segmentation as the base for succesful public outreach: the new rotterdam target groups for arts and...
DESCRIPTION
In 2007, EMC Culture Studies built - on behalf of Rotterdam Festivals - a segmentation model for cultural entertainment in Rotterdam. The findings of research into cultural data transaction among locals and transaction data of visitors from Rotterdam cultural institutions were interrelated, there were 8 groups found who were more or less interested in local art and culture. After almost 5 years, this model was due for revision. Based on an entirely new set of data, EMC Culture Studies once again mapped the Rotterdam market for cultural entertainment. The application of this new segmentation model is key during this workshop. You are going to create a marketing plan based on profiles of more or less promising targetgroups. This gives you insight into the workings of the model and helps you to determine how far such an approach is applicable to your situation. During the workshop Willem Wijgers introduced the new Rotterdam Target groups for arts and culture and you get the chance to move into the needs of various types of culture users. As director / chief marketing officer of a virtual Rotterdam institution you set up a campaign to attract new visitors, by making use of the information about their housing and living situation, their leisure and their use of media (online and offline), as from the description of the new target appears. www.congrespodiumkunsten.nlTRANSCRIPT
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The Rotterdam Arts & Culture Segmentation Model
An effective approach to cultural marketing in the greater Rotterdam area
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Subjects
• Who and what is EMC Cultuuronderzoeken?
• In search of an audience…..
• From data to insight
• From insight to action (your bit)
• Questions & comments
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Willem Wijgers
• General director of EMC Cultuuronderzoeken
before:
• Senior project manager Bureau Promotie Podiumkunsten
• Managing director Vereniging Nederlandse Muziek Ensembles
• Marketing & product manager Vanguard Classics/BMG Classics
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EMC Cultuuronderzoeken
• Research & consultancy in the cultural sector – Segmentation
– Customer data analysis
– Qualitative and quantitative research
• Support for implementation and evaluation – Validation of customer databases
– Creating customer segmentation models
– Facilitating marketing communication
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Most people:
• Have everything they need
• Have limited spare time
• Have enough budget
• Have 1001 ways to spend it
• Are in search of meaningful experiences
So:
We have to offer them a relevant proposition
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What has this got to do with you?
• The importance of relevance: – Competition on a generic level (time & money)
– Competition in terms of attention (clutter)
• The quality of the proposition: – Claim time & money for a unique experience
– Combine trust with adventure
• The technical support to deliver it: – Fix and connect your systems
– Organize the disorganized
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Is there one audience?
I’m afraid not…
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What is segmentation?
• Philip Kotler:
– ‘To divide the market in groups of customers with the same preferences in terms of satisfying their needs
• Segmentation can take place according to:
– Demographics
– Socio-economics
– Life style
– Buying behavior / use of (online) media
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When to apply segmentation?
• Market and competition lead to it
• Fits in with marketing concept & policy
• Market segments are distinct
• Market segments can be reached
• Affordable to address each of them
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Why apply segmentation?
• To make an efficient use of resources by: – Targeting campaigns to promising target groups
– Looking for the appropriate sponsors/funders
– Catering to needs of specific target groups
• To take accountability seriously – Choosing what not to do (Porter)
• To improve results – Creating more own income
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How (not) to apply segmentation?
• Involve everyone (even your boss)
• Invest in generic & flexible ticketing software
• Don’t throw away ‘old’ data
• Collect and regularly validate your data
• Use your own data to start with
• Make it SMART and use a business case
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What data tell about attendance
• Comparison of five seasons of data
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What data tell about behaviour
• Cross-over behaviour during 1 theatre season
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Possible segments
• Heavy users: Culture is self explanatory
• Light users: Cultural activities are an option
• Occasional visitors: Culture by coincidence
• Look-alikes & absentees: prospects & churn
• Stakeholders & shareholders: community at large
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Typical customer pyramid
Heavy users
(50 %)
Light users
(35 %)
Occasional
visitors
(15%)
15 %
35 %
50 %
absentees, potential visitors and non-visitors
Programming, marketing, attention
mar
keti
ng
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A segmentation method
• 12.000 characteristics
• Groups & types
• Based on clustering
• demographic
• socio-economic
• life style
• urban / rural region
• Homogeneous within clusters
• Heterogeneous between clusters
2 1 3
A
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Kadaster
Dataland
RDC
Jonge Gezinnen
M&R Developments
Kamer van Koophandel
Postnl
KPN Telecom
Experian NOM
GfK Panel Services (TOF)
TNS Nipo
Cherridata
Trendbox
Centraal Bureau voor de
Statistiek
Falkplan Andes
Navteq
Geodan
Registratie data Onderzoeks-
en lifestyle data
Registration
data Market
research
GIS
data
Data sources Experian uses for Mosaic
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Mosaic household segmentation 10 groups, 44 types
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Dutch society has changed
1. More single households
2. Traditional way of life disappears
3. More cultural diversity
4. The rich get richer, the poor stay poor
5. Aging of society increases
6. Baby-boomers become pensionados
7. Digital and online are a must
8. Countryside population decreases
9. Lowest social layers disappear
10. Double income has become a necessity
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Mosaic Household 2012 W
elst
and
Leeftijd
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Mosaic Household
• Each of the 7,3 million Dutch households belongs to one of the 14 groups and 50 household types
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Zipcodes and house numbers
• 12 provinces
• 400 municipalities
• 461.000 zip codes
• from 1000 AA to 9999 ZZ
• separate 6 p zip code per street
• Together with number unique
• 7.3 million households
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Process of segmentation
Dump from minimum 1.000 over & under ticketing records needed representation in system catchment area
Zipcodes + house numbers From database
Mosaic database Segmentation:50 Mosaic types
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Who lives here?
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Zip code 2661RA Waghenaerdreef 42 - Bergschenhoek
€200k-
€360k
Property value
Property
(26x)
Rent
(1x)
2x average (25x)
>2x average (2x)
<45 (23x)
45+ (4x) Children
(15x)
No children
(12x)
Households
Secondary
(24x)
Higher
(3x)
Education
(3x) (24x)
Sales in last
10 years (10x)
At least 1 car
(27x)
Age
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Example of a Mosaic type
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Zipcodes & house numbers Cultural inst.
Mosaic database
Segmentation: 50 Mosaic types
9 target groups for arts & culture
Municipal Survey 2011
Clustering of segmentation & responses
Target groups for arts & culture in Greater Rotterdam area
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Some data on the segmentation
• Catchment area: city of
Rotterdam + 15 kilometres
• 672.614 households in area
• 50 venues supplied data
• Data on 152.000 households
• 12 genres were distinguished
• Results municipal leisure survey 2011 added
• 9 segments clustered + residual category (7 types)
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Segments in catchment area
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The segmentation model
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Presence in catchment area - 1
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Presence in catchment area - 2
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Presence in catchment area - 3
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Presence in catchment area - 4
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Culture is self-explanatory (22%)
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Urban Omnivores
• 40.104 households (6%)
• 18-60 years old, highly educated, starting or having a prosperous carreer
• Living single or as couples in the city centre
• Prospects for all cultural genres: museum, theatre, cabaret, pop music, dance, films, debates & cultural festivals, archives
• Like to go out for drinks, pub
• Use cultural agendas, posters, brochures, websites to inform about cultural events
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High End Culture Vultures
• 45.428 households (7%)
• Age 45-65+, well to do families
• Living in attractive suburbs, spending time & money on dining and holidays
• Prospects for most cultural genres: museum, theatre, cabaret, classical music, dance, films & serious festivals
• Use most of the media for cultural information but especially radio & WOM
• Practice a lot of amateur art forms
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Out Together
• 60.376 households (9%)
• Age 18-40 and 55-65+
• (Started) working, living together with no children (anymore). They like daytrips and going out with other people
• Prospects for pop concerts, cabaret, shows and musicals
• Don’t have a very strong preference for internet for cultural information
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Culture as an option (24%)
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Active families
• 60.068 households (9%)
• Age 25-55, families with children 0-12 years old, living in new housing development areas and quieter suburbs
• Prospects for any art form aiming at children, including children amateur events and performances
• Also visit a lot of sports events and amusement parks
• Use the Internet, especially at work (!)
• Favour Rotterdam as a place to go for cultural outings
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Suburban convenience seekers
• 70.456 households (11%)
• Age 25-65, families with older children, who need space and freedom
• Living in the suburbs, working fulltime, enjoying to be outdoors & liking shopping
• Like to visit musicals and cabaret but stay away from classical music and museums.
• They go to amusement parks occasionally
• Average use of online and offline media
• They visit community centres for cultural events
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Classical Art Lovers
• 24.048 households (4%)
• Age 50 and older, highly educated, living in comfortable houses or city-centre apartments
• Still working but also enjoying more and more leisure time they spend on gardening, cycling and going out for a drink.
• They go to classical concerts, opera and museums and don’t favour any other art form
• They favour print media over all other media
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Culture by coincidence (54%)
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Screen Addicts
• 64.858 households (10%)
• Age 18-50, but mostly young (students) and people on their first jobs.
• Spending a lot of time on internet for entertainment (gaming, downloading music) and on social networks
• They only are interested in going to (arthouse) films and like to explore the Rotterdam night life
• They use alternative websites and social media for information on cultural outings
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Colorful Strugglers
• 134.726 households (20%)
• Age 18-50, often with a non-European background, living alone or as a family with young children, and poorly off, renting a modest apartment, with no money for luxury
• They frequently go to the library or the cinema and use the Rotterdam pass a lot
• For cultural information they watch TV or read free daily newspapers (Metro)
• Would like to see more amusement
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Art Evaders
• 160.844 households (24%)
• Age 50 and older, lower educated singles and couples living in simple houses, early retired with little money and (too) much leisure time
• They potter, do their daily shopping, reading, watch TV, enjoy grandchildren and visit community centres but don’t go out a lot – no prospects for arts & culture
• They don’t use internet a lot
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Effect of using this model
• It shows you the results of your current policy – Artistic choices, marketing (incl. sponsoring & education),
quality of the location
– Relation with external funding conditions
• It helps you to start CRM/customer retention
• It offers insights in market potential – Market penetration & development
– Product development or diversification
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How to involve the Active Families
• Develop a campaign to increase their participation – Form teams (multinational)
– Read the case description
– Draw a plan to meet the the needs of this segment
– Describe possible chances, challenges, limitations
– Prepare a short presentation
• Schedule – Preparation : 10 minutes
– Discussion : 15 minutes
– Draw plan : 10 minutes
– Short presentation : 10 minutes
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First and next steps
• Create and validate database
• Apply segmentation method
• Create customer pyramid (RFM-analysis)
• Connect segmentation/pyramid to database
• Define customer lifetime value
• Develop SMART actions and evaluate
• Think in terms of investment not budget
• Give it some time (years/seasons)
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Questions & comments
• EMC Cultuuronderzoeken in cooperation with Rotterdam Festivals
• www.cultuuronderzoeken.nl (in Dutch)
• @willemwijgers