PACC Marketing Conference Charlotte , NC June 21, 2012

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

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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.