Loyalty Matters.

Selling tickets vs. building relationships

Stop Marketing to the Masses &

Start Cultivating the Loyalists

November 11, 2012

NAMP Conference

Suzette Sherman,

Director of External Affairs

National Museum of Women in the Arts

Jill Robinson

President, TRG Arts

Donna Williams,

Chief Audience Development Officer

The Metropolitan Museum of Art

Patron Loyalty

Buyers

Tryers

Targeting new patrons.

Converting them into frequent buyers,

subscriber/members, and donors…

And, ultimately, lifelong patrons. Advocates

2 out of 3 new patrons leave…

and never come back.

Atttrition (Churn)

Patron Relationships

Sustain the Arts

Most loyal

Least loyal

Suzette Sherman,

Director of External Affairs

National Museum of Women in the Arts

“Loyalty is the gold standard for

measuring the quality of a

relationship.”

The Loyalty Effect and Loyalty Rules by Frederick Reichheld

Loyalty is About Relationships

11/11/12 Suzette Sherman, National Museum of

Women in the Arts

Loyalty: A Cause and Effect Relationship

Adapted from The Loyalty Effect and Loyalty Rules by Frederick Reichheld

Superior Constituent

Value

Compensation Advantage

$ Superior Productivity

$ Cost Advantage

REVENUE

GROWTH

Right Visitors and Members

Right Donors and Investors

Right Employees

Marketing Fundraising Research Friend-raising

Audience Development Infrastructure

$ Reinvest

Experienced service Well-Informed

Know donors and customers

11/11/12 Suzette Sherman, National Museum of

Women in the Arts

Suzette Sherman, National Museum of Women in the Arts

Measuring loyalty

• Intentions – Likelihood to recommend in 12 months?

• Satisfaction – Overall satisfaction with experience?

• Value – Considering price paid and services received, evaluate

overall value received.

• Performance – Thinking about all aspects experience, evaluate it overall?

11/11/12

Evangelists within Loyal Segments

Adapted from James L. Heskett, Thomas O. Jones, Gary W. Loveman, Earl Sasser, Jr., and Leonard A. Schlesinger.

“Putting the Service-Profit Chain to Work.” Harvard Business Review March-April 1994.

Vulnerable

Neutral

Satisfaction, Recommend, and Value

100%

Lo

yalt

y

(Rete

nti

on

)

Loyal

Defector

or Critic 1 2 3 4 5

Evangelist

11/11/12 Suzette Sherman, National Museum of

Women in the Arts

Suzette Sherman, National Museum of Women in the Arts

Finding the Loyal Influencers, Evangelists, Advocates

11/11/12

Member Commitment

• Membership level

• Tenure

• Life-time value

• Annual Fund gifts

• Two-year membership, automatic renewals

• Upgrade behavior

• Renew early before expiration

• Volunteer or docent status

Suzette Sherman, National Museum of Women in the Arts 11/11/12

Member Activity

• Members Previews (1st to see)

• Member programs (free, paid)

• Museum and exhibition visits

• Frequency of visits

• Cross purchase: store, restaurant, other

• Art history courses, education programs

Suzette Sherman, National Museum of Women in the Arts 11/11/12

Member Referral Responsiveness

• Bring-a-friend offers

• Member for a Day cards

• Guest passes and tickets

• Gift membership (the ultimate referral)

• Guests for previews, exhibitions, and programs

Encouraging and Tracking Referrals

11/11/12 Suzette Sherman, National Museum of

Women in the Arts

Commitment

Activity Referral

Responsive

Motivating members who are active, committed and refer others

Finding Opportunities in Your Base

11/11/12 Suzette Sherman, National Museum of

Women in the Arts

NMWA Celebrates 25 Years

• A Museum – a Cause!

• 25% regional – 75% national/international

• $1.6 million in revenue

• Almost 20,000 members

– Charter matters!

– 1,000 25-year members

– 5,000 10+ year members

11/11/12 Suzette Sherman, National Museum of

Women in the Arts

• Introductory levels (Individual/Supporter)

• Friend level (free admission at 600+ museums)

• $1,000 Presidents Club

November 9, 2012 Suzette Sherman, National Museum of

Women in the Arts 18

Re-engage past members – an extraordinary opportunity!

• Initial acquisition plan

– mail 160,000

– 85% commercial lists, 15% house

• Strategic shift

– 175,000 lapsed member records

– Data enrichment

• E-mail append

– Doubled list to 50,000

11/11/12 Suzette Sherman, National Museum of

Women in the Arts

Thank you!

11/11/12 Suzette Sherman, National Museum of

Women in the Arts

Donna Williams,

Chief Audience Development Officer

The Metropolitan Museum of Art

THE METROPOLITAN MUSEUM OF ART

Multicultural

Audience

Development

Initiative

1870 Present

The Museum: Brief History

MADI

The goals of the Multicultural Audience Development Initiative

are:

• increase awareness of our global collections

• create relationships with diverse communities in New York

• diversify visitorship and membership

• increase participation in programs and activities

Mission Statement

MADI

Advisory Committee

MADI

Collaborations

Arts Organizations Trustees, Staff, and Departments Multicultural

Organizations

MADI

Collaborations

Special Guests

Maya Lin Andre Leon Talley & Oscar de la Renta

Alek Wek Michele Patterson Linda Johnson Rice

Cicely Tyson

MADI

Involvement with Communities

MADI

Media Outreach

Communicating with all communities in New York

MADI

Media Outreach

Newsletter & Website

MADI

A Luncheon with President Clinton

January 11, 2010

Grand Divertissement à Versailles

Costume Institute / MADI Luncheon

January 24, 2011

MADI

MADI

LGBT Post Pride Party

July 19, 2012

MADI

LGBT Post Pride Party

July 19, 2012

MADI

¡Fiesta! Celebrating Hispanic and Latin American Culture

September 29, 2012

MADI

¡Fiesta!

MADI

African American Heritage

The Boy’s Choir of Harlem & Cicely Tyson School of the Performing Arts

MADI

Native American Heritage

We’ll Take Manhattan Symposium

MADI

Opening of the Native American Galleries

Native American Heritage

MADI

Diwali Performance

MADI

Lunar New Year

February 7, 2010 and February 4 – 8, 2011

MADI

Lunar New Year

February 4, 2012

MADI

Lunar New Year

February 4, 2012

MADI

MADI

Women’s History Month Celebration

MADI

Multicultural Benefit

An Evening of Many Cultures

Multicultural Benefit

September 26, 2011

MADI

Galleries for the Art of Arab Lands, Turkey, Iran, Central

Asia, and Later South Asia

Imam Shamsi Ali

(Islamic Cultural Center of New

York/

96th Street Mosque)

Lena Al-Husseini

(Arab-American Family Support Center)

Haroon Moghul

(The Maydan Institute)

Robina Niaz

(Turning Point for

Women and Families)

Linda Sarsour

(Arab American Association

of New York)

Sheikh Imam Abdallah

(Sakeenah, Inc)

Rev. Dr. James Alexander Forbes

(Healing of the

Nation Foundation)

Mohammed Razvi

(Council of Peoples Organization) Fatima Shama

(NYC Commissioner of Immigrant Affairs)

Joyce Dubensky

(Tanenbaum Center for

Interreligious Understanding)

MADI

Staff Cultural Awareness Information Session for

the New Galleries for the Arab Lands, Turkey, Iran,

Central Asia, and Later South Asia

October 18, 2011

An Oasis at the Met

March 1, 2012

Outreach for the Islamic Art Department’s New Galleries

Qatar Museums Authority Professional Workshop

June 2012

Outreach for the Islamic Art Department’s New Galleries

Iftars

MADI

Sufism in Islamic Art

October 12, 2012

Outreach for the Islamic Art Department’s New Galleries

Cross Cultural Engagement

Award from the Muslim

Consultative Network

June 10, 2012

Exceptional Dedication and

Service Award from Nation

To Nation Networking

October 3, 2012

Awards

The Initiative

Veterans Day Breakfast

November 13, 2012

MADI Upcoming Event

Regarding Warhol: Sixty Artists, Fifty Years

December 19, 2012

MADI Upcoming Viewing and Reception

Spectrum

Spectrum

Spectrum Trivia Night with Art 21

March 22, 2012

Spectrum

Spectrum Celebrates Breaking the Color in Major League

Baseball and the Museum’s Jefferson Burdick Collection

April 13, 2012

Spectrum

Spectrum Presents Oktoberfest at the Cloisters

September 29, 2012

Spectrum: Upcoming

Faking It/Creative Mornings Event

November 16, 2012

College Group at the Met Making the Met accessible and popular to the next generation of college students

College Group

Waist Up/Waist Down: An Evening of Schiaparelli and Prada

May 15, 2012

College Group

An Evening of Art and a Summer Sunset with Cloud City

August 17, 2012

College Group

Warhol’s Factory at the Met

October 24, 2012

2013

Events

Schedule of Upcoming Audience Development Events

• Wednesday, January 23, 2013: Women of the Nile event

• January/February, 2013: I Have a Dream Event

• Late Winter, 2013: Gordon Parks Centennial Event

• March 2013: Women’s History Month Event

• March 2013: Senses of Spring Festival

• May 2013: Asian-Pacific Heritage Month

• MADI Gala: September 2013

MADI

Mentoring Program

Patron Loyalty Paradigm

Patron Loyalty Paradigm

What Makes an Advocate?

How do you cultivate an Advocate?

Identify them,

retain them.

What Makes a Buyer?

How do you cultivate a Buyer?

Increase and upgrade:

more tickets, better

seats/pricing, larger

donations.

Who are Tryers?

How do you cultivate a Tryer?

Get them to come back!

Which means…capturing

contact information!

0% 1% 2%8% 7% 7%3% 5%

12%

25% 22% 24%31%31%

44%

50%49%

49%

66% 63%

42%

18% 22% 19%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

SuperAdvocates

Advocates Buyers Tryers Total PAO PAOCommunity

Performing Arts OrganizationPatron Loyalty Group Distribution by Generation

Gen Y Gen X Baby Boomers Traditionalists

1. Endorse and enforce a new way of doing

things from the top.

2. Analyze patron data across systems.

3. Seize an opportunity or two to pursue in

tandem with current campaigns.

4. Together.

Takeaways

Questions?

Stop Marketing to the Masses &

Start Cultivating the Loyalists

November 11, 2012

NAMP Conference

Suzette Sherman,

Director of External Affairs

National Museum of Women in the Arts

Jill Robinson

President, TRG Arts

Donna Williams,

Chief Audience Development Officer

The Metropolitan Museum of Art