Patron Development: Preparing a path from first ticket to planned gift
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A patron’s loyalty is built step-by-step with each interaction with your organization. TRG is a data-driven consulting firm that teaches arts and cultural professionals a patron-based approach to sustainable revenue and discussed patron segmentation strategies and proven practices for closing the gap between subscribers and donors.
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Patron Development: Preparing a path from first ticket to planned gift
- 1. PATRON DEVELOPMENT: PREPARING A PATH FROM FIRST TICKET TO PLANNED GIFT 2016 League of American Orchestras Conference Copyright © 2016 TRG Arts All Rights Reserved Lindsay Anderson Vice President of Client Development TRG Arts | The Results Group for the Arts
- 2. Photo by Jean-Pierre Dalbéra via flickr (CC BY 2.0)
- 3. Good fences don’t make good data or systems. Or results.
- 4. opensource.com (CC BY-SA 2.0) The complete story: marketing + fundraising together
- 6. Today The Roadmap 1. Integrated data segmentation strategy 2. Best practices for improving ROI with each segment 3. Building an action plan and measuring success
- 7. Integrated loyalty development: working across departments to develop patron loyalty holistically
- 8. E V E N T S S A L E S C O N C E R T S F U N D R A I S I N G M A R K E T I N G P A R K I N GThe Patron Experience: What it is. Patron
- 9. Patron Services Front-Line Staff Artistic Staff & Concert Marketing & Development The Patron Experience: What it should be. Patrons
- 10. Acknowledge relationship Make buying easy Address logistics Upgrade & affirm purchase Artistic Staff Welcome patrons as guests & friends Set the stage for an excellent artistic experience Affirm purchase Front-Line Staff Patron Services Get the phone to ring & mail to come in Talk to patrons like we know who they are Get them to buy & donate Marketing & Development Artistic Staff & Concert Put on a terrific concert! Create trust with quality The Patron Experience: Department “Jobs”
- 11. In a patron-centered business model: Marketing can’t do it alone. Development can’t do it alone. Marketing & Development
- 12. Integrated data segmentation strategy opensource.com (CC BY-SA 2.0) 1
- 13. VIP access and hand-holding From first to second and last time to NOW The magic of “and” Studying Patron Loyalty Patron Loyalty Index Categories
- 14. National 0.5-2% HH 20-40% Revenue 5-10% HH 13-38% Revenue 90-95% HH 38-66% Revenue Where Do Patrons Fall? Example Symphony Orchestra statistics Case Study Example 1.2% HH 27% Revenue 14.4% HH 49% Revenue 84.4% HH 19% Revenue
- 15. Cultivation team goals How to promote loyalty at all levels of patronage • Goal #1: Reduce NTF STB churn • Goal #2: Raise # of Same Season Multi-STB • Goal #3: Retain more new subscribers • Goal #4: Increase % of subscriber/donors • Goal #5: Increase renewal rate of subscriber/donors • Goal #6: Increase # of new Friends donors • Goal #7: Increase % of Friends donors who subscribe • Goal #8: Increase % of Friends donors who buy extra singles
- 16. National 0.5-2% HH 20-40% Revenue 5-10% HH 13-38% Revenue 2014-2010 90-95% HH 38-66% Revenue 1.2% HH 27% Revenue 14.6% HH 51% Revenue 84.2% HH 20% Revenue Percentage Point Change* +1% $ +5% $ -2% $ * Over study periods 2013-2009 to 2015-2011 2013-2009 1.2% HH 27% Revenue 14.4% HH 49% Revenue 84.4% HH 19% Revenue 2015-2011 1.3% HH 28% Revenue 15.5% HH 54% Revenue 83.2% HH 17% Revenue Where Do Patrons Fall? Example Symphony Orchestra statistics
- 17. 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% Net Revenue Analysis A performing arts example
- 18. EXPENSES REVENUE
- 19. Photo by Tobias Schlitt (CC BY-NC-SA 2.0) Best practices: improving ROI for each segment every patron’s right next step How? The Art of the Upgrade 2
- 20. A Love Story Todd Hryck (CC BY 2.0) / Rob Jewitt (CC BY-NC-SA 2.0)
- 21. Single Ticket Buyers First Dates Cost-of-Sale: MEDIUM-HIGH Retention Realities: LOW retention Repeat purchase offer best Upgrade Case: Chicago Symphony Case Study best practices: • Keeping buyers current • Direct response NEW SINGLE TICKET BUYER
- 22. Reactivation: Example Invite lapsed buyers back with a compelling offer Target Segments: 2 -4 year lapsed buyers Combined Results: 603 returning households 1.3% response rate 8% cost-of-sale $74,048 net revenue
- 23. Repeat Ticket Buyer Dating Cost-of-Sale: MEDIUM Retention Realities: MEDIUM retention Higher frequency = higher retention Upgrade Case: Denver Art Museum Case Study best practices: • Right offer to right person, right time REPEAT TICKET BUYER MULTI TICKET BUYER
- 24. “Sticky” Patrons What does that mean? Participation, participation, participation! 6% 9% 11% Buy membership Visit once Visit twice Visit 3 times renewal rate increase renewal rate increase renewal rate increase
- 25. Subscriber Getting Engaged Cost-of-Sale: MEDIUM-HIGH Retention Realities: Higher, varies w/ package size But: ensure participation! Upgrade Case • Rochester Philharmonic Case Study best practices: • Renewal =UPGRADE FIRST! SUBSCRIBER
- 27. Subscriber + Donor Marriage Cost-of-Sale: LOW Retention Realities: HIGH! Integrated direct response sophistication Upgrade Case: 5th Avenue Theatre Case Study best practices: • Direct response integrated asks SUBSCRIBER PLUS
- 28. 453 Super Subscribers gave $51,100 in 4 months 70% had no previous giving history. More on this case at www.trgarts.com
- 29. Donor/Investor Management Anniversaries Cost-of-Sale: LOW Retention Realities: Higher, depends on investment level Donors who DO more, give more! Upgrade Case: Toronto International Film Festival Case Study best practices: • Direct response • Donor pacing meetings ADVOCATE /INVESTOR
- 30. Annual Fund Supports Membership Donor retention increases 3x with membership; Member retention rates lift with donation Annual Fund Only Annual Fund and Member Retained Renew Members 365 55% 48% Contributors Circle 82% 67% Patrons Circle 86% 65% Retained Renew Members 365 36% 35% Contributors Circle 75% 35% Patrons Circle 36% 29% Member Only Annual Fund and Member 2014 into 2015. No membership. 2014 into 2015. No membership. Retained Renew Annual Campaign 63% 62% Retained Renew Annual Campaign 17% 15%
- 31. WHAT DOES IT TAKE?
- 32. Building an action plan and measuring success What’s required • Invest in your team and in your relationships • Business and operations plan • Cross-functional teams that implement through a quarterly and weekly process • Metrics that you’re managing together 3
- 33. Photo: Mirjam van den Berg (CC BY 2.0) Invest in your team and in your relationships
- 34. What erodes this relationship?
- 35. What erodes this relationship? Separate budgets and goals Meeting infrequently Separate databases Infrequent CEO involvement
- 36. 5 Ways to Collaborate Marketing/Development 1. Use your data. Together. Can you review patron activity holistically? 2. When you say “work together,” mean it. Do you work each other’s events? 3. Coordinate campaigns. Who receives donation asks, and when?
- 37. 5 Ways to Collaborate Marketing/Development 4. Give subscribers/members a taste of donorship. Can you leverage donor benefits? 5. Get patron services involved. Do you ask for donations at the point of sale? 6. Work together to determine benefits. Which benefits are for whom?
- 39. Weekly Process Keeping it Real Ailey’s Monday Morning Meeting Mondavi Center Integrated Loyalty Pacing Hubbard Street Patron Pacing
- 40. Photo: Gavin Brogan (CC BY 2.0) Set metrics you’ll managing together
- 41. Metrics that matter Measuring loyalty # of donors with ticket purchase $ from multi- buyers # of upgrades at point of sale % of sub- donors
- 42. Example Orchestra Goals How to promote loyalty at all levels of patronage • Goal #1: Reduce NTF STB churn • Goal #2: Raise # of Same Season Multi-STB • Goal #3: Retain more new subscribers • Goal #4: Increase % of subscriber/donors • Goal #5: Increase renewal rate of subscriber/donors • Goal #6: Increase # of new Friends donors • Goal #7: Increase % of Friends donors who subscribe • Goal #7: Increase % of Friends donors who buy extra singles
- 43. Metrics that matter Basic recommendations from TRG • Metric #1: % / $ patron-generated revenue • Metric #2: % / # active patrons in your database • Metric #3: data capture rate • Metric #4: new audience churn rate • Metric #5: % of subscriber-donors • Metric #6: per-capita revenue
- 44. Photo by Jean-Pierre Dalbéra via flickr (CC BY 2.0) Data doesn’t do. People do.
- 45. PATRON DEVELOPMENT: PREPARING A PATH FROM FIRST TICKET TO PLANNED GIFT 2016 League of American Orchestras Conference Copyright © 2016 TRG Arts All Rights Reserved Lindsay Anderson Vice President of Client Development TRG Arts | The Results Group for the Arts
Notes de l'éditeur
- Welcome. I’m _____________, [title] with TRG Arts, The Results Group for the Arts. Best practices for improving ROI Managing the gap between subscriber and donor Building an action plan and measuring success ----------------------------------- Patron Development: Preparing a path from first ticket to planned gift Jill Robinson, president & CEO, The Results Group for the Arts (TRG Arts). A patron’s loyalty is built step-by-step with each interaction with your organization. Jill Robinson of this data-driven consulting firm that teaches arts and cultural professionals a patron-based approach to sustainable revenue, will discuss patron segmentation strategies and proven practices for closing the gap between subscribers and donors.
- The first thing to know about preparing this pathway is that data is your most important tool. I want to start off with a story. (20) I’m going to take you back ten years, when TRG was a marketing-focused firm—not the holistic, management consulting for the arts firm that we are today. We were working on mid-sized orchestra on the east coast. And we were working with this really smart executive director who came up on the development side. He believed that the answer is integration. Here’s why: he saw it in the data
- We were studying transactional data—ticketing and donation data, and knew that we couldn’t also know the full story of a patron. You know that saying “Good fences make good neighbors”? The opposite is true when it comes to data. We could tell that the John Ford in the ticketing database was the same John Ford in the fundraising database. But the separate databases were preventing us from really, truly knowing him.
- The data in the ticketing and fundraising systems—TOGETHER—can tell a powerful story about orchestra patrons and their loyalty. You fast forward to today and the field is finally catching up with technology and CRM systems, around this intention of integration. We’re getting serious as a field about how to organize around the promise that Customer Relationship Management delivers.
- That realization around marketing and development data and how it works together has transformed the way TRG approaches the counsel we provide to our clients; and it continues to evolve and change. We’ve always been data-driven. And, we’ve always been obsessed with results. Innovation and progress helps organization become more sustainable. Now, instead of focusing only on marketing, we’re working with marketing, sales and box office, development, finance, artistic, and operations—ALL the departments. This is the winning combinations that make your patron-centered business model sustainable.
- So, Data is the beginning. The end result is preparing that pathway from single ticket buyer to donor, building loyalty as an integrated team. I’ll repeat that last part: building loyalty as an integrated team. Yes, we’ll discuss data and its segmentation today. But what really matters is the practical, day in-day out approach. The culture that you build together across departments. We’ve been invited by the League and we’re grateful—and we’re going to tell you working together is most important. Our biggest point is working together will take you to places your organization has not yet been – so we have to make it count! We’re going to tell you these things—theoretical and practical. Here are the things we’ve learned: -We’re going to talk about a basic schema for integrated data segmentation -We’ll talk about best practices for improving ROI on each, including managing the gap between subscriber and donor -And most importantly, this last point: Building an action plan and measuring success
- Today, the organizations getting the most out of loyalty strategies are the ones who create a culture around it—the ones which integrate loyalty development across their teams. It goes beyond the concept of teamwork. It’s an organization-wide change in strategy. And, we’d argue, it’s one of the hardest and most important directional shifts an arts organization can make in 2016.
- Let’s talk about the way it works typically… RIFF
- Individual departments are responsible for critical steps in each area of focus, but they all play a role in developing loyalty.
- The patron experience is not about marketing, or the box office, or front-line staff – it’s not even just about the event. This type of mentality can lead to patrons getting conflicting messages. And speaking of that, where is the PATRON in this diagram?
- You’ll notice that marketing and devo are together in those cultivation steps and purposefully so…
- NUMBER 1 That’s brings me to my first point: Segmentation needs to be data-driven based on your organization. It looks different for every organization. These are macro level observations and best practices that any of you can take back.
- This is how we look at it at TRG…
- Here’s an example of how it can look with an orchestra…
- Here’s what that organization did with that data. We’ll come back to these metrics at point #3, but these were their goals.” Here’s where strategy meets tactics. Thry recognized that they needed to bring more focus and resources to moving Buyers towards Advocacy and in particular, to widen the organization’s philanthropic efforts as more buyers indeed became ‘donor-ready.’ They’ve begun to create a culture that embraces fundraising as part of a patron’s evolution, including the following initiatives: Meet the cultivation team. This organization formed a cultivation team with one staff member from marketing and one from development who work together to shepherd Buyers towards advocacy. The cultivation team had 8 goals, formulated as a result of the loyalty work. They included increasing the percentage of subscriber-donors, retaining more new subscribers and single ticket buyers, and growing new entry-level donors, among others. From major donor cultivation to advocate planning. The Patron Loyalty Index also enlarged this organization’s thinking on who they should invite to join the artistic director’s circle. Before they looked at existing mid-level donors first, the PLI indicated who was an Advocate, even if they had only made lower level donations in the past or even had no donation history. Annual fund campaign: This organization also changed their annual fund campaign. In order to implement their loyalty strategy, they used both the lists of Advocates, Buyers, and Tryers from the PLI, as well as standard segments like donors, subscribers, and single ticket buyers. They targeted specific segments of subscribers and lapsed donors with customized messaging and offers.
- Here’s what happened over time. Over PLI study periods saw following % change Advocates: +7% (HH - households), +20% ($ - Revenue) Buyers: +15% (HH), +26%($) Tryers: -8%(HH), -1%($)
- You don’t need our specific tools…you can use tools in your CRM to do this and look at these calculations yourself… This is an overview of our findings for a different theatre client. It has become a platform for the organization’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 organization provides that beloved art form. So, subscribers are engaged at a passionate level – an affinity that can propel contributions. Yet, we find, that many organizations 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]
- JILL: “regardless of what tool you use to look at your segments, on a proportional basis, here’s the path we see patrons taking, and here’s why it matters…not kum-by-ah, but ROI.” We need an upward revenue arrow, then ROI. ROI is the combination of expense + revenue. For most of our clients, this is what the continuum looks like. Almost every patron in your database begins as a new ticket buyer. [CLICK] If they enjoy their “first date” with you, they’ll come back [CLICK] The plot thickens if and when the patron buys twice in the same season or year. We call that a “multi-buyer” [CLICK] When the romance goes to the Subscriber or Membership level, this is almost akin to getting engaged. [CLICK] Donation: that’s like getting married, because once you have each other, and, if the relationship is well-developed and cared for, you often have them for life. [CLICK] Finally, Advocate/Investor: that’s like celebrating a golden anniversary. Not many get here, but these relationships are worth their weight in gold. This evolution of patron development is a series of largely incremental “next steps” – each involving more active, more frequent, more current transactions that – cumulatively –represent longer, greater patron investments.
- What can you do if you see declining numbers, or if you simply want to grow? Plan to upgrade your audience’s loyalty. When we talk about expanding loyalty—upgrading loyalty—we’re talking about finding the right next step for every patron in your audience. And, it allows you to stop only chasing new audiences and starting to focus on loving the ones you’re with. The more patrons invest, the more likely they are to stay active with your organization. There is an “upgrade” for every patron at every phase of their relationship with your organization. Not every patron will move in a linear fashion, but EVERY patron has a right next step—the thing that you’re most likely to get them to do with you. Let’s look at some examples.
- Usually when we look at revenue at a nonprofit organization, we think in two buckets: earned and contributed. CLICK When we say earned, we mean: any capital generated in exchange for services: ticket revenue, subscriptions, memberships, and classes for example. CLICK When we say contributed, we mean: anything given without condition: individual gifts and bequests, corporate giving, foundation funding and government grants. Think about where the money is coming from in those categories. Almost all earned income comes directly from patrons. That contributed category takes into account both money from individual patrons and from funders.
- Let’s talk about the realities that we find managing the most basic types of patrons for an arts or cultural organization. We’ll start with the single ticket buyer
- There are a group of STB who will never subscribe. BUT there are a segment of people who will participate in a membership scheme. UK. Museum. Theatre. Test it in the orchestral sector common strategies, risks and rewards. It’s gotta be part of the way we segment your tryers
- Remember, buyers are all about the power of “and”. That additional donation is a strong sign of loyalty at your organization. Subscribers and members (and donors who subscriber or are members) are the patrons at your organization the most. Do they see value in donating too? How many of you ask subscribers or members for an additional gift at renewal time? This tactic can affect this number a lot. If you’re not doing this, consider it, especially if your number is on the low end. Lastly, this number says a lot about your potential for major donors. If you were 31% or above, you’ve got a bigger pool to cultivate up your giving levels. And if you were on the lower end of the spectrum, it tells you that you could have a lot of success with a formalized subscriber or member upgrade program.
- Rochester Phil embarked upon pricing work with us for their Philharmonics and Pops series prior to the 2015/16 season. Not only did they successfully navigate renewing subscribers through that rescale, they executed a strong upgrade campaign to move CYO patrons into fixed series subscriptions. This resulted in one-year revenue growth for those series of 16%
- This evolution of patron development is a series of largely incremental “next steps” – each involving more active, more frequent, more current transactions that – cumulatively –represent longer, greater patron investments. [CLICK] These patrons are traditionally “owned” by marketing. [CLICK] These patrons are traditionally “owned” by development. [CLICK] The problem? This gap right here. Getting a patron to make the leap across that gap from loyal attendee to donor is hugely profitable. But if the relationship between marketing and development is not good, patrons may not be increasing their investment in our organization as much as they could. And that leaves money on the table.
- JILL: Need a new bubble here. Need Subscriber PLUS (Super-Subscriber) story Patron service office model NBOC
- This case study…available on our web site…talks specifically of 5th Avenue’s subscriber to donor upgrade program that we call Super Subscriber. The case study describes their very first Super Subscriber effort, and the wonderful results that you see here. [CLICK] In just four months, they developed 453 Super subscribers who gave a total of $51,000. One-fourth of them were brand new, fairly new, or newly-returned subscribers. And nearly three-fourths – 70% -- had never donated before. That’s a great model for developing those donor-ready patrons.
- JILL: then this is major donor cultivation; not sure who best case is here. NBC just starting. But they could be example again b/c of what I’ve seen there. Patron service office model NBOC
- Same pattern for annual fund. If I’m investing in the annual fund, my renewal rates are fairly low to that activity. BUT if I’m active as both a member and a contributor to the AF, I am sticking. We see that in all levels of membership as well. Retained: active as a donor, but to different campaigns year over year. Renew: consistent giving to ONE campaign year over year. With members: Renewed = renewed the same membership Retained is upgrades and downgrades
- What does it take to implement something like the program we just talked about?
- “Invest in your team.” Sounds pretty squishy, right? I’m no Pollyanna. This is not kum-by-yah. This is working faster and better Here’s what I mean by investing in team: What you don’t know about each other is enormous. The biases and assumptions that you have about each other are enormous. Do you really have an understanding of your team member’s strengths? And, do you have an idea of what they’re doing to bring in revenue? Mirjam van den Berg https://www.flickr.com/photos/mirjamvandenberg/5961834345/in/photolist-a5PXDk-8BNmWh-vrykP-nurZA8-a5SNkA-BThqX-8BNn89-8BNm4A-aXUHkD-9RFyjH-mog3pn-pQLdM-46ERE-4UKgXY-6ZmCm5-MSQF-RdzY6-eHpLhW-pQLeu-8t7aAc-6iWbSt-cpmWYU-pktuSJ-6E7aq-6PdFr-6Pduu-6Pdut-6PdFp-6E7ap-qHXhkj-594eVB-fHPGz9-6PefA-6Pefz-598pPJ-6Pdur-6PdFq-594frv-6Pefy-6PdFs-6Pefw-aqanb9-6PdFo-fHPrWd-6Pdus-51u9e8-7EQwCE-EZkh5z-8Bym4k-xF7bZR
- All of these factors can contribute to a break-down in the collaboration between marketing and development teams.
- Let’s talk about 5 Ways marketing and development teams can collaborate more effectively. Use Your Data. Together. One of the most valuable tools in an arts manager’s toolkit is a centralized, shared database system. Many arts organizations work in multiple systems. This practice, while providing the individual functionality that each department may need, can stunt collaborative efforts to grow patron relationships. Coordinate Messaging & Message Timing Even if departments in your organization don’t share the same database, marketing and development should talk regularly about campaign plans and timing. It’s common for marketing and development departments to manage their own independent communications programs across a mix of media (social, email, direct mail, telemarketing, etc.) What happens though when the two departments don’t talk to one another? Imagine that you’re both a donor and a subscriber of your city’s symphony. How would you feel if you received disjointed or conflicting messages about the symphony from its marketing and fundraising mailings or emails? When marketing and development messages aren’t well-coordinated, arts organizations can confuse patrons or push them away. Patrons, especially those who are highly invested, expect that an organization will take the context of their relationship into account when communicating with them. This requires an intentional, integrated messaging strategy.
- 3) When you say “let’s work together,” you’ve got to mean it. Getting staff to collaborate goes beyond campaign timing and shared data. It involves a spirit of cooperation. At Atlanta Ballet, their marketing staff is expected to work development events and vice versa. “Marketing Director Tricia Ekholm said. “It makes sense that all staff shares the duty of working events that are outside of regular business hours. It also allows staff across departments to get to know patrons and donors by name.” “Having a staff of overall well-rounded individuals that can move with ease across events and conversations makes for overall stronger organizational relationships with patrons.” 4) Giving Subscribers a Taste of Donorship Taking the step to donorship requires a patron to see his or her relationship with the organization as a more personal, often rewarding investment. Ticket buyers, subscribers, and members are more likely to look at their relationship with an organization as only transactional. By offering subscribers or members a taste of the special benefits of donorship, you welcome them into the club of support. Whether your organization offers a taste of the intrinsic or the extrinsic value of donorship, a little effort can reap big returns for the organization. Hubbard Street Dance Chicago has had great success with this “taste of donorship” strategy, which you can read in full in a case study on TRG’s website. Patrons who were loyal, but were not yet major donors, received an invitation to a studio viewing, a benefit usually reserved for major donors. Among other early results in retention and upgrades, Hubbard Street received a $1,500 donation from one of these patrons who attended the studio viewing. 5) Get patron services involved. Great things result when departments work together. Here at TRG, we firmly believe that development, marketing, and especially patron services, are deeply intertwined. For example, arts organizations can have their marketing and development departments work together on box office giving campaigns. TRG has worked with organizations such as Des Moines Performing Arts, Arena Stage, and Ordway Center for Performing Arts and each used a simple donation ask at the box office to strengthen patron loyalty. These cross-departmental in-bound asks can be a great addition to traditional outbound asks handled by development alone. Bring your box office staff in and incentivize them to invite patrons to make a small donation in the moment when they renew their subscription or buy a single ticket.
- They’re building that process around data. Sandi MacDonald who has re-structured their staff meeting to this: a cross-functional team that gets the data in advance and they talk through it. They look at the metrics and talk through what they think is moving the needle. You can’t just run reports and have them sit on someone’s desk. How many of you actually look at allthe reports that come your way? You need to digest it. So, talk to each other about it, share what you’re learning about it and make a priotiy to invest in the measurement. Learn from each other There are a lot of metrics that we COULD track in an effort to make our arts organizations successful. With today’s robust CRM systems, there’s no shortage of data on arts patrons and their buying and donating behavior. The truth is, [CLICK], what gets measured gets managed. When we decide to track a metric and make changes in our work to move that number up or down, we’re giving that metric power. That means: we set our priorities as an institution by what we decide what to measure. Measuring success -pick some
- JILL: start with concept
- JILL: “That orchestra? Here’s what they did with that data. We’ll come back to these metrics at point #3, but these were their goals.” Here’s where strategy meets tactics. Arts Club recognized that they needed to bring more focus and resources to moving Buyers towards Advocacy and in particular, to widen the organization’s philanthropic efforts as more buyers indeed became ‘donor-ready.’ They’ve begun to create a culture that embraces fundraising as part of a patron’s evolution, including the following initiatives: Meet the cultivation team. Arts Club formed a cultivation team with one staff member from marketing and one from development who work together to shepherd Buyers towards advocacy. The cultivation team had 8 goals, formulated as a result of the loyalty work. They included increasing the percentage of subscriber-donors, retaining more new subscribers and single ticket buyers, and growing new entry-level donors, among others. From major donor cultivation to advocate planning. The Patron Loyalty Index also enlarged Arts Club’s thinking on who they should invite to join the artistic director’s circle. Whereas before Arts Club looked to existing mid-level donors first, the PLI indicated who was an Advocate, even if they had only made lower level donations in the past or even had no donation history. Annual fund campaign: Arts Club also changed their annual fund campaign. In order to implement their loyalty strategy, they used both the lists of Advocates, Buyers, and Tryers from the PLI, as well as standard segments like donors, subscribers, and single ticket buyers. They targeted specific segments of subscribers and lapsed donors with customized messaging and offers. Check with ARTS CLUB
- JILL: we have some
- I started by saying that data is your most important tool. But it’s just that—a tool. The whole field is enamored of data, but best practices is doing things differently because of data is what matters. People do. Data doesn’t do. You set priorities. You lead.
- Welcome. I’m _____________, [title] with TRG Arts, The Results Group for the Arts. Best practices for improving ROI Managing the gap between subscriber and donor Building an action plan and measuring success ----------------------------------- Patron Development: Preparing a path from first ticket to planned gift Jill Robinson, president & CEO, The Results Group for the Arts (TRG Arts). A patron’s loyalty is built step-by-step with each interaction with your organization. Jill Robinson of this data-driven consulting firm that teaches arts and cultural professionals a patron-based approach to sustainable revenue, will discuss patron segmentation strategies and proven practices for closing the gap between subscribers and donors.