Vice President Insurance amp Affinity Services Two Capacities for the Detroit Regional Chamber The head of the affinity programs and healthcare initiatives at the chamber Runs the National Commerce Group ID: 670418
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Slide1
ABCs of AffinitiesSlide2
Roy
Lamphier
Vice President Insurance & Affinity
ServicesSlide3
Two Capacities for the Detroit Regional Chamber:
The head of the
affinity programs and healthcare initiatives at the
chamber
Runs the National Commerce Group,
Inc
(NCG) which is a wholly owned subsidiary of the Detroit Regional Chamber.Slide4
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.Slide5
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.Slide6
Affinity programs can do three things for chambers
:
Add value to membership or solve a problem for our
constituents
Drive
new customer
interactions
Generate
additional resources to support the organization’s core missionSlide7
The biggest challenges chambers face in achieving results with affinity programs are:
Lack of time and attention to dedicate to
programs
Limited
program/product expertise
Insufficient resource to effectively market the programSlide8
Steve Millard, CCE
President & Executive DirectorSlide9
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 membershipSlide10
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 ProgramSlide11
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 financingSlide12
COSE
Considerations 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?Slide13
Kenn Penn
President and CEOSlide14
Who am I?
Kenn Penn, President/CEOAssociated with company since 1997
Who are we?
Located in Norfolk, VA
Serving members since 1992
Owned and managed by chambers of commerceSlide15
What we do.
Create, manage, and administer benefit programsProduct selection
Vendors vetting & contractingMarketing development & distribution
Delivery mechanism
members-SAVE
® platformSlide16
Reach
60+ local chambers of commerce23,000 members businesses
250,000 employees (estimate)Slide17
Available Programs
Office Supplies
Payroll & HR
Merchant Services
Telecommunications
Fleet card
Prescription DiscountsHearing ProgramHealth Savings Account
Health Insurance*
Workers’ Compensation*
*Available in Virginia onlySlide18
Goal
Enhance member value
Reduce chamber staff workload
Non-dues revenue
Cost of Program
Nothing for chambers
Membership dues for each chamber memberSlide19
Why Consider Outsourcing?
ExpertiseBenefit programs are not core to chamber operations
Leverage shared assetsChamber need not dedicate staffStrength in numbers
Buying powerSlide20
Considerations
in the development of an Affinity
Program?Member competition
Is this affinity program competing with “my” members?
Support the greater
goodWill the chamber allow program success?
Provide necessary access and communication with membersActively support the program(s)Does the chamber communicate with the “right person”“Go deeper” than the local
sales representativeSlide21
ABCs of AffinitiesSlide22
Thank you for joining us!
Enjoy the rest of your stay at the 2013 ACCE Convention in Oklahoma City!