With the government's National Disability Insurance Scheme, DisabilityCare, now an inevitability, disability service providers in the not-for-profit sector are facing a structural change in their business – from a government funding model to a user-pays system. It's effectively a brand-new market opening up. The private sector is salivating, and message to traditionally marketing-averse NFPs is clear: get your act together.
Chris Meredith, founder of brand innovation strategy agency Chilli Sauce, believes the NFPs need to get mean. "Suddenly the forces of change are coming upon them. They need to become much more commercial, more consumer-oriented, and they need to understand marketing and how to position their brand as having a clear point of difference," he said.
"Charities are now competing more overtly with the private sector. They're competing with commercial operations, competing with each other, but most of all they're suddenly competing for a share of voice with their end user, which they haven't had to do before."
Robyn Eicker, national marketing manager for House With No Steps, which provides support to over 3,600 people across Australia with a range of disabilities, said they had recognised the need for greater emphasis on brand positioning and differentiation. "We are working towards developing this into a concept that will resonate with our target audience," she said. "HWNS and other NFPs will need to invest in building brand equity and clearly positioning themselves in the minds of their consumer."
HWNS is currently working with Melbourne-based Bundy Agency on a pro-bono basis to increase brand awareness.
Eicker said the arrival of cashed-up entrants from the private sector would be a challenge, but that most NFPs had the advantage of years of experience. "We are passionate about what we do and are solely focused on creating great outcomes for the people we support. This, coupled with a desire to build our brand, equity and loyalty, should equip us to compete effectively with private sector entrants."
According to Meredith, those NFPs with a clearly defined "enemy" will have an advantage. "Brands need an enemy, brands need to have a war. They need to be able to say, we are fighting a battle, and we need people to help us fight that battle. The challenge is to think about what their brand is about and how to communicate that to the relevant audience.
"At the moment, [if they advertise] they would say, 'Please be nice to me, give us money.' That's not going to work anymore. People in the NFP sector tend to be really lovely and therefore they don't like that idea of competing with rival organisations, but that's really the direction we need to go."
Dean Hunt, creative director of VCCP Australia, argues the NDIS is ultimately a positive step for people who matter in the equation – those with disabilities. "The services this sector provides will become more price and commodity-driven, with new players coming into the market," he said.
"NFPs will have no choice but to get stuck in. Welcome to the fascinating and competitive world of marketing. The dynamic of the relationship will change overnight. NFPs should change the way they talk, changing their verbal identity to suit the new balance of power – which is now with the new customer."
But Hunt said it wasn't just about marketing – that the NFPs need to ensure their product and service are right first. "Otherwise all the marketing in the world is not going to help them. But let's look on the bright side and assume the product is good. It's then about marketing the right way. And there won't just be one way."
For example, Hunt said, an NFP could bring in the best marketers to work with the best agencies, to create big-budget comms and go after their slice of the "disability dollar" with all guns blazing. Alternatively, NFPs could partner with existing health-related brands to take advantage of that brand's scale, support and logistics – not to mention marketing power.
He added: "[But] this is where it really gets exciting. How about a community-first approach? Relying on word-of-mouth to spread the message. This way, first-hand experience and points of view will be crucial in building a reputation. This could be extended all the way up to a 'consumer-controlled brand' where those who use the brand and its services also control the decision-making within the company."
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