Cultivating corporate relationships: strategies that make sponsors stick.

TO BRIDGE THE GAP BETWEEN INCOME and expenses, association executives often turn to corporate sponsors. The American Association of Blood Banks (AABB), Bethesda, Maryland, for example, offers corporate sponsorships "to add additional revenues to the association and to offset the various costs associated with the meetings," explains Michelle D. Zinnert, director of marketing and corporate relations.

Without sponsorship money, the association would not be able to launch new public education programs that directly align with the association's mission, says Zinnert.

Fortunately, corporate sponsorships have remained in vogue despite economic ups and downs. "It's definitely harder to find and secure sponsors during a difficult economy, but we are seeing the selling environment becoming a little easier as the economy rebounds," says Bill Chipps, senior editor of the IEG Sponsorship Report for IEG, Inc., Chicago. "Companies really aren't cutting back ... if anything, they're beginning to loosen the purse strings for corporate sponsorship" as the economy gets better.

Dianne Bach, group vice president of communications, marketing, and publications, American Gastroentero-logical Association (AGA), Bethesda, Maryland, agrees. In her capacity as industry liaison for Digestive Disease Week, a conference produced by several health care associations, she has noticed continued enthusiastic support for sponsorships. "We do not beg for sponsorships," she reports. "I find that somewhat demeaning. We make companies aware of what's available. We encourage. We explain. We try to make the sponsorship come alive." In Bach's case, at least, corporate sponsorships have not been a hard sell. As she recollects, last year only one sponsorship remained unsold--a coffee break on the last day of the meeting when crowds usually begin to thin out.

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Seeking out support

Associations report several effective ways to identify and attract sponsors and exhibitors.

Know your industry. Herman Baumann, executive director for strategic development, American Hospital Association (AHA), Chicago, says, "The best way to find new sponsors is to keep a close watch on your industry. You must do research to understand the needs of your members and look for sponsors whose businesses intersect with those needs. When those companies are identified, the best candidates for sponsorship are companies that are going through a change, such as introducing a new product; repositioning mature products; reaching out to new markets; or undergoing mergers, spin-offs, or reorganization. These companies are looking for new ways to market their wares."

Conduct research--inside and out. AHA keeps track of the needs that its members might look to sponsor companies to fill by conducting thorough monthly surveys administered by an independent organization of 80-100 of its institutional members. (AHA also serves individual members.) To augment these surveys and gather additional information, staff account representatives are given specific areas to cover. They call on AHA member hospitals to understand the needs of the hospitals in their respective areas and to inform members about programs that are in place to meet those needs.

"This information helps us develop programs that are valued by members," Baumann adds. "The data also help us explain to sponsors how they can fit with a program in a win-win fashion. We want our sponsors to be as happy as our members."

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Prior to contacting a potential sponsor, AHA employees do their own research, usually on the Internet. "We do not call companies and ask, 'Tell me about your company.' We need to know about the company before we call," Baumann says. Armed with the survey results, association employees can also make initial contacts more compelling by explaining: "Our recent survey reveals that many members want the type of product your company offers."

To identify potential sponsors for AABB events and activities, Zinnert first looks at the exhibitors at her association's annual meeting. "These companies are our hottest prospects," she says. If she still has sponsorship opportunities remaining, Zinnert turns to the trade shows of other associations in the same field, which she regularly attends. "These meetings are also a great source for identifying new companies to target as exhibitors and sponsors," she says. "Typically, we get a company in as an exhibitor first, and then they begin to do more with us--like advertising and sponsorship."

Establish a process. According to Sam Shelton, director of strategic partnerships at the American Institute of Graphic Arts, New York City, AIGA has established what it calls the balance theory to find and maintain corporate sponsors. The idea is simply that the three components--the consumer (association member), the property (association), and the sponsor--all must be in harmony. The association's philosophy: If the member likes the association, then the member will like the sponsor. Clearly, relationship building is at the core of the theory. After conducting extensive research on companies, association representatives will, for example, set up a lunch meeting with a potential or current sponsor and start with one question: "How can we help you?" Through this focus on how the association might best benefit the potential sponsor or exhibitor, AIGA has formed several long-term sponsorships with companies.

Focusing on mutual benefit

What's the most important criterion for companies considering a corporate sponsorship? Without a doubt, it's how well the company's product fits the association members' needs, wants, or lifestyle. "We select sponsorship partners based on brand fit," says Tim Bennett, director of marketing programs, Subaru of America, Cherry Hill, New Jersey. Is the relationship with a particular organization credible for the brand?

Subaru, which has been a sponsor with the National Ski Patrol and American Snow Sports Education Association, Lakewood, Colorado, for 10 years, first conducted extensive market research on market niches and lifestyles. What its research found isn't very surprising. "People who like to ski are obviously people who like being in the snow," Bennett says. "They want cars that drive well in the snow. We provide those cars."

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When Christina Jackson, brand manager, marketing and creative services, Aquent, Inc., Boston, considers a meeting sponsorship, she looks at such factors as audience composition and size, association reputation and longevity, investment required, and benefits received. She also places a high priority on the level of professionalism of the key contacts within the association with whom she will be dealing.

"When you are a national sponsor of an association conference, you need to go back and forth with the association about your artwork, your logo, your booth, your podium message, and so on," she says. "We need to know in advance that the folks who are working with us are strong communicators who meet deadlines and are consistent in the service they provide to us."

What is the litmus test of success for corporations in their exhibition and sponsorship activities with associations? It registers positive when a member of your association approaches a company and says, "I want you to know that I do business with you because you support our professional community. Your sponsorships have contributed to my business decisions."

Reaching sponsors' expanded goals

Companies are no longer turning to exhibiting and sponsorship merely for exposure; they want new or expanded ways to interact directly with people who can purchase their products or services. That's good news for associations, which are in an ideal position to create these face-to-face marketing opportunities. Through on-site promotional displays, sampling, and product testing, sponsors can interact directly with association members and explain the benefits of their products and services.

"Most of our sponsorship opportunities to date are your traditional ones that are associated with an annual meeting or smaller conference," Zinnert says. "We are just now starting to get into more project-related sponsorships. These opportunities have come about by communicating to our sponsors that we are open to new ideas and that if they have an idea for a new opportunity, they should contact us to discuss it."

For AGA's Digestive Disease Week (DDW) conference, sponsorships are differentiated into two categories: sponsorships that allow mention of a specific product and those that allow only the promotion of corporate names. Bach explains that if the sponsorships relate to science, only corporate sponsorships are allowed. For example, DDW offers sponsorship of a scientific booklet of speaker handouts that is bound together and distributed at the meeting. "Because it's scientific, we only offer an institutional ad, not a product ad," she says.

According to Bach, it's the product sponsorships that are in most demand. "Obviously, the most visible sponsorships are ones that will allow the company to display their products. Whenever a product can be featured, that's the most desirable." Examples of sponsorship opportunities that allow product promotion include lanyards, shuttle buses, portfolio bags, coffee breaks, and audiovisuals.

Bach also cites two relatively new sponsorship opportunities:

1. Aisle banners in the exhibit hall. When you're walking through the DDW conference exhibit hall and look up, you'll see an aisle banner that lists the booth numbers in that aisle. Below the number, sponsors can put their product ads. "That's in big demand," she says. In fact, she explains, the aisle banner was an exhibitor's idea. "We never would have thought to try to support the aisle banner, although it's a really cool idea. A company came to us and asked, 'Would you consider it?' We presented the idea for consideration and approval by the DDW Council, which thought it was a good idea." After the aisle banner was approved, the company gained rights to the sponsorship and now has first right of refusal for it.

2. Information booths. "We're finding that our attendees are hungry to check in with their offices fairly regularly," Bach says. "During the last several years, we've installed Internet stations throughout the convention center where attendees can check e-mails. The companies that sponsor the stations can promote their products in the space around the computer windows."

Keeping sponsors smiling

Because they rely on the support of sponsors, association executives need to build relationships that keep their sponsors happy. They do that in a variety of ways.

Make them feel welcome. At the Ohio School Boards Association, Columbus, an association representative personally greets each exhibitor. "Every exhibitor receives this special personal attention," says Chris Daugherty, OSBA's marketing manager. "Many exhibitors mention that this is their first association event at which they've been personally welcomed."

Streamline interactions. Another way associations are keeping sponsors in the fold is by streamlining sponsorships and centralizing communication. By bundling sponsorship opportunities, association executives stop what company executives describe as a constant barrage of a la carte offerings. For example, the American College of Healthcare Executives, Chicago, has instituted a corporate partnership program that oversees all contact with potential and current sponsors, with the ACHE board of governors approving all corporate partners.

Similarly, the National Association of Secondary School Principals, Reston, Virginia, formed an internal strategic alliances group composed of representatives from its various departments who review sponsorship opportunities together. "Companies often feel frustrated receiving multiple contacts from different divisions of an association," says Rosa Aronson, director, office of advocacy and strategic alliances. "We have a group of association employees who meet on a regular basis to review prospective and current sponsorships. In this way, everyone is aware of who is being contacted."

To better meet sponsor needs, the American Association of Blood Banks recently formed a corporate relations team and revamped its media kit. "In the past, we have done a media kit that just focused on print and Web advertising opportunities and a little annual meeting information," Zinnert says. "Last year, we changed this concept and developed SourceOne. This document includes all the opportunities that you could select in partnering with the association for the upcoming year. This way, a company can plan its marketing campaign in the fall for the following calendar year."

By using SourceOne, the corporate relations team can approach companies once. Zinnert believes this sends a better message to companies, one that implies: "We are trying to partner with you, not just take your money."

Offer incentives. Another relatively new way of keeping sponsors and exhibitors coming back is through priority-point systems. Similar to frequent-flyer programs offered by airlines or multiple-reservation rewards at hotels, these incentive systems reward companies for repeated and consistent organizational support. (See sidebar for details on several association priority-point programs.)

Heeding caveats in dealing with companies

Association executives and corporate sponsors offer a number of tips for ensuring a successful partnership.

1. Deliver what you promise. One company executive remembers the time he was told that a particular association meeting would have about 1,000 attendees. The event, about six months post-9/11, drew approximately 10 percent of the expected crowd. Under the circumstances, the company executive understood the low attendance. What he didn't understand was why the association didn't make some effort to work with sponsors--perhaps by offering a partial refund or discount for future events. Because the association refused to remedy an unacceptable situation, the company executive no longer works with that association. Ironically, the association keeps soliciting him for sponsorship support.

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2. Adjust to each sponsor's needs. "We have a very personal approach to sponsorship," says Pam Reinhard, education director, Ohio Veterinary Medical Association, Columbus. "We often tailor opportunities based on the products and services of the companies. We are also open to considering ideas from sponsors that fit our association objectives."

3. Don't overlook small companies. Of course, all associations enjoy sponsors who can provide large amounts of funding for events and other activities. However, remember the small companies that may not give as much money but are long-term supporters. "Generally speaking, I would say smaller companies are perhaps a bit more eager than their larger counterparts to establish positive relationships or provide more personal service," says IEG's Bill Chipps.

4. Keep sponsors up to date. Sponsors like to hear from you on a regular basis, not only when you are looking for funding, points out Aquent's Christina Jackson. Companies want to do more than write checks. They want to help associations grow and prosper, since increased membership translates into new customers for the company's products and services.

5. Consider a consulting firm, particularly if you are running into sponsorship problems or want to try a new approach. Numerous companies offer advice on obtaining sponsorships, working with sponsors, improving sponsorship efforts, and establishing the fair market value of sponsorship packages.

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6. Be selective. If you recklessly solicit corporate sponsorships to make a fast buck, you could be putting your association's reputation at risk, says Mark Dorsey, CAE, assistant executive director and chief operating officer, National Ski Patrol and American Snowsports Education Association.

"It's absolutely critical that a sponsorship is consistent with your association's mission and vision and it becomes a true partnership in which you're willing to invest time, energy, and staff," he says. "If you're simply pursuing dollars, you ultimately run the risk of failure.

"The underlying reason we pursue sponsorships is to add value to our association membership or our industry relations and to add value to our partners. If a corporate sponsorship doesn't hit on those things, we don't pursue it."

Want more information on this topic? Check out the "Outtakes and Exclusives" and "Link to Learn" areas at www.amonline.org.

RELATED ARTICLE: What's the Point?

To better manage sponsor and exhibitor relationships--and encourage repeat support--some associations are implementing priority-point systems. Not unlike popular reward programs offered by the airlines and travel industry, the point system creates incentives for sponsors to continue supporting a particular association.

Points are accrued and can then be used for various types of participation or to establish priority ranking at association events, such as the assignment of booth space. "Our point system keeps order in booth assignments and selection for the following year," says Chris Adams, exhibits manager, Digestive Disease Week conference administration, Bethesda, Maryland. "We have a set time and date for companies to select booths, based on their points. You can imagine the chaos if we allowed exhibitors to select space on a first-come, first-served basis."

Other associations employ similar point systems, sometimes with a different twist. For example, during the initial booth assignment, if two or more exhibitors request the same location, association member exhibitors with the highest number of points are given preference. Or if two member exhibitors have the same number of points, the application received by the earliest date is considered first. At events of the Association of periOperative Registered Nurses, Denver, if two companies request identical booth space and have identical priority points, participation in other programs and foundation contributions are used as the tiebreaker.

Many association systems award points for the following:

* Each year that a company exhibits.

* Amount of booth space contracted, within limits.

* Print advertising space in the association's publication(s).

* Mailing lists and labels rental.

* Sponsorship of an association event or service.

In addition, some associations, such as The Parachute Industry Association, Skokie, Illinois, provide extra points for length of association membership and board or committee service.

While the priority-point system can be an asset in encouraging long-term relationships with sponsors, fairness dictates that associations reduce or eliminate points if a company skips a year as a sponsor or exhibitor. Companies that fail to exhibit two years in a row in the Digestive Disease Week conference, lose it all. "There's no doubt that consistency gains you points," says Adams.

Adams hasn't run into many complaints about the system--except for those from new companies that are trying to break into the field and latch onto a premium exhibit space. "New companies may feel that older companies have an unfair advantage," he says. "If the top priority-point company has 150 points and [the new sponsors or exhibitors] enter the marketplace and gain four points, they feel there's no way they can ever catch up. I just tell them, 'Continue to contribute. You can move up.'"

Edward Leigh is president of Edward Leigh Enterprises, Inc., Cleveland, which specializes in creating positive and productive workplaces. E-mail: [e-mail].