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Dancing With the Stars: Building Stronger Patron Relationships

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Hear from luminaries at top companies as they discuss the keys to keeping and upgrading patrons. Jill Robinson, President of TRG Arts, moderated this panel discussion at the Spring 2012 ArtsReach …

Hear from luminaries at top companies as they discuss the keys to keeping and upgrading patrons. Jill Robinson, President of TRG Arts, moderated this panel discussion at the Spring 2012 ArtsReach Conference in New York City.

Moderator: Jill Robinson, President, TRG Arts
Panelists:
Chad Bauman, Director of Communications, Arena Stage
Suzette Sherman, Director of External Affairs and Member Relations, National Museum of Women in the Arts
David Snead, Vice President of Marketing, New York Philharmonic
Karen Girty, Marketing Director, New York City Ballet
Donna Williams, Chief Audience Development Officer, Metropolitan Museum of Art

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  • 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.
  • 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.
  • 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. 
  • 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.
  • 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.
  • 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.
  • Thank you, Suzette. David, please add your thoughts.
  • Note: David spoke without visual aids. We made the next slide to go to while he is talking.
  • 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
  • Thank you, Chad. [Click] Karen – Add your thoughts, please.
  • Thanks, Karen. And now, please, Donna [Click]
  • Transcript

    • 1. Dancing with the Stars Building Stronger Patron Relationships March 16, 2012 Copyright © 2012 TRG Arts All Rights Reserved
    • 2. Jill RobinsonPresident, TRG Arts Moderator
    • 3. Patron Relationships Sustain the Arts Most loyal Least loyal 3
    • 4. Suzette Sherman, Director of External AffairsNational Museum of Women in the Arts 4
    • 5. David Snead, Vice President of MarketingNew York Philharmonic 5
    • 6. Chad Bauman, Director of CommunicationsArena Stage 6
    • 7. Karen Girty, Marketing DirectorNew York City Ballet 7
    • 8. Donna Williams, Chief Audience Development OfficerThe Metropolitan Museum of Art 8
    • 9. Suzette Sherman, Director of External AffairsNational Museum of Women in the ArtsLOYALTY 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-raisingAudience 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 BaseMotivating members who are active, committed and refer others
    • 14. Encouraging and Tracking Referrals
    • 15. David Snead, Vice President of MarketingNew York PhilharmonicLISTENING TOTHE AUDIENCE 15
    • 16. 16
    • 17. Chad Bauman, Director of CommunicationsArena StageWHOLE PATRON FOCUS 17
    • 18. Patron Loyalty Math at Arena Net Revenue over 2 years 100 Renewing Subscribers = 209 New Subscribers = 913 New Single Ticket Buyers
    • 19. 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
    • 20. Who’s Helga?
    • 21. THE CHALLENGEOur 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
    • 22. Karen Girty, Marketing DirectorNew York City BalletCARE AND RETENTION 23
    • 23. New York City BalletFront Retention Postcard for 2011 Nutcracker New-to-File Buyers
    • 24. Back New York City Ballet Retention Postcard for 2011 Nutcracker New-to-File BuyersOfferChoices
    • 25. New York City BalletRetention Email for 2011 Nutcracker New-to-File Buyers
    • 26. Results of Nutcracker New-to-File Retention offer Oceans Kingdom Seven Deadly Sins Romeo and Juliet TOTALOverall Response Rate 0.93% 0.72% 2.16% 3.80%Total Households 19,412 19,412 19,412 19,412Total Responders 180 139 419 738Package quantity 360 278 838 1,476Revenue Total $ 15,359 $ 10,774 $ 68,499 $ 94,632Total cost of mailing $ 10,492Cost of Sale 11%
    • 27. New York City BalletSubscription Reactivation Appeal
    • 28. New York City BalletSubscription 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%
    • 29. BuildingRelationships Donna Williams Chief Audience Development Officer THE METROPOLITAN MUSEUM OF ART
    • 30. Lunar New YearFebruary 4, 2012
    • 31. Dancing with the Stars Building Stronger Patron Relationships March 16, 2012 Copyright © 2012 TRG Arts All Rights Reserved

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