Current Trends and Issues in the Chamber Industry

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Current Trends and Issues in the Chamber Industry
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Little Know Facts
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Did you know?

• Many years ago in Scotland, a new game was
  invented. It was ruled Gentlemen Only Ladies
  Forbidden thus the word GOLF entered the English
  Language.

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Did you know?

• The first couple to be shown in bed together on
  prime time TV were who?
• Fred Wilma Flintstone

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Did you know?

• Coca-Cola was originally green

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Did you know?

• It is impossible to lick your elbow.

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Did you know?

• The average number of people airbourne over the
  U.S. at any given hour?
• 61,000

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Did you know?

• Half of all Americans live within 50 miles of
  what?
• Their birthplace

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Did you know?

• What do bulletproof vests, fire escapes,
  windshield wipers and laser printers all have in
  common?
• All were invented by women

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Did you know?

• Which day are there more collect calls than any
  other day of the year?
• Fathers Day

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Did you know?

• The first novel ever written on a typewriter?
• Tom Sawyer

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Did you know?

• By raising your legs slowly and lying on your
  back, you cant sink in quicksand.

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Current Trends and Issues in the Chamber Industry
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Some Chambers Are Losing Sight of Their Mission
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Some Chambers Are Losing Sight of Their Mission

• One chambers mission
• To strengthen the local economy and serve as the
  voice of business in community affairs.

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Some Chambers Are Losing Sight of Their Mission

• Annual Report Included
• Successful Golf Tournament
• Successful Wine/Art Festival
• Successful Mixers
• Successful Car Show in Park
• Successful Holiday Parade
• Successful Casino Night

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Some Chambers Are Losing Sight of Their Mission

• Say What!?
• To strengthen the local economy and serve as the
  voice of business in community affairs.

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Some Chambers Are Losing Sight of Their Mission

• The Chamber of Commerce?..or
• The Chamber of Events?

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Some Chambers Are Losing Sight of Their Mission

• Business Plans need to have a balance between
  fundraising events and things that achieve your
  chambers mission.
• The acid test - Does it meet the mission of
  the organization?

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The Right Components of A Chamber Business Plan

• Networking/Referrals/Exposure
• Create a Strong Local Economy
• Promote the Community
• Represents Interest of Business with Government
• Political Action

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Networking, Referrals, Exposure

• Creates 8 New Industry-based networking groups
  Parker CO
• Young Execs Bellevue WA
• Web Site Referrals/Invoices Beaverton OR
• Speed Leads - Hollywood

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Promote the Community

• Donuts Sales Mini Grants for Educators N.
  Clackamas County OR
• 120,000 Annual Scholarship Program for HS
  Seniors Santa Ana Chamber
• On-Line Diversity Kit San Luis Obispo
• City Contracts with Chamber for Marketing Plan
  Development - Tulare

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Create Strong Local Economy

• Venture Forum Eugene OR
• Chamber Checks 250K Elko NV
• All City Sale Camarillo CA
• Red Team help businesses stay in community
  Riverside
• Weekly Economic Snapshot Survey Tracy CA

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Represent Business Interests

• Privatizing some city staff positions Redding
  CA
• Stopped Ordinances that would have prevented big
  box retailers Lodi, Flagstaff AZ
• Advice on city budget Santa Ana CA
• Local Preference Ordinance for City Contracts
  San Leandro CA

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Political Action

• Endorsing candidates for city council, state
  legislature and Congress
• El Centro, Riverside, Lakewood, Gilbert AZ,
  Bellingham WA, Pleasanton, San Diego East County,
  Santa Clarita, Torrance,
• Civic Report Card San Jose
• Publishing Voting Records of Legislators

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Too Many Chambers?
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Too Many Chambers?

• Less than 250 in membership and less than 250K
  income
• Mission Statement Survival
• One fund-raiser after another
• Only has programs/services in one or two of the
  core competency areas
• Typically understaffed high turnover

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Too Many Chambers?

• If the urge to merge is not there, then hope is
  that larger adjoining chambers would offer more
  assistance
• Next recession will really force this issue
• Future trend will be towards more regional
  chambers
• Need to breakout of our geographic mindset.
• Creating a strong local economy blurs political
  boundaries.

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More Politically Active
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Does Your Chamber Have a PAC?
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More Politically Active

• More chambers are forming political action
  committees (PACs) (26) (5 - 1992)
• Some large (CA) corporations are only supporting
  chambers that are politically active

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More Politically Active

• Building advocacy coalitions is common.
• South Bay Association of Chambers
• San Rafael, Santa Rosa, Napa, Fairfield-Suisun
  Chambers Alliance of North Bay Chambers
• Merced, Turlock, Modesto, Los Banos Central CA
  Chamber Alliance
• East Valley Legislative Coalition Mesa, Tempe,
  Chandler, Gilbert, AZ
• Candidates Program San Jose, Ventura, San
  Rafael, Santa Clarita, Ranch Cucamonga

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Continued Dependency on Government Funding
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Does Your Chamber Receive Any Kind of Government
Funding?
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Chambers Receiving Government Funding

• Government funds account for at least 25 of a
  chambers total income in 1/3 of the chambers
  receiving government funding?
• Ten chambers receive government funds totally
  more than 50 of their total income.

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Chambers Receiving Government Funding

• Contract (80) vs. Allotment (20)
• Keep government funds separate

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Chambers Receiving Government Funding

• Do you feel that your chamber's effectiveness in
  representing your business community in
  local/county issues is hindered by accepting
  government funding?

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Chambers Government Funding

• Over 80 of chambers receiving government funds
  say NO!
• Over 80 of chambers not receiving government
  funds say YES!
• Almost 70 of board members agree that receiving
  govt money can affect the chambers ability to
  take on city hall.

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Chambers Receiving Government Funding

• Chambers may want to wean themselves from
  government funding.
• If the business community wont financial support
  a business organization why should government?

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Dues Schedules Havent Kept Up With Inflation
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Dues Schedules Havent Kept Up With Inflation

• Too much emphasis on fund raisers and other
  sources of income.
• On average, dues account for 40 of a chambers
  total income.
• Dues remain the largest single source of income
  for most chambers.

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Policy of Increasing Dues Every Year
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Dues Schedules Havent Kept Up With Inflation

• 200 in Dues in 2000 174 in 2005
• Automatic CPI Increases

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Common Characteristics of Good Dues Schedules

• Annual Increases (minimum CPI)
• No More than 25 of members at minimum dues
• Lots of different levels
• Significant dollar amounts between levels
• Avg. Dues per member 1.5 times base rate
• Few (if any) sub-level categories

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Future Trend in Dues Schedules?

• More and more chambers are implementing a
  tiered benefits dues schedule.

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Need to Re-Think the Chambers Marketing Efforts
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Need to Re-Think the Chambers Marketing Efforts

• Most chambers dont have membership problems
  they have a marketing problem
• Too concerned with membership numbers
• Focus on bottom line/profit
• Cant spend members, can only spend dollars.

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Need to Re-Think the Chambers Marketing Efforts

• Too much emphasis on participation

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Need to Re-Think the Chambers Marketing Efforts

• WHY THEY JOIN
• Referrals/Exposure-110
• Networking - 100
• Benefits/Services - 37
• Govt Representation-34
• Community Support-16
• Participation 1

• WHY THEY RENEW
• Community Support-96
• Govt Representation-70
• Referrals/Exposure-48
• Networking - 48
• Benefits Services-43
• Participation- 9

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Need to Re-Think the Chambers Marketing Efforts

• WHY MEMBERS DROP
• Closed or Moved-100
• No time to participate-84
• Cant Afford-62
• No Benefit-58
• Disagree with decisions/direction-3

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Need to Re-Think the Chambers Marketing Efforts

• 1 reason given by prospective members as to why
  they wont join their local chamber?
• No time to participate

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Need to Re-Think the Chambers Marketing Efforts

• Need to sell connections not participation
• One size fits all mentality is obsolete!
• Your members are different people belong for
  different reasons.
• Develop different elevator speeches for various
  types of businesses.

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What Are You Communicating?
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What Are You Communicating?

• 55 of Lead Articles in Newsletters Are Events!
• Business Related Stories (if any) are buried!
• Communications need to show how your programs and
  services are relevant to members bottom lines.
  

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What Are You Communicating?

• Seven Magic Words of Chamber Communication
• Now heres what it means to you (the member).

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Current Trends/Issues

• Losing Sight of Our Mission
• Too Many Chambers?
• More Politically Active
• Too Dependent of Government Funds
• Inadequate Dues Schedules
• Need to Re-Think Our Marketing
• What Are You Communicating?

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At Last - The End!

• Steve Snyder, Director of Local Chamber Services
• California Chamber of Commerce
• 1215 K St Suite 1400
• Sacramento CA 95812
• steve.snyder_at_calchamber.com
• 916-930-1241