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Patron Development: Preparing a path from first ticket to planned gift

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A patron’s loyalty is built step-by-step with each interaction with your organization. TRG is a data-driven consulting firm that teaches arts and cultural professionals a patron-based approach to sustainable revenue and discussed patron segmentation strategies and proven practices for closing the gap between subscribers and donors.

Published in: Data & Analytics
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Patron Development: Preparing a path from first ticket to planned gift

  1. 1. PATRON DEVELOPMENT: PREPARING A PATH FROM FIRST TICKET TO PLANNED GIFT 2016 League of American Orchestras Conference Copyright © 2016 TRG Arts All Rights Reserved Lindsay Anderson Vice President of Client Development TRG Arts | The Results Group for the Arts
  2. 2. Photo by Jean-Pierre Dalbéra via flickr (CC BY 2.0)
  3. 3. Good fences don’t make good data or systems. Or results.
  4. 4. opensource.com (CC BY-SA 2.0) The complete story: marketing + fundraising together
  5. 5. Today The Roadmap 1. Integrated data segmentation strategy 2. Best practices for improving ROI with each segment 3. Building an action plan and measuring success
  6. 6. Integrated loyalty development: working across departments to develop patron loyalty holistically
  7. 7. E V E N T S S A L E S C O N C E R T S F U N D R A I S I N G M A R K E T I N G P A R K I N GThe Patron Experience: What it is. Patron
  8. 8. Patron Services Front-Line Staff Artistic Staff & Concert Marketing & Development The Patron Experience: What it should be. Patrons
  9. 9. Acknowledge relationship Make buying easy Address logistics Upgrade & affirm purchase Artistic Staff Welcome patrons as guests & friends Set the stage for an excellent artistic experience Affirm purchase Front-Line Staff Patron Services Get the phone to ring & mail to come in Talk to patrons like we know who they are Get them to buy & donate Marketing & Development Artistic Staff & Concert Put on a terrific concert! Create trust with quality The Patron Experience: Department “Jobs”
  10. 10. In a patron-centered business model: Marketing can’t do it alone. Development can’t do it alone. Marketing & Development
  11. 11. Integrated data segmentation strategy opensource.com (CC BY-SA 2.0) 1
  12. 12. VIP access and hand-holding From first to second and last time to NOW The magic of “and” Studying Patron Loyalty Patron Loyalty Index Categories
  13. 13. National 0.5-2% HH 20-40% Revenue 5-10% HH 13-38% Revenue 90-95% HH 38-66% Revenue Where Do Patrons Fall? Example Symphony Orchestra statistics Case Study Example 1.2% HH 27% Revenue 14.4% HH 49% Revenue 84.4% HH 19% Revenue
  14. 14. Cultivation team goals How to promote loyalty at all levels of patronage • Goal #1: Reduce NTF STB churn • Goal #2: Raise # of Same Season Multi-STB • Goal #3: Retain more new subscribers • Goal #4: Increase % of subscriber/donors • Goal #5: Increase renewal rate of subscriber/donors • Goal #6: Increase # of new Friends donors • Goal #7: Increase % of Friends donors who subscribe • Goal #8: Increase % of Friends donors who buy extra singles
  15. 15. National 0.5-2% HH 20-40% Revenue 5-10% HH 13-38% Revenue 2014-2010 90-95% HH 38-66% Revenue 1.2% HH 27% Revenue 14.6% HH 51% Revenue 84.2% HH 20% Revenue Percentage Point Change* +1% $ +5% $ -2% $ * Over study periods 2013-2009 to 2015-2011 2013-2009 1.2% HH 27% Revenue 14.4% HH 49% Revenue 84.4% HH 19% Revenue 2015-2011 1.3% HH 28% Revenue 15.5% HH 54% Revenue 83.2% HH 17% Revenue Where Do Patrons Fall? Example Symphony Orchestra statistics
  16. 16. Single Ticket Buyers New Subscribers Renewing Subscribers Renewing Subscriber- Donors Per Patron Yield $53.84 $156.05 $341.51 $550.42 Cost of Sale 20% 25% 3% 3% Renewal Rates 23% 46% 69% 88% Net Revenue Analysis A performing arts example
  17. 17. EXPENSES REVENUE
  18. 18. Photo by Tobias Schlitt (CC BY-NC-SA 2.0) Best practices: improving ROI for each segment every patron’s right next step How? The Art of the Upgrade 2
  19. 19. A Love Story Todd Hryck (CC BY 2.0) / Rob Jewitt (CC BY-NC-SA 2.0)
  20. 20. Single Ticket Buyers First Dates Cost-of-Sale: MEDIUM-HIGH Retention Realities: LOW retention Repeat purchase offer best Upgrade Case: Chicago Symphony Case Study best practices: • Keeping buyers current • Direct response NEW SINGLE TICKET BUYER
  21. 21. Reactivation: Example Invite lapsed buyers back with a compelling offer Target Segments: 2 -4 year lapsed buyers Combined Results: 603 returning households 1.3% response rate 8% cost-of-sale $74,048 net revenue
  22. 22. Repeat Ticket Buyer Dating Cost-of-Sale: MEDIUM Retention Realities: MEDIUM retention Higher frequency = higher retention Upgrade Case: Denver Art Museum Case Study best practices: • Right offer to right person, right time REPEAT TICKET BUYER MULTI TICKET BUYER
  23. 23. “Sticky” Patrons What does that mean? Participation, participation, participation! 6% 9% 11% Buy membership Visit once Visit twice Visit 3 times renewal rate increase renewal rate increase renewal rate increase
  24. 24. Subscriber Getting Engaged Cost-of-Sale: MEDIUM-HIGH Retention Realities: Higher, varies w/ package size But: ensure participation! Upgrade Case • Rochester Philharmonic Case Study best practices: • Renewal =UPGRADE FIRST! SUBSCRIBER
  25. 25. Donor-ready patrons Development Marketing SUBSCRIBER /MEMBER MULTI TICKET BUYER REPEAT TICKET BUYER NEW SINGLE TICKET BUYER DONOR ADVOCATE /INVESTOR
  26. 26. Subscriber + Donor Marriage Cost-of-Sale: LOW Retention Realities: HIGH! Integrated direct response sophistication Upgrade Case: 5th Avenue Theatre Case Study best practices: • Direct response integrated asks SUBSCRIBER PLUS
  27. 27. 453 Super Subscribers gave $51,100 in 4 months 70% had no previous giving history. More on this case at www.trgarts.com
  28. 28. Donor/Investor Management Anniversaries Cost-of-Sale: LOW Retention Realities: Higher, depends on investment level Donors who DO more, give more! Upgrade Case: Toronto International Film Festival Case Study best practices: • Direct response • Donor pacing meetings ADVOCATE /INVESTOR
  29. 29. Annual Fund Supports Membership Donor retention increases 3x with membership; Member retention rates lift with donation Annual Fund Only Annual Fund and Member Retained Renew Members 365 55% 48% Contributors Circle 82% 67% Patrons Circle 86% 65% Retained Renew Members 365 36% 35% Contributors Circle 75% 35% Patrons Circle 36% 29% Member Only Annual Fund and Member 2014 into 2015. No membership. 2014 into 2015. No membership. Retained Renew Annual Campaign 63% 62% Retained Renew Annual Campaign 17% 15%
  30. 30. WHAT DOES IT TAKE?
  31. 31. Building an action plan and measuring success What’s required • Invest in your team and in your relationships • Business and operations plan • Cross-functional teams that implement through a quarterly and weekly process • Metrics that you’re managing together 3
  32. 32. Photo: Mirjam van den Berg (CC BY 2.0) Invest in your team and in your relationships
  33. 33. What erodes this relationship?
  34. 34. What erodes this relationship? Separate budgets and goals Meeting infrequently Separate databases Infrequent CEO involvement
  35. 35. 5 Ways to Collaborate Marketing/Development 1. Use your data. Together. Can you review patron activity holistically? 2. When you say “work together,” mean it. Do you work each other’s events? 3. Coordinate campaigns. Who receives donation asks, and when?
  36. 36. 5 Ways to Collaborate Marketing/Development 4. Give subscribers/members a taste of donorship. Can you leverage donor benefits? 5. Get patron services involved. Do you ask for donations at the point of sale? 6. Work together to determine benefits. Which benefits are for whom?
  37. 37. Weekly Process Keeping it Real Ailey’s Monday Morning Meeting Mondavi Center Integrated Loyalty Pacing Hubbard Street Patron Pacing
  38. 38. Photo: Gavin Brogan (CC BY 2.0) Set metrics you’ll managing together
  39. 39. Metrics that matter Measuring loyalty # of donors with ticket purchase $ from multi- buyers # of upgrades at point of sale % of sub- donors
  40. 40. Example Orchestra Goals How to promote loyalty at all levels of patronage • Goal #1: Reduce NTF STB churn • Goal #2: Raise # of Same Season Multi-STB • Goal #3: Retain more new subscribers • Goal #4: Increase % of subscriber/donors • Goal #5: Increase renewal rate of subscriber/donors • Goal #6: Increase # of new Friends donors • Goal #7: Increase % of Friends donors who subscribe • Goal #7: Increase % of Friends donors who buy extra singles
  41. 41. Metrics that matter Basic recommendations from TRG • Metric #1: % / $ patron-generated revenue • Metric #2: % / # active patrons in your database • Metric #3: data capture rate • Metric #4: new audience churn rate • Metric #5: % of subscriber-donors • Metric #6: per-capita revenue
  42. 42. Photo by Jean-Pierre Dalbéra via flickr (CC BY 2.0) Data doesn’t do. People do.
  43. 43. PATRON DEVELOPMENT: PREPARING A PATH FROM FIRST TICKET TO PLANNED GIFT 2016 League of American Orchestras Conference Copyright © 2016 TRG Arts All Rights Reserved Lindsay Anderson Vice President of Client Development TRG Arts | The Results Group for the Arts

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