Patron relationships matter more in 2013 because the arts landscape is “ more like shifting sand than fertile soil,” said Jill Robinson, President, at the TRG Arts May 7 webinar, Plant Loyalty Now. The higher the portion of patron-centric revenue is, “the more organizations need to focus on, invest in, and partner with patrons to sustain income. The webinar offered strategic tactics around starting campaigns early, building on blockbusters, and patron upgrades at every level engagement.

1. Copyright © 2013 TRG Arts
All Rights Reserved

2. PLANTING SEASON
Time to grow loyalty
1. Arts landscape
Context and challenges
2. Operational framework to grow loyalty
Informed cultivation and collaboration
3. Best ways to plant loyalty
Strategic tactics that work

4. GROWTH BUDDING
Source: TRG Pre-webinar Survey
Better
51%
About the
Same
34%
Worse
15%
Paid Attendance or Visitation
2013 compared to 2012

5. GROWTH BUDDING
Source: TRG Pre-webinar Survey
Better
54%
About the
same
34%
Worse
12%
How is your total income trending?
2013 compared to 2012

6. GROWTH BUDDING
Uncertain ground
Nonprofit Finance Fund
2013 National Survey
• Sector in state of uncertainty
• Thin margins, low liquidity
• 50% say 2013 same or worse
Source: NonProfitFinanceFund.org

7. “We found out in the 7th month of our
fiscal year that our State funding was
reduced by 40%, and that contracts would be
delayed another six weeks... another blow ...and
means more fundraising and less time to
advance our mission.
…..We are proceeding as if [public] funding
will be gone within 5 years. Advocacy is at an
all-time low in the arts field in NY.”

8. • 13% got full amount in state and
local funding expected.
• 21% got full federal amounts.
• Over 50% reported overdue payments
from state & local funders
• 40% said the federal government was
slow to pay.
NONPROFIT FINANCE FUND
2013 National Survey
Source: NonProfitFinanceFund.org

9. “Both federal and state government
appropriations to the arts have declined
since the 2007-2009 economic recession…”
Quote Source: NEA
State agencies face defunding, notably in:
• Kansas
• Wisconsin
NATIONAL ENDOWMENT FOR
THE ARTS
November 2012

10. 9%
11%
21%
22%
22%
Cut-backs in federal funding or grants
expected or earmarked for my organization.
Proposed cap on the federal charitable
giving tax deduction.
Don’t know.
Cut-backs in state or local funding or grants
expected or earmarked for my organization.
Changes or cut-backs to non-governmental
funding, such as from foundations and
corporations.
Which funding issues present the
greatest risk to your organization?
Source: TRG Pre-webinar Survey

11. GIVING AT RISK?
Tax deduction limits
Strong industry advocacy
Against lowering income cap
• Down to 28% from 39.6%
• Lost incentive for a selfless act
• “One thing is clear. Giving will decline.”
• TRG: patron relationships will matter more

13. REVENUE RISK
% of Patron-to-Total $
How much patrons contribute
Via self-dependent revenue sources
• Ranges widely
• U.S. Performing organizations 30-90+%
• Higher the %, higher your risk
• What if you lost it?

14. ACTIVE PATRONS
Prospect Pool
Is number growing, flat, declining?
Illuminates sustainability risk.
• Buyers: STBs, Subscribers
• Supporters: Members, Donors, School, Other
• Larger the number, greater the potential
• Indicator of self-dependent health

15. ACTIVE PATRONS
Declining
0
5000
10000
15000
20000
25000
30000
35000
2008 2009 2010 2011 2012 2013 YTD
Number of Household in Database
Donor
Nutcracker
Single Ticket Buyer
Subscriber
Total HH

16. ACTIVE PATRONS
Growing
0
5000
10000
15000
20000
25000
30000
35000
40000
2009 2010 2011
Number of Households in Database
Subscribers Single Ticket Buyers Donors Education Net

22. 1

23. START EARLY
Grow # and $
More single ticket sales for best-sellers
More subscribers, members, annual fund donors
• Ardent patrons decide and buy early
• Early is the right time for some patrons
• The longer you sell, the more you sell
• Early buyers don’t need every detail

24. START EARLY
Myths vs. Risks
Myth Risk
Everyone buys late. Sell late, sell less.
All details must
be in place.
Lost “low
hanging fruit”
If blockbuster goes
on sale now, patrons
won’t buy anything
else.
Lost sales and
up-sell opportunity

25. START EARLY
What to do
Anticipate biggest opportunities
Blockbusters
Annual fund, subscription campaigns
Launch as early as possible
Optimal 6 to 8 months in advance
Start with the information you have
Decision-making facts, not every detail

26. START EARLY
What to do
Take care of loyalists first
Best access, best price, first in line
Direct contact with best prospects
Multi-media and multiple contacts
Don’t wait for the catalog if a letter will do

27. “We managed to go out
with our campaign
almost 2 weeks earlier
than last year. Nine
weeks into the campaign, we
were $63,000 ahead of
the same campaign
week last year—up 246
subscribers in our 8-show
package and 211 subs
overall. WOW!”
More on this case at www.trgarts.com

28. 2

29. BLOCKBUSTERS
Build # and $
Best-selling programs and events
• Biggest incentive to buy, come back
• Deserves greatest investment
• Greatest ROI
• Rewards all levels of loyalty

30. BLOCKBUSTERS
What to do
Have a priority plan for every level
Know how you’ll invite every type of patron
Take care of loyalists first
First in line for the best seats

31. Personal contact
Ask them to add it on, or if
they’d like extra tickets
Thanks. Welcome!
“Don’t miss this.”

32. • Subscription revenue
up 49%
• Single ticket sales for
the first three shows
in season surpassed
expectations by
$225,000
More on this case at www.trgarts.com

33. 3

34. UPGRADES
Every patron’s next step
Make a plan for every patron type
Focus first on biggest opportunities
• Consider the whole picture
• Choose efforts you can do best
• Collaboration gets the best results
• Learn to up-sell

35. Next Step: Reactivate
Message: “Welcome
back”
How? Treat them like a
first timer and a valued
patron.
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 by making the ask

36. Add a donation
Renew Flex to Full
Renew & Upgrade

37. Net Revenue
Single Ticket
Buyers
New
Subscribers
Renewing
Subscribers
Renewing
Subscriber-
Donors
Per Ticket/
Package Yield $53.84 $156.05 $341.51 $550.42
Cost of Sale 20% 25% 3% 3%
Renewal
Rates
23% 46% 69% 88%

38. More on this case at www.trgarts.com
453 Super Subscribers
Gave $51,100 in Four
Months
65% were first timers,
subscribers of 5 or fewer
years, or patrons returning
after lapsing.
70% had no previous
giving history.

40. Upcoming “Meet TRG” sessions
Interested in learning
more about how TRG
helps arts organizations?
Get on the invitation list:
email info@trgarts.com

41. www.trgarts.com