Learn how The 5th Avenue Theatre, in concert with TRG Arts, is building a wholly new model of patron engagement. Organizations from small to large will benefit from viewing their patrons through the lens of loyalty. Learn techniques that you can take back home to drive retention as well as increase engagement and revenue.
From the National Alliance for Musical Theatre's 2012 Conference in Seattle.
4. Patron
Loyalty
How do you measure passion at your theatre?
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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 $$$!
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6. Patron
Loyalty
Driving revenue via loyalty is the only
sustainable model for growth
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7. Patron
Loyalty
There are two key drivers of loyalty
Subscriptions
Donations
These two behaviors interact far more than
we might realize!
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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
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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)
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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
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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
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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
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13. Patron
Loyalty
Who are the 180?
4 Profiles of Patron Loyalty
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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
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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
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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
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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
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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!
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20. Patron
The saddest words in the English language… Loyalty
“What party?”
MARKETING &
DEVELOPMEN
T
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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.
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22. Patron
Loyalty
Who is responsible for building relationships
(be specific)?
The Director of Development
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23. Patron
The Patron Experience Loyalty
Front of
House
FRONT
OF
HOUSE
The
Show
!
Customer Marketing
Sales & & Devo
Services
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24. Patron
The Patron Experience Loyalty
Front of
House
FRONT
OF
The HOUSE
Sho
w!
Customer Marketing
Sales & & Devo
Services
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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!
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
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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
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Notes de l'éditeur
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
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
32% of subs donate across all art forms; theater = 24% (internal scan only)
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
Tryers = 92% of all households - typical
100 patron sample, over two years, total spend of the 100 and average spend per household
It’s not about up-selling or trying to squeeze more revenue out of patrons.