While some debate the feasibility of the current arts business model and look to new audiences to fill the gap, the fact remains: only 1 out of 5 new patrons come back a second time. Our problem is not new audiences; it’s keeping the patrons we have--and increasing their loyalty to our organizations. Loyalty can be achieved when a patrons’ passion for the arts is activated. Strategies that promote loyalty involve common-sense measures to draw in "newbies" and deepen relationships among first- and long-time patrons. Best practices focus on increasing patron satisfaction and, in turn, ongoing revenue. The 5th Avenue Theatre, in collaboration with TRG Arts, is building a wholly new model of audience engagement, centered on this view of patron loyalty. 5th Avenue Theatre’s Vice President of Marketing and Communications Sean Kelly and TRG’s Senior Consultant Laura Willumsen lead this webinar, which focuses on the benefits of viewing patron interactions through the lens of their lifetime loyalty to your organizations. You’ll learn: ● why loyalty is the only sustainable model for revenue growth ● what makes a targeted, purposeful loyalty strategy different from more general audience engagement programs ● about the specific techniques Kelly and Willumsen used to drive retention, as well as increase engagement and revenue at 5th Avenue Theatre

1. Webinar
The Loyalty Business Model:
How to use passion for the arts
to drive revenue
Keri Mesropov, VP of Client Services

3. National Census of Arts and Culture
Database Networks Nationwide
D
D
D
D
D
D

4. Webinar
The Loyalty Business Model:
How to use passion for the arts
to drive revenue

5. What type of loyalty promotion efforts
does your organization currently conduct?
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Campaigns Subscriber/ Donor Don’t know None Other (blank)
to get first membership cultivation
timers to retention events and
come back programs activities
not related
to asking for
a renewal

6. How often does your organization
communicate or interact with subscribers,
donors, or members?
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
At At the At least At least At least Don’t None Other (blank)
renewal opening of quarterly once once Know
time. a new via eNews annually annually
season or or online via printed via an
major outreach newsletter invited
program or direct special
mail not event
related to
ticket sales

7. At your organization, do the marketing and
development teams have a joint plan for
patron communication?
2%
8% Yes
24%
No formal plan, but they
often collaborate.
21%
No formal plan, but they
occasionally collaborate.
No, the teams rarely
collaborate.
N/A
45%

9. Our presenters
Sean Kelly Laura Willumsen
VP of Marketing & Communications Senior Consultant
5th Avenue Theatre TRG Arts

10. PATRON
LOYALTY
SEAN KELLY – 5TH AVENUE THEATRE
LAURA WILLUMSEN – TRG ARTS

11. Patron
Loyalty
What are you passionate about?
SK

12. Patron
Loyalty
How would we know?
SK

13. Patron
Loyalty
How do you measure passion at your organization?
SK

14. 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

15. Patron
Loyalty
Driving revenue via loyalty is the only sustainable
model for growth
LW

16. Patron
Loyalty
There are two key drivers of loyalty
 Subscriptions
 Donations
These two behaviors interact far more than we
might realize!
LW

17. 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

18. Patron
Donating Raises Subscription Renewal Rates Loyalty
 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

19. 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

20. 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

21. Super Advocates $40,000
Patron
11% revenue
& Advocates $4,000 Loyalty
43% revenue Buyers $527
45% revenue Tryers $48
Patron Loyalty Index: Analysis
LW

22. Patron
Loyalty
Who are the 180?
4 Profiles of Patron Loyalty
SK

23. 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

24. 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

25. 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

26. 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

27. 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
• $53 LW

28. Patron
Loyalty
Loyalty is building relationships
Patrons respond because they already care.
If we don’t invite them, we are literally ignoring them!
LW

29. Patron
The saddest words in the English language… Loyalty
“What party?”
MARKETING &
DEVELOPMENT
SK

30. 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

31. Patron
Loyalty
Who is responsible for building relationships
(be specific)?
 The Director of Development
SK

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

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

34. Patron
The Patron Experience Loyalty
JOB:
Acknowledge relationship
Customer
Make buying easy
Sales & Address logistics
Services Affirm order; upgrade
PRE-SHOW JOB:
MARKETING & FRONT OF
Get theDEVELOPMENT
phone to ring HOUSE
Marketing Front of
& Devo House
POST-SHOW JOB: JOB:
Cultivate & Upgrade Welcome patrons as
guests & friends
Set the stage for an
The Show! excellent artistic
JOB:
Put on a terrific experience
performance! SK

35. Patron
Every Interaction Counts Loyalty
MARKETING &
Enhances
DEVELOPMENT
Detracts
SK

36. Patron
Loyalty
Implementation Timeline
To ensure a sustainable transition to the new patron loyalty model.
Jan Feb Mar Apr May June July Aug Sep
Staff 20 Most Advocate Front of
1st Gift
Rollout Likely Concierge House
Experience
Integrated 180 Gala
Customer
Subs + Give Points
Service
Campaign Initiative
SK

37. Patron
Getting Started Loyalty
Choose from the menu!
Carrot Stick Upgrade Retain
Free Parking Minimum Ask for a gift Calculate total
with full season package size to with every subs revenue for
see #1 show piece each patron
Free Wine with Discounted “Super Who is your
blind faith parking for Subscriber” “180”
renewal partial package
Free Chocolate $2 surcharge for 6 week Lengthen your
with renewal exchanges with promotional subs campaign
partial season cadence pre-seat release
SK

38. Webinar
What’s new? What’s next?
www.trgarts.com
www.blogspot.trgarts.com

39. Webinar
Thank you!
If you have further questions,
email info@trgarts.com.