The Lukens Company's American Alliance of Museums Presentation - May 2013

AAM / Membership Trends & Strategies
Membership Trends & Strategies to Optimize
Acquisition, Renewal & Pricing

Cultural Attraction Attendance, 2003-2012
6.8%
3.0%
0.3%
1.7%
3.5%
-1.7%
2.8%
-1.2%
0.1%
5.5%
-10.0%
-8.0%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
General Admission Attendance Membership

Reasons to Join
All
37%
Value
39%
Mission
24%

Membership as a Percentage of General
Admission Attendance
4
3.8%
3.1% 3.1%
3.6%
2.7%
4.0%
2.9%
4.5% 4.6%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
5.0%

5
14,318
13,720
18,973
14,069
4,917
9,086
10,826
25,451
7,120
14,714
13,273
20,493
15,146
4,868
9,203
11,036
26,485
6,812
-
5,000
10,000
15,000
20,000
25,000
30,000
2011 2012
Membership by Segment

Membership Prices by Segment
6
$52.73
$55.73 $60.55
$47.86
$53.33
$48.54
$53.79 $51.28 $52.80
$77.66 $80.88
$96.10
$65.00
$81.00
$69.38
$70.91 $73.14
$84.89
$93.67 $90.43
$122.87
$76.56
$103.91
$84.33
$95.07 $88.39
$91.30
$-
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
$140.00
Individual Dual Family

Membership Prices by Segment
7
4.0
4.6
2.9
4.7
5.0
4.0 3.6
4.0
4.2
3.0
3.4
2.3
3.2
3.8
2.9
2.4
2.9
3.3
2.1
2.4
1.7
2.4 2.5
2.2
1.8 2.0 2.3
-
1.0
2.0
3.0
4.0
5.0
6.0
Individual Dual Family

56%
63%
48%
66%
43%
62%
47%
59%
50%
0%
20%
40%
60%
80%
100%
Membership Renewal Rate by Segment

Ideal Membership Size
14.9%
5.7%
3.9%
2.7%
1.2%
0.0%
5.0%
10.0%
15.0%
20.0%
Top 40 Next 40 Next 40 Next 40 Bottom
Membership as a Percentage of Attendance

449,582
670,402
611,279
325,696
563,009
23,490 25,006 14,417 5,998 5,248
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
Actual Membership Size
Attendance Membership

$52.48 $54.70 $52.07 $50.39 $50.54
4.6 4.2 4.4 4.9 4.7
$-
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
Individual Membership Cost/Ratio to Admission
Cost Ratio

$73.78 $76.79 $74.00 $75.07
$84.24
3.4 2.8 2.6 2.4 2.7
$-
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
$80.00
$90.00
Dual Member Cost/Ratio to Admission
Cost Ratio

$93.08 $94.91 $93.05 $92.76 $94.71
3.5 2.3 2.2 2.3 2.7
$-
$20.00
$40.00
$60.00
$80.00
$100.00
Family Member Cost/Ratio to Admission
Cost Ratio

$998,038 $1,237,119 $624,359 $253,204 $230,310
$7,831,892
$14,041,431
$12,475,736
$6,807,469
$9,726,325
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
Revenue Generated
Gross Member Gross Admission

$19.64
$22.79 $21.43 $21.68
$17.68
$-
$5.00
$10.00
$15.00
$20.00
$25.00
Revenue Generated Per Visitor

• We wanted to know how to increase our membership
• There are several ways in which to increase membership:
– Acquisition from visitor base
– Acquisition from lapsed
– Acquisition from the market
– Renewal

We conducted market research to determine if and how to increase our
membership in these areas.
1. Visitor Survey: Acquisition from visitors
2. Lapsed Member Survey: Acquisition from lapsed
3. Local Market Survey: Acquisition from the market
4. Member Survey: Renewal

Conditions
– $7 general admission
– $50 Individual Membership – 7.1 times the cost of admission
– $65 Dual Membership – 9.2 times the cost of admission

What were the results?

24

Most of those who would renew would do so on their next visit.

What did we learn?

• We had a high renewal rate
• A high % of members joined for free admission, but the value of
membership was low compared to the cost of general admission
• The actual cost of admission was significantly less that the
anticipated price
• There were a high % of lapsed members who would renew … but
not until another visit
• Exhibitions had a major influence on visitation

What did we do?

Ticket Type
2002-2011 2012 2013
Member Free Free Free
Adult (19+) 7.00$ 10.00$ 13.00$
Senior (65+) 3.50$ 5.00$ 8.00$
Student (19+) 3.50$ 5.00$ 6.00$
Youth (6-18) 3.50$ 5.00$ 6.00$
Child (5 + under) Free Free Free
Military N/A 5.00$ 6.00$
Membership Level
2005-2011 2012 2013
Student $40 NO CHANGE $45
Individual $50 NO CHANGE $60
Dual $65 NO CHANGE $80
Family $85 NO CHANGE $95
Patron $150 NO CHANGE $185
Supporting $275 NO CHANGE $330
Sponsor $500 NO CHANGE $750
Benefactor $1,200 NO CHANGE $1,500
Adjusted Rates

Focus on visits

• SFMOMA will close the doors of its current building on June 2, 2013
as part of our extensive expansion, reopening in 2016 as one of the
largest modern and contemporary art museums in the world.
• During the 30-month interim period, SFMOMA will be On the Go and
offer several interim programming strands:
1. Exhibitions with Museum Partners
2. Outdoor Installations & Site-Specific Commissions
3. California Tour of Photography Exhibitions
4. Education Programs & Live Projects
Background

• Unlimited free admission and discounts at Bay Area partner museums
during joint exhibitions
• Exclusive preview days and receptions at partner museums
• Free or reduced admission to select film screenings and lectures
• 10% off at the MuseumStore (online and at SFO, and at the new
SFMOMA MuseumStore on Yerba Buena Lane opening late summer
2013) – 20% off on members-only sale days
• Free subscription to the quarterly members’ magazine
Membership On the Go: An Enriched Experience

CORE MEMBERS (retention) –
loyal, institutional supporters,45- 65
EXHIBITION-BASED MEMBERS
(retention) – casual, regular visitors
that were inspired to join by a
particular show, 25-44
MEMBERS SOUGHT (acquisition) -
traditional market + geographic
(East & South Bays) and ethnically
diverse audiences, 25- 44
Loyal fans and members – disappointed and
concerned that we’re closing, and that they will
be missing out, 35-64
Traditional Museumgoers – casual, regular
visitors from San Francisco and the East Bay
residents primarily, 35-64
Cultural Tourists – unaware of our closure,
they will find out on our web site or when they
try to stop by on a trip, 35-64
Non-traditional Potentials – San Francisco,
East Bay, and Peninsula residents. Educated,
affluent individuals interested in visual media
and the arts, 25-44
Target Audiences

1. Honor our members, retain, energize and strengthen the member
community.
2. Acquire new members by generating excitement and awareness about
our Interim programs and the new SFMOMA, 2016.
3. Communicate clearly that SFMOMA membership benefits, and the
museum are moving around for 30 months, not closing.
Strategic Objectives

REASSURANCE –
keep institutional
memory and spirit alive
EXCITEMENT –
opportunity to have a
unique membership
experience
LOYALTY –
recognition and thanks
for member
involvement
INFORMATION –
detailed updates about
interim programming
and the extraordinary
new SFMOMA
Membership Message Criteria

Moving beyond our walls with enthusiasm!
1. Member Forums
2. Member Focus Groups
3. Month-long Member Appreciation Celebration
4. Charter Membership
5. More Member Benefits Than Ever
Membership Tactics

Additional Interim Benefits
• CUESA (Center for Urban Education about Sustainable Agriculture)
• ODC Dance
• San Francisco Bicycle Coalition
• San Francisco Symphony
• Zipcar San Francisco
• Free Artist Talks at Live Projects
• Special Member Gatherings at Site-Specific Installations
• Fisher Collection at Gap Headquarters & Pier 24 Photography access
Additional Member Partners
Membership On the Go: An Enriched Experience

www.sfmoma.org/membership

Lifetime Value Sample

NEW MEMBER RETENTION 2007-2012
2007 2008 2009 2010 2011 2012
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Newly Acquired Members 12,153
# Renewed 4,983 4,136 3,350 2,881 2,535
% Renewed 41% 83% 81% 86% 88%
Average Amount $107 $111 $115 $120 $122 $127
REVENUE
Membership, Donations and Ticket Revenue Cumulative Revenue
Membership $1,300,371 $553,083 $475,602 $401,987 $351,470 $321,970 $3,404,483
Other Revenue (tickets and donations) $6,077 $2,491 $2,068 $1,675 $1,440 $1,268 $15,019
Traditional Revenue Subtotal $1,306,448 $555,574 $477,669 $403,662 $352,911 $323,238 $3,419,501
Per Cap Revenue
Store $109,377 $44,845 $37,221 $30,149 $25,928 $22,817 $270,336
Restaurant $60,765 $24,914 $20,678 $16,749 $14,405 $12,676 $150,187
Per Cap Revenue Subtotal $170,142 $69,758 $57,899 $46,898 $40,333 $35,493 $420,523
TOTAL REVENUE $1,476,590 $625,333 $535,569 $450,560 $393,244 $358,730 $3,840,025
COSTS
Costs per member Cumulative Cost
Membership Salaries $50,638 $20,761 $17,232 $13,958 $12,004 $10,563 $125,156
Guest Services $21,546 $12,863 $9,823 $7,745 $6,158 $4,545 $62,680
Marketing $58,912 $27,751 $21,517 $17,523 $15,123 $12,687 $153,513
Magazine $31,629 $12,469 $10,278 $7,546 $2,943 $5,254 $70,119
Events $7,890 $982 $624 $478 $413 $398 $10,785
Camps, Classes $6,423 $791 $562 $412 $394 $267 $8,849
Acquisition Direct Mail Cost (all costs) $122,569 $122,569
TOTAL COSTS $299,607 $75,617 $60,036 $47,662 $37,035 $33,714 $553,671
YEARLY PROFIT $1,176,983 $549,715 $475,533 $402,898 $356,209 $325,016 $3,286,354
LIFETIME VALUE $97 $142 $181 $214 $244 $270

Lifetime Value
Made Easy

NEW MEMBER RETENTION 2007-2012
2007 2008 2009 2010 2011 2012
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Newly Acquired Members 12,153
# Renewed 4,983 4,136 3,350 2,881 2,535
% Renewed 41% 83% 81% 86% 88%
Average Amount $107 $111 $115 $120 $122 $127
REVENUE
Membership, Donations and Ticket Revenue Cumulative Revenue
Membership $1,300,371 $553,083 $475,602 $401,987 $351,470 $321,970 $3,404,483
Other Revenue (tickets and donations) $6,077 $2,491 $2,068 $1,675 $1,440 $1,268 $15,019
Traditional Revenue Subtotal $1,306,448 $555,574 $477,669 $403,662 $352,911 $323,238 $3,419,501
Per Cap Revenue
Store $109,377 $44,845 $37,221 $30,149 $25,928 $22,817 $270,336
Restaurant $60,765 $24,914 $20,678 $16,749 $14,405 $12,676 $150,187
Per Cap Revenue Subtotal $170,142 $69,758 $57,899 $46,898 $40,333 $35,493 $420,523
TOTAL REVENUE $1,476,590 $625,333 $535,569 $450,560 $393,244 $358,730 $3,840,025

So what about costs?

Questions?
Anthony Plamondon
anthony@thelukenscompany.com
John Morey
john@moreygroup.com
Nancy Finn
nfinn@sfmoma.org Jennifer Garza
jgarza@mfah.org

The Lukens Company's American Alliance of Museums Presentation - May 2013

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