Why is VOI Greater than ROI?

1. COMMUNICATING MEMBER VALUE Why is VOI Greater than ROI?

2. Cathi Hight • President of Hight Performance Group • The member retention specialist • Developer of the Member Retention Kit • National instructor for the U.S. Chamber’s Institute for Organization Management • Previous VP of Operations for the Chamber of Commerce of Hawaii • Served on Boulder Chamber of Commerce board and was the Member Council Chair, (focuses on building a sustainable membership base) • Immediate Past-President of the Boulder Area Human Resource Association (BAHRA) • Is a member of the: • American Chamber of Commerce Executives (ACCE) • American Society of Association Executives (ASAE) • Boulder Area Human Resources Association (BAHRA) • Boulder Chamber • Greater Austin Chamber • Society for Human Resource Management (SHRM)

3. Session Objectives • Discover the power of VOI and why it means more than ROI ever will • Identify the top 12 VOI benefits associations deliver to stakeholders • Consider how to leverage your VOI to communicate the value of membership • Explore how to develop a VOI campaign to recruit and retain more members

4. The Challenge of Communicating Membership Value • Members feel you communicate too much • Members don’t open e-mails or read what you write • Members don’t respond to opportunities or access benefits • Members complain that they don’t receive value • Benefits don’t resonate with prospects

5. Why Communication Fails • People don’t care about you until they know “What’s in it for Me?” • People use selective listening due to over-stimuli, lack of perceived relevance and distractions • If people have to work to translate what you mean, they tune out

6. The “So What?” Factor • Key Takeaways from the book: • We have fallen into the trap of selling what we think is important • We sell features and not benefits that really matter to our audience • We use MY language and not our that of customers’ or prospects’ • We don’t answer the “So What?” question and people stop listening

7. What Matters Most? Common Interests and Needs

8. Member Profile Matrix—The4 Types Get Something Done Through You I N V O L V E D I N V E S T E D Get Something for Their Business

9. The Role of Value Propositions • What’s a “value proposition” for associations? A clear and succinct statement on the benefits of membership. • Two types of value propositions • General: Targeted for large audience (one size fits all) • Unique: Targeted for specific group/person (benefits are specific to a group/person’s interests/needs.)

10. Characteristics of Strong Value Propositions • It must differentiate you from others • It may match a competitor on some benefits but not all • You must be exceptional in at least one benefit (the more exceptional you are in more than one, the stronger the value) • It must be about what matters most to the audience

11. So What? Benefits • Get face-to-face with representatives at the Meet the Legislators forum each fall and tell them how issues directly impact your business. • With 4 different networking events each month, you can access over 400 prospects for free or low cost to market what you offer! (BAH = 150 contacts @ $15!) • Our spring Business Expo attracts 4,000 prospects and high visibility for your business. • We increase your profits by saving you money on everyday business costs. Chamber Features We hold a Meet the Legislators forum each fall. We offer 4 different networking events a month. Our After Hours Mixer alone draws over 150 people each month! We hold a Business Expo each spring to promote our members. We offer discounts for office supplies, shipping, and utilities. “So What?” is All About Benefits, Not Features

12. General Value Propositions • Are intended to serve a broad audience • Are core benefits of the Chamber • All members would value the benefits • State the General Value • What are the 3 key or primary issues most businesses face? • What are the 3 things the Chamber does to address these issues? • State the issues and value the Chamber delivers in common business language.

13. Format to Create General Value Propositions Easy format for 45 second messages: • Do you know how. . .? • We. . Other general value propositions: We monitor actions by local and national policymakers and weigh in on issues that impact your business so you can grow and be profitable. We work on attracting new employers to the area and help existing businesses expand and grow. This creates more jobs and increased prosperity for our community. State the General Value • What are the 3 key or primary issues the majority of your audience faces? • What are the 3 things that you do to address these issues? • State the issues and value that you deliver in language common to your audience.

14. Create Unique or Targeted Value Propositions • Are intended to serve a specific audience or person • Are specific benefits of the Chamber • Only certain members would value the benefits State the Unique Value • What are the 3 key or primary issues a specific type of member faces? • What are the 3 things the Chamber does to address these issues? • State the issues and value the Chamber delivers in language common to this group.

15. Do you know how costly it is for small, independent restaurants to advertise and promote specials on a consistent basis? The Texas Restaurant Association offers low-cost advertising on our web site and in our directory to help downtown Austin restaurants reach over 2,000 people a month and generate traffic to the downtown area. Do you know how hard it is for small manufacturers to train their staff and stay on top of all the new regulations? The NAM offers timely, low-cost training made available by our generous sponsors so your staff can get the skills and information they need to do their jobs and comply with new regulations. Examples of Unique Value Propositions

16. Move from ROI to VOI to Communicate Value ROI is about the bottom line Value = $ invested – Hard Costs Make the shift to VOI (Value on I______) where “I” is more than Investment Value = Perceived Business/Personal Benefits that go beyond Hard Costs

17. Membership is All about the Value of I_________ • Investment: Direct return for dues/non-dues (sometimes) • Information: Unique sources, timely and for members only • Initiatives/Issues: Taking positions/ lead on what matters • Influence: Ability to persuade and affect outcomes • Impact: Direct result of initiatives, positive consequences • Introductions: Access to mentors, customers, peers • Interaction: Positive experiences, quality of conversations • Innovation: Cutting-edge ideas, opportunities, technology • Instruction: New skills or applications learned • Intelligence: New awareness, understanding, knowledge • Insights: Lessons learned, breakthroughs • Integration: Ability to implement ideas into business

18. 3 Strategies to Move from ROI to VOI

19. #1 Know What Keeps Them Up at Night Conversations with members Interviews with non-members Focus groups Surveys Polls Social media discussions

20. Ask Questions—Discovery Time • Sample Questions: • What are the top 2 strategic initiatives your organization is focused on this year? • What top 2 challenges are you trying to address over the next 9 – 12 months? • Which top community/ industry issues should we be focused on? • Which specific needs do you have that are not being addressed by any other organization in the area? • I would become a member if you _________________.

21. #2: Take a Hard Look at What You Offer • Ask members if they value what you offer • Surveys • Interviews • Quick Polls • Phone Calls • Focus Groups

22. Different Benefits #3 Align Your Benefits for Access, Resources & Solutions Different Interests Community Investors Community vision, strategic plan Strengthening local economy Representing business interests Community Builders Representing business interests Building corporate brand Executing corporate initiatives Business Investors/Builders Education/skills development Mentoring, counseling, experts Information (FYI, Just in Time) Visibility (marketing, exposure) Connections to the right audience Tiered benefits model that matter to different types of members Offer unique opportunities through your relationships and partners Access to people that matter to them Resources, info that save time Solutions that address challenges Create web-based, self-serve benefits (portals to members-only sections, education, information) Offer opportunities for Special Interest Groups to convene (social media, exclusive access, collective content)

23. Discover Your VOI • Which sources of information from us do you value the most and why? • Describe one initiative we led and how it positively impacted your business. • What value do you receive from interacting with other members? • How have we helped you to develop relationships with others in the industry/area? • Describe something new you learned as a result of one of our educational opportunities and how it helped you or your business. • What new ideas or perspectives did you learn about from other members that have been integrated into your business? • What one thing do you value the most from your relationship with _____?

24. Let Members Tell Your Story • Interview “champion” members and showcase their businesses (use Flip video cameras) • Showcase video and print testimonials on your website, newsletters, directory, etc. (ex. http://www.boulderchamber.com/) • Ask VOI questions on social media platforms and allow members to comment • Use the “So What?” language members provide and mirror it • Create a FAQ on member benefits and feature responses from members who use those benefits

25. Develop a VOI Campaign to Recruit and Retain Members • Review existing marketing collateral (web pages, brochures, flyers) and evaluate if messages answer the “So What?” questions or has strong VOI benefits • Rewrite marketing messages in language that makes prospects and members say, “I need that,” “Just what I’m looking for, “That’s why I’m a member!”

26. Steps to Create a VOI Campaign • Determine which benefits resonate best with the 4 types of members • Consider specific benefits for each type of member • Use VOI statements to communicate your value propositions • Talk to members that represent each of the 4 types of members and collect testimonials that speaks to the VOI benefits they value • Use their “language” so it will resonate with their peers • Consider where to make VOI visible (e.g., video clips on website, YouTube, social media sites, marketing collateral)

27. “Value is validated by a member’s willingness to exchange money or time for something.” Road to Relevance Do you provide benefits that members value?

28. Session Summary • Value propositions sell the real benefits of membership in the eyes and language of members • Strong propositions are unique to the Association and are focused on benefits that matter most to prospects and members (they answer the “So What?” questions) • Communicate the Value of I__________ and realize that membership is much more than Investment • Current members who get the value of membership communicate the messages the best!

29. To Your Success! • Benchmarking and special projects • Onsite and virtual staff training • Board retreats and strategic planning sessions • Membership retention plans • Conference presentations and workshops • Books, webinars and articles on our web site: www.hightperformance.com • Contact us at (512) 354-7219 or at cathi@hightperformance.com