Optimize your Member Benefit Portfolio
By John Grifferty, Senior Project Manager
"If you want the job done right, do it yourself." Isn’t that the old mantra? When it comes to associations setting priorities for success in the 21st century, there is an alternative solution: outsourcing.
According to Dictionary.com, the term, outsourcing means— "To send out (work, for example) to an outside provider or manufacturer in order to cut costs." They go on to define the enigmatic idiom as "Paying another company to provide services which a company might otherwise have employed its own staff to perform. "
Historically, member benefit programs have been managed by a dedicated staff person or department responsible for their daily administration. Frequently, these programs suffer declining participation and revenue, since most association staff have more pressing needs to attend to. In these cases, the association loses ground on recapturing the significant investments that have already been made in identifying, launching and managing the programs.
The American Speech-Language-Hearing Association (ASHA) has taken steps to avoid these pitfalls by outsourcing member benefits to experts with the time, inclination and experience to improve the performance of their programs.
"We have outsourced our member benefits to a company with unique experience in that arena, which we hope will allow us to improve member service and increase revenue," said Chuck Cochran, ASHA’s Chief Staff Officer in a speech he presented at the 2001 ASAE Annual Meeting. "We chose a partner that could take the process from beginning to end so that we could ensure a quality experience for members throughout the entire process. So far it has turned out to be a really good idea."
Other benefits cited include:
Reduced allocation of association staff resources: By outsourcing member benefits, association staff will be free to manage programs at an executive level. Liberation from the minutiae enables associations to focus on strategy instead of the tactical decisions for individual programs.
Increased awareness through dedicated marketing efforts: Associations often find their member benefit portfolio growing inert with time. Employing an outsourcing partner experienced in product marketing and affinity program management ensures the prompt development and implementation of marketing plans for each provider, effectively building member awareness and demand.
Increased revenue potential: The primary objective of your outsourced relationship is to increase the participation in these programs and, in turn, augment the resulting income. Appropriate products, targeted promotions, and consistent communications help each program gain participants and advocates, and help drive revenue to your association.
Tracking and reporting: By tracking and analyzing results, you'll identify successful efforts and be able to modify future activities accordingly. Such analysis can be a powerful tool to drive intelligent executive decisions regarding member benefit programs.
Improved member satisfaction: By concentrating on the crucial elements of each program—the vendor relationship, the product, marketing, customer service, and overall program performance—you’ll see member awareness and satisfaction climb, which can positively impact your retention efforts.
Innovation: By bringing experienced partners "into the tent" you’ll see new opportunities for promotion, have access to relevant industry knowledge, and be well positioned to evaluate new programs as they become available. By outsourcing member benefits—with the right partner and appropriate goals—associations can increase program success through a reduced allocation of staff resources and a renewed dedication to marketing.
"If you want the job done right, do it yourself"? In the association world, a shrewd approach may be, "if you want the job done right, pay a professional to do it for you"