This presentation was given at the 2013 NAMP conference.
--The additional slides on generational marketing are NOW POSTED.--
Description:
Any good marketing program begins with good data. Yet arts organizations struggle with the question of how to engage their current and potential patrons. So if you can’t reach everyone, how do you decide who is worth your time and money to reach? How can you understand their habits, wants, needs, and preferences? Overwhelming revenue goals and large data sets are immediately simplified by viewing your marketing messaging from the patron’s perspective, or through “the patron lens.” Address the basics of using data to understand groups within your audience, how you might communicate differently with each segment, and how to focus your time and money in a way that yields the highest return on investment.
More resources:
-A past webinar from TRG on segmenting: http://bit.ly/19RBzug (This explains in detail how and when to run a campaign that is the most efficient vs. running one that casts the widest net.)
-upcoming webinar from TRG with Seattle Repertory Theatre: http://bit.ly/HKN8cj
-InstantEncore website: http://www.instantencore.com/Learn/Mobile
Investment in The Coconut Industry by Nancy Cheruiyot
The Patron Lens
1. THE PATRON LENS
Engaging Audiences with Data-driven
Targeted Messaging
Hosted by
David Dombrosky,
Chief Marketing Officer
InstantEncore
Amanda Edelman,
Director of Marketing & Public Relations
Academy of Vocal Arts
Amelia Northrup-Simpson,
Strategic Communications Specialist
TRG Arts
#nampc #patronlens
16. Un ballo in maschera: Age Groups
•
•
•
•
Mature Citizen: Born before 1946
Boomer: Born between 1946 - 1964
Generation X: Born between 1965-1979
Millennial: Born between 1980s – 2000
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#patronlens
17. What I thought…
• Mature Citizens, Boomers, and Generation X
patrons were not interested in social media.
• Direct mail was the best was to reach all of
the age groups except for Millennials.
• Email marketing was lost on Mature Citizens.
Millennials did not care for emails.
• Print ads were only reaching Boomers.
• Generation X reacted to digital ads.
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#patronlens
18. What was actually happening…
• Boomers, Generation X, and Millennials were
using social media. Each age group used
social media differently.
• Mature Citizens and Boomers looked for
direct mail. Millennials did not read mail.
Direct mail did not reach Generation X.
• Email marketing was most effective for
Boomers. Generation X was likely to open
emails but not make a purchase. Millennials
did not open emails. Most Mature Citizens did
not use email.
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#patronlens
19. Results
SEASON OPERA
SEATS SOLD
TOTAL REVENUE
11-12
L’ELISIR D’AMORE
(THE ELXIR OF LOVE)
367
$14,598
12-13
UN BALLO IN MASCHERA
(A MASKED BALL)
519
$20,354
The number of seats sold increased by 41%
The total revenue increased by 40%
Source of increases: better responses
from generational segments
19
#patronlens
22. 4 out of 5 new patrons come once…
and never come back.
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#patronlens
23. Next Step: Reactivate
Message: ―Welcome
back‖
How? Treat them like a
first timer and a valued
patron.
23
Next Step: Come back
Message: ―Welcome—
thanks for joining us‖
How? Make the first
time the best possible.
Next Step: Come back again
Message: ―Thanks, and might
you wish to _____?‖
How? Foster further
engagement and ask
#patronlens
24. Case Study:
First Timer Cultivation Group: Four-Year Study
•
Year 1 Offer:
same-season single
ticket ONLY
–
•
Year 2 Offer:
3 plays for $99
–
•
5 times per year
Year 3 Offer:
Subscribe!
–
•
Nothing else.
Jump in average
household spend
Year 4 Offer:
Renew!
–
First time renewal
rate: 81%
#patronlens
25. Case Study:
First Timer Cultivation Group: Four-Year Study
•
Year 1 Offer:
same-season single
ticket ONLY
–
•
Year 2 Offer:
3 plays for $99
–
•
5 times per year
Year 3 Offer:
Subscribe!
–
•
Nothing else.
Jump in average
household spend
Year 4 Offer:
Renew!
–
First time renewal
rate: 81%
#patronlens
26. Key points:
1. Retention is a worthy
discipline
Requires focus
2. Asking for the second
date
THE right next step
3. Growth is incremental
Monetizing engagement
takes time
26
More on this case at www.trgarts.com
#patronlens
Title slide 2: best for data-centered presentations/NetPro
To build sustainable revenue, you rely on people. To contact those people and maintain relationships with them, you need data.
I want to redesign this slide with the following in the bubbles i. ticketing/CRM system ii. additional systems (like eMerge) iii. Google Analytics iv. And social media—in-page analytics vs. third-party (what do Why is taking care of your data important on an individual level?Think about the sources of audience-centered revenue at your organization. By patron-centric, we mean all the sources of income that come from patron investment: ticket sales, membership, subscription, donations – all sources pertinent to you. Think about what percentage of your organization’s overall revenue. From about one-third to 90% and higher of total revenue come from patron activities. The point here is: The higher the percentage, the greater the need you have to focus on, invest in, and partner with your patrons to sustain this income. And to do that you need information on them.you want from that?)
Why segment?
Tweet him at some point!
Why segment?
A targeted message can happen anywhere
Mature Citizens, Boomers, and Generation X patrons were not interested in social media.Direct mail was the best was to reach all of the age groups except for Millennials.Email marketing was lost on Mature Citizens. Millennials did not care for emails.Print ads were only reaching Boomers.Generation X reacted to digital ads.Boomers, Generation X, and Millennials were using social media. Each age group used social media differently.Mature Citizens and Boomers looked for direct mail. Millennials did not read mail. Direct mail did not reach Generation X. Email marketing was most effective for Boomers. Generation X was likely to open emails but not make a purchase. Millennials did not open emails. Most Mature Citizens did not use email.
Helpful to segment our database into these 3 categories by loyalty:-Tryers-least loyal and they also make up the largest % of our database records-Buyers-Advocated
We can further segment those categories based on transactions our organization has with patrons-these are examples. You may have different behavior patterns that demnstrate loyalty at your org. In a given campaign, you may want to single patrons with these behaviors—or not.Lately, at our company, we’ve been thinking a lot about the Tryers. A lot of people focus time and attention on new audiences and neglect the newbies that have already come. That’s dangerous.
How big that base of Tryers was at the bottom of the pyramid?About 4 out of 5 of those Tryers come once and never come back. Our arts consumer study and research by others have corroborated this sad fact. Whether you call this high rate of patron loss “churn” or “attrition” or “turnover” it all means the same thing: You aren’t achieving growth – not in audiences, not in prospective subcribers, members, and donors, not in revenue of any kind.Too many new and reactivated patrons will churn out if you cannot retain them. Or….develop a second date or next step with them. In short, you’ll love em – by getting that second date – or lose them. Period.ASK: How do you CURRENTLY engage people for a second date?
In this phase, we going to look at Tryers in the way that TRG generally categorizes them – by transactiontypes that we see in buyer data. I’m going to use terms here that are most usually related to seated-event organizations. Museums and other cultural organizations likely talk about visitors rather than single ticket buyers, and I hope you’ll accept our lexicon for the sake of simplicity.These are the three common transactional types that comprise Tryers. The next step is slightly different for each kind of Tryer patron. I’m going to give you some examples, assigning roles to different departments. At this point, the leading roles are most likely played by your marketing and box office or visitor services team. Let’s start at the very bottom of the pyramid with lapsed ticket buyers. They haven’t seen you for a while, and from a dating perspective, you’ve got their number but having been in touch. They have probably forgotten how cute you are, so you’re going to have to start all over. Let’s say you have targeted lapsed patrons with an invitation to come back and now they are calling the box office. What’s the next step? CLICK Reactivate them! Ticket office staff using most systems can see from patron history that the patron in front of them has lapsed – they haven’t been with you in a while. Welcome them back. Treat them like a first timer and give them some orientation to how best to enjoy their experience. That’s an upgrade from inactive to active, and also an example of up-selling or suggestive selling. That’s right – you heard that four-letter word: SELL. Selling in the context of patron loyalty IS relationship building. Remember that!Then, there’s your first time buyers – they come in largest numbers with your most popular attractions. Once you’ve got a response from a 1st time buyer, your upgrade goal is make sure this first experience with your organization is a good one. CLICK Your message is “Welcome—thanks for joining us.” Remember, this is like a first/blind date. You’re building a relationship with this new patron. In advance, give them some orientation to your venue. Let them know where they can find out about parking or where to get a bite to eat. Hear me say this: The whole relationship rises and falls on the success of the first date. So, make sure they know what you look like, how to find you, and what to expect in the venue. This is a worthwhile investment, especially for new patrons who are excited about coming to see your biggest, most popular programs of the year. And, we cannot emphasize this enough: Make sure you have their contact information, because the next step for new patrons is that all-important second date. Your upgrade or upsell is to position this first date for success so newcomers will WANT to come back when you ask them for a second date. Then, of course, you’re going to ask them for that second date – as we’ve already described.Now, you’ve gotten the second date and your patron is now a same season ticket buyer – a patron at the turning point of becoming BUYERS ….if and when you do a little more cultivation. [CLICK] Here’s where you pursue more get togethers. Your marketing invitation might be made in advance of your next big event. Or, it might be an offer to get specially priced admission to something similar to the program they saw when they first came. When you’ve got a patron who is responding to an invitation to come back again during the same season….that’s a cause for celebration. Welcome them back AND foster some kind of further engagement. Say “Thanks,” and suggest – while I have you –might you also want to see: a big season event, another show – even a short series or flexible subscription – some other event or activity that’s coming up soon or early in next season. The second or third date in same season is a turning point in your patron relationship. CLICK
Here’s the case study, which you can read in its entirety, which you can read on our web site: www.trgarts.comThe case is a retrospective look at Seattle Rep’s four-year, disciplined effort aimed at retaining new single ticket buyers. The first phase of their effort was to achieve that all-important second date in the same season. By doing that, retention among the specially cultivated group of new buyers was triple that of other new single ticket buyers…..as S-R-T’s cultivation efforts toward this group continued, so did growth.Here’s a quick outline of what they did. CLICK