Thoughts on 2009

I read a news article about the expansion of a small business near Milwaukee and the owner was quoted as saying "We've chosen not to participate in the recession. Instead, we're building so our growth will explode when the recession comes to an end."

I love folks with a positive attitude. My guess is that this owner has also chosen not to read, listen or watch the continuing barrage of negative news.

Anyway, here are some random thoughts about 2009.

As we fly into 2009, I'm monitoring three trends that impact association management companies and the associations we manage or hope to manage.

1) The continuing growth of CAUSE MARKETING.
For more details, see previous blogs about the power of cause marketing for services and products and as a tool for associations and non profits.

2) The expansion of CONTENT MARKETING.
The process of providing valuable content free to help build trust and value among current and potential clients. For more details, check out thoughts from its founder, Joe Pulizzi ... at http://www.junta42.com/match/ad/search/white_paper.asp

3) The growth of NEUROMARKETING.
A fascinating concept of tracking consumer behavior -- not based on what they say in consumer polls -- but on what their brain scans tell us. For more details, you can read Buy*ology (see below) or go to www.neurosciencemarketing.com

Some factoids from another web site (http://www.newbaby.com/)

• And, Mothers control 85% of household spending
• 70% of them feel companies are not doing a good job speaking to them
• 80% of moms have watched an online video in the last week
• 87% of moms read blogs
• 90% of mothers use the same products at home and the office
• 5 million moms own their own business
• 88% of mothers refer to themselves as household CFO
• For the first time in history, four generations of mothers comprise the Mom Market

Also, see http://www.marketingtomoms.com/books/mom3excerpt.php

A couple of fabulous books have helped me focus on these trends:
1) Buy*ology by Martin Lindstrom ... an enlightening book on neuro-marketing.
2) Here Comes Everybody: the Power of Organizing without Organizations by Clay Shirky
3) Predictably Irrational by Dan Ariely
4) The Long Tail by Chris Anderson
5) Cause Marketing for Nonprofits by Jocelyne Daw

Finally, here are the top trends facing associations and AMCs ... based on an on-going survey of AMC owners ... since AMCs are still completing this survey, the results may change ... I'll update them in mid-January. (The number after each is its "ranking" on a 5.0 scale.)

#1 Staying relevant when measured by scrimping (members focusing on ROI); shift in power of associations as “filters” (our best management practices, information, ideas) from gatekeeper to advisor 4.06

#2 Exploiting the power of the Internet, from e-business to cyber-mobbing (the power of bloggers to overcome traditional lobbying) 4.03

#3 Economy – volatility and economic and political shifts; decline in the dominance of the US economy; greater influence of global economy on the US 4.03

#4 Architecture of Participation - Including: 3 screens of influence (computer, phone, i-Pod); shift from passive consumers to active producers; social and web media and online word of mouth (Meetup.com, LinkedIn, FaceBook and others) 4.03

#5 Growing popularity of online meetings and education (our client conferences may not look the same) 4.0

May you have a fabulous 2009! And, call us if you need help in Making Your Dreams Fly!

Association Membership Benefits

Obviously, there are intrinsic benefits of becoming a member of an association: product discounts, educational opportunities, networking opportunities and others.

But there are also membership benefits that may not be readily apparent including respect. Another association management professional notes this benefit in an excellent article, click here to read the full version.

Does Cause Marketing Work?

In her book "Cause Marketing for Nonprofits," Jacelyne Daw describes cause marketing as "partnering for purpose, passion and profits."

As I talk about cause marketing, I'm often asked "what can cause marketing do for our association?"

In addition to supporting a worthy cause, these joint marketing programs energize your members and provide new opportunities to generate media coverage showing your industry in a positive light.

In this post, I want to offer some specific examples of the positive media coverage resulting from the Trees for Troops campaign our AMC manages for the Christmas SPIRIT Foundation. Just to recap, we began this program in 2005. Christmas tree growers and retailers donate fresh, farm-grown Christmas Trees to military families. Our corporate partner, FedEx Freight, delivers the trees to miltiary bases. This year (2008) we will reach 16,500 families at 51 bases. This bring our total reach to 50,000 families.

I've had the opportunity to be on about 12 bases as the trees arrived. The sense of joy, excitement and gratitude on the part of military families (especially kids) is indescribable and well worth our efforts ... which meet the Foundation's vision of advancing the spirit of Christmas for kids, famililes and the environment.

The Trees for Troops program consistently generates positive publicity for both the Christmas tree industry, FedEx and other program participants. In our consumer tracking poll after last season, more than 14 million U.S. households reported reading/seeing/hearing about the Trees for Troops program and about two million households said it influenced their decision to purchase a farm-grown tree in 2007. We will know the results of the 2008 program in mid-January 2009.

Enough writing, just take a few minutes to review this sample of "clips" of national and local TV coverage.

Visit msnbc.com for Breaking News, World News, and News about the Economy

While I realize it may appear "easy" to get media coverage of Christmas, the reality is cause marketing programs generate media coverage far in excess of the "typical" association news story (with the exception of a scandal).

Still have a question? Answer this: what other program you implement could get you two minutes 37 seconds on the NBC Nightly News?

And, we've seen that Trees for Troops generates great news coverage for our participating members ... adding to their benefit of membership.

Here's an example of a Web site of one of our participating tree retailers:
http://williamsnursery.blogspot.com/2008/12/christmas-101.html

And, if you're still interested ... here is a quick "photo video" of images from the 2008 Trees for Troops program. Enjoy (and consider going to www.treesfortroops.org to make a donation!)



Let us know if you have questions about cause-marketing and what it can do for your association or foundation. Remember that I'll be doing a presentation on this at ASAE's 2009 Great Ideas Confererence in February in Miami.

Trees for Troops arrive at MacDill Air Force Base

The Trees For Troops "tour" continues this week. I was in Tampa Tuesday to be part of the delivery of 550 fresh, farm-grown Christmas Trees to MacDill Air Force Base. It is so great to be part of the excitement of this event that is happening all over the U.S. (about 16,000 military families 51 bases will receive a donated Christmas Tree before the program finishes up on Friday).

I'm sharing a couple of photos from the MacDill deliveries. Above is the beginning of tree selection after FedEx volunteers unloaded the trees. Under it are the posters (with greetings to military families) that FedEx Office gathered from their customers at several store locations. These posters ... along with Christmas cards from school children) were a real "hit" with the families.

Caleb Vanderburg (6) displays a very special tree (made from a tree trunk and tree branch) with his mom Amy. The entire Vanderburg family (David, Amy, Abigail (9) and Caleb display their Christmas Tree.

A reporter from Fox TV 13 in Tampa recorded the events at MacDill AFB.

SSgt. Bud Wendel, USAF, told him "Before we had kids, we would never really get into it. But now it's all about hanging up the lights and having fun with the family and doing lights. But while we're doing that, we're thinking about all the guys that are being deployed as well."

As we near the end of the 2008 program, it looks like we will have delivered fresh, farm-grown trees to 50,000 military families in the four years of our program.

Don't forget, we need your donations to help afford to keep the Trees for Troops program available. You can do it on-line by going to http://www.treesfortroops.org.

Thanks.

Trees for Troops -- Growing Again

Well, I've been on the West Coast since Monday (12/1) as part of the Trees for Troops program for the Christmas SPIRIT Foundation, one of our client partners.

This is my fourth year being part of Trees for Troops ... and, I'm discovering that it is continuing to grow ... expecially in excitement among military families and in coverage from the news media.

In the first three years, we were able to provide fresh, farm-grown Christmas trees to 34,000 military families. Our goal this year is to reach another 16,000 families which means we've touched 50,000 families in four years.

And, this program is possible only because of the trees donated by more than 800 Christmas tree farms and the thousands of miles, trucks and drivers provided by the wonderful folks at FedEx Freight.

I started my trip assisting in the delivering of trees to soldiers at Ft. Lewis which is located between Olympia and Tacoma, Washington. The MWR folks at Ft. Lewis are adding to the program again this year. And, for the first time, the weather cooperated and was nice when we delivered the trees. A second shipment is scheduled for this coming week. It appears that we have more families seeking trees than we have trees available.

Ft. Lewis designated Sgt Jason Lane (shown being interviewed on radio) and his family to receive the first tree in 2008. Unfortunately, his wife and daughter were ill so he had to select the tree on his own.

Friday, I made two stops at Camp Pendleton in Southern Calfornia. I don't know how but the "CP crew" continues to outdo themselves in activities around Trees for Troops! Even more Marines and families waited at the San Onofre community center ... and all 300 trees were gone within 45 minutes!

Then, it was on to the "main site" ... wow! what an experience ... more than 650 families (thus probably more than 1,200 people) at the landing zone. All kids of activities from Saturn cars to Shamoo the whale and donated Calloway golf balls and about 40 FedEx volunteers wearing their purple FedEx Cares shirts and "Santa hats."

[As I arrived at the main site, several of the Camp Pendleton leaders said they saw a Trees for Troops story on CNN ... and that they already have ideas of how to make Trees for Troops even better in 2009!]

This year also included a special guest ... Anthony Galloway of NBC News in New York who is developing a special feature on Trees for Troops. He thinks it will air between December 20-22.

At his request, the Pendleton folks had selected two families that Anthony would follow from selection of their trees to putting it up in their homes. (FedEx donated tree stands.)

Cara Figueroa and her daughter Estrella joined Andrea Baker and her daughters Lilly and Molly in getting the first trees. Lance Cpl Rene Figeuroa and Cpl Sherman Baker are both deployed in Iraq and won't be home for the holidays.

As you can see in a couple of the photos at the top of this blog post, Lilly, 3, was the real "ham" as she climbed on their tree and proclaimed "my tree" to the cameras! Next, she was on top of the tree as Base Commander Colonel James Seaton and two Marine volunteers (Cathey Kimberly and Thurman Lanel) helped load the tree.

Watching Lilly's face is what makes Trees for Troops so special.

Colonel Seaton gave a short speech just before the volunteers started to unload the FedEx trucks. He said he was personally thankful to the Christmas SPIRIT Foundation (and the 800+ tree growers) for the trees for the Marine families. He said the gifts were a huge boost for morale for the Marines and their families. I was humbled when he came over to me to thank me as the representative of all the tree growers who are part of Trees for Troops.

My Google News Alert picked up this blog from a Marine wife at Camp Pendleton ... it really makes you feel great to see this appeciation for the gift of a fresh, farm-grown tree.

"Today, I was given a clean bill of health, AND a Christmas Tree! After my doctor’s appointment this morning I went to the area on base where they had ‘Trees for Troops’. A bunch of sponsors had tents set up for special drawings. We Might win a Wii or cash, but most likely we’ll get a lot of sales calls and junk mail. I’m okay with that. It was so cool to see over two thousand Christmas trees set out in rows for all of us. Brett couldn’t leave work so I went by myself. Our neighbor had gotten there super early to get our tickets. After everyone had a ticket and all the trees were off the tucks, they started calling numbers in groups of 25. I had number 52, so there were literally hundreds of trees from which to choose. The trees were already bundled so it was a tough decision; but I went with my “That’s OUR Christmas Tree” feeling when I came to a semi-plump six footer. It was only after I got the tree home, in the stand, and untied that I realize how plump this tree is. Good thing we only have the couch in here. But, oh how beautiful. Brett pointed out that is is a Fur tree and that’s why it’s so pretty. I’m letting the branches fall tonight, but I can’t wait to put the lights on. The smell has taken over the house. I love it. And to top it all off, the temperatures are finally falling. Not like home of course, but I might be retiring my flip-flops before Christmas….Maybe."

What an inspiring message for all of you who have donated trees and/or worked on the Trees for Troops program!

Well, I'll be off to Tampa Monday to be part of delivering trees to MacDill Air Force Base.

Merry Christmas and Happy Holidays!

Steve

DrakeCo partnership with Enterprise Bank and Trust

Steve Drake, owner and CEO of the DRAKE & COMPANY, often challenged bankers he met to consider looking at the combined net assets of the associations he managed as one entity.

This did not mean co-mingling of funds, but to look at the aggregate when assessing fees and paying interest. In the spring of 2008, he found such a bank.

While attending a local Chamber of Commerce event, he once again issued his challenge to Debbie Shaw-Franke to do just that. And Debbie, Vice President of Enterprise Bank and Trust, rose to the challenge, proposing an effective solution for managing our cash resources. Enterprise Bank and Trust offered state of the art products, professional treasury assistance and customer service beyond expectations.

Enterprise Bank is a publicly held bank in St. Louis, that focuses on the needs of privately held businesses, their owner families, executives and professionals. Debbie and her team proposed solutions to assist us in achieving our objectives to simplify the daily management of our cash; implement technology to reduce risk of internal and external fraud; leverage the power of our associations’ combined balances to improve overall financial benefit; reduce the number of banks used; and improve our non-cash payment system. Enterprise offered DrakeCo several solutions to clumsy systems used by its accounting department.

For collection and receivables on a same-day basis:

• Lockbox
• ACH collection
• Remote deposit
  

For investment:

• Sweep/Repo accounts. For accounts utilizing sweep, all collected funds over the target balance sweep out for investment purposes with the balances in our DDA accounts utilized to offset the activity charges.
• Money Market accounts
• No service fees
• Collective analysis of all of our accounts and paying an interest rate based on overall funds, not individual balances in each account.
  

For Disbursement:

• ACH payments
  

For Control:

• Monthly CD-ROM image storage products
• On-line banking
• Positive Pay
  

These solutions provide benefits for both clients and Drake & Company:

Collection:

• Faster collection and efficient processing of receivables by reducing/eliminating mail float and processing float
• Increasing funds availability which results in improving cash forecasting and liquidity and audit control.
• Helps with the security of checks received in the office.
• Efficiencies (no need to copy checks for deposits, fill out deposits slips and no more trips to various banks to make deposits).
  

Investment:

• Improve daily liquidity.
• Eliminate idle balances resulting in
• Maximizing interest income.
  

Disbursement:

• Reduce paper handling
• Manage float
• Control/prevent fraud
  

Control:

• Monitor cash
• Execute transactions securely
• Real time reconciliation. Statements are received on the first day of every month via email
• All of which increases our fiduciary safeguards.
  

Drake & Company, in its role as the management firm, benefits from:

• a corporate banking partnership that, among other things, can provide a line of credit, if needed.
• Efficiencies and standardization of processes across all entities which help reduce administrative costs.
• And provides opportunities for other partnerships, which benefits all of our clients
  

As a result of our talks with Enterprise, we were introduced to Leadership Advocates Network (LAN), a firm who specializes in providing cost reductions in credit card processing. This is accomplished by their relationships and stringent oversight of credit card processing companies coupled with the education of our personnel who process member’s credit cards.

The results have been more than expected. In the six months since implementation we have reduced our monthly bank service fees to zero, saving nearly $3,000 while increasing our interest earned by nearly $2,000. And as a result of LAN, we have saved our clients an average of 1.35% in the rate the credit card companies charge, resulting in total savings of $5,500 to date. Harder to quantify is the administrative savings we now offer; preparing the deposit is streamlined and we no longer make daily trips to various banks to make deposits.