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IAAM Student Chapters                                                       http://www.iaam.org/facility_manager/pages/2004_Feb_Mar/lo...




                        LOAD OUT
                        CRM: It’s A Culture, Not A Technology
             Back to
         Facility
         Manager
                        By Derek Rauchenberger
         Contents

                        Customer Relationship Management (CRM) is integral to the long-term success
                        of any venue. However, many organizations often think of CRM as a technology
         Back to Home
                        or software system when in fact it is a culture. Make no mistake, people buy
                        tickets to see the talent on the stage, but they are more inclined to become
                        long-term customers if they enjoy the overall experience at your facility.

                        CRM is the smile on an usher’s face as he says “enjoy the show.” CRM is about
                        clean restrooms, good food, convenient parking and a polite staff. While
                        technology is an enabling tool that helps support the guest experience, it is the
                        culture of the venue and its staff that truly determine the value of the customer
                        relationship.

                        As a long-time building manager, my greatest satisfaction comes as patrons
                        enter the venue for the first time. When I see a smile come across their face, I
                        know that we have exceeded their expectations. Sometimes I hear their
                        comments as they talk about being impressed by the staff and the facility. In my
                        early days at Poplar Creek (an outdoor amphitheater in Chicago) I would
                        occasionally hear patrons comment that “this is like Disneyland.” At that point I
                        knew that our efforts were appreciated.

                        When NextStage at Grand Prairie (TX) first opened we had a very thin schedule,
                        so we sold our high-quality service offerings. The schedule was so light that we
                        created our own shows with local talent just to be able to open the building to the
                        public. During this opening event, the staff peddled the features and amenities of
                        the venue while developing the venue’s first positive customer relationships. I am
                        proud to say those days are far behind at NextStage as the venue hosted 71
                        performances in 2003 and the commitment to service has remained integral to
                        its success.

                        When an editorial appeared in The Dallas Morning News claiming our $10
                        parking fee was exorbitant, a rebuttal came from a customer who had read the
                        article. He said that he had paid $10 to park, but he “received a million bucks
                        worth of service” as an usher had helped his wife from the car, into a wheelchair
                        and taken her down to her seat. That was just one of many occasions when the
                        staff “goes the extra mile” to ensure that our patrons are satisfied.

                        As venue managers we have fairly limited control over the product on stage, but
                        we have tremendous influence on the quality of the guest experience that
                        defines the long term value of the venue itself. One positive experience can
                        easily lead to another sales opportunity.

                        After hosting 42 Radio City performances during the 2002 holiday season, we
                        had many happy customers who called in 2003 to book their group outings and
                        holiday parties at NextStage. These inquiries were easily converted into group,
                        suite and catering sales for a variety of holiday shows. These new sales
                        opportunities were the direct result of positive customer experiences from last




1 of 2                                                                                                                 1/16/09 12:29 AM
IAAM Student Chapters                                                             http://www.iaam.org/facility_manager/pages/2004_Feb_Mar/lo...



                        year’s show.

                        No amount of technology or customer data can bring back a patron after a bad
                        experience. Only hands-on customer service can remedy that ill. Always strive to
                        turn your customer problems into customer opportunities.

                        When customer problems do arise, try resolving them by offering another
                        experience before offering a refund. Not only does this save hard dollars, but it
                        also helps build long-term customer value. My standard line is, “I can’t turn back
                        the clock on your bad experience, but please give me the opportunity to give you
                        a better one.” This may include free tickets, VIP parking, free merchandise or a
                        “meet and greet” with the artist.

                        In the early days of NextStage an elderly customer demanded to “see the
                        manager” as he was very disappointed by the fact that all the shows he had
                        bought tickets for were being cancelled. He was threatening to never buy
                        another ticket until I offered him VIP passes for a meet and greet with Robert
                        Goulet after a performance of South Pacific. By the end of the event, we had a
                        long-term customer who became our goodwill ambassador.

                        Our obligation for a quality customer experience isn’t limited to the front-of-house
                        as it is equally important to treat the artist and their entourage as customers.
                        This can take the form of good catering, comfortable dressing rooms, a fully
                        wired production office, hardworking crew, and a knowledgeable production staff.
                        Creating goodwill amongst the artist and crew is critical to developing a good
                        reputation for a new building that is trying to establish itself. Our best industry PR
                        is the word-of-mouth generated about the backstage staff and facilities. Bonnie
                        Raitt exclaimed from the stage that “the dressing rooms are nicer than my
                        house.” Santana’s management decided on NextStage after receiving very
                        favorable comments about the building from their audio company.

                        The secret to a successful CRM culture is the people who create it…the venue
                        staff. If management gives them the goal and empowers them to achieve it, CRM
                        success will result. Our goal at NextStage was simple: to deliver great live
                        experiences. We did this for both artist and audience.

                        Derek Rauchenberger is the former general manager of NextStage
                        at Grand Prairie. He has managed the Hartford Meadows, Pacific
                        Amphitheatre and was on the opening management of Poplar Creek
                        Music Theater in 1980. He has also been a tour accountant and tour
                        manager for numerous artists. He can be reached at
                        drauchenberger@comcast.net.

                                           © 2002-2004 International Association of Assembly Managers
                                  635 Fritz Dr. Coppell, TX 75019 USA Phone: 972/906-7441 Fax: 972/906-7418




2 of 2                                                                                                                       1/16/09 12:29 AM

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CRM: It’s A Culture, Not A Technology

  • 1. IAAM Student Chapters http://www.iaam.org/facility_manager/pages/2004_Feb_Mar/lo... LOAD OUT CRM: It’s A Culture, Not A Technology Back to Facility Manager By Derek Rauchenberger Contents Customer Relationship Management (CRM) is integral to the long-term success of any venue. However, many organizations often think of CRM as a technology Back to Home or software system when in fact it is a culture. Make no mistake, people buy tickets to see the talent on the stage, but they are more inclined to become long-term customers if they enjoy the overall experience at your facility. CRM is the smile on an usher’s face as he says “enjoy the show.” CRM is about clean restrooms, good food, convenient parking and a polite staff. While technology is an enabling tool that helps support the guest experience, it is the culture of the venue and its staff that truly determine the value of the customer relationship. As a long-time building manager, my greatest satisfaction comes as patrons enter the venue for the first time. When I see a smile come across their face, I know that we have exceeded their expectations. Sometimes I hear their comments as they talk about being impressed by the staff and the facility. In my early days at Poplar Creek (an outdoor amphitheater in Chicago) I would occasionally hear patrons comment that “this is like Disneyland.” At that point I knew that our efforts were appreciated. When NextStage at Grand Prairie (TX) first opened we had a very thin schedule, so we sold our high-quality service offerings. The schedule was so light that we created our own shows with local talent just to be able to open the building to the public. During this opening event, the staff peddled the features and amenities of the venue while developing the venue’s first positive customer relationships. I am proud to say those days are far behind at NextStage as the venue hosted 71 performances in 2003 and the commitment to service has remained integral to its success. When an editorial appeared in The Dallas Morning News claiming our $10 parking fee was exorbitant, a rebuttal came from a customer who had read the article. He said that he had paid $10 to park, but he “received a million bucks worth of service” as an usher had helped his wife from the car, into a wheelchair and taken her down to her seat. That was just one of many occasions when the staff “goes the extra mile” to ensure that our patrons are satisfied. As venue managers we have fairly limited control over the product on stage, but we have tremendous influence on the quality of the guest experience that defines the long term value of the venue itself. One positive experience can easily lead to another sales opportunity. After hosting 42 Radio City performances during the 2002 holiday season, we had many happy customers who called in 2003 to book their group outings and holiday parties at NextStage. These inquiries were easily converted into group, suite and catering sales for a variety of holiday shows. These new sales opportunities were the direct result of positive customer experiences from last 1 of 2 1/16/09 12:29 AM
  • 2. IAAM Student Chapters http://www.iaam.org/facility_manager/pages/2004_Feb_Mar/lo... year’s show. No amount of technology or customer data can bring back a patron after a bad experience. Only hands-on customer service can remedy that ill. Always strive to turn your customer problems into customer opportunities. When customer problems do arise, try resolving them by offering another experience before offering a refund. Not only does this save hard dollars, but it also helps build long-term customer value. My standard line is, “I can’t turn back the clock on your bad experience, but please give me the opportunity to give you a better one.” This may include free tickets, VIP parking, free merchandise or a “meet and greet” with the artist. In the early days of NextStage an elderly customer demanded to “see the manager” as he was very disappointed by the fact that all the shows he had bought tickets for were being cancelled. He was threatening to never buy another ticket until I offered him VIP passes for a meet and greet with Robert Goulet after a performance of South Pacific. By the end of the event, we had a long-term customer who became our goodwill ambassador. Our obligation for a quality customer experience isn’t limited to the front-of-house as it is equally important to treat the artist and their entourage as customers. This can take the form of good catering, comfortable dressing rooms, a fully wired production office, hardworking crew, and a knowledgeable production staff. Creating goodwill amongst the artist and crew is critical to developing a good reputation for a new building that is trying to establish itself. Our best industry PR is the word-of-mouth generated about the backstage staff and facilities. Bonnie Raitt exclaimed from the stage that “the dressing rooms are nicer than my house.” Santana’s management decided on NextStage after receiving very favorable comments about the building from their audio company. The secret to a successful CRM culture is the people who create it…the venue staff. If management gives them the goal and empowers them to achieve it, CRM success will result. Our goal at NextStage was simple: to deliver great live experiences. We did this for both artist and audience. Derek Rauchenberger is the former general manager of NextStage at Grand Prairie. He has managed the Hartford Meadows, Pacific Amphitheatre and was on the opening management of Poplar Creek Music Theater in 1980. He has also been a tour accountant and tour manager for numerous artists. He can be reached at drauchenberger@comcast.net. © 2002-2004 International Association of Assembly Managers 635 Fritz Dr. Coppell, TX 75019 USA Phone: 972/906-7441 Fax: 972/906-7418 2 of 2 1/16/09 12:29 AM