Patron Loyalty presentation from 2012 National Alliance for Musical Theatre Conference

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Learn how The 5th Avenue Theatre, in concert with TRG Arts, is building a wholly new model of patron engagement. Organizations from small to large will benefit from viewing their patrons through the lens of loyalty. Learn techniques that you can take back home to drive retention as well as increase engagement and revenue.
From the National Alliance for Musical Theatre's 2012 Conference in Seattle.

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  • More transactions per patronMore money per transactionThe longer you are able to retain someone, the more they investRetaining is less expensive then acquisitionIntegrated operations are more efficient (and more fun!)All patron interaction can then be leveraged
  • Both interrelated and measurable Subs = PASSION DRIVEN HABIT!You need to make theatre a habitThe more shows they come to in a season, the stronger the habitTo drive subscriptions utilize the stick and the carrotThink of a donation as an investment from that patronDonations are a testament to their commitment to the organization and their faithGiving is the defining factor at highest level of loyalty = advocacy All it takes to be defined as an advocate = gift at the level of $1,000 - $2,500
  • 32% of subs donate across all art forms; theater = 24% (internal scan only)
  • Free Parking when you take all seven showsLes Miserables only available for packages of 5 shows or more7, 6 & 5 show packages account for 90% of 2011/12 revenue31% of all subscribers upgraded in 2011/12
  • Tryers = 92% of all households - typical
  • 100 patron sample, over two years, total spend of the 100 and average spend per household
  • It’s not about up-selling or trying to squeeze more revenue out of patrons.
  • Patron Loyalty presentation from 2012 National Alliance for Musical Theatre Conference

    1. 1. PATRONLOYALTYSEAN KELLY – 5TH AVENUE THEATRELAURA WILLUMSEN – TRG ARTS
    2. 2. Patron LoyaltyWhat are you passionate about? SK
    3. 3. Patron LoyaltyHow would we know? SK
    4. 4. Patron LoyaltyHow do you measure passion at your theatre? SK
    5. 5. Patron LoyaltyWhy is passion important?It‟s what keeps patrons coming back and encourages them toget more involved.Or put another way: It brings in more $$$! SK
    6. 6. Patron LoyaltyDriving revenue via loyalty is the onlysustainable model for growth LW
    7. 7. Patron LoyaltyThere are two key drivers of loyalty  Subscriptions  DonationsThese two behaviors interact far more than we might realize! LW
    8. 8. PatronRenewing Subscribers Donate More Loyalty They bring in 90% of sub-donor revenue Their average gift is 100-172% higher than new subs New Subscribers 2010 & 2011 • % who donate - 20% • Average per household $113 • $69,000 Renew Subscribers 2010 & 2011 • % who donate - 35% • Average per household $258 • $705,500 LW
    9. 9. Donating Raises Subscription Renewal Patron LoyaltyRates Renewal rates for subscribers who donate are 11-22% higher than non-donating subscribers Non-donors Renewing into 2011 & 2012 • 65% retention rate (4883) Donors Renewing into 2011 & 2012 • 86% retention rate (2913) LW
    10. 10. Patron5th Avenue Subscriptions LoyaltyYear over year 2012 - 13 Subscription Revenue 9M Renewal Deadline 8.473 M 8M 7.233 M 7M 6M 5M 12-11 11-12 3.909 M 4M 10-11 3M 2M 1M M Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May SK
    11. 11. Patron LoyaltyThe carrot and the stick  Carrot  Stick % of Total Packages Season 4 Show Full 2004/05 46% 34% 2011/12 14% 50%  7, 6 & 5 show packages account for 90% of 2011/12 revenue  31% of all subscribers upgraded in 2011/12 SK
    12. 12. Super Advocates $40,000 Patron11% revenue Loyalty & Advocates $4,000 Changed proportions of triangle & title43% revenue Buyers $52745% revenue Tryers $48 Patron Loyalty Index: Analysis LW
    13. 13. Patron LoyaltyWho are the 180? 4 Profiles of Patron Loyalty SK
    14. 14. PatronSuper Advocate – Single Tickets Loyalty Steve Tenge#104   He‟s been a subscriber since 1996  Has 4 season Subscriptions, all 7 shows  Attends most shows 15-20 times, via see it again $20 ticket offer  Making a $1,000 gift to the annual fund since 2009  His PLI is $31,014 since 2007 SK
    15. 15. PatronSuper Advocate - Gala Attendee Loyalty  Martha Dawson and Ron Corbell#31  Subscribers since ‟04  Make an annual fund contribution of $1,000  Attend the gala each year and since 2007 have spent nearly $40,000  Their PLI is $90,205 since 2007 SK
    16. 16. PatronSuper Advocate -Non-Board Major Donor Loyalty  Beth and Buzz Porter#17  They have been subs since 1999  Started giving $1,000 in „02  Now give an annual gift of $10,000 and attend the gala most years  Their PLI score is $151,469 since 2007 SK
    17. 17. PatronSuper Advocate - Group Leader Loyalty Sharon Ahlen#5   Subscriber since 1990  Make an annual fund gift of $1,500  Purchases nearly $55,000 in subs each year for groups  Her PLI score is $441,966 since 2007 SK
    18. 18. PatronWho‟s Paying the Bills? Loyalty100 patrons over two years Renewing Subscriber/Donors Renewing • $101,604 Subscribers • $1,016 • $60,621 New • $606 Subscribers • $18,667 • $187 Single Ticket Buyers • $5,298 LW
    19. 19. Patron LoyaltyLoyalty is building relationshipsPatrons respond because they already care.If we don‟t invite them, we are literally ignoringthem! LW
    20. 20. PatronThe saddest words in the English language… Loyalty“What party?” MARKETING & DEVELOPMEN T SK
    21. 21. Patron LoyaltyWhat is a Patron‟s first experience with thetheatre? Handing their ticket to the usherWhy is that important?What is a Patron‟s first experience with thetheatre?Because there is an inherent promise in that interaction. SK
    22. 22. Patron LoyaltyWho is responsible for building relationships(be specific)? The Director of Development SK
    23. 23. PatronThe Patron Experience Loyalty Front of House FRONT OF HOUSE The Show ! Customer Marketing Sales & & Devo Services SK
    24. 24. PatronThe Patron Experience Loyalty Front of House FRONT OF The HOUSE Sho w! Customer Marketing Sales & & Devo Services SK
    25. 25. Patron The Patron Experience Loyalty JOB: Acknowledge Custome relationship r Sales & Make buying easy Services Address logisticsPRE-SHOW JOB: & MARKETING FRONT Affirm order; upgrade Get the phone to DEVELOPMEN OF ring T HOUSE Marketin g Front of House & DevoPOST-SHOW JOB: JOB:Cultivate & Upgrade Welcome patrons as guests & friends The Set the stage for an JOB: Show! excellent artistic Put on a experience terrific SK performance!
    26. 26. PatronEvery Interaction Counts Loyalty MARKETING & Enhances DEVELOPMEN T Detracts SK
    27. 27. Patron Loyalty Implementation Timeline To ensure a sustainable transition to the new patron loyalty model. Jan Feb Mar Apr May June July Aug Sep Advocate Front of Staff 20 Most Concierg 1st Gift HouseRollout Likely e Experienc Integrated 180 Gala e Subs + Custome Points Give r Service Campaign Initiative SK
    28. 28. PatronGetting Started LoyaltyChoose from the menu! Carrot Stick Upgrade Retain Minimum Ask for a gift Calculate total Free Parking package size to with every subs revenue for with full season see #1 show piece each patron Free Wine with Discounted “Super Who is your blind faith parking for Subscriber” “180” renewal partial package $2 surcharge Lengthen your 6 week Free Chocolate for exchanges subs campaign promotional with renewal with partial pre-seat cadence season release SK

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