This document outlines 5 key data points arts organizations can use to better understand their patrons and maximize revenue. These include: (1) the percentage of revenue from patrons, (2) the percentage of active patrons over the past 2 years, (3) trends in the number of active patrons by category, (4) the percentage of subscribers who also donate, and (5) average per capita ticket revenue. Analyzing these metrics can help organizations identify opportunities to strengthen patron loyalty, upgrade patrons to higher levels of engagement, and optimize revenue through pricing strategies. Real-world examples are provided to demonstrate how arts groups have utilized patron data insights to boost retention, fundraising, and overall financial sustainability.
4. What We Do
Patron Results
1. Consulting
Capacity building for sustainable growth
2. Data & Analytics Services
Aggregation, analysis, direct response counsel
3. Community Data Networks
35 million households
10. But… there’s a lot.
Donor Donor,
subscriber
First time
ticket
buyer
New
subscriber New donor,
Multibuyer
Subscriber,
Used to
donate
First time
ticket
buyer, now
subscriber
Long-time
subscriber
Donor,
board
member
Donor,
Long-time
subscriber
18. % of Active Patrons
% active in last 2 years
Source: your database or ticketing system
Timespan: 2 most recent seasons or years
Count of households that had
any interaction this year and last year
Total households in your database
2
21. Is your database growing?
Current-year patrons
Source: your database or ticketing system
Timespan: last completed year or season
3
( )Single ticket buyers/admissions
Subscribers/members
Donors
Then, compare to last 2-3 years
active this year# of
24. Active Patrons
What does it mean?
1. Indicator of organizational health
Note that “health” doesn’t mean growth
2. Ability to upgrade loyalty
How many are “hot prospects” for a next step?
3. Bringing in enough patrons to replace
the ones lost?
4. From there: identify opportunities, challenges.
27. When? Active patrons
are declining, if you
want to increase % of
active patrons.
Next Step: Reactivate
How? Treat them like a
first timer and a valued
patron.
When? ALWAYS, but
esp. when single ticket
buyers are declining
Next Step: 2nd Date
How? Good orientation,
get contact info, invite
back promptly
28. 4 year retention study
New buyers
SRT achieved second
date in same season
TRIPLED retention rate
Revenue kept growing.
More on this case at www.trgarts.com
29. When? Active patrons
are declining, if you
want to increase % of
active patrons.
Next Step: Reactivate
How? Treat them like a
first timer and a valued
patron.
When? ALWAYS, but esp.
when subscribers/members are
declining.
Next Step: Add an AND—
another show, a small
subscription/membership
How? Foster further
engagement by making the ask
When? ALWAYS, but
esp. when single ticket
buyers are declining
Next Step: 2nd Date
How? Good orientation,
get contact info, invite
back promptly
32. % of subscriber-donors
How to calculate
Source: your database or ticketing system
Timespan: current year or season
# of subscribers who donated this year
Total # of subscribers
# of members who donated this year
Total # of members
4
33. % of subscriber-donors
What’s “normal”?
32% or above: Great job!
24-31%: You’re doing fine.
17-23%: On the low side of normal.
16% or lower: You have an opportunity here.
34. % of subscriber-donors
What does it mean?
1. How loyal are your most active patrons?
2. Do you ask subscribers to upgrade with a
donation?
3. Gauge potential pipeline for major donors
And a “super subscriber” program
35. 453 Super Subscribers
gave $51,100
in four months
70% had no previous
giving history.
More on this case at www.trgarts.com
36. Per capita revenue
Average Ticket Revenue
Source: ticket revenue reports
Timespan: this year or current season
Per Capita Revenues = Total Sales Revenues
Total Unit Sales
5
38. What to do about it
Revenue management
1. Think about pricing for blockbusters
Which events, dates and times are in
demand?
2. Monitor per cap regularly
Average per capita for each event and
subscription/membership per caps
3. Comps & Discounts
Papering is not a business strategy
39. 5 Actionable
Data Points
1. % of Patron Revenue
How dependent are you on patrons?
2. % of Active Patrons
How many patrons are active?
3. # of Active Patron in each patron category
Is your database growing?
40. 5 Actionable
Data Points
4. % of Subscriber-Donors
How loyal are your most active patrons?
5. Per Capita Revenue
How am I managing revenue through pricing?
So what does that number typically look like at organizations? We see a wide range, but typically, it’s over 50% of organizational income.
We say “follow” the money trail. Patron-centered income represents the lions-share of your revenues. And loyalty upgrades sustain your organization in that they are spending more with your organization and you’re spending less to keep them.
So, ACKNOWLEDGE this reality and use that as a tool to prioritize going forward.
Let’s look at monetizing engagement over time through one recent TRG analysis. (Back to the action word) This is an overview of our findings for a theatre client. The work goes in-depth to show the client just how much revenue, after expenses, each buyer type was contributing to the organization’s financial health. It has become a platform for the organization’s new patron loyalty initiatives.
For purposes of today’s discussion… however, let’s look at the big overall takeaways:
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.
Looking at their single ticket buyers, 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 (check me on this).
Looking at new subscribers, 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.
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.
Finally, this clients’ most loyal patrons. Extremely high order size and renewal rate, and low cost of sale.
So let’s put these numbers together and look at net revenue.
So what action to take? (This is your homework slide.)
With this new perspective, use this number as your motivation to lead and prioritize differently
Activities evaluated by impact on patron
Integrated planning maximizes interaction
Robust database drives planning
Think broadly here with patrons as your priority
Understand and follow the money
Ask yourself:
Where are your resources allocated against that ___%
What is the impact of departmental structure on patron service and loyalty?
What are you being held accountable for?
And, take a look at the following metrics around patrons
The next 2 metrics we’ll discuss have to do with patron activity.
TRG defines "active" as any household with any purchase or donation activity in two most recent years.
Here are some examples from a recent workshop we did.
It’s important to think critically about this data. When you calculate it, ask why you’re seeing this number.
Is this a good number? (this organization was having database management issues—in this case the number tells them something important about their data management practices.)
What about these? (it could be—they might be an older organization with many years of inactive patrons. Or, they have a large pool of patrons to re-activate. It’s an opportunity.)
Instead of judging your number, use it to look at the state of loyalty at your org…
% of Subscriber-Donors
We talked about buyer upgrade initiative like the super subscriber program.
Per Capita Revenue
We talked about the basics of revenue management.