Changing Chamber Culture by

Changing Membership

The Willmar Experience

• 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

About Me

President, Willmar Lakes Area Chamber of CommerceKen Warner

Willmar

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

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

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

!

I had to change the

dynamic-and by changing

the dynamic i was going to

have to in essence Go Big

or Go Home

IDEA

BRAINSTORM

CONVINCE THE

BOARD

RESEARCH / WORK

WITH CONSULTANT

DEVELOPMENT

TEST

IMPROVE

LAUNCHING

Changin

g Dues

to

change

culture

Process

• 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

Idea

• 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

Brainstorm

• 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.

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

Why change?

• 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)

The Board

• 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

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

Research

Membership Advisory Committee

1) Determine Values

2) Finalize Bundles

3) Evaluate

4) Monthly Feedback on Chamber Master Options

5) Assist with Marketing Plan

Committee

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?

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

Development

DevelopmentNumber 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

Bundle Development

• Types of bundles

• Solidify future programs, services, and events

• Number of Bundles

• A la carte options

• Establish value levels

Development

Development

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.

Test

Reworking the Bundles

• Took feedback from member visits and board input and

tweaked bundles slightly

Improve

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

Launch

• 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.

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.

Desired Outcomes

• 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%

Lessons

• 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

Outcomes

End

see you soonThanks.