Changing Chamber Culture by Changing Membership

1. The Willmar Experience Changing Chamber Culture by Changing Membership

2. About Me Ken Warner President, Willmar Lakes Area Chamber of Commerce • Long-time spent in industry • My chamber is a lot like many of yours • In early 2008 I became frustrated with… • Begging for memberships • Not being able to articulate value to members • Going back to the same people over and over again Willmar

3. background • Structure of membership dues based on number of employees, number of deposits, etc. has become antiquated and unrealistic • Businesses no longer join because it’s “the right thing to do” • Dues based on number of employees • The same benefits for all members regardless of their dues • Too expensive for member wannabes • It’s currently a difficult time to get members to renew their membership • Businesses invest because it benefits their bottom line – they expect value for their investment

4. Membership Obstacles • Flat • Increase in “slow pays” • More difficult to sell • Fewer volunteers asked to “sell membership” • More competition • Regional focus by companies • Acquisitions, mergers and bankruptcies • ROI demand or WIIFM

5. Volunteer/Tech Obstacles • Downsizing eliminates volunteers • More competition for volunteers • Dual income families = less time • Lack of orientation to volunteerism • Volunteers have less time and expect staff to do more • Chambers are behind–web, blogs, on-line services • Members want quick decisions • Customized communications • At least trying to keep up

6. ! I had to change the dynamic-and by changing the dynamic i was going to have to in essence Go Big or Go Home

7. Process IDEA LAUNCHING BRAINSTORM IMPROVE CONVINCE THE BOARD Changing Dues to change culture RESEARCH / WORK WITH CONSULTANT TEST DEVELOPMENT

8. Idea • Had seen different models discussed in various industry publications • Tiered-like principles seemed to fit with what I wanted for chamber culture • Knew this would be a long process – not a quick fix

9. Brainstorm • Began to look in earnest at other example chambers using a similar program • Quickly realized that significant R&D needed to take place before attempting to create tiers

10. Why change? • Reward loyalty • Hold members accountable…what have you been to lately? • Being connected means to have a sense of belonging and to relate to other members in the organizations. • No more begging. If they can’t see value, we can’t make them. • Don’t over-promise and under-deliver.

11. Why change? • What makes us different from every other organization. Let’s make it emotional and with a real sense of belonging. • Don’t be all things to all people and don’t be afraid to say no once in a while. • Be proud and loud…be aggressive. • They are receiving information/leadership/networking, etc. that they cannot get anywhere else

12. The Board • Because of significant work involved, the board had to support me throughout the process • Used board retreat to lay out ideas regarding chamber culture and dues, and the direction I wanted to go – focus on strategy, not specifics • A Board survey was very telling • ex. “Agree or disagree – I can clearly communicate the value of belonging to chamber. (My board was a unanimous NO)

13. Research • Determined that heavy R&D lifting could not be accomplished with busy chamber staff – engaged a consultant to develop program together • Identified best practices of tiered programs on a national basis to compare with WLACC concepts

14. Research • Needed to garner input early in the process • Focus groups with existing members • Non-member conversations • Member survey • All assessing what people were looking for from chamber, and what products and services had the most traction

15. Committee Membership Advisory Committee 1)      Determine Values 2)      Finalize Bundles 3)      Evaluate 4)      Monthly Feedback on Chamber Master Options 5)      Assist with Marketing Plan

16. Development • Program Evaluation • Needed to understand what programs were the most valuable • Do programs fit the mission of the chamber? • Does it bring us friends, fame, or fortune?

17. Development • Financial Analysis • Historical assessment of revenue, including dues and non-dues revenue • Needed to price individual products • What does it actual cost per member? How much will a member pay? • Set target prices for tiers based on natural breaks in current dues structure

18. Development

19. Development • Bundle Development • Types of bundles • Solidify future programs, services, and events • Number of Bundles • A la carte options • Establish value levels

20. Development

21. Test • Test Marketing • After board signed off on first draft of test “bundles”, took them into the field • Met with 20+ member businesses – wide range of sectors, sizes, etc.

22. Improve • Reworking the Bundles • Took feedback from member visits and board input and tweaked bundles slightly

23. Launch • Communication was incredibly important • Designed collateral materials and updated website • Slow roll-out process – it took over a year for all members to be converted • Spent LOTS of face time with members – this is a one-on-one sales process

24. Desired Outcomes • Tiered program is based on current Chamber programming, events and services • Tiers make it easier to explain what’s actually included in the investment • Stops the nickel & dime effect • Emphasizes the value of membership in a format all members can understand. • Eliminate the inequity of (un) “fair share” dues structure that we currently use.

25. Desired Outcomes • Create clear levels of investment and value. • Ties member investments to supporting our Mission, Objectives and Core Values. • Allow members to customize their membership by selecting their level of involvement and investment. • Make it easy to explain what members receive for their investment. • Each increase in level provides more benefits and is a better value that purchasing the same products and services separately.

26. Lessons • There are no short-cuts – re-engineering chamber takes lots of hard work, time, and flexibility • However – if you take the time to do it right, it will pay off. • In Willmar, we experienced a 23% increase in revenue, and our member retention is over 90%

27. Outcomes • The conversation surrounding membership changes – it is now much easier to sell members based on a much better value proposition • Member is treated more like a client than a member • Retention rates are high because of increased ROI

28. End Thanks. see you soon