Published on January 9, 2009
Arts ReachNational Arts Marketing Conference : Arts ReachNational Arts Marketing Conference Fixing the Two-Legged Stool Organizational Alignment for Successful Audience Development October 29, 2007 – San Francisco Douglas W. Kinzey President Audience Strategies for the Arts, Inc. Current Relationship Beliefs : Current Relationship Beliefs Artistic Excellence is Enough Marketing is Defined Organizationally as “Promotions” Ticket Sales are the Responsibility of a Marketing Director or a Marketing Department Customer Service Equals Less Commitment – The Driving Value Proposition is “flexibility.” Current Relationship Belief Systems : Current Relationship Belief Systems LESS COMMITMENT = BETTER SERVICE DISCOUNTS = PRIMARY VALUE PROPOSITION MORE PRODUCTS = FINANCIAL STABILITY MORE PROMOTIONS = BETTER MARKETING “If we just promote more, then we will be successful!” Current Relationship Beliefs : Current Relationship Beliefs Subscriptions Are Dead Why Did Subscriptions Die? : Why Did Subscriptions Die? Decline in Arts Education Lack of Leisure Time Loss of Media Coverage Development of the VCR, DVD, Computers, Ipods, Home Entertainment Centers, Cell Phones, Internet Old Definition of Marketing : Old Definition of Marketing Promotions New Definition of Audience Development : New Definition of Audience Development Audience Development identifies, facilitates and enhances current & future patron relationships with both the organization and the art form The Question : The Question What business are we in? Old Economic Model : Old Economic Model Create Events Sell Tickets New Economic Model : New Economic Model Invest in Customers Focus is on Relationships : Focus is on Relationships Appreciation Feedback Education Service Persuasive Value Propositions Loyalty Patron (Investor) Progression : Patron (Investor) Progression © St. Paul Chamber Orchestra, Pittsburgh Symphony Orchestra, LodeStar Associates The “Annuity” Building ProcessCreating Definable, Sustainable, and Predictable Revenue : The “Annuity” Building ProcessCreating Definable, Sustainable, and Predictable Revenue © St. Paul Chamber Orchestra, Pittsburgh Symphony Orchestra, LodeStar Associates Organizational Accountabilities for Audience Development : Organizational Accountabilities for Audience Development Board Volunteers Staff Artists Audience Governance : Governance Subscribe to and attend a performance (events) series of choice (should be in By-Laws) Sell or gift two additional subscriptions, host subscription party or corporate subscription sales event Devote select Board meetings to audience development issues and Board accountabilities Serve on Marketing Committee as qualified Marketing Committee Mission : Marketing Committee Mission Isolate, Prioritize & Communicate strategic audience development issues Develop community based resources - R&D Department Provide professional expertise League/Guild AccountabilitiesBuilding Relationships : League/Guild AccountabilitiesBuilding Relationships New Subscriber Retention Events Patron Appreciation Month Volunteer Membership Subscription Series Market Segment Advisory Committees Ambassadors Program – Operation Welcome Role of Artistic Leadership : Role of Artistic Leadership Incorporate Empower Artists Role in Audience Development : Artists Role in Audience Development Patron Appreciation & Reward Programs Patron Education Messaging “Exposure” Strategies – Not Just Promotions Enhancing Series Value Propositions Creation of “Unique” Events Audience : Audience Referrals Selling Focus Groups Specific Market Segment Initiatives Volunteer Resources Marketing Committee Traditional Economic Model : Traditional Economic Model Marketing = Promotions Value Proposition = Flexibility & Discounts Organizational Structure = Producing Art and Raising Funds Inefficiencies = Start over every year Primary Strategy = Transactions New Economic ModelHousehold Investment Values : New Economic ModelHousehold Investment Values Audience Development = Investing in Customers Value Proposition = Increasing commitment Organizational Structure = Integrated – Art, Funding & Audience Primary Strategy = Acknowledging household relationships and encouraging those relationships to the next level of commitment. New Economic ModelBranding : New Economic ModelBranding Old Model Elite, inaccessible, boring, and stuffy. New Model Enabling household relationships to actively engage in a compelling, growing and personally rewarding experience. © St. Paul Chamber Orchestra, Pittsburgh Symphony Orchestra, LodeStar Associates Challenge : Challenge What is your organization’s business model? How does your organization invest in customers? Is your organization aligned to invest in customers – Board, Staff, Artists, Volunteers, Audience?