1. Dues Systems Analysis ACCE 2006 Conference Dawn A. Moliterno
Walton County Chamber of Commerce

2. Determining Dues Structures
And now you have to answer the
million-dollar question:
What is the best way to equate
membership dues?
Our purpose is to show you how the GCCC is adapting to rapid change and significant competitive challenges in its 7 county metropolitan marketplace. Essentially, for the first time we will align ourselves to sell and deliver on value propositions instead of mass marketing of product and services.
We will demonstrate that through a tiered investment strategy we will have a better alignment of product and services, better delivery to members, for the first time we will have a clear concise message that all members can appreciate and understand their return on investment. It brings accountability to all GCCC staff for all products and services and better engagement of members through a variety of means.
It will increase retention through a relationship marketing approach. The ultimate affect is the realization of a stronger revenue stream.
Our current structure is rigid, fragmented and difficult to sell since it is a mass marketing approach (one size fits all). Now members can drive the relationship, rather than the chamber. In turn, we can adjust our price based on market conditions instead of always trying to catch up to the market trend.

3. Determining Dues Structures
Membership dues account for
30-80% of annual revenues
Our purpose is to show you how the GCCC is adapting to rapid change and significant competitive challenges in its 7 county metropolitan marketplace. Essentially, for the first time we will align ourselves to sell and deliver on value propositions instead of mass marketing of product and services.
We will demonstrate that through a tiered investment strategy we will have a better alignment of product and services, better delivery to members, for the first time we will have a clear concise message that all members can appreciate and understand their return on investment. It brings accountability to all GCCC staff for all products and services and better engagement of members through a variety of means.
It will increase retention through a relationship marketing approach. The ultimate affect is the realization of a stronger revenue stream.
Our current structure is rigid, fragmented and difficult to sell since it is a mass marketing approach (one size fits all). Now members can drive the relationship, rather than the chamber. In turn, we can adjust our price based on market conditions instead of always trying to catch up to the market trend.

4. Average Dues Amount
Every chamber, by virtue of its unique market area, requires a customized approach.
Where to start: equate your average dues by using the following formula:
Total dues book value ($$) Number of members (#) = average dues amount
Our purpose is to show you how the GCCC is adapting to rapid change and significant competitive challenges in its 7 county metropolitan marketplace. Essentially, for the first time we will align ourselves to sell and deliver on value propositions instead of mass marketing of product and services.
We will demonstrate that through a tiered investment strategy we will have a better alignment of product and services, better delivery to members, for the first time we will have a clear concise message that all members can appreciate and understand their return on investment. It brings accountability to all GCCC staff for all products and services and better engagement of members through a variety of means.
It will increase retention through a relationship marketing approach. The ultimate affect is the realization of a stronger revenue stream.
Our current structure is rigid, fragmented and difficult to sell since it is a mass marketing approach (one size fits all). Now members can drive the relationship, rather than the chamber. In turn, we can adjust our price based on market conditions instead of always trying to catch up to the market trend.

5. Membership Tip:
Most experienced membership professionals will agree that an organization’s average dues should be at least double its minimum dues.
Our purpose is to show you how the GCCC is adapting to rapid change and significant competitive challenges in its 7 county metropolitan marketplace. Essentially, for the first time we will align ourselves to sell and deliver on value propositions instead of mass marketing of product and services.
We will demonstrate that through a tiered investment strategy we will have a better alignment of product and services, better delivery to members, for the first time we will have a clear concise message that all members can appreciate and understand their return on investment. It brings accountability to all GCCC staff for all products and services and better engagement of members through a variety of means.
It will increase retention through a relationship marketing approach. The ultimate affect is the realization of a stronger revenue stream.
Our current structure is rigid, fragmented and difficult to sell since it is a mass marketing approach (one size fits all). Now members can drive the relationship, rather than the chamber. In turn, we can adjust our price based on market conditions instead of always trying to catch up to the market trend.

6. Sample Dues Models
Business Membership (based on full-time-equivalent employees)
FTE Employees Investment
1-10 $ $ $ $ $695
$ $ $ $1195
$1295 Per 50 additional employees: +100
Additional business location (restrictions apply): 75
Financial Institutions (per location) 500
Hotels & Motels: 295 Or $4.50 per room ($5.50 with restaurant/lounge), whichever is greater
Professional Organization: 295
Professional Sub-Listing: 100
Non-Profit 501(C)(3), Government agencies, churches: 295
Retired Business Member: 100
Multi-Year Discounts
Save money by prepaying your membership!  Save 10% per year by prepaying for 2 years, or save 15% per year for 3 years.
Our purpose is to show you how the GCCC is adapting to rapid change and significant competitive challenges in its 7 county metropolitan marketplace. Essentially, for the first time we will align ourselves to sell and deliver on value propositions instead of mass marketing of product and services.
We will demonstrate that through a tiered investment strategy we will have a better alignment of product and services, better delivery to members, for the first time we will have a clear concise message that all members can appreciate and understand their return on investment. It brings accountability to all GCCC staff for all products and services and better engagement of members through a variety of means.
It will increase retention through a relationship marketing approach. The ultimate affect is the realization of a stronger revenue stream.
Our current structure is rigid, fragmented and difficult to sell since it is a mass marketing approach (one size fits all). Now members can drive the relationship, rather than the chamber. In turn, we can adjust our price based on market conditions instead of always trying to catch up to the market trend.

7. Sample Dues Models Typical Dues Structures. By number of employees
Sample Dues Models Typical Dues Structures By number of employees By business category By tiered investment strategy By hybrid of both = investor levels Combination of all others?
Our purpose is to show you how the GCCC is adapting to rapid change and significant competitive challenges in its 7 county metropolitan marketplace. Essentially, for the first time we will align ourselves to sell and deliver on value propositions instead of mass marketing of product and services.
We will demonstrate that through a tiered investment strategy we will have a better alignment of product and services, better delivery to members, for the first time we will have a clear concise message that all members can appreciate and understand their return on investment. It brings accountability to all GCCC staff for all products and services and better engagement of members through a variety of means.
It will increase retention through a relationship marketing approach. The ultimate affect is the realization of a stronger revenue stream.
Our current structure is rigid, fragmented and difficult to sell since it is a mass marketing approach (one size fits all). Now members can drive the relationship, rather than the chamber. In turn, we can adjust our price based on market conditions instead of always trying to catch up to the market trend.

8. Sample Dues Models Investor Level Program Some not tied to dues investment and is over and above dues. Chamber must sell twice-- once on dues, second to join an Investor level Can fragment the value of dues as compared to added value of investor levels Can create confusion and multiple messages Dual management of service and delivery, since it is a separate program
Our purpose is to show you how the GCCC is adapting to rapid change and significant competitive challenges in its 7 county metropolitan marketplace. Essentially, for the first time we will align ourselves to sell and deliver on value propositions instead of mass marketing of product and services.
We will demonstrate that through a tiered investment strategy we will have a better alignment of product and services, better delivery to members, for the first time we will have a clear concise message that all members can appreciate and understand their return on investment. It brings accountability to all GCCC staff for all products and services and better engagement of members through a variety of means.
It will increase retention through a relationship marketing approach. The ultimate affect is the realization of a stronger revenue stream.
Our current structure is rigid, fragmented and difficult to sell since it is a mass marketing approach (one size fits all). Now members can drive the relationship, rather than the chamber. In turn, we can adjust our price based on market conditions instead of always trying to catch up to the market trend.

9. Tiered Investment Programs

10. What Works & What Doesn’t
Our purpose is to show you how the GCCC is adapting to rapid change and significant competitive challenges in its 7 county metropolitan marketplace. Essentially, for the first time we will align ourselves to sell and deliver on value propositions instead of mass marketing of product and services.
We will demonstrate that through a tiered investment strategy we will have a better alignment of product and services, better delivery to members, for the first time we will have a clear concise message that all members can appreciate and understand their return on investment. It brings accountability to all GCCC staff for all products and services and better engagement of members through a variety of means.
It will increase retention through a relationship marketing approach. The ultimate affect is the realization of a stronger revenue stream.
Our current structure is rigid, fragmented and difficult to sell since it is a mass marketing approach (one size fits all). Now members can drive the relationship, rather than the chamber. In turn, we can adjust our price based on market conditions instead of always trying to catch up to the market trend.

11. Methods of Increasing Dues CPI Voluntary annual increases- The chamber automatically includes a voluntary increase on the dues invoice each year. The amount and practice is established and approved by the board. Across the board one-time increase of minimum dues- the increase is usually substantial. Re-evaluation of selected classifications of members- Looking to certain categories for more opportunity. The creation of investor levels- charging an additional predetermined fee for specific benefits over and beyond the dues investment. Systematic checks on employee growth/company changes or re-evaluation of selected classification of members. Usually this is done as part of a larger renewal strategy.

12. Building Tiers - The pre-determined number of tiers (levels) of investment - Matched and priced to market realities - Added value throughout the tiers - Customized tiers to match the segmented target audiences - Value propositions for each tier - Continually changing tiers - Sustainability plan
Our purpose is to show you how the GCCC is adapting to rapid change and significant competitive challenges in its 7 county metropolitan marketplace. Essentially, for the first time we will align ourselves to sell and deliver on value propositions instead of mass marketing of product and services.
We will demonstrate that through a tiered investment strategy we will have a better alignment of product and services, better delivery to members, for the first time we will have a clear concise message that all members can appreciate and understand their return on investment. It brings accountability to all GCCC staff for all products and services and better engagement of members through a variety of means.
It will increase retention through a relationship marketing approach. The ultimate affect is the realization of a stronger revenue stream.
Our current structure is rigid, fragmented and difficult to sell since it is a mass marketing approach (one size fits all). Now members can drive the relationship, rather than the chamber. In turn, we can adjust our price based on market conditions instead of always trying to catch up to the market trend.

13. The Value Model Vs. The Formula Model

14. Why? Clarity and Focus Realignment Accountability
Competitive Advantage
Engagement
Members Have a Choice
One Clear & Concise Message
Strong Value Proposition
Increased Market Share
Increased New Member Sales & Retention
Our purpose is to show you how the GCCC is adapting to rapid change and significant competitive challenges in its 7 county metropolitan marketplace. Essentially, for the first time we will align ourselves to sell and deliver on value propositions instead of mass marketing of product and services.
We will demonstrate that through a tiered investment strategy we will have a better alignment of product and services, better delivery to members, for the first time we will have a clear concise message that all members can appreciate and understand their return on investment. It brings accountability to all GCCC staff for all products and services and better engagement of members through a variety of means.
It will increase retention through a relationship marketing approach. The ultimate affect is the realization of a stronger revenue stream.
Our current structure is rigid, fragmented and difficult to sell since it is a mass marketing approach (one size fits all). Now members can drive the relationship, rather than the chamber. In turn, we can adjust our price based on market conditions instead of always trying to catch up to the market trend.

15. The Situation
Needed to add more value in each tier and define the organization’s value propositions
Needed to create new product
Needed to reinvent the Chamber’s marketing messages and strategy
Retooled the structure to match other successful chamber models
Established a financial analysis

16. How do we want WCCC Members to feel…
Excited

17. How Does the Chamber Make Members Feel…
Enthusiastic

18. How Does the Chamber Make Members Feel…
Energized

19. How Does the Chamber Make Members Feel…
Engaged

20. How Does the Chamber Make Members Feel…
Energized

21. How Does the Chamber Make Members Feel…
Ecstatic

22. How Does the Chamber Make Members Feel…
“Exclusive”
Emerald Investor

23. Empowered & Enlightened
After they have been Educated as to all our offerings businesses then feel…
Empowered & Enlightened

24. How Does the Chamber Make Members Feel…
Enrolled
Individual members

25. Individuals
Designed for retired individuals not represented by a business
Falls under Enthusiastic Level
Annual Value is $565.00
Investment is $125.00
We don’t currently allow for this segmented audience. Again, we won’t market to this audience but have a way to accommodate them if they approach us.

26. Non-Profits Must be a charitable 501(c)3
These organizations receive the benefits of Enthusiastic Level
Currently we are not consistent in how we handle this segmented audience. Under the new plan, we will have a structure in place to ensure the integrity of the investment schedule. Non-profit is defined by being a charitable non-profit. LAl other pay investment schedule.

27. What’s Our Risk?

28. What Did You Learn?
Key to our Success?

29. Implementation Strategies
Relationship Marketing
Two Year Plan to Visit All Members
Personalized Approach
The success of this program lies in the relationship marketing strategy. This program forces the GCCC staff to visit members to build strong relationships and ensure the longevity of their involvement with the chamber. This is a true retention plan.
We will segment our investors and split the visitation schedule amongst senior staff, membership staff and board. We will host a short training session for everyone to learn how to sell the value propositions, understand the program details and the importance to capture relevant information during the visit.
A transition document will be filled out by the staff person and brought back to be placed in the database and/ or to staff if any issues, concerns or ideas arise.
Members are often thrilled to have someone take the time to visit with them and interact in such a personal manner. This is the only way to sell since members join on a promise but stay based on their experience. If they have had no personal interaction then they have no point of reference or an experience to pull from.

30. Roll-Out to Existing Members
Existing Members are “Grand-fathered” for up to two years
“Membership Appreciation Renewal Plan” members are automatically placed into the tier that matches their current dues amount
We will approach it as an investor appreciation plan- members will be placed into their tier and then consulted with on how we will transition them over a two year period to allow for proper budgeting. Typically, they understand that they get a lot more for their investment and are happy with the personal interaction.

31. Timeline Example
2005 Annual Meeting- First mention of new program and to expect our visit
December 15, Implement new member sales and new marketing materials-Go Live!
January 1, Implement renewal transitions
(board, at risk, large investors and then general visits)
July Review and revise program as needed
October First wave of transitions to take effect
October Renewal Transition Complete
Marketing messaging will be woven throughout everything we do starting January 1, 2005

32. Frequently Asked Questions

33. Worksheet Handouts

34. Questions & Answers

35. Dawn A. Moliterno Walton County Chamber of Commerce 63 South Centre Trail Santa Rosa Beach, FL P (850)