No Size Fits All: Measuring Success in New Ways
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This document summarizes a presentation about choosing the right data metrics to measure arts organization success. It discusses aligning metrics with goals and stakeholder interests. Examples show calculating percentages of patron revenue and numbers of active patrons. Key performance indicators measure things like marketing return on investment, program revenue, and attendance in response to marketing. The presentation emphasizes selecting just one to three relevant data points that stakeholders care about. It provides examples of using data to plan cultivation of new and existing patrons facing programming changes.
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No Size Fits All: Measuring Success in New Ways
- 1. www.smu.edu/artsresearch Zannie Voss 2014 NAMP CONFERENCE NO SIZE FITS ALL: MEASURING SUCCESS IN NEW WAYS
- 2. SMU National Center for Arts Research (NCAR) Advancing the arts through evidence-based knowledge To act as a catalyst for the transformation and sustainability of the national arts and cultural community Vision Statement Mission Statement To be the leading provider of evidence- based insights that enable arts and cultural leaders to overcome challenges and increase impact
- 3. Scope of the Center Insight Analysis Data gathering Enablement Implementation Practical tools & resources Deeper dive & dissemination Primary data collecting Hands-on application Focus Out of scope Ad hoc, as required Data aggregation & basic findings
- 4. Partners Strategy Data Indices & Dashboard Creation
- 5. Modeling the Arts & Culture Ecosystem Public Arts Funding NEA, IMLS CDP, NASAA Community Census Bureau, CDP A & C Organizations CDP, TCG NCCS
- 6. Building a Spatial Model: Arts & Cultural Organizations & a Sense of Place
- 7. Example – XYZ Theatre Company in New Orleans 5 km radius, weight=80% 3 km radius, weight=89% 1 km radius, weight=97% XYZ Theatre
- 8. SMU National Center for Arts Research (NCAR) Advancing the arts through evidence-based knowledge Mission Statement What are the Important Questions to Ask? Contributed revenue Earned revenue Expenses Marketing Impact Bottom Line Balance Sheet Community Engagement Program Activity What outcomes should we examine in order to answer the questions? Staffing
- 9. SMU National Center for Arts Research (NCAR) Advancing the arts through evidence-based knowledge Example: Question: “What is program revenue per attendee?” Index: Program revenue/Total in-person attendance What drives high performance? KIPIs What drives performance? Driving Forces What was performance? Averages
- 10. $37.36 $24.86 $6.62 $36.25 $9.45 $53.02 $34.03 $37.67 $27.90 $13.78 $17.53 $0.00 $20.00 $40.00 $60.00 Arts Education Art Museums Community Dance Music Opera Performing Arts Centers Symphony Orchestras Theater Other Museums General Performing Arts Ave. Total Marketing Expenses/Ave. In-person Attendance Ave. Program Revenue/Ave. In-person Attendance What are marketing expenses per attendee and program revenue per attendee? Taken together, we see very different levels of net program revenue per attendee by sector. $20.47 $40.09 $13.06
- 11. $11.98 $8.68 $3.79 $4.64 $3.51 $4.10 $5.17 $4.34 $3.75 $6.35 $3.92 $0.00 $5.00 $10.00 $15.00 Arts Education Art Museums Community Dance Music Opera Performing Arts Centers Symphony Orchestras Theater Other Museums General Performing Arts Ave. Program Revenue/ Ave.Total Marketing Expenses What is return on marketing investment? There appears to be a ceiling on the program revenue each dollar of marketing yields for performing arts organizations. $1,532,000 $344,447 $526,305 $110,457 $875,898 $229,051
- 12. What is the return on fundraising investment? There appears to be a ceiling on the return each dollar of fundraising yields. $7.27 $8.68 $9.68 $7.12 $6.67 $7.39 $7.05 $6.90 $6.99 $8.63 $8.37 $- $5.00 $10.00 Arts Education Art Museums Community Dance Music Opera Performing Arts Centers Symphony Orchestras Theater Other Museums General Performing Arts Total Contributed Revenue (unrestricted, temporarily & permanently restricted)/ Fundraising Expenses (including staff) $565,867 $78,950 $886,862 $126,529 $2,997,046 $424,976
- 13. SMU National Center for Arts Research (NCAR) Advancing the arts through evidence-based knowledge What was performance? Averages Example: Question: “What is program revenue per attendee?” Index: Program revenue/Total in-person attendance What drives high performance? KIPIs What drives performance? Driving Forces What was performance? Averages
- 14. What Drives Performance? The Concept of Explained Variation Attendance Arts & Cultural Sector Expected Performance
- 15. Sector, size, age, square footage, …; community characteristics, availability of public arts funding The Concept of Explained Variation Attendance
- 16. The Concept of Explained Variation Attendance The Concept of Unexplained Variation What drives high performance? Key Intangible Performance Indicator (KIPI)
- 18. What Drives Performance? E.g., Operating Revenue 31% 6% 59% 4% % Variation Explained by Organization-level Drivers % Variation Explained by Marketplace Drivers % Total Variation Attributable to KIPI % Total Variation Attributable to Random Error Tee box adjustment
- 19. 31% 6% 59% % Variation Explained by Organization-level Drivers % Variation Explained by Marketplace Drivers % Total Variation Attributable to KIPI % Total Variation Attributable to Random Error What Drives Performance? E.g., Operating Revenue 31% 6% 59% 4% Size, age, sector, square footage + Receives NEA/IMLS funds + Local premieres + Targets young adults + Targets Asian-Americans – A&C Organization Characteristics High % kids + Socioeconomic level + Total population + Median age – Community Characteristics Market A&C $ activity + # of arts providers + Leisure complements + Public radio/TV+
- 20. 31% 6% 59% % Variation Explained by Organization-level Drivers % Variation Explained by Marketplace Drivers % Total Variation Attributable to KIPI % Total Variation Attributable to Random Error What Drives Performance? E.g., Operating Revenue 31% 6% 59% 4% "The [X theatre] has realized how to leverage its brand to create more consistent revenue streams." “We surveyed audiences and ‘quality’ was the number one reason they come. It’s the same reason we can hire the artists we want." “It’s about getting your mojo working.”
- 21. KIPI Scores: ABC Presenter Which index scores would you like to see? Earned revenue Expenses Bottom line Balance sheet Staffing Program activity Community engagement Contributed revenue Marketing impact
- 22. KIPI Scores: ABC Presenter Which index scores would you like to see? Contributed revenue Earned revenue Expenses Marketing impact Bottom line Balance sheet Community engagement Program activity Staffing Return on Fundraising Unrestricted Contributions Trustee Contributions Individual Contributions Response to Marketing Efforts Return on Marketing Efforts Operating Bottom Line (before depreciation) Available Cash Working Capital Unrestricted Surplus Operating Bottom Line (after depreciation) Total Engagement In-person Engagement Revenue-per-Offering People-per-Offering Visitor-to-Staff Corporate Contributions Foundation Support Government Support Earned Revenue Attendee-Expense Relational Revenue Investment in Program Investment in Program Personnel Response to Direct Marketing Spend Return on Direct Marketing Spend = Subscription & Membership Revenue Total Expenses = Program Revenue Marketing Expenses = In-person Attendance Marketing Expenses Revenue per Attendee
- 23. KIPI Scores: ABC Presenter Has your Relational Revenue KIPI increased or decreased over time? (Total Subscription & Membership Revenue/Total Expenses) Relational Revenue Index 2011 0 50 100 2012 Relational Revenue Index 2013 Relational Revenue Index Click here to see changes in the KIPI of the component parts of this Index over time.
- 24. KIPI Scores: ABC Presenter Has your Return on Marketing KIPI increased or decreased over time? (Total Program Revenue/Total Marketing Expenses) Return on Marketing Efforts Index 2011 0 50 100 2012 Return on Marketing Efforts Index 2013 Return on Marketing Efforts Index Click here to see changes in the KIPI of the component parts of this Index over time.
- 25. KIPI Scores: ABC Presenter Is the change in your Return on Marketing Efforts KIPI driven by an increase/decrease in your Total Program Revenue KIPI? 2012 Response to Marketing Efforts Index Return on Marketing Efforts Index 2011 2013 Response to Marketing Efforts Index Program Revenue 2011 Program Revenue 2012 Program Revenue 2013 0 50 100 Click here to see changes in the KIPI of the component parts of this Index over time.
- 26. KIPI Scores: ABC Presenter Is the change in your Return on Marketing Efforts KIPI driven by an increase/decrease in your Total Marketing Expenses KIPI? 2012 Return on Marketing Efforts Index 2011 2013 Return on Marketing Efforts Index Marketing Expenses 2011 Marketing Expenses 2012 Marketing Expenses 2013 0 50 100 Click here to see changes in the KIPI of the component parts of this Index over time. Return on Marketing Efforts Index
- 27. KIPI Scores: ABC Presenter Has your Response to Marketing Efforts KIPI increased or decreased over time? (Total In-person Attendance/Total Marketing Expenses) Response to Marketing Efforts Index 2011 0 50 100 2012 Response to Marketing Efforts Index 2013 Response to Marketing Efforts Index Click here to see changes in the KIPI of the component parts of this Index over time.
- 28. KIPI Scores: ABC Presenter Is the change in your Response to Marketing Efforts KIPI driven by an increase/decrease in your Total In-Person Attendance KIPI? 2012 Response to Marketing Efforts Index Response to Marketing Efforts Index 2011 2013 Response to Marketing Efforts Index Total Attendance 2011 Total Attendance 2012 Total Attendance 2013 0 50 100 Click here to see changes in the KIPI of the component parts of this Index over time.
- 29. KIPI Scores: ABC Presenter Is the change in your Response to Marketing Efforts KIPI driven by an increase/decrease in your Total Marketing Expenses KIPI? 2012 Response to Marketing Efforts Index Response to 2011 2013 Response to Marketing Efforts Index Marketing Expenses 2011 Marketing Expenses 2012 Marketing Expenses 2013 0 50 100 Click here to see changes in the KIPI of the component parts of this Index over time. Marketing Efforts Index
- 30. ACTIONABLE DATA TO THRIVE ON 2014 NAMP Conference Jill Robinson, President & CEO TRG Arts Copyright © 2014 TRG Arts All Rights Reserved
- 31. People Your Patrons DATA #measuresuccess
- 33. Revenue from Patron Relationships #measuresuccess
- 34. ( ) % of patron revenue How important patrons are Source: your budget Timespan: most recent season/year revenue from: ticket sales + memberships/subs + individual gifts + classes/events/galas TOTAL revenue (including foundation, corporate, government) 1 #measuresuccess
- 35. % of patron revenue Recent examples 92% 81% 72% 71% 63% 60% 48% 33% What does this look like at your organization? #measuresuccess
- 36. # of Active Patrons Your most important patrons Source: your database or ticketing system Timespan: 2 most recent seasons or years Count of households that had any interaction this year and last year 2 #measuresuccess
- 37. EXPENSES ROI
- 38. What’s an upgrade? Action Next Step Buy a ticket for the first time Buy a ticket twice in the same season Renew subscription/ membership Come back again Buy a subscription/ membership Add on donation or events #measuresuccess
- 39. CASE STUDY You have 10 minutes to plan what Kathy should do next. In your answer, include: - an outline of 2-3 specific things that the marketing department should do to cultivate incoming new and existing patrons in the face of upcoming blockbuster events. - how Kathy should re-allocate her subscription and single ticket budget. You should take into account the 10% ($18,000) cut and include any reallocations for individual productions. #measuresuccess
- 40. NO SIZE FITS ALL: Choose the Right Data November 9, 2014 Arin Sullivan Director of Programs & Client Services
- 41. Agenda Alignment Position vs. Interest Group work #nampc #measuresuccess
- 42. Current Reality Alignment Ideal Future Reality #nampc #measuresuccess
- 43. Current Reality Alignment Ideal Future Reality #nampc #measuresuccess
- 44. Position vs. Interest Independence Freedom to spend time with friends “I want a car…” Need Interest Position #nampc #measuresuccess
- 45. Current Reality Alignment Ideal Future Reality #nampc #measuresuccess
- 46. Current Reality Alignment Ideal Future Reality #nampc #measuresuccess
- 47. Current Reality Alignment & Interest Ideal Future Reality #nampc #measuresuccess
- 48. Avoid the Data Swarm “Over 50 percent of our marketing budget is spent on printing materials…” Limit yourself to 1 to 3 data points Select data points that: • Align with your plan • Align with your colleague’s interests • Are succinct, memorable, and digestible #nampc #measuresuccess
- 49. Workshop 1. Focus on one colleague • Review their interests 2. Choose the right data • Choose 1 strategy • 10 minutes of group work 3. Report out • Share your strategy and the data points that you chose for your colleague #nampc #measuresuccess
- 51. Thank you Arin Sullivan, Director of Programs & Client Services e: asullivan@culturaldata.org w: culturaldata.org #nampc #measuresuccess