ASSIGNMENT
Since 1918 Dartmouth House in Charles Street, W1 has been the ESU’s UK headquarters for its 5,000 global members. As a Grade II listed building we were asked to draw up potential new strategies which would focus on long-term and sustainable profitability, whilst adhering to the strict requirements of charity law and the Royal Charter.
During this two-month assignment, GFG was commissioned to review the commercial events at Dartmouth House operated by the current operator whilst at the same time review the current contractual arrangements as the five-year term was up for renewal.
Alongside this work, we were also asked to re-evaluate the Membership value engagement proposition at Dartmouth House which had been closed since the outbreak of the UK pandemic in 2020. Engaging with the current Membership through a series of workshops including the compilation of an online survey, our membership consultant presented a long-term strategy to the ESU’s Board.
Output and Results
With three Consultants working on this assignment we undertook a mix of research and analysis with both internal and external stakeholders. As a result, our report outlined a number of key recommendations focussing on two key revenue streams for the ESU.
A) Current Catering contractual model – It became apparent that the current ‘shared profit’ arrangement was mostly benefiting the contractor, as compared to the ESU. A future contract would need to be more transparent, generating the maximum income from Dartmouth House fixed and very valuable asset.
B) Future Membership strategy – the underlying message was that the members should support the charity, not the other way around. The principle points were:-
- Structure and pricing – as membership was free for the 22 to 26 age group, revised the annual subscription fees which would effectively engage all ‘age bands’, but specifically the under 27’s as this audience was critical for ESU’s future growth. Currently, the ESU’s average membership age is 65.
- Value proposition – an improved ‘membership journey’ which would reduce the churn rate, especially for those at the three-year point of membership.
- Data management – the introduction of ‘one’ CRM platform that would track all aspects of members’ involvement and presence with the ESU
- Branding, marketing and communications – improved communication and messaging on what the ESU stands for and its purpose around literacy, numeracy and debate. For younger members, the introduction and creation of an ESU App.