1 / 33

THE FUTURE IS NOW

2013 WASHINGTON NONPROFIT CONFERENCE. THE FUTURE IS NOW. STRATEGIES & TECHNIQUES FOR INTEGRATED PROGRAMS. Changing the Season of Churn, Churn, Churn. Eric Nelson, DCM Russell Jones, New York Philharmonic Danielle St. Germain-Gordon, Arena Stage. 2013 WASHINGTON NONPROFIT CONFERENCE.

lucine
Download Presentation

THE FUTURE IS NOW

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. 2013 WASHINGTON NONPROFIT CONFERENCE THE FUTURE IS NOW STRATEGIES & TECHNIQUES FOR INTEGRATED PROGRAMS Changing the Season of Churn, Churn, Churn Eric Nelson, DCM Russell Jones, New York Philharmonic Danielle St. Germain-Gordon, Arena Stage

  2. 2013 WASHINGTON NONPROFIT CONFERENCE Churn Trends in Performing Arts • Topic Overview - Eric • Symphony Perspective - Russell • Arena Stage – Danielle • Panel Discussion • Open Floor Q&A THE FUTURE IS NOW STRATEGIES & TECHNIQUES FOR INTEGRATED PROGRAMS

  3. 2013 WASHINGTON NONPROFIT CONFERENCE A state of agitation or turbulent change or development. Webster’s Dictionary THE FUTURE IS NOW STRATEGIES & TECHNIQUES FOR INTEGRATED PROGRAMS

  4. 2013 WASHINGTON NONPROFIT CONFERENCE When a nonprofit acquires a new donor and then fails to secure a long-term relationship with any true financial gain. Fundraising Success THE FUTURE IS NOW STRATEGIES & TECHNIQUES FOR INTEGRATED PROGRAMS

  5. 2013 WASHINGTON NONPROFIT CONFERENCE Increased Competition, Decreased Retention • Competition for entertainment dollars continues to increase and population growth is no longer enough to counter declining arts and culture participation rates. • The NEA • Arts & Culture have worked to understand churn trends • 57% of 2006-07 orchestra buyers were new • 55% did not return the next year • 2/3 new patrons in 2008 did not return within the next 12 months to cultural institutions in Philadelphia THE FUTURE IS NOW STRATEGIES & TECHNIQUES FOR INTEGRATED PROGRAMS

  6. 2013 WASHINGTON NONPROFIT CONFERENCE Churn, Its Human Nature • Retail Banking - 15% • Cable and Satellite companies - 20-30% • Mobile phone providers - 15-30% THE FUTURE IS NOW STRATEGIES & TECHNIQUES FOR INTEGRATED PROGRAMS

  7. 2013 WASHINGTON NONPROFIT CONFERENCE Increased Loyalty Can Be Achieved • Only 12%-15% of customers are loyal to a single retailer. That small group generates between 55%-70% of sales. 65%-95% of these sales come from members of loyalty programs. • Center for Retail Management THE FUTURE IS NOW STRATEGIES & TECHNIQUES FOR INTEGRATED PROGRAMS

  8. 2013 WASHINGTON NONPROFIT CONFERENCE Increased Loyalty Can Be Achieved • Why first-time donors give • The right thing to do • Help sustain the organization • Could afford to • Got a call/request THE FUTURE IS NOW STRATEGIES & TECHNIQUES FOR INTEGRATED PROGRAMS

  9. 2013 WASHINGTON NONPROFIT CONFERENCE The Battle Against Churn Has Begun • The Whitney Museum’s “Curate Your Own” • Arts Club Theatre Company’s Super Subscribers • Pacific Northwest Ballet’s “Add-On” gifts initiative THE FUTURE IS NOW STRATEGIES & TECHNIQUES FOR INTEGRATED PROGRAMS

  10. 2013 WASHINGTON NONPROFIT CONFERENCE The Symphony World THE FUTURE IS NOW STRATEGIES & TECHNIQUES FOR INTEGRATED PROGRAMS

  11. 2013 WASHINGTON NONPROFIT CONFERENCE Audience Growth Initiative 2008 • Why first time ticket buyers don’t come back • Atlanta, Boston, Chicago, Cleveland, Los Angeles, Milwaukee, New York, Philadelphia, San Francisco • Oliver Wyman • Jack McAuliffe, Engaged Audiences THE FUTURE IS NOW STRATEGIES & TECHNIQUES FOR INTEGRATED PROGRAMS

  12. 2013 WASHINGTON NONPROFIT CONFERENCE Audience Growth Initiative 2008 • Changing the season of Churn, Churn, Churn • 80% of first-time ticket buyers churned • Understanding what customers really value • Appreciating Judy’s Orchestra Experience • Nurturing first-timers, building loyalty and the Killer Offer • Outcomes • Surprise and Delight THE FUTURE IS NOW STRATEGIES & TECHNIQUES FOR INTEGRATED PROGRAMS

  13. I hadn’t been to the Orchestra since I was a kid, so I bought 2 tickets for a Mozart concert That day, work got completely crazy so I couldn’t make it. I tried calling the orchestra to exchange the tickets, but I was told my only option was to “donate” them! I decided to give it another shot 3 months later when my favorite composer, Tchaikovsky, was playing Parking was a nightmare. It took us 25 minutes to find a spot! BO analysis & clustering Customer experience Offer design & testing Imagine my surprise when 3 days later the orchestra called me to ask if I wanted to buy a subscription. I told them no and then 3 weeks later they called for a donation! Though I don’t think I am ever going back, they continue to flood me with mail, phone calls and emails. What a drag! By then, it was too late to have dinner. I was starving at intermission but the bar was super crowded, didn’t have any food and a drink was $12! The musicians played very well but I knew nothing about two of the pieces played Buy & Donate Now Judy’s orchestra experience“This was my first time back to the Orchestra since I was a kid, but it is likely to be my last” Illustrative

  14. Core product Music enhancement Hall access Social experience Transactional Repertoire Enriching experience Music information Access Social outing Planning & purchasing • During the season, the selection of works is appealing • During any given performance, the selection of piece(s) is appealing • The selection of performances within a subscription series is appealing • Attending a concert is stimulating • Attending a concert is entertaining • Attending a concert is always a special experience • I can feel a connection between the artists and myself when they perform • I feel a connection between myself and my fellow attendees • I look for information on the music before a concert • The Hall is easily accessible by public transportation • The policy regarding latecomers is appropriate • I feel safe in the Hall’s surroundings • I always find friends / family members to go with me • I always top the concert with a nice dinner or drinks • I don’t mind going alone to a performance • I can easily get schedule / price information on the Orchestra’s website • Purchasing tickets is easy BO analysis & clustering Customer experience Offer design & testing Live commentary • Pre-Concert discussions increase my enjoyment of the concert • The conductor’s personal comments enhance my enjoyment of the concert Exchanges Bar Parking • Exchanging tickets is easy • The Orchestra’s bar offers the refreshments that I want • The service at the Orchestra’s bar is fast and friendly • The Orchestra’s bar is good value for the money Hall • There are enough parking options near the Hall • Entering / exiting the parking lot is fast • The Hall is easily accessible by car • The auditorium architecture and décor are appealing • The lobby is attractive • The auditorium acoustics are state of the art Orchestra prestige and quality Special effects • The Orchestra brings us famous guest conductors • This Orchestra is one of the nation’s leading Orchestras • The Orchestra brings us famous guest soloists • The musicians’ level of play is always outstanding • Special lighting and/or visuals enhance the music Ability to attend “The orchestra club” Contemporary music • My health permits me to attend concerts whenever I want • I never miss a concert I have tickets for • Being able to talk about concerts give me some “prestige” at work / with friends • I enjoy meeting other attendees during the Orchestra’s receptions • I love events where I can meet the performers and the directors in person • I enjoy contemporary orchestral music • I like the sound of contemporary orchestral music • I understand contemporary orchestral music • I am very interested in not so well-known composers Factor analysisFrom the 78 attributes tested, we have identified the 16 most robust factors that influence customer behaviors 14 © Oliver Wymanwww.oliverwyman.com

  15. “Killer” offer BO analysis & clustering Customer experience Offer design & testing • 3 familiar & unfamiliar pieces • Quality seats • Bring a friend for free • Free drink • Free exchanges • Saturday night • Favorite composer • Famous instrumental soloist • Conductor’s insights in advance +40% share of single tickets Base “Killer” “Killer” offer for Unconverted trialistsDefined using the optimal levels for most attributes, the “killer” offer increases share of single tickets by an extra 40% for Trialists Base offer • 3 familiar & unfamiliar pieces • Quality seats • Weeknight • Romantic music • All orchestral / no soloists • Program notes on the website Source: Oliver Wyman Strategic Choice Analysis® survey, Box office data for weighting of orchestra, cluster and churn, unweighted N = 1,908

  16. Repertoire Music information Social experience Exchanges Access Relationship building Compelling offers Don’t surprise me: I want pieces that ‘ring a bell’ Initiate me: Really? Interesting to know! Let’s socialize!: I want to have a good time with my friends Me too!: I want flexibility No hassle: I just want to park and forget about my car Don’t ask me to marry you after the first date: I don’t want to commit yet Such a good deal: A no-brainer to go another time Enough familiar concerts to choose from during the season Enough background to enjoy the performance Enjoyable pre- (and post-) concert experience Socializing opportunities at the concert Easy to exchange tickets, even for single tickets Easy to get to and park at the hall One step at a time Right discount/ promotional offer combination Defining a new and comprehensive value proposition for “Unconverted trialists”

  17. 2013 WASHINGTON NONPROFIT CONFERENCE Pensacola Symphony • Retention strategies • Single ticket holders received email thanking them for purchase • Program notes about the music, written by the Music Director • Tips on where to park and eat before concert • Buy one get one free drink offer • Killer offer • By one get one free • $10 ticket offer for all local Air Force and Navy THE FUTURE IS NOW STRATEGIES & TECHNIQUES FOR INTEGRATED PROGRAMS

  18. 2013 WASHINGTON NONPROFIT CONFERENCE Pensacola Symphony • Outcomes • Added 300 more subscribers • 12.8% attended three or more concerts previous season • 9% had attended two concerts • Annual Fund goal was met thanks to 10% increase in donors who attended two or more concerts. THE FUTURE IS NOW STRATEGIES & TECHNIQUES FOR INTEGRATED PROGRAMS

  19. 2013 WASHINGTON NONPROFIT CONFERENCE Additional Results • Patrons buying two or more concerts after receiving the Killer Offer • Baltimore Symphony increased sales by 10.4% • Orlando Symphony by 22.6% THE FUTURE IS NOW STRATEGIES & TECHNIQUES FOR INTEGRATED PROGRAMS

  20. 2013 WASHINGTON NONPROFIT CONFERENCE Key Learning • Consider single ticket buyers • Build loyalty around what matters to your customers • Frequency trumps tenure The Future • Surprise and Delight THE FUTURE IS NOW STRATEGIES & TECHNIQUES FOR INTEGRATED PROGRAMS

  21. 2013 WASHINGTON NONPROFIT CONFERENCE Further Information • League of American Orchestras • www.americanorchestras.org • Symphony magazine • www.symphony.org • Jack McAuliffe, Engaged Audiences LLC • www.engagedaudiences.com THE FUTURE IS NOW STRATEGIES & TECHNIQUES FOR INTEGRATED PROGRAMS

  22. 2013 WASHINGTON NONPROFIT CONFERENCE Arena Stage THE FUTURE IS NOW STRATEGIES & TECHNIQUES FOR INTEGRATED PROGRAMS

  23. 2013 WASHINGTON NONPROFIT CONFERENCE Arena Stage • Donor loyalty was put to the test due to a recent venue renovation • While construction was underway performances took place in venues across DC and NOVA THE FUTURE IS NOW STRATEGIES & TECHNIQUES FOR INTEGRATED PROGRAMS

  24. 2013 WASHINGTON NONPROFIT CONFERENCE Arena Stage • Difficult to keep donors engaged during renovation • Re-opened in Oct. 2010 • Subscriber numbers have grown significantly • 15,300 subscribers THE FUTURE IS NOW STRATEGIES & TECHNIQUES FOR INTEGRATED PROGRAMS

  25. 2013 WASHINGTON NONPROFIT CONFERENCE Arena Stage • Larger pool of donor prospects • Using research to build engagement appeals • Bi-weekly Board Screening effort • PLI • Learn history and motivating factors • Wealth Engine • Monthly screenings • Integrated with Tessitura- capacity visible in header of patron account THE FUTURE IS NOW STRATEGIES & TECHNIQUES FOR INTEGRATED PROGRAMS

  26. 2013 WASHINGTON NONPROFIT CONFERENCE Arena Stage • Planned giving • 2 events-Coffee with Artistic Director and matinee performance • One on a weekday for those who are retired, one on a weekend, for those still employed • Sent invitation to: • Current members of the Full Circle Society • Gave to Individual and/or Special event campaigns 08-13 with a total giving of $1000 or more • Gave to Individual and/or Special event campaigns 08-13 with a total giving of $1000 or less with a giving capacity of $100K+ • SW Residents with $500K+ giving capacity THE FUTURE IS NOW STRATEGIES & TECHNIQUES FOR INTEGRATED PROGRAMS

  27. 2013 WASHINGTON NONPROFIT CONFERENCE Panel Discussion THE FUTURE IS NOW STRATEGIES & TECHNIQUES FOR INTEGRATED PROGRAMS

  28. 2013 WASHINGTON NONPROFIT CONFERENCE Q&A THE FUTURE IS NOW STRATEGIES & TECHNIQUES FOR INTEGRATED PROGRAMS

  29. 2013 WASHINGTON NONPROFIT CONFERENCE THE FUTURE IS NOW STRATEGIES & TECHNIQUES FOR INTEGRATED PROGRAMS Changing the Season of Churn, Churn, Churn Eric Nelson, DCM Russell Jones, New York Philharmonic Danielle St. Germain-Gordon, Arena Stage

More Related