Objectives: Discover how to use a Member Profile Matrix to offer benefits that appeal to different types of members Explore the Top FAQs About Tiered Models and best practices Explore the 6 Steps to develop a unique model for your Chamber

Cathi Hight, The Retention Specialist President of Hight Performance Group The nation’s member retention specialist Developer of the Member Retention Kit and the soon to be released A New Approach to Tiered Membership National instructor for the U.S. Chamber’s Institute for Organization Management Previously was Vice President of Operations for the Chamber of Commerce of Hawaii Serves on the Member Relations Council for the Austin Chamber Is a member of the: Association of Chamber of Commerce Executives American Society of Association Executives © 2016 Hight Performance Group, Inc. A New Approach to Tiered Membership 2

membership model trends Driving forces create the need for change membership model trends © 2016 Hight Performance Group, Inc. A New Approach to Tiered Membership 3

A New Approach to Tiered Membership The Traditional Fair Share Model Advantages: Similar types of members are assessed dues based on the same formula Larger member accounts pay about 80% of the dues Members buy everything, even if they won’t use or value it Disadvantages: Data needs to be updated each year prior to dues assessments Members who don’t want to pay more lie about their current status Members feel they are penalized for growth Members may not realize the value of their membership Long-time model focused on member accounts paying their “fair share” to support the association Dues are assessed by: Number of FTE Number of seats (restaurant) Number of beds (nursing homes) Number of pillows (hotels, time share condos) Number of locations (franchises, multiple operations) Annual revenue © 2016 Hight Performance Group, Inc. A New Approach to Tiered Membership 4

A New Approach to Tiered Membership Membership Model Trends Customized Members custom-build their membership packages to suite their interests and needs (base membership + add-ons) Pros: Members analyze how they want to use their membership, which leads to higher engagement Cons: Members may not value the add-ons or use them Electronic (virtual) Membership restricted to web-based resources and programming Pros: New streams of revenue are added without incurring expenses (e.g., printing) Cons: Memberships provide limited access so they generate less revenue International Membership is accessible worldwide Pros: Membership expands into new markets Cons: Benefits may need to be developed and engagement be more difficult Multitier Menu of membership options based on interests, professional designation, budget Pros: Members like being able to choose which options best suit their needs Cons: Requires the ability to manage multiple benefits for multiple audiences Open (freemium) Membership does not require the payment of dues Pros: Leads to substantial membership growth (more people in the playground) Cons: People may perceive less value because there’s no cost to join © 2016 Hight Performance Group, Inc. A New Approach to Tiered Membership 5

The ‘Tiered-Dues’ Model A New Approach to Tiered Membership Many associations use a tiered-dues model that is actually based on fair share The true tiered-dues model allows members to choose a level based on specific benefits for a set investment Some associations offer different level packages based on specific member categories Advertisement and sponsorship may be separate Benefits may include access to events, programs, publications, and/or special services Advantages: Member-centric model that offers choices to members Overall membership dues revenue increases over time Staff can put away the calculators Disadvantages: Some members may choose to invest at a lower level (most do not) Some members are reluctant to change and may terminate (if lowest level is higher than what they paid before) Requires time and communication to transition from fair share model © 2016 Hight Performance Group, Inc. A New Approach to Tiered Membership 6

A New Approach to Tiered Membership Chambers Revenue Thirty years ago, dues revenue accounted for about 70% of all revenue for chambers Chambers reduced dependency on membership dues More than 50% of revenue is from non-dues (advertising, sponsorship, events, education, travel, leadership trips, affinity, grants, contracts) © 2016 Hight Performance Group, Inc. A New Approach to Tiered Membership 7

A New Approach to Tiered Membership

Using the Member Profile Matrix to understand different types Value is in the eyes of the customers Using the Member Profile Matrix to understand different types © 2016 Hight Performance Group, Inc. A New Approach to Tiered Membership 9

Business Interests and Needs Support a thriving local and national economy Education, transportation, talent attraction, job creation Promote the region and members Influence a business-friendly environment Develop relationships with policy and regulatory decision-makers Create a positive sentiment toward business/industry Develop a skilled and adaptive workforce Skills development on current and emerging needs Leadership development for younger talent and succession plans Provide support to growing enterprises Local and global visibility, advertising and marketing opportunities Cost savings, experts and mentors, and strategic connections Create opportunities to build a local or regional network Networking and events at no or low cost to connect with others Welcome newcomers and start up businesses seeking connections © 2016 Hight Performance Group, Inc. A New Approach to Tiered Membership 10

Member Profile Matrix—the Framework Get Something Done Through You Community Investors Mission funders Long-term vision, strategic direction Business-friendly environment Support sustainability for all Do the right thing (civic-minded) Community Builders Sustainable, thriving economy Seen as a leader, strong brand Execute on corporate initiatives Workforce/leadership development Business Investors Lower operational costs, regulations Advertising and marketing to drive traffic and sales w/out involvement Attract and retain skilled staff Access to experts, best practices Business Builder Just-in-time needs (leads = sales) Immediate ROI w/limited investment Exposure, connections with others Personal visibility, I = brand Low cost opportunities I N V O L V E D I N V E S T E D Get Something for Their Business © 2016 Hight Performance Group, Inc. A New Approach to Tiered Membership 11

Approaches to Tiered membership models Moving from the Traditional to a Targeted Approach Approaches to Tiered membership models © 2016 Hight Performance Group, Inc. A New Approach to Tiered Membership 12

The Traditional Tiered Model Base +++ Base ++ Base + Base Benefits © 2016 Hight Performance Group, Inc. A New Approach to Tiered Membership 13

Sample Base-Plus Tiered Model © 2016 Hight Performance Group, Inc. A New Approach to Tiered Membership 14

Targeted Benefits Approach Core base of benefits are offered to all members Each tier targets a specific type of member Tiers may have more than one level Benefits are based on values, interests and/or needs of the type of member Pricing is based on value (perception/ reality) Requires staff to be member-centric © 2016 Hight Performance Group, Inc. A New Approach to Tiered Membership 15

Targeted Benefits for Each Category Get Something Done Through You Community Investors Annual Meeting, signature events Economic Updates State of the Chamber, City, County Access to policymakers Scholarships Education initiatives Community Builders Access to policymakers, other leaders Opportunities to promote company, “tell their story” Leadership Roundtables (peers, staff) Volunteer opportunities for staff Business Investors Enhanced visibility JIT educational opportunities Access to experts, strategic introductions, capital Industry or SIG roundtables, peer- to-peer opportunities Business Builders Free or low-cost marketing, visibility Business referrals and leads Opportunities to connect with others Volunteer opportunities Start-up assistance I N V O L V E D I N V E S T E D Get Something for Their Business © 2016 Hight Performance Group, Inc. A New Approach to Tiered Membership 16

A New Approach to Tiered Membership The Ideal Tiered Model Offers the Right Benefits for the Audience Different types of members join and renew to engage with the Chamber and its community Understand the values and interests of different types of members Offer different types of engagement and benefits that resonate with each type of member (not necessarily the base, base +, base ++, base +++) Repurpose your current benefits to match interests A New Approach to Tiered Membership

Chambers using the new Approach to tiered benefits Samples from our clients Chambers using the new Approach to tiered benefits © 2016 Hight Performance Group, Inc. A New Approach to Tiered Membership 3

A New Approach to Tiered Membership © 2016 Hight Performance Group, Inc. A New Approach to Tiered Membership 19

A New Approach to Tiered Membership © 2016 Hight Performance Group, Inc. A New Approach to Tiered Membership 20

A New Approach to Tiered Membership © 2016 Hight Performance Group, Inc. A New Approach to Tiered Membership 21

A New Approach to Tiered Membership © 2016 Hight Performance Group, Inc. A New Approach to Tiered Membership 22

One Size Does Not Fit All It starts with the Messaging Explain the different levels Show that you understand the interests and values of each segment Let them know there are benefits catered to each level of membership “Strive not to be a success, but rather to be of value.” Albert Einstein © 2016 Hight Performance Group, Inc. A New Approach to Tiered Membership 23

The step-by-step process to Develop a Unique Model for You Change is a thoughtful process The step-by-step process to Develop a Unique Model for You © 2016 Hight Performance Group, Inc. A New Approach to Tiered Membership 24

Step 1: Review the “As Is” Model Membership Demographics Identify Revenue Distribution How many members pay what amounts (dues/non-dues Current Benefits Inventory List all benefits (program, services, products, etc.) © 2016 Hight Performance Group, Inc. A New Approach to Tiered Membership 25

Step 2: Use the Matrix to Understand Different Interests Create a task force that represents the Member Profile Matrix Consider current challenges the Chamber faces Retention Engagement Revenue Explore how you currently serve each type of member Programs, benefits Identify which current benefits are of value for each member type Some are great for all Some are best for specific members only © 2016 Hight Performance Group, Inc. A New Approach to Tiered Membership 26

Step 3: Consider How to Give Members More of What They Want Gaps for each segment Which needs and interests are you not addressing? What needs are not being addressed through others? Ideas for new benefits for segments What can you offer Business Builders to help them connect? What can you offer Business Investors to help them grow? What can you offer to Community Builders to help them achieve their corporate initiatives or be seen as leaders? What can you offer to Community Investors who support long-term community needs and your mission? Feedback from stakeholders Learn from representatives from each segment Surveys, polls, interviews, focus groups © 2016 Hight Performance Group, Inc. A New Approach to Tiered Membership 27

Step 4: Enhance Model and Benefits Determine which model is best for you Select existing benefits to offer all members Identify benefits to offer to targeted audiences Evaluate pricing levels for tiered packages Base +++ Base ++ Base + Base Benefits © 2016 Hight Performance Group, Inc. A New Approach to Tiered Membership 28

Step 5: Finalize Model and Benefits Incorporate feedback from members and prospects Refine levels and benefits Determine pricing levels Consider different financial projection scenarios Share final version with the Board of Directors © 2016 Hight Performance Group, Inc. A New Approach to Tiered Membership 29

Step 6: Develop an Implementation Plan Discuss roll-out challenges Develop implementation strategies Decide on roles, responsibilities, actions and timelines Design the marketing version of the model Update the web site Train staff and volunteers © 2016 Hight Performance Group, Inc. A New Approach to Tiered Membership 30

The Program Gives You Everything You Need for Success A New Approach to Tiered Membership book Private Facebook Community creates a peer-learning environment with other chamber professionals Ask questions and respond to others’ requests Library of tiered models designed by chamber pros 3 webinars for “deep-dives” of the chapters and to discuss how to apply the various concepts Optional one-on-one consultations to discuss ideas and challenges, and develop your new membership model © 2016 Hight Performance Group, Inc. A New Approach to Tiered Membership 31

Let Us Know How We Can Help Learn more at: http://hightperformance.com/tiered-membership-program-sign-up/ Contact us at (512) 354-7219 or at cathi@hightperformance.com A New Approach to Tiered Membership 32