Objectives for the workshop

2. Objectives for the workshop • Focus on using data on customers in marketing: • Look at attitudes and relationships • Identify data needs and sources • Review the practical implications of permission marketing and the law • Explore key tools for effective marketing and audience development www.artsoz.com.au/FULLHOUSE.htm

3. People to People • Customers not “punters” or “bums on seats” • Pejorative terms reflect wrong attitudes to visitors, audiences and attenders • Listen to customers as people and treat them with respect • Valued staff value people as customers • Customer service staff spend all day every day talking to your customers - make sure they speak with your brand values, your tone of voice, offering your ‘brand experience • Motivate staff to deliver your ‘brand experience’ at every customer ‘touch-point’ • Make sure your organisation is the first, most important, most effective, point-of-contact for your customers www.artsoz.com.au/FULLHOUSE.htm

4. Working structures • Q: How do we structure our business to get the most out of staff and the customers they relate to? • Our people and our customers are important • Listening and dialogue is important • Our messages are important www.artsoz.com.au/FULLHOUSE.htm

5. Capture data directly • Dialogue with people is good • Face-to-face and on the telephone we have a unique opportunity for dialogue - use it • Friendly conversations help find out more and helps satisfy customers better • Websites give new opportunities to capture data - including registration, profiles and online surveys • Every customer ‘touch-point’ counts - and is part of your one-to-one marketing • Collect and record relevant information from every dialogue www.artsoz.com.au/FULLHOUSE.htm

6. Where is your customer data now? Q: What facts do you have on your customers? • Where is the data stored; in how many places; in what software? • Who has access to your customer data? • Is your data in a usable form? www.artsoz.com.au/FULLHOUSE.htm

7. Use everything we know • Forget about surveys and samples • Use all the data we have on actual attenders - the universe of customer data, not a sample • Probe further using qualitative research: talk to people - segment behaviourally, find out the benefits they look for • Avoid Don Pepper’s “faux relationship marketing”: not using what we know in communications with people • Remember, the customer knows what you know about them and expects you to use it www.artsoz.com.au/FULLHOUSE.htm

8. Get “permission” to communicate • Conform with Privacy and Spam Acts: • Ensure appropriate permissions to collect and use personal data • Make sure you get the right opt-ins • Opt-out option for mail • Opt-in for Emails and eNewsletters www.artsoz.com.au/FULLHOUSE.htm

9. ‘Permission Marketing’ • No longer “interruption marketing”: • Building an ongoing relationship of increasing depth and engagement - with loyalty • Explicit permission is needed for an ongoing dialogue, to start customer relationship management, to grow involvement. Communication with permission, according to Seth Godin is: • Anticipated • Personal • Relevant • The challenge is to encourage/persuade consumers to volunteer their attention. www.artsoz.com.au/FULLHOUSE.htm

10. Legislation • Privacy Amendment (Private Sector) Act 2000 & Spam Act 2003. • Both apply to data protection and electronic communication. Both reinforced the requirement for permission. Some may see this legislation as a hindrance, but it is really an opportunity for more tailored two-way marketing. Both make the ongoing relationship most important, with permission fundamental to that: NATIONAL PRIVACY PRINCIPLES • PRINCIPLE 1 collection • PRINCIPLE 2 use and disclosure • PRINCIPLE 3 data quality • PRINCIPLE 4 data security • PRINCIPLE 5 openness • PRINCIPLE 6 access and correction • PRINCIPLE 7 identifiers • PRINCIPLE 8 anonymity • PRINCIPLE 9 transborder data flows • PRINCIPLE 10 sensitive information www.artsoz.com.au/FULLHOUSE.htm

11. Privacy Best Practice - 1 • Conduct an audit of personal data held; where data is held; what personal data is stored, why and for how long; who has access to the data and what security is in place? • Research and record the lifecycle of personal records. Be careful not to inadvertently dispose of historical data that may be important in analysing customer behaviour or lifetime value. • Make individuals aware of what personal information is being collected and why, and to whom it may be disclosed. Make them aware of your organisation’s name and contact details, and advise them that they may request access to their personal information. • Advise the customer of the consequences if contact information is not provided (e.g. they cannot be contacted if the event is cancelled). • Where possible, obtain informed consent for all specified uses and disclosures of personal information. Consent is not required (but is recommended) where the use of personal information is related to the primary purpose of its collection. www.artsoz.com.au/FULLHOUSE.htm

12. Privacy Best Practice - 2 • Appoint a privacy officer with the knowledge and authority responsible to undertake the requirements of the role. • Ensure the name and contact details, including phone number and email address, of your privacy officer are on all communications. • Put a process in place to address personal data access requests responsively, promptly and accurately. (The Freedom of Information Act 1992 may also apply.) • Ensure that personal information you collect is accurate, complete and up-to-date, and a process is in place to ensure that requests to update or amend personal data are acted upon promptly. • Ensure personal information is stored securely and is safe from misuse or unauthorised access. • Check that ‘do not contact’ requests are acted on and a suitable process is in place to receive, update and honour such requests. • Develop a complaints procedure and determine responsibilities for privacy issues. www.artsoz.com.au/FULLHOUSE.htm

13. Privacy Best Practice - 3 • Develop and publish an accurate privacy policy and be able to provide detailed information about those practices on request. • Revise your privacy policy regularly and ensure its continued accuracy and appropriateness to the media and relationships in question. • Conduct training with current and newly appointed staff regarding their responsibilities and obligations. • Be aware of any non-employee access to personal data (e.g. by volunteers) and put appropriate procedures in place as recommended by your legal counsel. • Research all temporary uses of your customer data and prepare appropriate documentation to advise such contractors of their responsibilities and indemnity. • Do not collect sensitive information without a person’s consent. This includes information that identifies racial origin, political opinions or affiliations, religious or philosophical beliefs, professional/trade union membership, sexual preferences or criminal record. www.artsoz.com.au/FULLHOUSE.htm

14. Methods of Communicating Privacy Policy - 1 • COUNTER • Have copies of your policy on hand and display a notice that they are available. State: “Your privacy is important to us and please be assured that we address the requirements of the Privacy Act.” • MAIL • Provide a reference to where the full privacy policy is available online or the name, number or email/postal address of who may be contacted to request a copy. • PHONE • On the recorded message played while callers are waiting in a queue for an operator, offer any of the following: • a name and number or email address for requesting the policy • a prompt for hearing the full privacy message • the URL where it is available online www.artsoz.com.au/FULLHOUSE.htm

15. Methods of communicating Privacy Policy - 2 • WEBSITE • Provide a link to the policy from the footer on all pages, but draw special attention to it on any transaction page or email registration page. The link can also be included in all booking and mailing list registration email confirmations. • EMAIL • As with direct mail, indicate where your full privacy policy is online or the name, phone number or email/postal address of a contact for requesting a copy. You must also provide options for simple and effective opt-out. www.artsoz.com.au/FULLHOUSE.htm

16. eMarketing Consent • Express Consent • Implies a direct indication that it is okay to send messages of that nature and may involve one or more of the following: • Addressee subscribed • Addressee deliberately ticked a box consenting to receive messages Addressee phoned and requested such material from you • Inferred Consent • There must be a reasonable expectation that messages will be sent: • Consider the conduct of the addressee and their relationship with you. • subscribers to a service • financial members of a club • registered users of online services • products or services with ongoing warranty or service provision • subscribers to information/advisory service • members of frequent flyer or buyer clubs. www.artsoz.com.au/FULLHOUSE.htm

17. eMarketing Best Practice • Plan a schedule of communications. Be consistent with content and frequency, to deliver a reasonable expected volume of email. • Implement double opt-in or a similarly rigorous confirmation process when collecting email addresses. • Do not use pre-checked ‘yes’ boxes on permission requests – this has to be a proactive, informed choice by the subscriber. • Include your organisation’s physical/street address on all communications. The PO Box address is not sufficient. • Ensure that unsubscribes are honoured within five working days. • Ensure that all emails sent contain a working unsubscribe option which will remain active for at least 30 days from message dispatch. • Ensure that online ticket purchases are confirmed promptly. • Provide a choice to opt-in to the venue emails and/or the event producer’s emails online. • When in doubt regarding permission to send electronic communication, don’t send it. www.artsoz.com.au/FULLHOUSE.htm

18. What do you need to do to get “permission”? www.artsoz.com.au/FULLHOUSE.htm

19. Create the “beating heart of marketing” • 21st Century systems are single source solutions • Combining data on customers on all their activities • Ticketing • Marketing • Subscriptions • Memberships • Fund-raising • Donations and sponsorships • Media & Corporate contacts • Education and Outreach • Remember, the customer knows what you know about them www.artsoz.com.au/FULLHOUSE.htm

20. Understand the attenders • Research identifies the 15:35:50 Rule: • Attenders Attendances per annum • 15% buy 50% of tickets • 35% buy 35% of tickets • 50% buy 15% of tickets www.artsoz.com.au/FULLHOUSE.htm

21. Understand the opportunity 15% of current attenders 50% of attendances 35% of Current attenders 35% of attendances 50% of current attenders 15% of attendances 65% Non-attenders Typically35% unsold capacity Public Potential Available Capacity Per Annum www.artsoz.com.au/FULLHOUSE.htm

22. Frequency of Attendance - Theatre • % of all • adults • attending • theatre: • At least once • a month 2.1 • Every 2-3 • Months 4.2 • 2 or 3 times • a year 10.6 • Once • a year 9.7 • Less • often 9.1 • Totals 35.7% • of the public • % of • attendances • by people at • different • frequencies: • 29.6 • 24.7 • 31.1 • 11.3 • 3.2 • 100% of the • attendances • Tickets • bought • / visits • per • annum • 12 • 5 • 2.5 • 1 • 0.3 • % of • theatregoers • who attend • the theatre: • 5.1 • 11.8 • 29.7 • 27.1 • 25.5 • 100% • of the • attenders www.artsoz.com.au/FULLHOUSE.htm

23. Attenders - Theatre www.artsoz.com.au/FULLHOUSE.htm

24. What do you know about your audiences? www.artsoz.com.au/FULLHOUSE.htm

25. Key knowledge to extract • Life-time Value • Typical annual value of purchases x Typical life of a customer on the database • Churn • A. Add the number of customers at the start of the chosen period to • B. The number of new customers gained • C. Subtract the number of customers lost • D. Gives the continuing number of customers • Percentage Churn= B-C x 100 A • Recency, Frequency, $ www.artsoz.com.au/FULLHOUSE.htm

26. Friends • Ambassadors • Develop • Dialogue • Frequency • Track • Get to know • Test Drive • Permission • Capture • Advocates • Clients • Customers • Potentials • Prospects • Suspects The Loyalty Ladder www.artsoz.com.au/FULLHOUSE.htm

27. Your ‘steps on the loyalty ladder’ • Q: How do you plan to move people up, one rung at a time? • What tools can we use to develop and encourage loyalty: • Morning after follow through? • Social networking? • Frequent flyer? • Packaging? • Memberships and Friends schemes? www.artsoz.com.au/FULLHOUSE.htm

28. Data In, Information Out • Customer profiling the key tool • Frequency of attendance • Character of events attended • Make-up of attender groupings: • Solos • Couples • Families • Groups • Catchment area achieved • Transaction history, including price paid, when booked, what seen, etc. www.artsoz.com.au/FULLHOUSE.htm

29. Key opportunities • Data processing can make the difference • Increase frequency of attendance • Stimulate movement up the loyalty ladder • Enable effective membership and loyalty schemes • Cross-over marketing and audience development • Revenue Management • Tailored direct marketing • Time based offers and response mechanisms www.artsoz.com.au/FULLHOUSE.htm

30. New solutions make a real difference • “The beating heart of marketing” • Develop and change audience behaviour with tools such as the Audience Builder Climbing Frame • Increase income with pro-active revenue management and dynamic pricing • Start social network marketing with new tools such asOrbit from www.audienceworks.com • Focus messages, personalised and tailored to every segment or niche • Develop packages which meet needs and circumstances, such as CYO • Collaborate on compiling marketplace data using Vital Statistics www.artsoz.com.au/FULLHOUSE.htm

31. Now, analyse their frequency of attendance. -1 is less than once a year; add columns for lapsed attenders Audience Builder - Climbing Frame More from Andrew McIntyre at www.lateralthinkers.com 350 300 250 100 1000 Grade your events from A to E, A being the most difficult, E the easiest Analyse the numbers of people based on the most difficult attended www.artsoz.com.au/FULLHOUSE.htm

32. Pricing & Revenue Management Pricing information resource at www.baker-richards.com www.artsoz.com.au/FULLHOUSE.htm

33. More information from Purple Seven www.purpleseven.co.uk Vital Statistics www.artsoz.com.au/FULLHOUSE.htm

34. Seek Initiators & Create Social Networks “The Search for Shining Eyes” Knight Foundation www.knightfdn.org/music/index.asp • As society fragments: • Research by Alan Brown for the Knight Foundation identifies social networks as a key to triggering arts attendances • Find the “Initiators” who organise people to attend • Support “Initiators” - effective communication strategies • New tools to support social networking campaigns - such asOrbit • Remember women • 65% of bookings are made by women • Women are identified as the people who have to be persuaded to attend • Women then need enough information to persuade others to attend with them www.artsoz.com.au/FULLHOUSE.htm

35. The Virtuous Circle • Suspects/Prospects • becoming known to us • Capturing • Ambassadors • Focusing • Potentials • identified & • persuaded • Frequent Attenders • relationship refined • Attenders • details captured • Welcoming • Nurturing www.artsoz.com.au/FULLHOUSE.htm

36. Action Plan www.artsoz.com.au/FULLHOUSE.htm