R e k i n d l i n g S u b s c r i p t i o n s
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TRG Arts presentation at the Arts Marketing Association Conference 2018
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R e k i n d l i n g S u b s c r i p t i o n s
- 1. R e k i n d l i n g S u b s c r i p t i o n : A L o y a l t y L o v e A f f a i r
- 2. Presented by Liam Evans-Ford Executive Director Theatr Clwyd Christina Hill Senior Consultant TRG Arts Copyright © 2018 All Rights Reserved
- 3. 75%
- 4. INDUSTRY AVERAGE Single Ticket Buyers 66% New-to-File 75% Attrition 75% of new STBs don’t return. Over-prospecting, under-retaining.
- 7. Not all patrons are equal Revenue Yield by Patron Type 1 Renewing Subscriber 2 New Subscribers 15 Single Ticket Buyers = =
- 8. ADVOCATES Donors & Consummate Loyalists BUYERS The magic of “and” TRYERS From 1st time to second or last time to NOW Patron Loyalty Pyramid RECENCY FREQUENC Y MONETAR Y GROWTH
- 9. TH E 2 RULE
- 11. ADVOCATES 2% of Households BUYERS 8% of Households TRYERS 90% of Households
- 13. 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% The Loyalty Effect
- 15. • 13% increase in subscriptions • 21% increase in subscription revenue • 80% increase in new subscriptions Subscriptions Work
- 18. Season Ticket Holder Results 2015 to 2017 18% STH Households Growth 30% STH Revenue Growth 46% Overall Retention Rate
- 19. Membership Results 2015-2017 113% Household Growth 280% Revenue Growth 55% Overall Retention Rate “First focus was to transition current members over to the new scheme...personal conversations had with our current top level donors to share the new Director’s Circle…all members written to…upgrade their memberships to the new scheme and access new benefits immediately.”
- 20. If we converted 10% of current Multi- Buyers to a four show season ticket package, we could generate additional revenue of… £ 335,348 £ 187,632 £ 418,749£ 69,218 £ 53,824 £ ?
- 23. • 1976 • Biggest in Wales • Spaces: • 2 main auditoria • 1 cinema • 3 galleries • 2 events spaces • £5.3m • Profit reinvested • 49-50% income self-generated
- 24. • 91 core employees + 115 relief workers • Over 300 creative freelancers over last 12 months • 15-16: 6 shows per year • Tamara’s commitment: 8 shows per year • 17-18: 13 shows produced • 16-17: 178,000 attendees at Theatr Clwyd • 16-17: 220,000 attendees across the UK • 17-18: 242,983 attendees across the UK
- 25. • Local authority owned • 19 Years of previous leadership • Audience demographics • Specific programme of work • Not data driven • Loyalty damaged by change • No existing Membership scheme • Declining subscription
- 26. All Patron Revenue Summary On decline after year on year growth 2012-13 to 2016-17 1% increase in STB 44% decrease in Subscribers £- £500,000 £1,000,000 £1,500,000 £2,000,000 £2,500,000 - 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 2012-13 2013-14 2014-15 2015-16 2016-17 Revenue Admissions Patron Generated Revenue & Admissions 2012-13 to 2017-18 YTD STB Admissions Subscriber # Total All Ticket Revenue # Perfs 25% decrease in Revenue 2015-16 to 2016-17
- 27. Ticket Buyer Attrition Expensive to Acquire…Hard to Retain 2014-15 22,014 Came back in 2015-16 11,638 52% Attrition Came back in 2016-17 1,948 88% Attrition
- 28. Revenue Yield by Patron Type Not all Patrons are Made Equal 1 Renewing Subscriber 2 New Subscribers £87 £41 £15 £0 £10 £20 £30 £40 £50 £60 £70 £80 £90 £100 Renewing Subscriber New Subscriber New Single Ticket Buyer 2-Year Net Revenue Yield 6 Single Ticket Buyers
- 29. Subscription Summary Large reduction in Subscriber numbers since peak of 2014-15 season 2012-13 to 2016-17 84% decrease in New 260 397 726 483 245 413 765 1,262 450 65 £- £10,000 £20,000 £30,000 £40,000 £50,000 £60,000 £70,000 £80,000 £90,000 - 250 500 750 1,000 1,250 1,500 1,750 2,000 2012-13 2013-14 2014-15 2015-16 2016-17 Revenue PackagesSold Subscription Summary New vs. Renew Total Packages - Renewal Total Packages - New Total Actual Revenue 2014-15 to 2016-17 84% decrease in Packages
- 30. Subscription Package Detail 2012-13 to 2016-17 70% decrease in Autumn into 5 & 4 16% decrease in Classical Decline across all package types 72 73196 225 210 212 165 477 937 820 311 410 0 200 400 600 800 1000 1200 1400 2012-13 2013-14 2014-15 2015-16 2016-17 PackagesSold Subscription Sales By Package Type Spring Drama Sub Autumn Drama Sub Classical Music Sub 5 Show Season Ticket 4 Show Season Ticket
- 31. REPEAT SINGLE TICKET BUYER MULTI TICKET BUYER MEMBER 1ST TIME SINGLE TICKET BUYER SUB DONOR ADVOCAT E Cracks in the Loyalty Staircase SEASON TICKET
- 32. Spring 2018 Subscriptions • 4 & 5+ Show Season Ticket Flex Packages • Value proposition messaging • Multi-channel, multi-touch campaign • Direct marketing prior to late November brochure drop
- 33. Spring 2018 Results Goal: 400 Packages, £60,000 2017: 102 Packages, £9463 48% increase in Households 2015 – 2018 177% increase in RevenueActual: 696 Packages, £64,277
- 35. Autumn 2018 Subscription Early Results Goal: 150 units, £15,000 Actual YTD: 132 units, £12,358 2017: 57 units, £5662 132% increase in Households 2017 – 2018 118% increase in Revenue
- 36. TOTAL HH £ HH £ HH £ HH £ Week 0 12-Mar 4 412.80£ 26-Jun 1 132.80£ 29-Jun 1 96.75£ 30-Jun 1 52.50£ Week 1 19-Mar 31 2,750.35£ 3-Jul 5 342.05£ 6-Jul 2 197.25£ 7-Jul 1 52.50£ Week 2 26-Mar 46 4,372.35£ 10-Jul 7 565.60£ 13-Jul 5 471.75£ 14-Jul 11 805.50£ Week 3 2-Apr 60 5,418.35£ 17-Jul 13 1,060.50£ 20-Jul 6 551.25£ 21-Jul 24 2,185.50£ Week 4 9-Apr 64 5,841.65£ 24-Jul 17 1,642.40£ 27-Jul 8 662.25£ 28-Jul 32 3,144.00£ Week 5 16-Apr 69 6,216.35£ 31-Jul 21 1,921.70£ 3-Aug 14 1,190.25£ 4-Aug 88 8,763.00£ Week 6 23-Apr 78 7,171.95£ 7-Aug 22 2,032.10£ 10-Aug 47 3,949.50£ 11-Aug 153 15,096.75£ Week 7 30-Apr 81 7,708.20£ 14-Aug 26 2,399.85£ 17-Aug 60 5,203.50£ 18-Aug 207 20,566.50£ Week 8 7-May 88 8,272.10£ 21-Aug 31 3,065.25£ 24-Aug 81 7,197.00£ 25-Aug 253 24,670.50£ Week 9 14-May 95 9,359.30£ 28-Aug 34 3,347.45£ 31-Aug 111 10,032.75£ 1-Sep 304 29,877.75£ Week 10 21-May 96 9,446.30£ 4-Sep 39 3,852.45£ 7-Sep 127 11,586.00£ 8-Sep 353 34,511.25£ Week 11 28-May 0 -£ 11-Sep 42 4,235.15£ 14-Sep 145 13,362.00£ 15-Sep 383 37,401.75£ Week 12 4-Jun 0 -£ 18-Sep 50 5,025.00£ 21-Sep 153 14,074.50£ 22-Sep 389 37,982.25£ Week 13 11-Jun 0 -£ 25-Sep 51 5,116.20£ 28-Sep 153 14,074.50£ 29-Sep 389 37,982.25£ Week 14 18-Jun 0 -£ 2-Oct 54 5,362.40£ 5-Oct 155 14,248.50£ 6-Oct 390 38,112.75£ Week 15 25-Jun 0 -£ 9-Oct 56 5,572.00£ 12-Oct 156 14,344.50£ 13-Oct 391 38,208.75£ Week 16 2-Jul 0 -£ 16-Oct 57 5,662.10£ 19-Oct 157 14,434.50£ 20-Oct 396 38,658.75£ Week 17 9-Jul 0 -£ 23-Oct 57 5,662.10£ 26-Oct 157 14,434.50£ 27-Oct 397 38,759.25£ Week 18 16-Jul 0 -£ 30-Oct 57 5,662.10£ 2-Nov 157 14,434.50£ 3-Nov 399 38,939.25£ Week 19 23-Jul 0 -£ 6-Nov 57 5,662.10£ 9-Nov 157 14,434.50£ 10-Nov 400 39,032.25£ Autumn 2014Autumn 2015Autumn 2017 TOTAL TOTAL Autumn 2018 TOTAL • Recovering from stoppage • March vs. June • Adding upgrade plan to extend Autumn 2018 Subscription Early Results
- 37. • First time ever – no membership prior • New Fundraising team • Launched in conjunction with Autumn Subscription Autumn 2018 Membership Launch
- 39. Launch Goal: 500 2018 Membership Actual: 1838
- 41. Goal: 100 units, £16,500 Actual YTD: 132 units, £24,397 2017: 77 units, £13,201 Classical 2018 Subscription Early Results 124% increase in Households 2015-16 – 2018-19 175% increase in Revenue
- 42. Challenges • Staff time • Changing ways of doing things • Marketing investment • Sales team training
- 43. Keys to Success • Belief • Investment • Value proposition • Targeting & messaging • Planning • Measurement
- 44. 5x Growth in One Season 260 397 726 483 245 433 413 765 1,262 450 65 1,334 £- £10,000 £20,000 £30,000 £40,000 £50,000 £60,000 £70,000 £80,000 £90,000 £100,000 - 250 500 750 1,000 1,250 1,500 1,750 2,000 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 Revenue PackagesSold Subscription Summary New vs. Renew Total Packages - Renewal Total Packages - New Total Actual Revenue 2016-17 to 2017-18 470% increase in Packages 5x+ increase in Revenue
- 46. trgarts.com Learn More To download a case study, signup for our email newsletter, or follow us on social media, go to www.trgarts.com. @TRGArtsUK @TRGArts LetsTalk@trgarts.com
Editor's Notes
- I’m ch, sc with trg We are a consultancy that partners with arts and cultural orgs To drive sustainable revenue and loyalty We’ve been around for 22 yrs, and work in 4 countries, including here in the UK, where I’m based And I’m Liam EF
- 75% What do you think this number might represent? CLICK Three quarters of something ¾ of something is a lot closer to all of something, than it is to a little of something CLICK If someone ate 75% of the pizza you ordered, you’d pretty miffed about that CLICK What if we were talking about your household income What if someone said to you, thank you very much, I’ll take 75% of that How would that feel? How would that change your life? https://www.masterfile.com/image/en/700-00083791/pizza-with-slice
- What if we were talking about your audience? Let’s think about single ticket buyers. When I say single ticket buyers – I’m talking about those who purchase individual tickets, rather than part of a subscription package or group. In a study of five years of data across 130 organisations, we found an average of 66% of single ticket buyers each year were new-to-file – had never appeared in the data before. (note: need some clarification of the study results to be sure I’m stating this correctly) And of the new-to-file buyers, 75% didn’t return in the next two years. (note: need some clarification of the study results) Imagine – we’re spending all kinds of money and time to get these single ticket buyers in the door, and 75% of them are just passing through and exiting after one visit. And these numbers mirror what we see when we work with clients every day. The takeway is that we are over-prospecting and under retaining. We need to find ways to retain and to build deeper relationships with our audience members, so that they come back, and come back again, purchase more, and give more to strengthen our organisations. From TRG Key Metrics (130 orgs) 2012-16
- What we need is to foster more loyalty in our audience members. So what is loyalty? We’ve said in the title of this presentation that subscription is a loyalty love affair. Loyalty is about commitment, it’s about relationships Loyalty is saying – I like you. I want to spend time with you. When we talk about loyal patrons, we talk about repeated behaviour Patrons that are engaged, and want to be close to us And when I say patrons, I mean anyone who takes any action with us – meaning those who buy tickets, make donations, attend educational programs – patrons are the individuals that make up our audiences. Our relationships with our patrons are like any other human relationship. If we want our patrons to be loyal, to return, to be engaged, to spend money to be with us we need to engage with them And we need to romance them a bit
- TRG Arts is a data-centric consulting firm, and we believe in the power of data to help motivate action, provide a road map, to strip away emotion from decision-making, and measure results. Data is the foundation of all of the work we do. After working with 100s of organisations across the US, Canada, Australia and the UK, and analyzing millions of points of data, we’ve learned a lot. And out of this learning, we’ve developed a methodology and practice around loyalty that helps organisations build relationships with their audiences and grow sustainable revenue.
- What we’ve learned is that not all patrons are equal in terms of revenue impact on the organisation. This is what we typically see in client data 1 renewing subscriber = 2 new subscribers = 15 single ticket buyers – remember, these are our infrequent, buyers of individual tickets
- At TRG, we have an orientation to patronage that purposefully blurs the lines completely between the traditional silos of single tickets, donations, subscriptions. This visual is our proprietary model that describes all of our patrons, based on their behaviour. It’s not TRG’s invention. It’s TRG’s description of what we’ve seen in the data over 20 years. Here’s how it works: Every patron is measured and then force ranked, based on four criteria: Recency – how much time has elapsed since their last transaction, frequency – how many transactions they’ve done with us, Monetary – how much they’ve spent, and growth – whether the other figures are growing or declining over time. So what you see here represents any organisation’s database. We know that patrons fall into one of three categories Advocates are those who score highest in those criteria. They are our donors and consummate loyalists. You probably know who these people are in your organisation. The next group are Buyers. Buyers are those who are taking multiple actions – what we call the magic of “and.” those who fall in this group vary at different institutions, but these are usually our Members and our Subscribers. At the bottom, are the group we call tryers – these are largely made up of single ticket buyers. Those who purchase and attend infrequently. Our goal is to get them from the first time to the next, or from the last time to now
- We’re all familiar with the 80-20 rule that says 20% of your customers Represent 80% of your revenue
- The reality that we’ve observed in arts organisations is that we experience more of a 90/10 rule On average across the our clients,, 90% of our database is made up of tryers. And 10% is made up of both Buyers and Advocates combined.
- To strengthen our organisations, we need to get patrons to do more This means creating a loyalty strategy in order to deepen relationships and move those patrons up the pyramid
- The first element of a loyalty strategy is to construct a pathway for patrons to engage more deeply with us This staircase represents that patron journey It’s a series of consecutive steps that begins with New to file single ticket buyers, who we’ve already talked about. And the next step is to get them to buy again and become Repeat ticket buyers…. Multi ticket buyer… Member and/or Subscriber… To Donor…. To Advocate….
- And when we begin to move patrons up this path, this is an example of the impact that that loyalty can have This is an overview of our findings for a US theatre client. It has become a platform for the organisation’s new patron loyalty initiatives. Looking at their single ticket buyers, the Tryers, we see some pretty typical numbers here. On average, they paid around $53 for their ticket. Cost of sale—how many marketing dollars went into selling that ticket—was around 20%. And it was rather difficult to get them to come back. Only about 1 in 4 single ticket buyers came back the following season. [CLICK] Looking at new subscribers, who are usually Buyers, it’s a different story. Cost of Sale has risen, but it’s paid off. Average order size tripled—this client is making a lot more money on a subscribers than single ticket buyers. As for renewal rates, another good showing. About half are renewing. [CLICK] As you might expect, average order size and renewal rates rise with the more seasoned subscribers, but the real story here is the dip in cost of sale. They are spending a lot less to make a lot more. [CLICK] Finally, this clients’ most loyal patrons, Advocates. Extremely high order size and renewal rate, and low cost of sale. Let’s look at this in aggregate: Look across the top and bottom rows of this chart --- Revenue yield and renewal rates INCREASE significantly with each successive buyer type – the more loyal a patron becomes, the more they spend and the more they continue to engage and invest. Now look at the middle line -- The cost of sale to create subscribers is high – the highest in this analysis. But look what happens to cost-of-sale after that – it does way down. It is indeed cost-effective to get a subscriber renewal or an upgrade to subscriber-donor. And here’s the big pay-off—once a patron becomes a donor….look at the revenue yield for renewing subscriber-donors. This metric supports a research finding that comes up time and time again. The number one reason subscribers subscribe is ….love of the art form. The number two reason: they like the way your organisation provides that beloved art form. So, subscribers are engaged at a passionate level – an affinity that can propel contributions. Yet, we find, that many organisations don’t have an active, integrated program to involve their loyalists as donors. Our analysis says: that’s one of the first steps you can take to develop an escalator effect. [click]
- Shortly, you’re going to hear about Theatr Clwyd’s experience with loyalty, in particular the rekindling of their subscriptions We believe in subscriptions For a long time, there was talk in the US about subscription being dead We know from revitalising subscriptions across many organisations of all sizes and genres That subscription is very much alive and well IF they are packaged and sold in the right way
- This is an example of a client, Long Wharf Theatre, who had been experiencing a decline in subscriptions for several years. This is familiar, as many clients we work with have seen the same thing This kind of downward trend has fueled questions in the past about whether subscription is still relevant in today’s world. We’re here to say, it is. And you can see the results in just one year, after Long Wharf revitalised their subscription offering, and strengthened the way they marketed and sold subscriptions A 13% increase in subscription packages A 21% increase in subscription revenue And 80% more new subscribers in one year
- Another client, The Cultch, in Vancouver, saw a 36% increase in subscription revenue, and 21% increase in subscription packages over a two-year period.
- And subscriptions can be just as successful here in the UK> Take for example New Wolsey Theatre, which initiated Season Tickets for the first itme in 2015. [REVIEW CASE STUDY AND WRITE COPY]
- And over a period of two years, New Wolsey Theatre was able to grow Season Ticket households by 18%, and Season Ticket revenue by 30%, with an overall retention rate of 46%
- In addition to subscription, New Wolsey also rebuilt their Membership scheme. Through robust communications and Membership campaigns, they accomplished 113% household growth, and 280% revenue growth for their Membership scheme. New Wolsey’s success in subscription and Membership growth is a direct result of a strategic patron loyalty focus.
- If you converted 10% of your current Multibuyers to a four show season ticket package, how much additional revenue could you generate? You can do this math at home If this were you….what could you do with this money? How many more students could you impact through education programs? How many more perspectives could you change through an introduction to the arts? How many more productions could you put onstage? (avg tix price, 2.1 tix/hh, # of mtbs, # shows – minus mtb spend = variance) Assumes average price £28.07 (derived from Spring Crucible Sales Pacing Trackers) and 2.1 tix per household (TRG industry average) 26,280 MTB HH’s in 2016-17 2,628 HH’s 28.07*4 = 112.28. 15% dis. £95.44 * 2 £190.88 per HHs £501,632.64 Current Tryer MTB Annual Spend from PLI £63.24 * 2,628 £166,194.72 DIFFERENCE £335,438
- Opened in 1976 Biggest producing theatre in Wales 2 main auditoria 1 cinema, 3 galleries and 2 events spaces An annual turnover of around £5.3m Any profit we make goes back into the theatre On average we generate 49-50% income through our own activities
- Changes – leadership, programming, staff
- We are the only producing theatre in the UK still owned by local authority Previous leadership had been in post 19 years Strong loyal age group of a certain demographic Very specific programme of work Not Data Driven A loyalty challenge with so many changes No existing membership scheme and declining subscription (season ticket)
- Check with SS - Workbook shows 7% increase in STB fro 2012-13 to 16-17?
- Half of the new people we had gotten to come see our shows didn’t come back in the following year And 88% of those people didn’t come back over a 2 year period This is ALL NEW TICKET BUYERS
- By looking at our own data, detailing average revenue earned by different buyer types, We got a clear view of the value of subscription We earn the same amount of revenue by getting one subscriber to renew As we earn from 6 single ticket buyers
- We had history of success with subscription Loyal audiences who committed to attend, and paid in advance But in years of change, focus wasn’t there No marketing to speak of Sales declined drastically Lost over 600 renewing subscribers from 2014-15 And new subscribers, which had been 1262 at its peak, came in at only 65 people in 16-17
- Organisational focus on subscription declined in 16-17 Decision to move from autumn drama package to 5 and 4 pack flexible subs Little or no marketing Classical declined by 16% from 2012-13 numbers Autumn declined by 70%
- In our work with TRG, we initiated a renewed focus on season tickets, and we added Memberships
- 4 and 5+ show flex packages Historically, drama subscription replaced by flex in 16-17 Value proposition Revitalised marketing efforts multi-channel, multi-touch campaign Began marketing in November – advance mailings before brochure [DROP?] Multiple offers and deadlines – early bird, free cinema tickets Brochure placements and messaging Extended campaign – longer sales cycle Postcards, letters, brochure
- Results: Reviewed data from past seasons and set ambitious goal for growth Last season – sold 191 and earned £9463 Spring 2018 goal – 400 units, £60k CLICK Reviewed data, set ambitious goals Watched weekly as units and revenue exceeded targets Actual: 696 units, £64,277 Sold more of the 3 pack than the 5 pack 10% renewals, 90% new [ADD new/renew chart – review renewal rate (full year?) In growth/rebuild mode (goal – 80% renewal, 20% new) Next year – retention efforts, upgrade campaign CLICK Comparing spring season year over year Recovered and exceeded 2015 figures by 50% more units, and nearly tripled revenue
- Restructured offering Added a Fixed drama series back into mix with a deeper discount Flex Previously started packages remained Extended campaign – started selling in March for Autumn umn sales in late June Acquisition campaign began in March with targeted mailings Early bird deadline in late March Summer brochure dropped early April Autumn brochure scheduled for early July
- Results: Not usually onsale until July Reviewed data from past seasons and set goal for growth Last season – sold 191 and earned £9463 Spring 2018 goal – 400 units, £60k CLICK Reviewed data, set ambitious goals Watched weekly as units and revenue exceeded targets Actual: 696 units, £64,277 Sold more of the 3 pack than the 5 pack 10% renewals, 90% new [ADD new/renew chart – review renewal rate (full year?) In growth/rebuild mode (goal – 80% renewal, 20% new) Next year – retention efforts, upgrade campaign CLICK Comparing spring season year over year Recovered and exceeded 2015 figures by 50% more units, and nearly tripled revenue
- Earlier onsale – Began sales in March Normally begin in June 2 brochures instead of 1 Upgrade plan to extend into autumn
- First time – no membership prior Initial step in direction of regular giving – no program in place Launched in conjunction with subscription “Loyalty Matrix” – to ensure increasing and combined benefits to incentivize upsells and crossells Benefits – Priority booking – access key message Some discounts and freebies Insight events – to bring patrons closer to organisation and deliver “donor ready patrons”
- Single campaign with combined messaging Multi-wave, multi-touch, multi-channel Power of “and” – value proposition to incentivize purchase of both Members got season ticket access first, and save additional 5% on subs Mailings prior to brochure and public onsale Targeted segments and messaging – messaging based on behaviour
- Set goal for 500 – finger in the air Results…..1838 new members through this launch campaign Spring YTD 50 so far
- Additional Best practices Personalisation
- Results in week 1 almost to goal Results in week 1 almost double historical
- Belief – believing that we can find growth through change, and committing to action Investing for success – money and time Value proposition/offerings - clarity and escalation Targeting & messaging –the right msg to the right person at the right time Planning – find time to do the important stuff, build plans in advance – reap rewards later Measurement – test, measure, refine – over and over – know what’s working or not, and use data to make decisions
- Final view of subscription growth achieved in 2017-18. Well on our way in 2018-19, with a focus on retention and upgrades in the year ahead! Avg around 2 pkgs per HH