PATRON DEVELOPMENT: PREPARING A PATH FROM FIRST TICKET TO PLANNED GIFT 2016 League of American Orchestras Conference
Copyright © 2016 TRG Arts All Rights Reserved
Lindsay Anderson Vice President of Client Development TRG Arts | The Results Group for the Arts
Photo by Jean-Pierre Dalbéra via flickr (CC BY 2.0)
Good fences don’t make good data or systems.
Or results.
opensource.com (CC BY-SA 2.0)
The complete story: marketing + fundraising together
Today The Roadmap
1. Integrated data segmentation strategy
2. Best practices for improving ROI with each segment
3. Building an action plan and measuring success
Integrated loyalty development: working across departments to
develop patron loyalty holistically
EVENTS
SALES
CONCERTS
FUNDRAISING
MARKETING
PARK I NG The Patron
Experience: What it is.
Patron
Patron Services
Front-Line Staff
Artistic Staff & Concert
Marketing & Development
The Patron Experience: What it should be. Patrons
Acknowledge relationship Make buying easy Address logistics Upgrade & affirm purchase
Artistic Staff
Welcome patrons as guests & friends Set the stage for an excellent artistic experience Affirm purchase
Front-Line Staff
Patron Services
Get the phone to ring & mail to come in Talk to patrons like we know who they are Get them to buy & donate
Marketing & Development
Artistic Staff &
Concert
Put on a terrific concert! Create trust with quality
The Patron Experience: Department “Jobs”
In a patron-centered business model: Marketing can’t do it alone. Development can’t do it alone.
Marketing & Development
Integrated data segmentation strategy
opensource.com (CC BY-SA 2.0)
1
VIP access and hand-holding
From first to second and last
time to NOW
The magic of “and”
Studying Patron Loyalty Patron Loyalty Index Categories
National
0.5-2% HH 20-40% Revenue
5-10% HH 13-38% Revenue
90-95% HH 38-66% Revenue
Where Do Patrons Fall? Example Symphony Orchestra statistics
Case Study
Example
1.2% HH 27% Revenue
14.4% HH 49% Revenue
84.4% HH 19% Revenue
Cultivation team goals How to promote loyalty at all levels of patronage
• Goal #1: Reduce NTF STB churn
• Goal #2: Raise # of Same Season Multi-STB
• Goal #3: Retain more new subscribers
• Goal #4: Increase % of subscriber/donors
• Goal #5: Increase renewal rate of subscriber/donors
• Goal #6: Increase # of new Friends donors
• Goal #7: Increase % of Friends donors who subscribe
• Goal #8: Increase % of Friends donors who buy extra singles
National
0.5-2% HH 20-40% Revenue
5-10% HH 13-38% Revenue
2014-2010
90-95% HH 38-66% Revenue
1.2% HH 27% Revenue
14.6% HH 51% Revenue
84.2% HH 20% Revenue
Percentage Point
Change*
+1% $
+5% $
-2% $
* Over study periods 2013-2009 to 2015-2011
2013-2009
1.2% HH 27% Revenue
14.4% HH 49% Revenue
84.4% HH 19% Revenue
2015-2011
1.3% HH 28% Revenue
15.5% HH 54% Revenue
83.2% HH 17% Revenue
Where Do Patrons Fall? Example Symphony Orchestra statistics
Single Ticket Buyers
New Subscribers
Renewing Subscribers
Renewing Subscriber-
Donors
Per Patron Yield $53.84 $156.05 $341.51 $550.42
Cost of Sale 20% 25% 3% 3%
Renewal Rates 23% 46% 69% 88%
Net Revenue Analysis A performing arts example
EXPENSES
REVENU
E
Photo by Tobias Schlitt (CC BY-NC-SA 2.0)
Best practices: improving ROI for each segment
every patron’s
right next step
How? The Art of the Upgrade
2
A Love Story
Todd Hryck (CC BY 2.0) / Rob Jewitt (CC BY-NC-SA 2.0)
Single Ticket Buyers First Dates
Cost-of-Sale: MEDIUM-HIGH Retention Realities: LOW retention Repeat purchase offer best Upgrade Case: Chicago Symphony
Case Study best practices: • Keeping
buyers current • Direct
response
NEW SINGLE TICKET BUYER
Reactivation: Example Invite lapsed buyers back with a compelling offer
Target Segments: 2 -4 year lapsed buyers
Combined Results: 603 returning households
1.3% response rate 8% cost-of-sale
$74,048 net revenue
Repeat Ticket Buyer Dating
Cost-of-Sale: MEDIUM Retention Realities: MEDIUM retention Higher frequency = higher retention Upgrade Case: Denver Art Museum
Case Study best practices: • Right offer to
right person, right time
REPEAT TICKET BUYER
MULTI TICKET BUYER
“Sticky” Patrons What does that mean?
Participation, participation, participation!
6% 9% 11%
Buy membership
Visit once
Visit twice
Visit 3 times
renewal rate increase
renewal rate increase
renewal rate increase
Subscriber Getting Engaged
Cost-of-Sale: MEDIUM-HIGH Retention Realities: Higher, varies w/ package size But: ensure participation! Upgrade Case • Rochester Philharmonic
Case Study best practices: • Renewal
=UPGRADE FIRST!
SUBSCRIBER
Donor-ready patrons
Development
Marketing
SUBSCRIBER /MEMBER
MULTI TICKET BUYER
REPEAT TICKET BUYER
NEW
SINGLE TICKET BUYER
DONOR
ADVOCATE /INVESTOR
Subscriber + Donor Marriage
Cost-of-Sale: LOW Retention Realities: HIGH! Integrated direct response sophistication Upgrade Case: 5th Avenue Theatre
Case Study best practices: • Direct response
integrated asks
SUBSCRIBER PLUS
453 Super Subscribers gave $51,100 in 4 months 70% had no previous giving history. More on this case at www.trgarts.com
Donor/Investor Management Anniversaries
Cost-of-Sale: LOW Retention Realities: Higher, depends on investment level Donors who DO more, give more!
Upgrade Case: Toronto International Film Festival
Case Study best practices: • Direct response • Donor pacing
meetings
ADVOCATE /INVESTOR
Annual Fund Supports Membership Donor retention increases 3x with membership;
Member retention rates lift with donation
Annual Fund Only Annual Fund and Member
Retained RenewMembers 365 55% 48%Contributors Circle 82% 67%Patrons Circle 86% 65%
Retained RenewMembers 365 36% 35%Contributors Circle 75% 35%Patrons Circle 36% 29%
Member Only Annual Fund and Member
2014 into 2015. No membership. 2014 into 2015. No membership.
Retained RenewAnnual Campaign 63% 62%
Retained RenewAnnual Campaign 17% 15%
WHAT DOES IT TAKE?
Building an action plan and measuring success What’s required
• Invest in your team and in your relationships
• Business and operations plan
• Cross-functional teams that implement through a
quarterly and weekly process
• Metrics that you’re managing together
3
Photo: Mirjam van den Berg (CC BY 2.0)
Invest in your team and in your relationships
What erodes this relationship?
What erodes this relationship?
Separate budgets and goals Meeting infrequently Separate databases
Infrequent CEO involvement
5 Ways to Collaborate Marketing/Development 1. Use your data. Together. Can you review patron activity holistically? 2. When you say “work together,” mean it.
Do you work each other’s events? 3. Coordinate campaigns. Who receives donation asks, and when?
5 Ways to Collaborate Marketing/Development 4. Give subscribers/members a taste of donorship. Can you leverage donor benefits?
5. Get patron services involved. Do you ask for donations at the point of sale?
6. Work together to determine benefits. Which benefits are for whom?
Weekly Process Keeping it Real Ailey’s Monday Morning Meeting Mondavi Center Integrated Loyalty Pacing Hubbard Street Patron Pacing
Photo: Gavin Brogan (CC BY 2.0)
Set metrics you’ll managing together
Metrics that matter Measuring loyalty
# of donors with ticket purchase
$ from multi-buyers
# of upgrades at point of
sale
% of sub- donors
Example Orchestra Goals How to promote loyalty at all levels of patronage
• Goal #1: Reduce NTF STB churn
• Goal #2: Raise # of Same Season Multi-STB
• Goal #3: Retain more new subscribers
• Goal #4: Increase % of subscriber/donors
• Goal #5: Increase renewal rate of subscriber/donors
• Goal #6: Increase # of new Friends donors
• Goal #7: Increase % of Friends donors who subscribe
• Goal #7: Increase % of Friends donors who buy extra singles
Metrics that matter Basic recommendations from TRG
• Metric #1: % / $ patron-generated revenue
• Metric #2: % / # active patrons in your database
• Metric #3: data capture rate
• Metric #4: new audience churn rate
• Metric #5: % of subscriber-donors
• Metric #6: per-capita revenue
Photo by Jean-Pierre Dalbéra via flickr (CC BY 2.0)
Data doesn’t do. People do.
MARKETING IS FROM MARS; DEVELOPMENT IS FROM VENUS A boot camp for marketing and fundraising leaders Thursday, August 4-Friday, August 5 at the TRG Arts Center for Results in Colorado Springs
Photo: Isabelle (CC BY-NC-ND 2.0)
PATRON DEVELOPMENT: PREPARING A PATH FROM FIRST TICKET TO PLANNED GIFT 2016 League of American Orchestras Conference
Copyright © 2016 TRG Arts All Rights Reserved
Lindsay Anderson Vice President of Client Development TRG Arts | The Results Group for the Arts
