Affinity Program Success Story
By John Grifferty, Senior Project Manager
Many associations know all too well that affinity programs often fail to meet expectations. Lofty goals and soaring promises can easily turn into disappointment if certain elements are missing. However, when favorable market conditions and the appropriate program are combined with a sustained, cooperative marketing effort, affinity programs can still deliver tremendous value.
This combination of factors is now helping Affiliated Power Purchasers International, LLC (APPI) create significant member savings and non-dues revenue through their Energy Buyers Program. APPI helps members save money on electricity and natural gas bills by pooling the demand of trade association members and negotiating lower prices with suppliers. Now, after years of a stalled market, APPI's hard work in the association community is starting to pay off for everyone.
Electricity deregulation began in 1996 with the passage of the Energy Policy Act that guaranteed open access to the system that delivers electricity to commercial and residential customers. Although the initial phase of deregulation occurred more slowly than anticipated, the turbulent energy markets are now creating opportunities to save in several states.
“Activity has been robust since late summer 2001”, says APPI president Walter W. Moore. “A combination of recent market conditions, APPI’s dedication to working with trade associations, and the support of our association partners, has created a situation where this program has been able to take off, particularly in Texas where APPI is now saving association members 5-50 percent,” according to Moore.
In many cases, this can lead to substantial member savings. Consider APPI's outlook for the Texas Automobile Dealers Association (TADA). “To date, hundreds of our dealerships are projected to save millions of dollars in the next year through APPI’s electricity program,” said Bill Wolters, TADA’s Executive Vice President. “TADA spent much of 2001 searching for a company that could help our members navigate the maze of electricity deregulation. We chose APPI because they are an independent organization and can offer our members the benefit of leveraging large volumes of users together.”
Favorable market conditions and a robust marketing program have helped build participation in the program, but a key factor in APPI's success is the hands-on involvement of their association partners. “Without the support of TADA’s management, its members would not be aware of the unique savings opportunity. And now that market conditions in other states look promising, association involvement is more important than ever. We are starting to see similar savings in other competitive states such as Michigan and Ohio,” says Moore, "and our association partners are really helping us spread the word."
With continued focus on increased penetration within each association, the outlook for the program is bright. The APPI Energy Buyers Program proves that a cooperative approach to marketing is the key to success for any member program.