruitment:

Data Driven Strategies. What were sponsor revenues from 2006 through 2008?  What were sponsor revenues 2009 through 2011? Which companies participated pre recession and which no longer participate? What changed in the Company Sponsor evaluation process pre and post recession? What are the Sponsor’s business objectives post recession versus pre recession? Does your Association work with a C Level Executive or are you working with the Marketing Department?  What program or attendance dynamics at your Association events changed pre and post recession? What are your Association’s competitors doing differently now versus pre- recession?  Does your Association utilize post event Sponsor Surveys?  If so,  what are the takeaways? In meeting with CEO or C Level executives, what message do they convey?

Core Connections. All of the Data will inform Associations and uncover opportunities including the need to build allies in the C Suite of Sponsors as much as you do members and prospects.  In addition, Associations could realize that Sponsors are most interested in being partners and supporting an industry key to their business success.  This is the NEW Core Connection and requires a new strategy; instead of the Sponsor Program, Associations reposition to a Corporate Partner Program. This is a transition allowing these companies to fully partner with your Association.

Corporate Partner Engagement. As Corporate Partners, C Level executives will be able to interact on equal footing. Associations may consider creating a Corporate Partner Advisory Council and provide these investors a seat at the table.  If they perceive an ability to impact the direction of the Association and they perceive a welcoming community, the strategic transition is complete. Sponsors are a thing of the past, Corporate Partners achieve the same status as members, they are part of the fabric of the larger Community.

Should Associations Revisit Sponsorship?  Maybe.

It was an “ah ha” moment for one Association. Suffering considerable sponsor revenue losses, the staff engaged Sponsors directly. What was learned? The Sponsor wanted a strong industry but indicated that one of the first cuts is in the Sponsor area. Consequently it was the Sponsor who   helped the Association see a new path. This particular Association drives over $1 million annually in Corporate Partner Revenues.

In a booming economy Sponsor revenue was more reliable, but that is no longer the reality.  Uncertain times require a new look at how Association’s drive revenues. Although some argue that hard work is the best growth strategy, working smarter could hold the key to a brighter future.  In this instance, a strategic shift to a Corporate Partner program is the smarter strategy to grow and maintain an important Association revenue stream.

revisit sponsorshipFree eBook “Accelerating Strategic Member Engagement” is available for all Association Executives at www.potomaccore.com,www.icimo.com,and www.verticalleapconsulting.com.