abcs of affinities. roy lamphier vice president insurance & affinity services
TRANSCRIPT
Two Capacities for the Detroit Regional Chamber:
1. The head of the affinity programs and healthcare initiatives at the chamber
2. Runs the National Commerce Group, Inc (NCG) which is a wholly owned subsidiary of the Detroit Regional Chamber.
• FY 2012-13 Total Revenue for Insurance
and Affinity• $8.8 Billion
• The National Chamber Program has more than 800 affiliate chamber relationships built around its Office Depot program. It’s the largest chamber centric program of its kind.
• In Michigan, roughly 100 chambers have a relationship with Blue Cross Blue Shield of MI. The Detroit Regional Chamber has roughly 70,000 employee and individuals enrolled in that program. The chamber also assists other chambers across the state in marketing and adding value to their individual programs.
• The majority of our expenses are related to
rebates and commissions paid to affiliates. Other major expense areas are in developing and maintaining systems and infrastructure to market and manage programs, overhead costs for 15 staff members who do nothing but market and support affinity programs and general advertising and promotional expenses to help grow the programs.
Affinity programs can do three things for chambers:
1. Add value to membership or solve a problem for our constituents
2. Drive new customer interactions
3. Generate additional resources to support the organization’s core mission
The biggest challenges chambers face in achieving results with affinity programs are:
1. Lack of time and attention to dedicate to programs
2. Limited program/product expertise
3. Insufficient resource to effectively market the program
COSE• Steve Millard, President and Executive Director• 14,000 Small business members• Affinity products offered
• Health insurance• Shipping and freight• Payroll• Workers’ compensation • Energy• Office products
• Goal of programs: To provide small businesses with resources and opportunities they are unable to access individually
• Cost to access programs: COSE membership
COSE• Affinities vs. Partnership Programs: COSE’s
journey• Past: Discounts on products for small business• Evaluation of purpose of programs
• Products are commoditized and no longer drive membership – but, they can complement it
• Products need to go beyond cost savings to add greater value to small businesses and differentiate COSE in the marketplace
• Present: Shift from discount products to comprehensive solutions for small business• Identify partners (not just vendors) who create solutions
and share COSE’s values and commitment to service for members
• Case study: COSE Energy Program
Leveraging advocacy for de-regulation & small business cost reduction, 1999
FirstEnergy settlements & establish-ment of COSE block of power
COSE partners with FES, 2000-2012 for commercial/resi. electric savings program
Transition from captive agent to broker relationship for greater competitiveness, 2012
COSE Energy Choice Expands Through Chambers (14), 2012+
Small Business Savings Programs
Providing savings to more than 12,000 commercial/residential accounts
Development of comprehensive set of tools and resources, including audits, grant dollars, consultation, access to vendor networks, and financing
COSEConsiderations in the development of an Affinity
Program• What is the goal of the program and how does it fit within
your overall mission, vision, and strategy?– Should it drive revenue? Membership?– How much staff and resources do you/are you able to commit to
the administration and development of the program?
• Is there an opportunity to evolve the product from a discount to a comprehensive solution that eases a small business pain point?
• What does an ideal partner/vendor look like?– How are they supporting the work of the Chamber? – Are they sharing your values, goals and standards with respect to
the way they work with members?
• How will you measure success?
Who am I? Kenn Penn, President/CEO
Associated with company since 1997
Who are we? Located in Norfolk, VA Serving members since 1992 Owned and managed by chambers of
commerce
What we do. Create, manage, and administer benefit
programs Product selection Vendors vetting & contracting Marketing development & distribution Delivery mechanism
members-SAVE® platform
Available Programs Office Supplies Payroll & HR Merchant Services Telecommunications Fleet card
Prescription Discounts
Hearing Program Health Savings
Account Health Insurance* Workers’
Compensation**Available in Virginia only
Goal1. Enhance member value2. Reduce chamber staff workload3. Non-dues revenue
Cost of Program Nothing for chambers Membership dues for each chamber member
Why Consider Outsourcing? Expertise
Benefit programs are not core to chamber operations
Leverage shared assets Chamber need not dedicate staff
Strength in numbers Buying power
Considerations in the development of an Affinity Program? Member competition
Is this affinity program competing with “my” members? Support the greater good
Will the chamber allow program success? Provide necessary access and communication with members Actively support the program(s)
Does the chamber communicate with the “right person” “Go deeper” than the local sales representative