Audience Retention

Presented by

Chad M. Bauman, Director of CommunicationsArena Stage

or the grass isn’t always greener, so love the one you’re with

Oliver Wyman StudyOliver 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

Oliver Wyman Study FindingsOrchestras do a great job at bringing new people into the halls but have difficulty retaining them.

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 DixonRaines Ltd. 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%.

Churn: 63%

Churn: 36%

Churn: 35%Churn: 90%

Churn: 72%

Un-converted trialists

Special occasions

Non-committed

Snackers

High potentials

Churn: 10%

Core audience

1

2-3

4+

1 2-4 5-10 11+

Frequency

Unconverted trialists: 1st timers who attend one concert and don’t come backSpecial occasions: Customers who attend only one concert per year, but might attend for multiple yearsNon-committed: People who attend a couple of concerts per year but still churn at high ratesSnackers: A subscriber who consistently attends smaller concert packages and is very loyal in attending concerts for many yearsHigh 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

Oliver Wyman Study Findings

Long Term ValueOliver Wyman Study

Donations1

Ticket sales

Average of 4 orchestras

5YRevenue

5y value for one average household, by cluster

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$148$51$199

Unconvertedtrialists

$305 $577$262 $268$845$566

Specialoccasions

Non-committed

$1,100 $1,517$1,041 $962

$2,480$2,141

Snackers Highpotentials

$2,366

$2,530

$4,896

Coreaudience

Katy Raines Study

The Entire ExperienceProduct

Core ProductsEnrichment Activities

Place

AuditoriumParkingRestaurantBathrooms

Customer Service

Box OfficeHouse Management

Public Transportation/Safety

DirectionsBar/Concessions

Information/Education

UshersParking Attendants

HVAC

It starts when customers purchase a ticket and concludes only when they get home after a performance.

First Time Attendees

Welcome Kits Come Back Offers Barriers to Attendance

Welcome Note from Artistic Director

Complimentary Drink Coupon

Autographed Poster

Remember to date a little before you get married

Goal: increase attendance by giving an offer that gets new attendees to come a second time

A/B Test Offer Messages

A/B Test Delivery Methods: Direct Mail, E-Mail, Robo-Calls

Pre-Attendance E-mails & Information to include:

Information on the Performance/Artists

Directions

Parking

Restaurants

Public Transportation

Frequently Asked Questions

Increasing Customer Loyalty

CRM: Viewing the Complete Customer

Loyalty Programs

Subscriber Recognition Gifts

Invites to Special Events

Case Studies from Arena Stage

Groundbreaking Announcement & Crystal City Move

The Three Slaps Say “Yes” to Customer Service

PURLs & Signage

For more information

Chad M. BaumanDirector of CommunicationsArena Stagecbauman@arenastage.org

Arts Marketing Blog: www.arts-marketing.blogspot.com