Tuesday, July 7, 2009

Four common mistakes in third party programs

A popular way to generate income while also providing your members with a benefit are third party programs – such as discounts on motor vehicles, phone bills, etc. However there is a large variation in the success that organisations have had with these programs. Following are the four most common mistakes and how to avoid them:

Selecting inappropriate products –Some organisations are promoting far too many programs, under the mistaken belief that quantity of offerings will guarantee their success. If that were the case then those with the biggest programs and the most discounts would “win”. This isn’t what happens – quality will always win of quantity. Organisations with successful programs are those that have made a considered selection of a few quality products/services that they know will be of interest to their members.

Selecting inappropriate partners – Some organisations go with the first organisation that comes along. Successful organisations recognise that they are an equal partner in the arrangement and seek a partner who has a similar culture and who they know they can work well with. Your organisation has a powerful value proposition for the right partner – never underestimate how important your organisation could be in assisting your partner to achieve their corporate goals.

Creating unbalanced arrangements – In order for a program to be successful it must deliver a clear Win-Win-Win situation where you, your partner and your members all benefit from the arrangement. A clear and sustained delivery of value to all parties is integral to a successful long-term arrangement.

The organisation and the supplier don’t work together to achieve success – Some organisations sign the agreement, file it away and believe that their work is done. Getting an agreement is just the beginning. Great long term programs need an ongoing commitment to promoting the program and ensuring it works for all parties. This includes having pre-agreed update meetings throughout the term to pick up any issues and make sure that all parties are getting the outcomes they require.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.