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Audience Retention

or the grass isn’t always greener, so love the one you’re with. Presented by. Audience Retention. Chad M. Bauman, Director of Communications Arena Stage. Oliver Wyman Study. Oliver Wyman collaborated with 9 of the most prominent US orchestras to grow their audience and reduce churn.

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Audience Retention

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  1. or the grass isn’t always greener, so love the one you’re with Presented by Audience Retention Chad M. Bauman, Director of Communications Arena Stage

  2. Oliver Wyman Study Oliver Wyman collaborated with 9 of the most prominent US orchestras to grow their audience and reduce churn • The Senior Marketing Professionals of 9 prominent US Orchestras asked Oliver Wyman to assist in understanding the barriers to and motivators of repeat visitation, identify ways to stimulate repurchase, increase frequency, and reduce churn • Oliver Wyman undertook this effort on a pro bono basis given its fit with their institutional DNA of customer-led, fact-based growth strategy

  3. Orchestras do a great job at bringing new people into the halls but have difficulty retaining them. Oliver Wyman Study Findings In 2006, orchestras reported tickets purchased by 21,218 unique households. The next year, they reported tickets purchased by 21,703 unique households. However, 55% of unique households from 2006 didn’t return, and the orchestras attracted 57% additional new unique households in 2007 to make up for the loss. A 2005 study conducted by Katy Raines of DixonRainesLtd. showed that on average, performing arts organizations in the United Kingdom lose on average 60% of their audiences each year (about 5% more than the Oliver Wyman Study results). Frequency and tenure are the two most important factors in churn. 86% of audiences who went to a single concert didn’t come back. If they went to 2-4 concerts, the churn rate reduced to 50%. 85% of audiences who have attended the orchestra for a single year didn’t come back. If they attended for two years, the churn rate reduced to 53%.

  4. Oliver Wyman Study Findings Unconverted trialists: 1st timers who attend one concert and don’t come back Special occasions: Customers who attend only one concert per year, but might attend for multiple years Non-committed: People who attend a couple of concerts per year but still churn at high rates Snackers: A subscriber who consistently attends smaller concert packages and is very loyal in attending concerts for many years High potentials: Will attend a lot of concerts and are likely to purchase a subscription but not yet long term converts Core audience: Almost all are subscribers, will attend numerous concerts every year for many years Snackers Core audience 4+ Churn: 36% Special occasions Churn: 10% Churn: 72% 2-3 Non-committed Churn: 63% Un-converted trialists High potentials 1 Churn: 35% Churn: 90% 11+ 1 2-4 5-10 Frequency

  5. Average of 4 orchestras 5y value for one average household, by cluster $6,000 $4,896 $5,000 $4,000 5Y Revenue Donations1 $2,530 $2,480 $3,000 $2,141 $2,000 $962 $1,041 $845 $566 $2,366 Ticket sales $1,000 $199 $1,517 $268 $1,100 $262 $51 $577 $305 $148 $0 Unconverted Special Non- Snackers High Core trialists occasions committed potentials audience Long Term Value Oliver Wyman Study Katy Raines Study

  6. The Entire Experience Product Core Products Information/Education Enrichment Activities Place Directions Auditorium Parking Bar/Concessions Restaurant HVAC Public Transportation/Safety Bathrooms Customer Service Ushers Box Office House Management Parking Attendants It starts when customers purchase a ticket and concludes only when they get home after a performance.

  7. First Time Attendees Welcome Kits Come Back Offers Barriers to Attendance Remember to date a little before you get married Welcome Note from Artistic Director Pre-Attendance E-mails & Information to include: Information on the Performance/Artists Complimentary Drink Coupon Goal: increase attendance by giving an offer that gets new attendees to come a second time Autographed Poster Directions Parking A/B Test Offer Messages Restaurants A/B Test Delivery Methods: Direct Mail, E-Mail, Robo-Calls Public Transportation Frequently Asked Questions

  8. Increasing Customer Loyalty Loyalty Programs CRM: Viewing the Complete Customer Subscriber Recognition Gifts Invites to Special Events

  9. Case Studies from Arena Stage Groundbreaking Announcement & Crystal City Move Say “Yes” to Customer Service The Three Slaps PURLs & Signage

  10. For more information Chad M. Bauman Director of CommunicationsArena Stagecbauman@arenastage.org Arts Marketing Blog: www.arts-marketing.blogspot.com

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