What does a loyal patron look like at your organization? A major donor? A long-time subscriber or member? A group organizer? Every department and staff member seems to have an opinion. But assumptions about who these patrons are and what motivates “stickiness”--their commitment to the art form and your organization--can lead you to neglect your most valuable patrons.
TRG President Jill Robinson
In this webinar, TRG President Jill Robinson reprised her popular presentation “Stick with Us!: The Loyalty Business Model” from the June TCG Conference. You’ll learn how some organizations use loyalty analysis to identify the patrons that they should value most (surprise—it’s not just major donors) and devise strategies to keep them loyal. Learn more about the habits of arts patrons and how you can integrate loyalty into your business model.
13. How many different systems does your
organizations employ to manage all the patron
information you maintain?
Two
29%
One More than one
49% 51%
Three
14%
Four or more
8%
14. In your organization, how are
revenue expectations budgeted?
One revenue budget
24% that includes both
earned and contributed
income.
Separate revenue
budgets for earned
76% (marketing) and
contributed
(development) revenue.
15. Loyalty, a theatre case study
.1% HH Super Advocates $40,000
11% revenue Advocates $4,000
7.9% HH Buyers $527
43% revenue
92% HH Tryers $48
45% revenue
16. Loyalty, an opera case study
.06% HH Super Advocates $14,968
39% revenue Advocates $2,375
1.6% HH Buyers $724
13% revenue
98% HH Tryers $41
48% revenue
27. Single
Tickets
Super Advocate at The 5th Avenue
• Steve Tenge
#104
• Subscriber since 1996
• 4 season Subscriptions, all 7 shows
• Purchases tickets to each show 15-20
times, via “see it again” $20 ticket offer
• $1,000 gift to the annual fund since 2009
• Integrated spend $31,014 since 2007
28. Gala
Attendee
Super Advocate at The 5th Avenue
#31
• Martha Dawson and Ron Corbell
• Subscribers since ’04
• Annual fund contribution of $1,000
• Attend gala each year and since 2007 have
spent nearly $40,000
• Integrated spend $90,205 since 2007
29. Non-
Board
Super Advocate at The 5th Avenue Major
Donor
#17
• Beth and Buzz Porter
• Subs since 1999
• Started giving $1,000 in ‘02
• Now give an annual gift of $10,000 and
attend the gala most years
• Integrated spend since 2007 $151,469
30. Group
Leader
Super Advocate at The 5th Avenue
#5
• Sharon Ahlen
• Subscriber since 1990
• Annual fund gift of $1,500
• Purchases nearly $55,000 in subs each
year for groups
• Integrated spend $441,966 since 2007
32. Performing Arts Organization
Patron Loyalty Group Distribution by Generation
100%
90% 18% 22% 19%
80% 42%
70% 63%
66%
60%
50% 49%
49%
50%
40%
44%
30%
20% 31% 25% 24%
31% 22%
10% 12%
3% 5% 8% 7% 7%
0% 0% 1% 2%
Super Advocates Buyers Tryers Total PAO PAO
Advocates Community
Gen Y Gen X Baby Boomers Traditionalists
Before we get started, I’d like to introduce TRG to you, so that we’re all on the same page about who we are and our approach. TRG is a results-based and data-driven consutling firm based in Colorado. For the past 20 years, we’ve worked with every shape and size of non-profit perofrming arts and cultural institution in the US, Canada and Australia to grow patrons and patronage (define). In the past 3 years, our work has expanded to the commercial entertainment sector, as well.
Additionally, TRG is the largest provider of community data networks designed to provide arts, cultural and entertainment organizations access to each others data for marketing and analytics purposes. In the country’s largest markets, hundreds of organizations share data that is enabling the development of a national census of arts and culture—one that we spend time reviewing on behalf of the field and our clients.
Because all (nearly now) 1,500 TRG clients submit data to TRG to enable our services, we store a lot of it. 23 million households, 50 million transactions that help inform business planning, campaign activity, trend analysis and more. Later in the webinar, you’ll see evidence of this work.
Because all (nearly now) 1,500 TRG clients submit data to TRG to enable our services, we store a lot of it. 23 million households, 50 million transactions that help inform business planning, campaign activity, trend analysis and more. Later in the webinar, you’ll see evidence of this work.
A colleague of mine met this lovely woman and her husband Gilbert at a dinner for a seemingly random group of theater subscribers in Washington, DC some 25 years ago. The Meads were both – literally – rocket scientists, having spent three decades working for NASA. Dr. Mead and Gilbert LOVED the theater. Her eyes lit up as she talked about favorite shows and how she and Gilbert saw just about everything the Washington DC theater community had to offer. After this event my colleague asked why this unassuming theater lover who was about to retire had been invited to this special dinner. “We’re getting to know the Meads,” her development officer told her. Jaylee and Gilbert Mead did give a major gift to this organization. And, their generosity didn’t stop there. Since then, the entire arts industry learned a lot more about Dr. Jaylee Mead. [CLICK]
Dr. Mead – the theatersubscriber -- also got involved with Arena Stage.Before Gilbert died, he and Jaylee gave thirty-five million dollars to Arena Stage – the largest gift ever to a regional theater.
It enabled Arena’s fantastic new Mead Center for the Arts, which you’ve likely heard Chad Bauman speak about. And that was just one way Dr. Jaylee Mead…unassuming subscriber and theater lover …has contributed to the arts. Every one of you could probably tell an important donor story likeJaylee Mead’s. …I see heads nodding yes. ….And, so you’ll get this ….[CLICK]
A decade of TRG patron behavior has led us to conclude about loyalists – the patrons whose attendance and investment keep our art on our stages and in our exhibition halls. Loyalists are MADE, not FOUND out of thin air. Like Dr. Mead…and all the other Major Donors that development officers all over the country are trying to find aren’t going to just materialize – YOU and your colleagues across the hall in marketing, the box office, and the executive offices are going to identify prospective loyalists and cultivate them.
How do we view loyalty? In the context of analysis of fully integrated behavior that we call a Loyalty Snapshot.For more than a decade, TRG has been doing a trademarked form of loyalty analysis that we call theAdvocate, Buyer, Tryer Pyramid. We look at all the households and all their transactions as recorded in an organization’s database. We study the recency, frequency and monetary investments by each household. The resulting analysis ranks everyhousehold from top to bottom. Patrons in the top rank, we call, Advocates – these are the organization’s most loyal patrons . One defining characteristic is: they are donors. More on Advocates shortly. The next group, Buyers, are actively engaged in the organizations we study. They are subscribers….members…frequent ticket buyers and visitors. “And” is the defining factor among Buyers….hold that thought. So two loyal, actively engaged groups of patrons, right? And, here’s the sad truth: Advocates and Buyers together account for 10% or less of all patrons. The rest of the story from our research over the past decade is clear – Nine out ten patron households in the databases of arts organizations are patrons we call Tryers. They are one-time or infrequent and long-ago lapsed customers.
Nine out ten patron households in the databases of arts organizations are patrons we call Tryers. They are one-time or infrequent and long-ago lapsed customers. In our terminology – Tryers– are the least loyal, hardest to acquire and hardest to hold onto .And, they form the foundation of arts patronage today. The instability created by too many Tryers in the patron base – the cracks in the pyramid so to speak – is a real threat to our arts organizations. So we bring this news to you – not be alarmist, although the numbers are alarming. We prefer to think of it as a call to action. And, in that call – pay attention to the dominant behavior pattern among Tryers.
TRG started developing loyalty measurement tools because our industry operates from many systems. While new CRM (define) or Enterprise systems are finding their way into the mainstream, we know that many of you are still searching for the holy grail of One Household, One Complete Transaction History, in One Place.Indeed, a little over half of you operate with two or more systems, as we learned from our pre-webinar survey. CLICK
We’ve found it’s very difficult to produce a complete patron profile – an at-a-glance summary of ALL the transactions a patron makes with an organization –when two or more systems are in use – it sometimes cannot be done in just one system.
Another observation from client experience: Most of you are set up to compete – internally -- for patron investments. Your organizations set separate goals and budgets for marketing and development.Behavior is not either or it’s both andSeparate budgets, competing revenue campaigns is the worst kind of incentive
So what does integrated loyalty, literally, look like when you start studying it? It looks like this theatre company’s case.Tryers = 92% of all households – typical18012,000140,000 (92%)
And this opera company’s case
And this large producing and presenting organization’s case. And here’s what we find nationally.Study period: 2007-2011; Total households studied: 148,673
385 households contribute 15% of all revenueAdvocates attend first, donate second
This is a large group of active ticket buyers -- 21,630 households contribute 54% of revenue.
A loyalty snapshot can also include demography
And an indication about how real estate is valued.
The place to start: leadership.Then, understand your data.
Endorse and enforce a new way of doing things from the top. Changing the way “we’ve always done it” takes institutional fortitude and change only happens when leaders insist upon it. Growth requires institution-wide commitment. It is not a departmental initiative.Analyze patron data across systems to see all transactions at the household level. Information is a powerful, galvanizing force in an organization. The minute everyone in the organization sees a ranked set of individual patron histories, new possibilities are apparent. Every organization’s data set can create the rationale and story line for patron cultivation and development. Seize an opportunity or two to pursue. Patterns that emerge from analysis invariably show where the biggest opportunities lie. That’s where to start– by focusing first efforts on cultivating one or two manageable patron groups or patron patterns with the biggest upside.
Thank you so much for attending.There will be video of the webinar on the TRG website posted in the next week. We will send you an email with the link once it is posted. If you had any remaining questions, we would love to talk to you! Email us at info@trgarts.com.