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PATRON
LOYALTY
SEAN KELLY – 5TH AVENUE THEATRE
LAURA WILLUMSEN – TRG ARTS
Patron
                                 Loyalty




What are you passionate about?




                                      SK
Patron
                     Loyalty




How would we know?




                          SK
Patron
                                      Loyalty




How do you measure passion at your theatre?




                                           SK
Patron
                                                       Loyalty




Why is passion important?


It‟s what keeps patrons coming back and encourages them to
get more involved.


Or put another way:

           It brings in more $$$!


                                                             SK
Patron
                                          Loyalty



Driving revenue via loyalty is the only
sustainable model for growth




                                               LW
Patron
                                        Loyalty




There are two key drivers of loyalty

     Subscriptions

     Donations

These two behaviors interact far more than
            we might realize!

                                             LW
Patron
Renewing 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
Donating Raises Subscription Renewal                          Patron
                                                              Loyalty
Rates
   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
Patron
5th Avenue Subscriptions                                                             Loyalty
Year 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
Patron
                                                                      Loyalty




The 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
Super Advocates $40,000
                                                         Patron
11% revenue                                              Loyalty
               & Advocates $4,000


                                               Changed
                                               proportions of
                                               triangle & title
43% revenue    Buyers $527




45% revenue    Tryers $48




              Patron Loyalty Index: Analysis


                                                                  LW
Patron
                                   Loyalty




Who are the 180?




    4 Profiles of Patron Loyalty




                                        SK
Patron
Super 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
Patron
Super 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
Patron
Super 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
Patron
Super 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
Patron
Who‟s Paying the Bills?                                    Loyalty
100 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
Patron
                                                     Loyalty




Loyalty is building relationships


Patrons respond because they already care.


If we don‟t invite them, we are literally ignoring
them!



                                                          LW
Patron
The saddest words in the English language…   Loyalty
“What party?”




  MARKETING &
  DEVELOPMEN
       T




                                                  SK
Patron
                                                            Loyalty



What is a Patron‟s first experience with the
theatre?

 Handing their ticket to the usher




Why is that important?
What is a Patron‟s first experience with the
theatre?
Because there is an inherent promise in that interaction.

                                                                 SK
Patron
                                          Loyalty



Who is responsible for building relationships
(be specific)?

 The Director of Development




                                                SK
Patron
The Patron Experience                               Loyalty




                     Front of
                     House
                                            FRONT
                                              OF
                                            HOUSE
                      The
                     Show
                       !
          Customer              Marketing
           Sales &               & Devo
          Services
                                                         SK
Patron
The Patron Experience                               Loyalty




                     Front of
                     House
                                            FRONT
                                              OF

                     The                    HOUSE



                     Sho
                      w!
          Customer              Marketing
           Sales &               & Devo
          Services
                                                         SK
Patron
  The Patron Experience                                                  Loyalty



                                                          JOB:
                                                      Acknowledge
                                     Custome
                                                       relationship
                                     r Sales &    Make buying easy
                                     Services      Address logistics
PRE-SHOW JOB: &
     MARKETING                                                  FRONT
                                                 Affirm order; upgrade
 Get the phone to
      DEVELOPMEN                                               OF
       ring T                                                 HOUSE
                       Marketin
                          g                      Front of
                                                 House
                       & Devo

POST-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!
Patron
Every Interaction Counts        Loyalty




 MARKETING &
                  Enhances
 DEVELOPMEN
      T



                     Detracts


                                     SK
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             House
Rollout                 Likely                   e                                        Experienc
          Integrated                                     180 Gala                             e
            Subs +               Custome
                                                                                 Points
             Give                r Service
          Campaign               Initiative
                                                                                                SK
Patron
Getting Started                                                     Loyalty
Choose 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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Patron Loyalty presentation from 2012 National Alliance for Musical Theatre Conference

  • 1. PATRON LOYALTY SEAN KELLY – 5TH AVENUE THEATRE LAURA WILLUMSEN – TRG ARTS
  • 2. Patron Loyalty What are you passionate about? SK
  • 3. Patron Loyalty How would we know? SK
  • 4. Patron Loyalty How do you measure passion at your theatre? SK
  • 5. Patron Loyalty Why is passion important? It‟s what keeps patrons coming back and encourages them to get more involved. Or put another way: It brings in more $$$! SK
  • 6. Patron Loyalty Driving revenue via loyalty is the only sustainable model for growth LW
  • 7. Patron Loyalty There are two key drivers of loyalty  Subscriptions  Donations These two behaviors interact far more than we might realize! LW
  • 8. Patron Renewing 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. Donating Raises Subscription Renewal Patron Loyalty Rates  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. Patron 5th Avenue Subscriptions Loyalty Year 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. Patron Loyalty The 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. Super Advocates $40,000 Patron 11% revenue Loyalty & Advocates $4,000 Changed proportions of triangle & title 43% revenue Buyers $527 45% revenue Tryers $48 Patron Loyalty Index: Analysis LW
  • 13. Patron Loyalty Who are the 180? 4 Profiles of Patron Loyalty SK
  • 14. Patron Super 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. Patron Super 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. Patron Super 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. Patron Super 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. Patron Who‟s Paying the Bills? Loyalty 100 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. Patron Loyalty Loyalty is building relationships Patrons respond because they already care. If we don‟t invite them, we are literally ignoring them! LW
  • 20. Patron The saddest words in the English language… Loyalty “What party?” MARKETING & DEVELOPMEN T SK
  • 21. Patron Loyalty What is a Patron‟s first experience with the theatre?  Handing their ticket to the usher Why is that important? What is a Patron‟s first experience with the theatre? Because there is an inherent promise in that interaction. SK
  • 22. Patron Loyalty Who is responsible for building relationships (be specific)?  The Director of Development SK
  • 23. Patron The Patron Experience Loyalty Front of House FRONT OF HOUSE The Show ! Customer Marketing Sales & & Devo Services SK
  • 24. Patron The Patron Experience Loyalty Front of House FRONT OF The HOUSE Sho w! Customer Marketing Sales & & Devo Services SK
  • 25. Patron The Patron Experience Loyalty JOB: Acknowledge Custome relationship r Sales & Make buying easy Services Address logistics PRE-SHOW JOB: & MARKETING FRONT Affirm order; upgrade Get the phone to DEVELOPMEN OF ring T HOUSE Marketin g Front of House & Devo POST-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. Patron Every Interaction Counts Loyalty MARKETING & Enhances DEVELOPMEN T Detracts SK
  • 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 House Rollout Likely e Experienc Integrated 180 Gala e Subs + Custome Points Give r Service Campaign Initiative SK
  • 28. Patron Getting Started Loyalty Choose 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

Editor's Notes

  1. 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
  2. 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
  3. 32% of subs donate across all art forms; theater = 24% (internal scan only)
  4. 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
  5. Tryers = 92% of all households - typical
  6. 100 patron sample, over two years, total spend of the 100 and average spend per household
  7. It’s not about up-selling or trying to squeeze more revenue out of patrons.