pacc marketing conference charlotte , nc june 21, 2012
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PACC Marketing Conference Charlotte , NC June 21, 2012. So you think you know your Audience? Presented by Will Lester, VP . National Census of Arts and Culture. D. D. D. D. D. D. 25,000,000. Patron Households. 60,000,000. Patron Behaviors . Assumption Free Management. - PowerPoint PPT PresentationTRANSCRIPT
PACC Marketing ConferenceCharlotte, NC June 21, 2012
So you think you know your Audience?Presented by Will Lester, VP
National Census of Arts and Culture
D
D
D
D
D
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25,000,000
Patron Behaviors 60,000,000
Assumption Free Management
Patron Households
PATRON DEMOGRAPHICS
U.S. Population
Gen Y4%
Gen X (30-45)26%
Baby Boomers (46-64)47%
Traditionalists (65+)23%
Arts Patrons
Art Patrons by GenerationCurrent Situation
• Average Age: 54• Highly dependent on the
Baby Boomer and Traditionalist Populations– Donor Studies conducted by
TRG show that as much as 91% of organizational revenue from these groups
• Big opportunity on the horizon with Gen Y
U.S. Population
Art Patrons by Generation
Implications• Gen X is ⅓ Smaller than
Baby Boomer• Challenge of younger
generations – Less Arts Education– Tough Sell– Break through the “Noise”
Gen Y4%
Gen X (30-45)26%
Baby Boomers (46-64)47%
Traditionalists (65+)23%
Arts Patrons
Income & Education
Less than $40K
$40K - $70K
$70K - $100K
$100K - $125K
$125K0%
5%
10%
15%
20%
25%
30%
Household Income
High School40%
Under-graduate Degree
34%
Graduate Degree27%
Educational Attainment
Family Status
Married68%
Sin-gle
32%
Marrital Status
Chil-dren
@ Home42%
No Kids58%
Children in Home
Infant & Preschool
32%
Grade School34%
Mid-dle
School16%
High School
18%
Chidren Age
Audience Ethnicity
Other
Asian
African American
Hispanic
0% 1% 2% 3% 4% 5% 6%
• 85% of Arts Census Audiences are Caucasian
• Top 5 Most Diverse Arts Populations by Market: – Los Angeles (all groups)
– Houston (Hispanic)
– D.C. (African American)
– San Francisco (Asian)
– Atlanta (African American)
PATRON BEHAVIORS
Market Penetration & Audience Crossover
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Multi; 21%
Single; 79%
Organizational Multibuying
• Market penetration ranges from 20% to 50%
• Some municipalities much higher:– LA County 40%– Orange County 50%– City of Santa Monica
75%
Patron Origination - Definitions
Category Type Definition
Renewal Known Attended last year AND this year
Reactivated Known Bought in the past but NOT last year
Community Arts New Attended other arts organizations before you
New-To-Community
New First observed purchase in your community
Patron Origination
2010/11 Season Stats• 50% of households
“Returned”
• ¼ of households tried something new
• More than 1 Million households bought their first ticket EVER during FY11
AAI Average Patron Origination:2010/11 Season
Renew38%
Re-acti-vate12%
Community Arts23%
NewToArts27%
National Arts CensusSeason 2010/11
New Audience Churn
The State of Patron Relationships
16
10-15%
85-90%
Retain Audiences
6% Attend Multiple Organizations
Single Org Buyers:50% Churn Overall
Multi Org Buyers:15% Churn Overall
Reactivate Audiences
5th Avenue Theater – Patron Loyalty
92% of DatabaseAvg. Value: $48 ea.
45% of Revenue
8% of DatabaseAvg. Value: $527 ea.
43% of Revenue
180 Names in DatabaseAvg. Value: $4k - $40K ea.
11% of Revenue
5th Avenue
• Discovered through Loyalty work that Subscribers who add a donation have much higher renewal rates: 11% - 22% higher– Bigger Subscription = Bigger Gift
• Benefits to trigger higher subscription committment
• Super Subscriber Program• First Gift Campaign
The 5th – Exploring “The 180”
Customer #104• Subscriber since ’96• 7-Play subscriber (4 seats)• $1,000 Donor• Sees each show 15-20x
through $20 See-it-Again program
• Total Value: $31,014
Customer #31• $1,000 Donor• Gala Purchases of $40,000• Total Value: $90,205
Customer #17• $10,000 Donor
Customer #5• $1,500 Donor• Coordinates a group of
friends who buy $55,000/year in subscriptions
Direct Mail in Multi Channel Communications
• It is more TRUSTED• It still WORKS, sometimes better than you
realize…• REACH those you can’t otherwise talk to
Epsilon Study“2011 Channel Preference Study, through economic turmoil, technology advances and channel proliferation, direct mail continues to deliver as consumers' preferred means of receiving marketing messages from brands.”
• 75% of consumers say they get more email than they can read• 50% of consumers prefer direct mail to email• 26% of all U.S. consumers said they found direct mail to most
“trustworthy” medium– Increase from prior studies– Extends to the 18-34 year old demographic.
Direct Mail - Lift
• Commercial Entertainment Client “X”• 30% off Fall Performances• 100,000 pieces – Targeted Past Buyers,
Rentals, Prospects– Cost $50,000– Redemption: $450,000– 9-1 Return…Happy Client
Direct Mail – LiftThe REAL Story
Sales Channel Revenue
Mailed Responders – Redeeming 30% Off $170,000
VIRAL offer Redemption $280,000
Total Discount Code Redemption $450,000
Mailed Households – Other Deals $150,000
Mailed Households – FULL PRICE $280,000
ANCILLARY Sales Total $430,000
TOTAL REVENUE (direct & indirect) $880,000
COS 5% COS; 17 – 1 Return
Reach New Audiences
www.trgarts.comwww.blogspot.trgarts.com
Thank You
Generations in AmericaGeneration Group
Age % of Pop.
Consumer Behaviors Donation Behaviors
Traditionalist 67+ 16% Conservative, risk-adverse, disciplined, trusting
Deliberate, pre-meditated
Baby-Boomers
48-66 31% Time-stressed, cause-oriented, value good quality & service
Budget earmarks, cause-oriented, legacy seeking
Gen X 32-47 21% Individualistic, a tough sell but deeply loyal once attached
Less planned, event-oriented, volunteers, influenced by friends
Gen Y <31 32% Intake vast amount of information, short attention span = less loyal
Volunteering, spreading the word, based on emotion
Sources:• Bridging the Generation Gap by Linda Gravett and Robin Throckmorton.• The communications and human resource consulting work of Anne Loehr (www.anneloehr.com)• The Next Generation of American Giving, by Vinay Bhagat | Founder and Chief Strategy Officer, Convio, Pam Loeb | Principal, Edge Research, and Mark
Rovner | Founder and Principal, Sea Change Strategies, March 2010.