Tweet

The Dirty Secret of Why Many Chambers of Commerce Fail to Increase Sales

Written by: Leanne Hoagland-Smith

Article Overview: Throughout the United States, Chambers of Commerce engaged in annual or even bi-annual membership drives. Yet, the 800# gorilla in the room is this dirty secret. Read on if this is of interest to you.

The Dirty Secret of Why Many Chambers of Commerce Fail to Increase Sales

Throughout the United States, Chambers of Commerce engaged in annual or even bi-annual membership drives. Yet, the 800# gorilla in the room is this dirty secret.

So what is the dirty little secret? These organizations have failed to understand the basic purpose of any business and that is to attract and maintain loyal customers. If the organization was truly on purpose, those annual membership drives would not be as critical. However, because these folks engage in behaviors that turn off their customers (a.k.a. members), they are forced expend a lot more energy to recruit new members.

Membership drives are necessary because businesses come and go. However if Chambers truly understood customer loyalty, there would far greater emphasis on this type of expensive marketing strategies.

Maintaining loyal customers when your organization demonstrates value through the behaviors of their employees should not truly be that difficult. However, the personal agendas of those within the organization interfere with the purpose of many chambers of commerce.

For example, do any business research and you will find that small businesses account for the majority of business within America. Yet, some of these organizations that advocate small businesses physically demonstrate behaviors that are 100% the opposite.

During the last 10 years, I have observed these organizations trampling their small business members in their efforts to support the larger businesses from banks to national retail stores to universities. The rationale is that these businesses have the big bucks to sponsor the many events being offered by the Chambers. That is reasonable argument on the surface. Then do not tell the small business owners that you support them with the same level of behaviors that you give to the deep pocket businesses.

One of my newest Triage Business Action Plan clients was a victim of these behaviors. As a member of a special event committee, she sponsored (donated) some gift baskets that included her name on a stamped gold label along with some balloons. The night of the event, a committee member had all of her labels removed because that type of advertising was not allowed.

This type of marketing where the business includes their name and contact information is standard operating procedure (SOP). However, at no time did this committee indicate that sponsors could not include their names. My client was not the only small business owner to suffer this fate for this event. Yet, what the members of the committee did do during the event was to freely promote the names of several national retail stores, banks and other such organizations while ignoring those small business owners who donated at their own expense products or services.

Similar stories can be found in many Chambers of Commerce. The little guy, small business owner, suffers at the hand of the very organizations that wants his or her membership dollars. What most Chambers fail to recognize that the membership fees from those small business owners and their sponsored gifts account for a far greater percentage of their total marketing budget than what they receive from those large businesses. In other words, the small business owners are potentially far more loyal customers because of this factor alone.

Maybe this helps to explain the rise of formal business networking groups with many communities from BNI to LeTip to Leads to locally established groups. These formal and informal gatherings of like minded business owners recognize that they can secure quicker results with in many cases far less expenditures of their limited resources of time, energy and dollars.

Chambers of commerce need to recognize that when they ignore the purpose of business developing loyal customers they are making future recruitment far more difficult. These unsatisfied chamber members will let everyone know of their shabby treatment regardless if the business owners are right or wrong. For, one's focus creates one's reality. In this case, the reality is everything and the bottom line is that the goal to increase sales simply will not happen.

Related Articles
  Your Chamber Of Commerce Can Help Grow Your Business
  The 3 - 4 Letter Dirty Words That Keep You From Your Goal to Increase Sales
  Chambers of Commerce
  Effective Networking = Business/personal Success
  Increase Sales by Focusing on Qualified Prospects Who Turn into Loyal Customers

Article Tags: 10 years, business action, business members, business research, chambers of commerce, customer loyalty, dirty little secret, dirty secret, event committee, gift baskets, gorilla, loyal customers, marketing strategies, national retail stores, personal agendas, plan clients, rationale, small business owners, small businesses, triage



Related Forum Posts
Online Sales and Marketing vs Traditional - Hi Evan, I am noticing that many of the posts in the Sales/Marketing section deal with online marketing, SEM and and SEO and Affiliates. I was wondering if it might be a good idea to separate that section into two; 1) Online Sales and Marketing; 2) Traditional Sales and Marketing
Re: Online Sales and Marketing vs Traditional - [quote="ltrahan":31w9r2iz]Hi Evan, I am noticing that many of the posts in the Sales/Marketing section deal with online marketing, SEM and and SEO and Affiliates. I was wondering if it might be a good idea to separate that section into two; 1) Online Sales and Marketing; 2) Traditional Sales and Marketing[/quote:31w9r2iz] I second the request...
Re: 10 Reasons Who Startups Fail & Book Recommendations - Great post,but please edit the headline. I presume it is "10 Reasons Why Startups Fail & Book Recommendation
Seek Venture Capital & Funding - Hello, Greetings from India. I am Seeking Venture Capital for Offshore Software Company Start-up. Need advise along with Business Model Sample. I have a basic outline for an offshore company. 1. Technology - like Microsoft Dot Net, Java, LAMP 2. Talent Team - Found Good Technology Developers. 3. Where I can get the leads/potential customers - Leads have been identified who are willing to move forward offshore projects. 4. I do not have resources like funding. It is a very critical factor to me Industries: Manufacturing, Real Estate, Retail, Insurance, Distribution & Logistics, Healthcare, Industry Associations and Software Product Development, Agricultural Industries and Etc. Services: Offshore Software Development Company. Offices to be located: Hyderabad, Andhra Pradesh, India and USA. Products/Services/Applications in areas like POS & Billing, Sales & Distribution, Production Planning, Material Management, Inventory Control, Plant Maintenance, Purchasing, Accounting and Logistics. Dynamic Web Programming with Database Driven Content Management Systems, Online Stores for E-Commerce, B2B Solutions, Community Portals, Website Redesign and Development, Custom ERP with Enterprise Wide Functional Modules such as Marketing, CRM, Accounting, Inventory Control, Sales & Distribution, Production Planning, Purchase & Stores, Logistics and Supply Chain. Seek your further questions and help. Thank you, Best Regards, Jayapratap.
Victoria's Secret - Too Sexy? - This will be upsetting for some men. I just heard a report about Victoria's Secret and it was interesting. Their sales were down drastically in the 4th quarter of 2007 and the report was about how they are thinking the company has gotten too far away from the heritage that made it the blockbuster company it is. They are thinking the ads etc have become too sexy and the plan (at the moment) is to make the ads more sophisticated. That would be like the Super Bowl commercial which was very tasteful, but very different from any Victoria's Secret I've seen lately. Who do you all think the current sexy ads are targeting? I think its the men that they hope will buy these items for their female significant others. I hate to give Omarosa any kudos - but most women aren't "sold" on an item by an ad of a near naked sexy woman. Shri


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

SEO – Link Building Secrets

Live To Work Or Work To Live?

How to Develop Your Powers of Thought.

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.