An organization made what seemed like a simple, clear-cut policy change, but didn’t review the data or alternatives first. A simple, cost-free change allowed them to retain hundreds of members.
- An organization set a policy to refund duplicate memberships automatically, without examining data on these payments
- During an optimization service, the policy came to light as part of the operations discussion, and it was found that several hundred members and about $200K were being refunded
- Accounting had valid ethical and GAAP considerations for not retaining duplicate payments, since members were not notified that duplicate payments had been received
- Identified a way to notify customers of duplicates, and offer them the option to request a refund
- Determined process by which duplicate payments occur, and recommended changes to invoicing process to reduce duplicates overall
- Increased retention and potential revenue by reducing automatic refunds to those who actively request it, while satisfying ethical and GAAP principles
- Always review data before setting policies
- Ensure policies serve the member and the organization first
- Request outside perspective to reveal new opportunities and creative solutions
Contact Dennison & Associates to find out how we can help your association perform a policy review to ensure your policies best serve your organization and members.