The Willmar Experience - Changing Chamber Dues to Change Culture
- 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 Willmar • Not being able to articulate value to members • Going back to the same people over and over again
- 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 Changin g Dues IMPROVE to CONVINCE THE BOARD change culture TEST RESEARCH / WORK WITH CONSULTANT 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 Number of Current Total Number of Bundle Up! Total Members Dues Current Dues Members Dues Current Dues 10 $ 90 $ 900 10 $ 95 $ 950 104 $ 150 $ 15,600 195 $ 295 $ 57,525 94 $ 300 $ 28,200 225 $ 650 $ 146,250 3 $ 340 $ 1,020 13 $ 1,400 $ 18,200 84 $ 350 $ 29,400 3 $ 2,400 $ 7,200 55 $ 390 $ 21,450 4 $ 5,000 $ 20,000 71 $ 440 $ 31,240 54 $ 510 $ 27,540 22 $ 600 $ 13,200 14 $ 700 $ 9,800 12 $ 780 $ 9,360 11 $ 870 $ 9,570 5 $ 910 $ 4,550 2 $ 940 $ 1,880 2 $ 1,060 $ 2,120 2 $ 1,170 $ 2,340 1 $ 1,300 $ 1,300 4 $ 1,530 $ 6,120 1 $ 1,880 $ 1,880 1 $ 2,360 $ 2,360 1 $ 2,840 $ 2,840 1 $ 4,730 $ 4,730 554 $ 227,400 450 $ 250,125
- 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