Presented by Ken Warner at the 2013 ICCE Winter Conference

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

28. End
Thanks.
see you soon