no size fits all: measuring success in new ways

www.smu.edu/artsresearch

Zannie Voss

2014 NAMP CONFERENCE

NO SIZE FITS ALL: MEASURING SUCCESS IN NEW WAYS

SMU National Center for Arts Research (NCAR) Advancing the arts through evidence-based knowledge

To act as a catalyst for the transformation and sustainability of the national arts and cultural community

Vision Statement

Mission Statement To be the leading provider of evidence-based insights that enable arts and cultural leaders to overcome challenges and increase impact

Scope of the Center

Insight

Analysis

Data gathering

Enablement

Implementation Practical tools & resources Deeper dive & dissemination

Primary data collecting

Hands-on application

Focus

Out of scope

Ad hoc, as required

Data aggregation & basic findings

Partners

Strategy

Data

Indices & Dashboard Creation

http://www.seeklogo.com/national-endowment-for-the-arts-logo-97261.html

Modeling the Arts & Culture Ecosystem

Public Arts Funding NEA, IMLS CDP, NASAA

Community Census Bureau, CDP

A & C Organizations CDP, TCG NCCS

Building a Spatial Model: Arts & Cultural Organizations & a Sense of Place

Example – XYZ Theatre Company in New Orleans

5 km radius, weight=80%



XYZ Theatre


Mission Statement

What are the Important Questions to Ask?

Contributed revenue

Earned revenue

Expenses

Marketing Impact Bottom

Line Balance Sheet Community

Engagement Program Activity

What outcomes should we examine in order to answer the questions?

Staffing


Example: Question: “What is program revenue per attendee?”

Index: Program revenue/Total in-person attendance

What drives high

performance? KIPIs

What drives performance? Driving Forces

What was performance?

Averages


Averages

$37.36 $24.86

$6.62 $36.25

$9.45 $53.02

$34.03 $37.67

$27.90 $13.78

$17.53

$0.00 $20.00 $40.00 $60.00

Arts Education

Art Museums

Community

Dance

Music

Opera

Performing Arts Centers

Symphony Orchestras

Theater

Other Museums

General Performing Arts

Ave. TotalMarketingExpenses/Ave.In-personAttendance

Ave. ProgramRevenue/Ave.In-personAttendance

What are marketing expenses per attendee and program revenue per attendee?

Taken together, we see very different levels of net program revenue per attendee by sector.

$20.47

$40.09

$13.06

$11.98 $8.68

$3.79 $4.64

$3.51 $4.10

$5.17 $4.34

$3.75 $6.35

$3.92

$0.00 $5.00 $10.00 $15.00

Arts Education

Art Museums

Community

Dance

Music

Opera


Symphony Orchestras

Theater

Other Museums


Ave.ProgramRevenue/Ave.TotalMarketingExpenses

What is return on marketing investment?

There appears to be a ceiling on the program revenue each dollar of marketing yields for performing arts organizations.

$1,532,000 $344,447

$526,305 $110,457

$875,898 $229,051

What is the return on fundraising investment?

There appears to be a ceiling on the return each dollar of fundraising yields.

$7.27 $8.68

$9.68 $7.12

$6.67 $7.39

$7.05 $6.90 $6.99

$8.63 $8.37

$- $5.00 $10.00

Arts Education

Art Museums

Community

Dance

Music

Opera


Symphony Orchestras

Theater

Other Museums


TotalContributedRevenue(unrestricted,temporarily &permanentlyrestricted)/FundraisingExpenses(including staff)

$565,867 $78,950

$886,862 $126,529

$2,997,046 $424,976



Averages

Example: Question: “What is program revenue per attendee?”

Index: Program revenue/Total in-person attendance

What drives high

performance? KIPIs

What drives performance? Driving Forces


Averages

What Drives Performance? The Concept of Explained Variation

Atte

ndan

ce

Arts & Cultural Sector

Expected Performance

Sector, size, age, square footage, …; community characteristics, availability of public arts funding

The Concept of Explained Variation A

ttend

ance

The Concept of Explained Variation A

ttend

ance

The Concept of Unexplained Variation

What drives high performance?

Key Intangible Performance Indicator

(KIPI)

What Drives Performance?

What Drives Performance? E.g., Operating Revenue

31%

6% 59%

4%

% Variation Explained byOrganization-level Drivers

% Variation Explained byMarketplace Drivers

% Total VariationAttributable to KIPI

% Total VariationAttributable to RandomError

Tee box adjustment

31%

6% 59%

4% % Variation Explained byOrganization-level Drivers


% Total Variation Attributableto KIPI

% Total Variation Attributableto Random Error


31%

6%

59%

4%

Size, age, sector, square footage + Receives NEA/IMLS funds +

Local premieres + Targets young adults +

Targets Asian-Americans –

A&C Organization Characteristics

High % kids + Socioeconomic

level + Total population +

Median age –

Community Characteristics Market A&C $ activity +

# of arts providers + Leisure complements +

Public radio/TV+

31%

6% 59%

4% % Variation Explained byOrganization-level Drivers


% Total Variation Attributableto KIPI

% Total Variation Attributableto Random Error


31%

6%

59%

4%

"The [X theatre] has realized how to leverage its brand to create more consistent revenue streams."

“We surveyed audiences and ‘quality’ was the number one reason they come. It’s the same reason we can hire the artists we want."

“It’s about getting your mojo working.”

KIPI Scores: ABC Presenter Which index scores would you like to see?

Earned revenue

Expenses

Bottom line

Balance sheet

Staffing Program activity

Community engagement

Contributed revenue

Marketing impact

KIPI Scores: ABC Presenter Which index scores would you like to see?

Contributed revenue

Earned revenue

Expenses

Marketing impact

Bottom line

Balance sheet

Community engagement

Program activity

Staffing

Return on Fundraising Unrestricted Contributions

Trustee Contributions Individual Contributions

Response to Marketing Efforts

Return on Marketing Efforts Operating Bottom Line (before depreciation)

Available Cash

Working Capital

Unrestricted Surplus

Operating Bottom Line (after depreciation)

Total Engagement

In-person Engagement

Revenue-per-Offering People-per-Offering

Visitor-to-Staff

Corporate Contributions Foundation Support Government Support

Earned Revenue Attendee-Expense

Relational Revenue Investment in Program

Investment in Program Personnel

Response to Direct Marketing Spend

Return on Direct Marketing Spend

= Subscription & Membership Revenue

Total Expenses

= Program Revenue Marketing Expenses

= In-person Attendance Marketing Expenses

Revenue per Attendee

KIPI Scores: ABC Presenter Has your Relational Revenue KIPI increased or

decreased over time? (Total Subscription & Membership Revenue/Total Expenses)

Relational Revenue Index

2011 0 50 100

2012 Relational Revenue Index

2013 Relational Revenue Index

Click here to see changes in the KIPI of the component parts of this Index over time.

KIPI Scores: ABC Presenter Has your Return on Marketing KIPI increased or

decreased over time? (Total Program Revenue/Total Marketing Expenses)

Return on Marketing Efforts Index

2011 0 50 100

2012 Return on Marketing Efforts Index



KIPI Scores: ABC Presenter Is the change in your Return on Marketing Efforts KIPI driven

by an increase/decrease in your Total Program Revenue KIPI?

2012 Response to Marketing Efforts Index


2011


Program Revenue 2011



0 50 100


KIPI Scores: ABC Presenter Is the change in your Return on Marketing Efforts KIPI driven

by an increase/decrease in your Total Marketing Expenses KIPI?



2011


Marketing Expenses 2011



0 50 100



2011

KIPI Scores: ABC Presenter Has your Response to Marketing Efforts KIPI

increased or decreased over time? (Total In-person Attendance/Total Marketing Expenses)

Response to Marketing Efforts Index

2011 0 50 100




KIPI Scores: ABC Presenter Is the change in your Response to Marketing Efforts KIPI driven by an increase/decrease in your Total In-Person

Attendance KIPI?



2011


Total Attendance 2011



0 50 100


KIPI Scores: ABC Presenter Is the change in your Response to Marketing Efforts KIPI driven by an increase/decrease in your Total Marketing

Expenses KIPI?



2011





0 50 100


Marketing Efforts Index

2011

ACTIONABLE DATA TO THRIVE ON 2014 NAMP Conference

Jill Robinson, President & CEO TRG Arts

Copyright © 2014 TRG Arts All Rights Reserved

People Your Patrons

DATA

#measuresuccess

Patron Relationships

#measuresuccess

Revenue from Patron Relationships

#measuresuccess

( )

% of patron revenue How important patrons are Source: your budget Timespan: most recent season/year

revenue from: ticket sales + memberships/subs + individual gifts + classes/events/galas

TOTAL revenue (including foundation, corporate, government)

1

#measuresuccess

% of patron revenue Recent examples 92%

81% 72%

71%

63%

60%

48%

33%

What does this look like at your organization?

#measuresuccess

# of Active Patrons Your most important patrons 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

2 #measuresuccess

EXPENSES

ROI

What’s an upgrade?

Action Next Step Buy a ticket for

the first time

Buy a ticket twice in the

same season

Renew subscription/ membership

Come back again

Buy a subscription/ membership

Add on donation or events

#measuresuccess

CASE STUDY You have 10 minutes to plan what Kathy should do next. In your answer, include:

- an outline of 2-3 specific things that the marketing department should do to cultivate incoming new and existing patrons in the face of upcoming blockbuster events. - how Kathy should re-allocate her subscription and single ticket budget. You should take into account the 10% ($18,000) cut and include any reallocations for individual productions.

#measuresuccess

NO SIZE FITS ALL: Choose the Right Data

November 9, 2014

Arin Sullivan Director of Programs & Client Services

Agenda

Alignment

Position vs. Interest

Group work

#nampc #measuresuccess

Current Reality

Alignment

Ideal Future Reality


Position vs. Interest

Independence

Freedom to spend time with friends

“I want a car…”

Need

Interest

Position


Current Reality

Alignment



Current Reality

Alignment & Interest



Avoid the Data Swarm

“Over 50 percent of our marketing budget is spent on printing materials…”

Limit yourself to 1 to 3 data points

Select data points that:

• Align with your plan

• Align with your colleague’s interests

• Are succinct, memorable, and digestible


Workshop

1. Focus on one colleague

• Review their interests

2. Choose the right data

• Choose 1 strategy

• 10 minutes of group work

3. Report out

• Share your strategy and the data points that you chose for your colleague


Thank you

Arin Sullivan, Director of Programs & Client Services e: [email protected] w: culturaldata.org


no size fits all: measuring success in new ways

Government & Nonprofit