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Dancing with the Stars
    Building Stronger
   Patron Relationships
        March 16, 2012
                          Copyright © 2012 TRG Arts
                                 All Rights Reserved
Jill Robinson
President, TRG Arts
     Moderator
Patron Relationships
   Sustain the Arts
                  Most loyal




                       Least loyal




                               3
Suzette Sherman, Director of External Affairs
National Museum of Women in the Arts




                                                4
David Snead, Vice President of Marketing
New York Philharmonic




                                           5
Chad Bauman, Director of Communications
Arena Stage




                                          6
Karen Girty, Marketing Director
New York City Ballet




                                  7
Donna Williams, Chief Audience Development Officer
The Metropolitan Museum of Art




                                                     8
Suzette Sherman, Director of External Affairs
National Museum of Women in the Arts

LOYALTY

                                                9
Loyalty is About Relationships


                                                               “Loyalty is the
                                                               gold standard
                                                               for measuring
                                                              the quality of a
                                                                relationship.”


The Loyalty Effect and Loyalty Rules by Frederick Reichheld                      10
Loyalty: A Cause and Effect Relationship
  Marketing             Fundraising
   Research          Friend-raising
Audience Development     Infrastructure                   Right Visitors
                                                          and Members
                                                                                           nd
                                                                                 Visitor a
                                                                                   Member
         $ Reinvest                                                                 Loyalty


                                                  Superior
                                                 Constituent                          GROWTH
                       and
                 Donor r
                                                   Value
                  Investo
                   Loyalty                                       Compensation        Right
                                                                  Advantage        Employees
 Right Donors
 and Investors


                                                                                Emp
            REVENUE                                                                 lo
                                                                                Loy yee
                                                                                   alty
                                  $ Cost
                                 Advantage               $ Superior
                                                         Productivity
                                                                                      Experienced service
                                                                                         Well-Informed
   Adapted from The Loyalty Effect and Loyalty Rules by Frederick Reichheld        Know donors and customers
Evangelists within Loyal Segments
                                                                                      Evangeli
                100%                                                                     st
                                                                            Loyal


                 (Retention)
                   Loyalty



                                                                          Neutral

                                  Vulnerable
       Defector
       or Critic
                         1           2         3      4                                     5
                                Satisfaction, Recommend, and
                                Value
   Adapted from James L. Heskett, Thomas O. Jones, Gary W. Loveman, Earl Sasser, Jr., and Leonard A.
   Schlesinger. “Putting the Service-Profit Chain to Work.” Harvard Business Review March-April 1994.
Finding Opportunities in Your Base

Motivating members
  who are active,
  committed and
    refer others
Encouraging and Tracking Referrals
David Snead, Vice President of Marketing
New York Philharmonic

LISTENING TO
THE AUDIENCE
                                           15
16
Chad Bauman, Director of Communications
Arena Stage

WHOLE PATRON FOCUS

                                          17
Patron Loyalty Math at Arena
    Net Revenue over 2 years

          100 Renewing
           Subscribers




           = 209 New
           Subscribers



        = 913 New Single
          Ticket Buyers
Arena’s Patron Loyalty Index
 Super Advocates
                 Results
  & Advocates
                   1% households
                    72% revenue


    Buyers         5% households
                    11% revenue


    Tryers
                   74% households
                    16% revenues
    Inactive
  20% households
    1% revenue
Who’s Helga?
THE CHALLENGE
Our databases are designed to look at our customers holistically, but
                         why aren’t we?




           Frequent Failures of an External Affairs Model


             Silos exist under the Director of External
                               Affairs
            Imbalances between Contributed & Earned
            Revenue become self-fulfilling prophecies
                Weaknesses of the Director become
                   organizational weaknesses


            Paradigm Shift vs. Change in the Org Chart
Karen Girty, Marketing Director
New York City Ballet

CARE AND RETENTION

                                  23
New York City Ballet
Front



    Retention Postcard for 2011 Nutcracker New-to-File Buyers
Back
                         New York City Ballet
          Retention Postcard for 2011 Nutcracker New-to-File Buyers

Offer




Choices
New York City Ballet
Retention Email for 2011 Nutcracker New-to-File Buyers
Results
                 of Nutcracker New-to-File Retention offer



                        Ocean's Kingdom Seven Deadly Sins Romeo and Juliet    TOTAL
Overall Response Rate             0.93%             0.72%            2.16%      3.80%
Total Households                 19,412            19,412           19,412     19,412
Total Responders                    180              139               419        738
Package quantity                    360              278               838      1,476
Revenue Total         $          15,359 $          10,774 $         68,499 $ 94,632
Total cost of mailing                                                        $ 10,492
Cost of Sale                                                                      11%
New York City Ballet
Subscription Reactivation Appeal
New York City Ballet
Subscription Reactivation Appeal & Priority Segmentation



                                          FY11     FY12   Change
                       Response Rate       5.18%    4.83%
                    Total Households       6,387    8,016
                    Total Responders         331      387    17%
              Seat Qty or Package Qty      1,807    1,920     6%
                             Revenue    $176,182 $245,969    40%
         Average Order per Responder        $532     $636    19%
             Amt Order per Household         $28      $31    11%
Building
Relationships

           Donna Williams
  Chief Audience Development Officer




 THE METROPOLITAN MUSEUM OF ART
Lunar New Year
February 4, 2012
Dancing with the Stars
   Building Stronger
  Patron Relationships
       March 16, 2012
                         Copyright © 2012 TRG Arts
                                All Rights Reserved

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Dancing With the Stars: Building Stronger Patron Relationships

  • 1. Dancing with the Stars Building Stronger Patron Relationships March 16, 2012 Copyright © 2012 TRG Arts All Rights Reserved
  • 3. Patron Relationships Sustain the Arts Most loyal Least loyal 3
  • 4. Suzette Sherman, Director of External Affairs National Museum of Women in the Arts 4
  • 5. David Snead, Vice President of Marketing New York Philharmonic 5
  • 6. Chad Bauman, Director of Communications Arena Stage 6
  • 7. Karen Girty, Marketing Director New York City Ballet 7
  • 8. Donna Williams, Chief Audience Development Officer The Metropolitan Museum of Art 8
  • 9. Suzette Sherman, Director of External Affairs National Museum of Women in the Arts LOYALTY 9
  • 10. Loyalty is About Relationships “Loyalty is the gold standard for measuring the quality of a relationship.” The Loyalty Effect and Loyalty Rules by Frederick Reichheld 10
  • 11. Loyalty: A Cause and Effect Relationship Marketing Fundraising Research Friend-raising Audience Development Infrastructure Right Visitors and Members nd Visitor a Member $ Reinvest Loyalty Superior Constituent GROWTH and Donor r Value Investo Loyalty Compensation Right Advantage Employees Right Donors and Investors Emp REVENUE lo Loy yee alty $ Cost Advantage $ Superior Productivity Experienced service Well-Informed Adapted from The Loyalty Effect and Loyalty Rules by Frederick Reichheld Know donors and customers
  • 12. Evangelists within Loyal Segments Evangeli 100% st Loyal (Retention) Loyalty Neutral Vulnerable Defector or Critic 1 2 3 4 5 Satisfaction, Recommend, and Value Adapted from James L. Heskett, Thomas O. Jones, Gary W. Loveman, Earl Sasser, Jr., and Leonard A. Schlesinger. “Putting the Service-Profit Chain to Work.” Harvard Business Review March-April 1994.
  • 13. Finding Opportunities in Your Base Motivating members who are active, committed and refer others
  • 15. David Snead, Vice President of Marketing New York Philharmonic LISTENING TO THE AUDIENCE 15
  • 16. 16
  • 17. Chad Bauman, Director of Communications Arena Stage WHOLE PATRON FOCUS 17
  • 18.
  • 19. Patron Loyalty Math at Arena Net Revenue over 2 years 100 Renewing Subscribers = 209 New Subscribers = 913 New Single Ticket Buyers
  • 20. Arena’s Patron Loyalty Index Super Advocates Results & Advocates 1% households 72% revenue Buyers 5% households 11% revenue Tryers 74% households 16% revenues Inactive 20% households 1% revenue
  • 22. THE CHALLENGE Our databases are designed to look at our customers holistically, but why aren’t we? Frequent Failures of an External Affairs Model Silos exist under the Director of External Affairs Imbalances between Contributed & Earned Revenue become self-fulfilling prophecies Weaknesses of the Director become organizational weaknesses Paradigm Shift vs. Change in the Org Chart
  • 23. Karen Girty, Marketing Director New York City Ballet CARE AND RETENTION 23
  • 24. New York City Ballet Front Retention Postcard for 2011 Nutcracker New-to-File Buyers
  • 25. Back New York City Ballet Retention Postcard for 2011 Nutcracker New-to-File Buyers Offer Choices
  • 26. New York City Ballet Retention Email for 2011 Nutcracker New-to-File Buyers
  • 27. Results of Nutcracker New-to-File Retention offer Ocean's Kingdom Seven Deadly Sins Romeo and Juliet TOTAL Overall Response Rate 0.93% 0.72% 2.16% 3.80% Total Households 19,412 19,412 19,412 19,412 Total Responders 180 139 419 738 Package quantity 360 278 838 1,476 Revenue Total $ 15,359 $ 10,774 $ 68,499 $ 94,632 Total cost of mailing $ 10,492 Cost of Sale 11%
  • 28. New York City Ballet Subscription Reactivation Appeal
  • 29. New York City Ballet Subscription Reactivation Appeal & Priority Segmentation FY11 FY12 Change Response Rate 5.18% 4.83% Total Households 6,387 8,016 Total Responders 331 387 17% Seat Qty or Package Qty 1,807 1,920 6% Revenue $176,182 $245,969 40% Average Order per Responder $532 $636 19% Amt Order per Household $28 $31 11%
  • 30. Building Relationships Donna Williams Chief Audience Development Officer THE METROPOLITAN MUSEUM OF ART
  • 32.
  • 33. Dancing with the Stars Building Stronger Patron Relationships March 16, 2012 Copyright © 2012 TRG Arts All Rights Reserved

Editor's Notes

  1. From where my colleagues at TRG and I sit, the state of patron relationships in the arts today. Our research over the past decade shows that nine out ten patron households in the databases of arts organizations are one-time or infrequent and long-ago lapsed customers. In our terminology – Tryers – the least loyal, hardest to acquire and hardest to hold onto customers form the foundation of arts patronage today. The instability of the patron base – the cracks in the pyramid so to speak – are a real threat to the arts’ sustainability. That’s the bad news. The good news is that our research also tells us that when organizations put smart patron loyalty cultivation programs in place, they will thrive. And, today, we have five of the smartest practitioners with us to share their thoughts on building stronger patron relationships. Let me introduce them.
  2. Suzette Sherman is the Director of External Affairs and Member Relations at the National Museum of Women in the Arts. Suzette’s career blends 20 years of international marketing and management experience in both nonprofit and corporate environments, including roles at the Guggenheim Museum (NYC), United Airlines, and The Philadelphia Museum of Art. Suzette has lectured at the University of Pennsylvania.
  3. David Snead has been Vice President of Marketing for the New York Philharmonic since 2001. Prior to the New York Philharmonic, David led the marketing programs of the Pittsburgh Symphony, Guthrie Theater, Milwaukee Symphony and Hartford Symphony. David is on the faculty for the League of American Orchestras professional development programs and is a regular lecturer at New York University and the Manhattan School of Music. 
  4. Chad Bauman is the director of communications for Arena Stage at the Mead Center for American Theater, where he supervises the marketing, media relations, publications, sales and front of house departments.  Previously, he was the director of marketing and communications at Americans for the Arts, where he was responsible for all earned revenue goals, branding, strategic communications, and promoting the organization's more than 480 different programs. In 2011, Washington Life Magazine named Chad one of the most influential leaders under 40 in our nation's capital.
  5. Karen Girty is the Director of Marketing at New York City Ballet, managing the Company brand and overseeing efforts to generate nearly $27 million in annual sales. Prior to joining NYCB, she worked for Serino/Coyne, the nation’s largest live entertainment advertising agency, where managed accounts for Broadway producers such as the Nederlander Producing Company of America and The Metropolitan Opera.
  6. Donna Williams is chief audience development officer for The Metropolitan Museum of Art where she developed the Multicultural Audience Development Initiative, the College Group at the Met, and the Mentoring Program. She cultivates and maintains the Museum’s relationships with diverse communities and college-age audiences.  For her extensive work in diversity, Donna has been honored with the NBA New Jersey NETS Achievement Award, One Hundred Black Men’s Robert Mangum Leadership Award, and a proclamation from the City of New York. The question we posed to each of the panelists is this: What is the most important practice or best idea for building stronger patron relationships today? Now, let’s hear their answers. Suzette, lead us off, please.
  7. Thank you, Suzette. David, please add your thoughts.
  8. Note: David spoke without visual aids. We made the next slide to go to while he is talking.
  9. What is typical for other clients? Advocates: 0.3-2% of households; 13-39% of revenue (Capital Campaign = huge impact) Buyers: 1.5-7.2% of households; 13-38% of revenue Tryers: 92.0-97.9% of households; 38-66% of revenue
  10. Thank you, Chad. [Click] Karen – Add your thoughts, please.
  11. Thanks, Karen. And now, please, Donna [Click]