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8/17/2015
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Thinking BIG About Data
August 11, 2015 - 8:30 AM
Ariel Finno (NIRI)
Michael Hayes (Veris Consulting)
Lindsay Martin-Bilbrey (NSA & redlmb)
Ian Santo Domingo (Veris Consulting)
SPEAKER BIOS• Ariel A. Finno, M.S. | Director of Research
National Investor Relations Institute
• Michael Hayes | Director, ResearchVeris Consulting, Inc.
• Lindsay Martin-Bilbrey | Chief Learning Officer redlmb Management Solutions
• Ian Santo Domingo | Director, ResearchVeris Consulting, Inc.
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Today’s Agenda
I. Association’s Role in Research
II. Trends in Researchi. Cost Center vs Profit Center
ii. Customized Results
iii. Creating a Conversation
III. Monetizing Research
IV. Funding, Pricing, Marketing
V. Evaluating your Program
VI. Summary and Questions
Session Goals• Examine how associations can use research to
promote their industries and differentiate themselves from the pack.
• What role does industry research play in non-dues strategy and how can you monetize it?
• Explore pricing models, marketing tactics, and potential customers.
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“The most valuable commodity I know of is information.”– Gordon Gecko
“War is 90 percent information.”– Napoleon Bonaparte
“Experts often possess more data than judgment.” – Colin Powell
“If we have data, let’s look at data. If all we have are opinions, let’s go with mine.” – Jim Barksdale
“It’s a capital mistake to theorize before one has data.” - Sherlock Holmes
“The price of light is less than the cost of darkness.” - Arthur C. Nielsen
What People Think About Data
Association’s Role in Research• “An association must continually work to protect and improve
the industry they represent while providing their members the support and tools necessary for success.” Sean Murphy (Sr. Manager, Industry Analysis at CEA)
• “…we have surveyed our membership on various topics including research and surveys which they rank as the 2nd highest benefit for the members.” – Paula Feldman (Director, Business Intelligence at PMMI)
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Association’s Primary Objective
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• An association must continually work to protect and improve the industry they represent while providing their members the support and tools necessary for success.
• Research should be more than just a member benefit, it createsmany additional opportunities and exposure for your association.
A Program Director’s Mission• Anticipate
o Respond to member needs and changes in your industry. (Proactive vs Reactive)
• Understand
o The only constant is change: be cognizant of a shifting landscape and ways it will impact members.
• Interpret
o How to adapt and evolve in ways that benefit all.
• Act
o Deliver an easily digestible report in multiple ways.
Research Objectives
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A Program Director’s Mission, cont.
• Keep all sectors of your membership happy.
• Report data that is both engaging and actionable.
oDelivering the data is only half of the equation.
oValidate [accuracy] / Interpret / Analyze / Support
• Respond to changes in your industry
oYou don’t have the luxury of a static report.
Research Goals
Challenges for Research Directors
• “One of the biggest challenges that we face is making sure that the information we produce is actionable to our membership. We can provide data but we need to make sure that the data we provide is something they can take back to their organization and use it to hopefully improve their operations.” – Paula Feldman (Director, Business Intelligence at PMMI)
• Ariel A. Finno, M.S. (Director of Research, National Investor Relations Institute)
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Research Department & Non-Dues Revenue?
Traditional – Cost Center
• Research is conducted and made public for all members and other interested parties.
• The organization covers all/most of the cost of the research.
New – Profit Center
• Organizations are able to partially fund or profit from the research they conduct and provide.
• Potential for Non-dues Revenue.
Trends in Research
• Cultural Shift: Time is precious
• Making research relatable
• Telling a story
• Customizing results
• Creating dynamic ways of viewing and interacting with the data
• Continuing the conversation
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Visually Appealing Reports
Customizing Results
• Go beyond the standard report
• Show information that is relevant to each user
• Save your members time and resources
• Increase value proposition
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Interactive Dashboards
Dynamic Views• Screen shots of AHAM Qlik demo?
*Source Nikki Van, NCACPA, Associations Now July 1, 2015 article Organize and Visualize: Turning Member Numbers Into Knowledge
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Dynamic Views
Dynamic Views
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Company Scorecard
Financial Comparison to 2014 Financial Survey
Group 2 Mean
Group 2 Top One Third Mean Co. X
Variance from Top Third
Total Revenue 100.0% 100.0% 100.0%
COGS/Direct Project Costs 58.9% 43.1% 64.7% 21.6%
Gross Profit 41.1% 56.9% 35.3% ‐21.6%
Selling, General & Administrative Expenses 37.8% 40.8% 26.9% ‐13.9%
NOTES:
Red Figures signify areas for improvement.Green Figures signify areas where your company has an advantage over the Top Third Companies.* Variance column: Comparing your company data to the Top Third Companies.
Company Market Share Report
Company Market Share ‐‐ June 2015 (Numbers in thousands of pounds)
Jun‐15 Year‐to‐Date
Group Description Company Industry % Company Industry %
104 P Domestic Production 26,513 48,974 54.14% 138,995 270,000 51.48%
101 S Total Sales and Captive Use 17,202 38,289 44.93% 113,835 238,771 47.68%
103 S Exports, Total 3,920 12,500 31.36% 27,219 66,750 40.78%
104 SDomestic Sales and Captive Use,Total 13,282 25,789 34.69% 86,616 238,771 36.28%
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Q4 2012
Multipurpose Solution Share & Market Size in Value: France
Ariel A. Finno(Data geek, Vinylphile, Self-Diagnosed kinemortophobe)Director – ResearchNational Investor Relations Institute
Thinking BIG about Data by Getting SMALLER
[email protected] linkedin.com/in/arielfinno [email protected]
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• An IRO’s job (in plain English)• National Investor Relations Institute
(NIRI) has:o 3,500 members globallyo 16 full-time employeeso Robust research program including: Surveys Focus groups Polling Collaborative research
How compensation Research was provided in the past
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An interim approach…
NOW
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• More customized results• Benefit each individual member, thereby improving their unique job situation and the entire industry. Make each IRO more competitive in an area where they are working solo.
• Finding a way to monetize a member benefit
Creating and Continuing the Conversation
• Steering committee = research advocates and empowered members
• In person meetings and webinars to discuss results/insights
• Customized presentations for different membership groups
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Supplement the Standard Industry Report
• Create derivative products.
• Compare macro economic trends with industry results.
• Incorporate secondary research to your primary research findings.
• Explain the how and why.
• Look towards the future and where we’re going, don’t just report on the past.
Monetizing Research• Transitioning Towards a Profit Center
• Pricing & Funding Models
• Legal Considerations
• The Importance of Marketing
• Evaluating your Program
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What to Consider?
• What makes sense for my association? (NSA vs PMMI)
• What is a fair price for my product?
• Are there any legal issues I need to be aware of?
• How do I get members to pay?
• This is an investment and a mindset change that will take time to pay off.
NSA-Case Study on PricingStrategic Initiative
Rollout and Implementation
Evaluation
Lindsay Martin‐BilbreyChief Learning Officerredlmb Management SolutionsNational Speakers Association
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National Speakers AssociationNSA is the leading source for community, education and entrepreneurial business knowledge needed to be successful in the speaking profession.
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Pricing Approach
Annual Initiation Fee
Bundles Plus
Freemium
Recurring Subscription (academy)
What is a Fair Price?
Alternative Products Exist
Value Leader
Price below competitors
Perfect Substitute
Price on par with
competitors
Premium
Price higher than
competitors
Unique Market Supplier
Congrats! Set your price carefully.
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• Let your members determine its worth. (Perception can become reality.)
o Its worth can be increased and perpetuated if you can make it so they are reliant on your data. Should become critical to their business and strategy plans.
o Members need to be your biggest advocates. If they find value, they can be valuable recruiters for the program. Increases in engagement and sense of community and growth becomes organic.
What is a Fair Price?
• Absorption Based: Pricing so all costs (direct and indirect) are covered.
• Flexible Value Based Pricing Theory: Tailoring the deliverables to the exact needs of each member can maximize the value to the member and increase your margins.
• Divide and Conquer (Profit): Provide a service that would normally be cost prohibitive to one company to many so that the cost can be dispersed equally. Example: Compensation Study
• “Freemium”: Offering a very basic output for free. Anything more would be obtained at a premium.
• Subscription Programs: Tiered vs Flat vs Dynamic Pricing
• Art more than Science
Pricing Strategies
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Funding ModelsAssociation funded: From dues & other sources
Research Grants: Certain programs may qualify for federal or private funding through grants. Additional research may be required to identify eligibility.
Association subsidized: Minimal cost to the participants andsubscribers. (What is collected ≠ the program’s cost.)
Member funded: Participants/subscribers pay an equal or % share of the total cost of the program.
Sponsored program: Donors may be willing to sponsor the program in exchange for advertising and/or other services.
Revenue generating: A pricing strategy is utilized to defray the cost of the program and generate revenue after a break even point is realized.
Legal ConsiderationsAntitrust Issues
• Antitrust laws: Sections 1 and 2 of the Sherman Actand Section 5 of the FTC Act
o All regulations promote competition while prohibiting unfair methods of competition.
• Is our data program in the clear?
o Legal Review
o Main concern over information sharing: Collusion and Price Fixing, leading to anti-competitive actions.
o Safe Harbor exists but is somewhat flexible.
o A third party administrator can help mitigate liability.
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Marketing• Importance of tailoring your message,
keeping the conversation going after the release of the report.
• Building an engaged community
• Expanding your reach
The Importance of Marketing
• Keep the data in the front of your constituents’ minds.
• Build webinars, meetings, conference breakout sessions, white papers, etc. around it.
• Engage your members by forming a statistical committee who will be in charge of keeping the program up to date and making modifications when necessary.
• Release high-level or interesting findings to tease potential subscribers (Newsletters, Social Media, ...)
• Market outside your membership by: (Word-of-mouth, establishing brand and utilizing accordingly)
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Melissa Teates, former Director, Research
• Management goal to increase revenue from under $20,000 to $100,000
• Limited marketing budget
• Price sensitive members (can’t raise report costs)
ASTA Case Study
• ASTA Research Family
• Research Report Sponsorships and Custom Research Requests
• Partnerships with travel industry research firms and trade publications
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ASTA Case StudyMarketing with a Limited Budget
• Revenue sharing with trade publications
• Increasing social media efforts
• Promoting custom research capabilities in member newsletters
• Presentations at ASTA and
other industry events
Evaluating your Program• Evaluate internal goals.
• Evaluate external perceptions.
• Why is it important to evaluate regularly?
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Evaluating your Program• Appropriate Price and Subscription Tiers?
• Is it meeting the needs of the participants and subscribers?o Reactive vs. Proactive
• Meeting the internal needs of the association?o The data should increase the associations value to its
members. The association should be seen as the preeminent source for the information and as experts within the industry.
• What is keeping others from subscribing or participating?o Member and Non-member satisfaction surveys
Additional Questions to Consider• Do your subscribers trust the results?• Are you tailoring your results to the needs of
your different audiences?• How does the research fit into your strategic
plan? • Are you producing derivative products?• Do you have an effective marketing plan?• Is your research reacting and evolving with
your members’ changing needs?• Are you tracking profitability and which
products are selling?
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Contact UsMichael Hayes
Director, Research
Veris Consulting, Inc.
Ian Santo Domingo
Director, Research
Veris Consulting, Inc.
Ariel Finno
Director, Research
National Investor Relations Institute
Lindsay Martin-Bilbrey
Director of Learning Experiences
National Speakers Association
