The Role of Email Has Changed. Here Is How to Evolve Your Communication Strategy (DATA)

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Is your Nonprofit Living in the Past? Nine Outdated Ways of Thinking That Are Hurting Your Organization

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Branding

The Role of Email Has Changed. Here Is How to Evolve Your Communication Strategy (DATA)

RIP email

llustration by Sam Manchester/The New York Times

The efficacy and best practices related to email as a marketing channel have changed. Data suggest that email is less effective in reaching large quantities of people than it was even a few short years ago. But, can an organization use email to reach the right quality of people? Maybe.

I recently shared updated data from a Media Consumption and Usage Study conducted by IMPACTS that demonstrated a trending decline in the overall, weighted value of email as a marketing channel.There’s been some additional buzz about the decline of email, and worries about this changing platform seem to be lingering – especially in light of the big data I recently shared at MuseumNext. “I see that there’s a decline in email,” one attendee noted. “Email is working just fine for my organization.”

Indeed, organizations shouldn’t give up on the platform – especially if it is helping their organization achieve its goals – but it’s important to recognize the changes taking place that alter your market’s perceptions and usage of email:

IMPACTS Public sources of information 2011 - 2014

 

1) The overall efficacy of email as a communication channel for reaching mass audiences has dwindled

It used to be all about email lists – buying them, swapping them, getting people on them – and then “spamming” folks with marketing messages. It was about quantity of people more than the quality of people. Not anymore. Thanks to the increasing and massive trend toward personalization in marketing messages (due, in large part, to “touch points” made possible via social media), email is now a less effective method for engaging large quantities of people. The data indicate that mass messaging holds lesser value to audiences…and we observe people “opting-out” and unsubscribing to content that is not particularly relevant to them.

And folks can afford to opt out because – unlike the earlier days of email – there are much more personalized, real-time information channels promising greater connectivity readily available to them.

 

2) Email may now be better utilized for cultivating current audiences that already have an affinity for your organization

Email’s relative stability in terms of trust and amplification potential indicate that while it may not be wise for it to be your organization’s primary engagement or audience acquisition channel, it may still offer value by adapting its application to better serve current constituencies. Email should be approached as an “opt-in” opportunity for those who are budding brand evangelists. In other words, this communication method may be better suited for moving potential stakeholders through an engagement funnel instead of as a means to engender general awareness of programs, events, etc.

 

3) Your organization should not necessarily stop sending emails

Just because a channel’s weighted value is changing doesn’t mean that it’s wise to abandon the platform – especially if it is working for you in terms of helping to meet your financial and mission-related bottom lines. What this does mean is that your email strategy should not be stagnant – when it comes to email, a sound strategy may be to “ride the wave until it crashes.”

Obviously, people still use email; however, they are using it in different ways and expect more personalization than email typically delivered in the past. Know this. Adjust. Watch the market. If something is still working, then, hey, it’s still working! That said, (and as is true with all communication channels) sending email for email’s sake without understanding how or if it is contributing to your goals remains an unwise idea.

 

4) Start exploring other channels that will help achieve your goals

While it’s not a bad idea to keep “riding the wave [that is email] until it crashes,” it would be advisable to concurrently cultivate engagement on other platforms in preparation for the inevitable crash. Heretofore, if your organization has been relying heavily on email, then it may be a good idea to consider building communities and strategies on other platforms so that you aren’t stuck with antiquated outreach tools that the market deems obsolete. Alternative channels and platforms that capitalize on real-time, ongoing, personalized communication generally involve social media or other web-based platforms…now is the time to start developing capabilities and capacities in these arenas before it’s too late.

 

5) Understand that email has changed and will keep changing.

Email has maintained its perception in regard to trust (i.e. how trustworthy it is perceived to be as a communications channel) and amplification values (i.e. how easy it is to share the message). You can see the data broken down by reach, trust and amplification here. It makes sense that amplification has not changed as it’s just as easy to hit “forward” today as it was in 2011. As other platforms evolve, how people view and use email will evolve as well. It is not used for the same purpose as it once was thanks to new information channels. The roles of organizations’ websites have also recently changed due to the presence and capabilities of social media. Know that things are changing and the relative strengths of communication channels are certain to keep changing, too.

 

An exciting aspect of leading an organization in today’s world is the incredible access provided by web-based platforms and how digital assets (and how the market perceives and interacts with them) constantly evolve. Wise organizations realize that the world is moving and it is unwise to maintain the same strategy for communication platforms year after year without considering changes in the market.

In sum, email is not dead…but it has certainly evolved. Many organizations have not caught up. If they don’t then, well, you know what Darwin had to say on such matters…

Darwin on change

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Posted on by colleendilen in Branding, Community Engagement, Marketing, Museums, Nonprofit Marketing, Nonprofits, Public Management, Social Media, Technology, The Future, Words of Wisdom Leave a comment

Is your Nonprofit Living in the Past? Nine Outdated Ways of Thinking That Are Hurting Your Organization

Where complacent brands go

If any of these outdated beliefs still linger within your organization, then your nonprofit may be suffering both in terms of finances and mission delivery. It’s time to retire these obsolete practices once and for all:

 

1) You separate marketing and digital marketing because you think they are different

This is generally indicative of an organization that thinks “digital marketing” is more about mastering tools and platforms (e.g. Facebook) than mastering a long-term engagement strategy to strengthen your organization’s brand and mission.

Symptoms may include:

  • Digital initiatives that may appear cutting edge but don’t actually contribute to your organization’s mission or financial bottom line
  • An inability to activate online communities to behave in your organization’s interests despite having numerous fans on multiple platforms

 

Treatment: Certainly, organizations benefit from having a team that excels in online community management and maintains a thorough understanding of social media tools and digital engagement opportunities. That said, it is critical that these team members maintain constant involvement with the broader marketing and public relations leadership so that they may be empowered to integrate a strategy for ongoing engagement that yields returns rather than simply utilizing social media tools for social media’s sake.

 

2) You identify online donors and you treat them differently than offline donors

A donor is a donor. The means of conveying funds to an organization is irrelevant…it’s like treating a donor differently because they used a check for a gift instead of a credit card.  Basic courtesy and “real life” donor cultivation techniques should prevail regardless of how a person chooses to give. A donor who gives online shouldn’t be any less deserving of a personal thank you than a person who gives face-to-face, yet, somehow, the reliance on automated gift acknowledgments remains a practice for many organizations. Similarly, because a donor gives onsite may not mean that the individual does not expect the organization to recognize them when they interact on social media.

Symptoms may include:

  • A general lack of donor retention
  • An even greater lack of donor retention for those identified by the organization as “online donors”
  • Difficulty transitioning donors to the next level of giving

 

Treatment: Gather information and cultivate “online donors” just as your organization would cultivate “offline donors.” Similarly, if a “real life” donor engages with the organization online, acknowledge them and value their digital endorsement and communication. Treat donors online the same way that you would in person – just because something can be automated online doesn’t mean that it should be! Personalized touch points and cultivating the relationship are still critical practices.

 

3) You think marketing and fundraising serve independent functions

Marketing no longer serves as simply the megaphone for an organization. Today, marketing often provides critical touch points that serve to create meaning for audiences and connect them to the organization. This isn’t very different than fundraising.  A failure to recognize the importance of marketing and fundraising working in concert to achieve an organization’s goals may have negative consequences.

Symptoms may include:

  • Inability to identify new, potential donors
  • Few donors actively engaging with your organization online
  • Difficulty transitioning persons with interest in the organization into meaningful donors

 

Treatment: From an org chart perspective, marketing and fundraising departments certainly need not be one entity. However, it is critical that these departments (and the organization as a whole) recognize that the path to success in terms of donor identification, member retention, and donor cultivation lies in an intimate, real-time relationship between marketing and fundraising experts. The fundraising team (next-level meaning-makers) needs the input of the marketing team (and their real-time touch-points with audience members) to identify potential donors and aid their cultivation through an engagement funnel. In fact, social media is the new force empowering giving decisions.

 

4)   You think marketing performs a service function for the organization

If you still think that marketing plays a service role within your organization, then it’s time to catch up.  The role of this team has evolved from being the one-way voice of the organization (i.e. its mouth) to being its eyes and ears as well. More than ever before, it is the job of the marketing department to know, listen, and build relationships with your constituents. By necessity, successful marketing teams are increasingly expert about your audience.

Symptoms may include:

  • Low interest and engagement in initiatives and programs
  • Perceived irrelevance of your organization by the market
  • Difficulty getting attention from audiences
  • General lack of general success of new initiatives

 

Treatment: Consider the input of the marketing team before moving forward with initiatives instead of demanding that they “market this” (maybe not-so-great idea) after its actualization.

 

5)   Your social media managers operate in a silo 

Social media is an every-department job so access to the rest of the organization – especially experts – is critical for creating compelling content. A bad idea: Hiring an outside company to run your social media if you are an organization that builds reputation based upon being “expert” or builds affinity by telling powerful stories that are best communicated with the passion of an insider (which is basically all good stories).

Symptoms may include:

  • Several marketing-related messages on social platforms (which generally do not perform well)
  • Lack of audience engagement on digital platforms
  • Inconsistent social media posting
  • Lack of compelling stories that adequately communicate the passion of your nonprofit
  • Social media posts that demonstrate mission drift

 

Treatment: Make sure that folks working within your organization embrace the importance of sharing stories and are open to aiding social media managers in creating compelling content. Also, do your social media yourself or with a partner that has ongoing access to your entire organization. Your stories are your lifeblood.

 

6) You think the more followers, the better

This one is no surprise by now: The number of social media followers that you have is not necessarily indicative of the strength of your online community. It’s far better to have 1,000 followers with a genuine passion for engaging with your organization and sharing your message, than 100,000 fans that don’t help your organization reach its goals. In fact, having a lot of inactive followers dilutes your community and makes it appear as though you have bad content because not many people are interacting with you, despite your high fan number.

Symptoms may include:

  • An inability to activate fans to act in your organization’s interest despite high fan numbers
  • Distraction from achieving the organization’s true goals due to fixation on unimportant metrics
  • An inability to retain true fans due to superficial content that yields more “likes” than real affinity

 

Treatment: Quit focusing too heavily on fan count (and certainly do not dilute your community by buying fake fans). Pay attention to metrics that matter, and share content that inspires true evangelism. Instead of “the more followers, the better,” think “the more meaningful engagement related to our mission, the better.” If and when those ambitions cross, then that is great.

 

7)   Similarly, you think your number of website views adequately measures online success

It doesn’t. In fact, data suggest that online audiences are more likely to carry out desired behaviors (like making a donation, buying a ticket if you are a visitor-serving organization, etc.) if they are sent to social media platforms or peer review sites (TripAdvisor, etc.).

Symptoms may include:

  • Distraction from actual, meaningful metrics
  • Preoccupation with a metric that is not indicative of success
  • Directing audiences to platforms that are less likely to result in a desired behavior

 

Treatment: The role of your website has changed. Consider website views in the greater context of your overall digital engagement strategy. Understand that this number does not show the folks who are engaging with your brand or researching it on other sites.

 

8) You deny the necessity of brand transparency

This means purposefully leaving your key evangelists out of the loop in regard to big decisions and happenings – it’s always a bad idea. Thanks to the web, we live in a “show and not tell” world and potential constituents make decisions about your brand based upon what you “show.” In sum, transparency is a critical value for successful online communications

Symptoms may include:

  • Negative sentiment or reactions from audiences on social media channels
  • Audience misunderstanding of or disbelief in an organization’s goals or objectives for a given project
  • Lack of trust in organization
  • Constituents “opting-out” of involvement with the organization

 

Treatment: Question someone who tells you to purposefully hide critical information that may aid audiences in understanding your brand or internal thought-processes (whether it is an internal or external person). Times have changed. As is the case in real life, organizations are consistently finding that, indeed, honesty is the best policy.

 

9) You need an industry example before carrying out an initiative that may help you meet your goals

Web engagement best practices are constantly evolving – and so are the platforms upon which engagement often occurs. This means that – from time to time – your organization may come up with an idea for online engagement that may help your organization better reach its goals…but your idea hasn’t been tried before. Far too many organizations prefer not to invest time and resources in a new opportunity unless there is an extant case study available for analysis and consideration. Invariably, it is the laggard organizations – ever fearful of innovation – who are left behind while admiring others’ bold inventions.

Worse yet, some organizations would seemingly move forward with very bad or detrimental ideas simply because they’ve seen other organizations launch a similar initiative.  If your organization is more comfortable copying mediocrity than innovating success, then prepare to soon be irrelevant.

Symptoms may include:

  • Lack of original engagement ideas
  • Lack of superlative perceptions of your organization among audiences
  • Missed opportunities to build affinity and cultivate evangelists
  • Execution of initiatives that do not match the goals of an organization

 

Treatment: Just because an organization carried out an initiative doesn’t mean it was successful or that it is a surefire win for your organization.  View the initiatives of others with due scrutiny or admiration and act accordingly with regard to your own organization’s goals and values. Also, if your organization has an idea for a new initiative that hasn’t been done before, perform a SWOT analysis and if the strengths outweigh the weaknesses, consider giving it a shot. You just might end up being an industry leader.

 

If these old notions still permeate your organization, it’s time to change.

 

Interested in getting blog posts, tips, and some silly social media geekery periodically delivered in your Facebook newsfeed? Like my Facebook page (or ) Or for more regular sharing of nonprofit marketing information, follow me on Twitter

 

Posted on by colleendilen in Branding, Community Engagement, Management, Marketing, Museums, Nonprofit Marketing, Nonprofits, Public Management, Social Media, Technology, The Future, Words of Wisdom Leave a comment

The Relevance Test: Three Key Concepts to Future-Proof Nonprofit Organizations

Ivory tower

Ivory towers are proving fragile.

Many visitor-serving organizations benefit from “outside-in” thinking and have ceased depending solely on experiential intuition and other “inside-out” ways of thinking that have previously – and perhaps alarmingly – allowed a kind of Ivory Tower mentality to infiltrate many museums.

The dawning of the Age of the Internet has brought about many necessary changes in the way that people think and behave, and, thus, what people have come to expect from the organizations that they support. Digital, real-time tools now allow for transparency, the ability to communicate ongoing impact, and the ability to personally connect with organizations 24/7. Indeed, the market now expects – demands, really – transparent insights from organizations.

These changes shape the way that we interact and connect within our communities, create meaningful experiences, manage new demands for open authority, and inform our overall expectations of visitor-serving organizations.

While recognizing the progress that has been made, here are three new conflicting perceptions that visitor-serving organizations must internally resolve in order to remain relevant in our ever-evolving era:

 

 1. Prescription vs. Participation

What does your organization offer? Stale, outdated organizations offer a form of prescription. Today, however, if your organization believes that it is offering a form of treatment (i.e. to “teach” something, or to get people to believe something), then your organization is prescribing its experiences to folks who haven’t asked for a diagnosis. In short, if you haven’t first proven your relevance to people (let alone your unique relevance) then it’s hard to be relevant.

Offering participation and exploration encourages visitors to be active and uncover their own “truths”…for themselves. Thanks in large part to the amount of information available on the web, people expect to explore and make decisions for themselves. This is a big reason why open authority (basically, organizations finding ways to “open” their authority to the public) is increasingly important for visitor-serving organizations – and all other organizations for that matter.

This may trace back to the mission statements of visitor-serving organizations. Organizations aiming to “inspire” or “cultivate” may manifest themselves more dynamically than organizations aiming to “educate,” “demonstrate,” or “present” (exhibits, for instance). The former examples empower visitors; the latter examples remove this power. Many of our nation’s most prominent visitor-serving organizations’ mission statements are still self-oriented (and innately less relevant and impactful) rather than people or community-oriented. This may deeply affect how your organization functions…and, more critically, how your constituencies relate to your organization.

 

2. Tuition vs. Admission

Why are visitors paying to visit you? Most organizations call it “admission” – but is that how your organization internally considers the transaction?

When it comes to the overall satisfaction of a visitor’s experience, entertainment plays a leading role, and education is often used as a secondary or post-visit justification for visitation. Organizations that prioritize providing an educational experience may benefit by ensuring that it does not come at the cost of an entertaining experience.

Believing conceptually that your organization offers a form of “two-hour tuition” also demonstrates a misinformed viewpoint as to what makes a visit meaningful to your audiences. Namely, data demonstrate that who you are with and the memories folks make are more important that what they see at a visitor-serving organization. If you think that the thing that truly matters is the nuance of your unique collection of Monets, then you’re missing a bigger, data-supported benefit of what you offer your visitors: memories, experiences and opportunities for personal interaction.

 

 3. Institution vs. Community

What do you work to strengthen? Imagine how it would affect internal perceptions of your organization if you replaced every mention of the “institution” with the word “community.” Board members would sit at meetings and question, “How does this support our community?” and “What do we need to do to help our community prosper and grow?”

Because the market is the actual arbiter of your organization’s success (And, yes, I have been reminding you of that in nearly every single post), you need your followers infinitely more than they need you. Though it’s difficult to remember at times, your visitors could survive without your organization (though, yes, the world would be a little more drab and your mission more underserved)…but you cannot survive without your stakeholders. You need donors, visitors, supporters, evangelists…if you’re not cultivating them, then you aren’t serving your institution at all.

Ignore your community (both onsite locally and the potential national communities that you may serve digitally), and you risk ignoring the lifeblood of your institution. In other words: If you misunderstand or underestimate the deep connection between your institution and the socially-motivated community that you’re cultivating, then you risk rapid irrelevance.

 

Visitor-serving and other types of organizations must evolve – but this need for change extends beyond the obvious technology-enabled issues related to digital engagement. Perhaps the most important ways that organizations are evolving are more fundamental, more systemically pervasive than tactical: Ivory towers are proving fragile.  Instead of protecting and insulating an organization, they imperil and isolate its advancement.  Our opportunity comes not from on high (read: “in the tower”). It is born on the frontlines and lives at eye-level.  The organizations that thrive will connect and merge with the outside world.  “Inside-out” is yesterday.  “Outside-in” is tomorrow.  You choose where you want to be.

 

Interested in getting blog posts, tips, and some silly social media geekery periodically delivered in your Facebook newsfeed? Like my Facebook page (or ) Or for more regular sharing of nonprofit marketing information, follow me on Twitter

Posted on by colleendilen in Big ideas, Branding, Community Engagement, Education, Exhibits, Management, Marketing, Museums, Nonprofit Marketing, Nonprofits, Words of Wisdom 2 Comments

There Is No Mission Without Money: Why Cultural Organizations Need To Get Smart About Pricing Practices

museum admission line

This article concludes a four-part series intended to help visitor-serving organizations understand and respond to emerging trends that will impact their financial and mission-related goals. Learn more about the series here. 

Austerity measures and the loss of heretofore “reliable” funding mechanisms pitched many European cultural organizations into a tenuous financial state and catalyzed a conversation concerning the sustained solvency of visitor-serving enterprise worldwide. In an increasingly competitive market where volume-based strategies (such as an ever-increasing attendance) are less likely remedies to the new economic reality that emphasizes earned revenues, 2014 will mark the year when organizations will need to “get smart” about leveraging data to develop intelligent, efficient price indices. In turn, analysis of an organization’s pricing structure will likely – and necessarily – foster additional discussion concerning the creation of more effective affordable access programming.

Nonprofits are increasingly competing with for-profit organizations as private companies capitalize on shifts in market behavior toward supporting social causes. The market – and especially millennials – are also increasingly sector-agnostic, meaning that simply being a nonprofit doesn’t necessarily indicate to audiences that your organization is providing more social value than a private company.   This is one of the reasons why visitor-serving organizations that highlight their mission outperform museums that market themselves primarily as attractions. 

It’s time to pause and think about your organization’s relevance – and relevance is determined by the market and the support that your organization is able to summon. In short order, museums that cannot survive a “natural selection” and appeal to audiences will sink due to lack of support (relevance), while those that remain solvent and vital (while also pursuing their mission), will enjoy sustained success.

 

1) Here’s why your organization needs to think about revenue and pricing right now (and more than ever before):

 

A) In general, fewer people may be attending your organization because of negative substitution of traditional visitors so increasing attendance may prove challenging in the near-term.

Visitor-serving organizations’ (VSOs) “historic” visitors are leaving the market at a faster rate than new high-propensity visitors are entering the market, creating a negative substitution phenomenon that does not paint a bright future (or present, for that matter) for VSOs. In fact, for every one historic HPV that leaves the market, they are being replaced by 0.989 “new” high-propensity visitors. That may sound like a small difference, but these people add up! Keep up your hard work reaching your traditional audiences and – for no fault of your own – negative substitution factors would suggest that an organization currently serving one million annual visitors will attract 946,000 visitors five years from now (that is 54,000 fewer people, and a likely corresponding decline in membership and program participation). This troubling “glide path” also considers that you’ll be doing everything that you can do to meet your current audience’s needs, and continue to market to them like exceptional rockstars! This data suggests that the key to long-term organizational solvency is to evolve our engagement strategies to include your emerging high-propensity visitors.

The good news: If museums begin to target and cultivate new audiences now, we should start to observe a broad attendance turnaround in year 2019 as emerging audiences (such as English as Second Language households) continue to acculturate into the “mainstream” market and if millennials (who will dominate the market in terms of number and purchasing power) have been engaged by VSOs. But the attendance trend still stands: In spite of overall population growth and even if your organization does its very best and starts evolving right now (as you should in order to get things back up when the market is ripe around 2019), there’s a good chance that your attendance numbers may flatten out these next few years.

 

B) Expensive special exhibits are often financial drains when compared to the potential alternative uses of these same funds.

Despite clear data that utilizing special exhibits to cultivate visitation is an ineffective long-term strategy and has particularly costly and detrimental consequences for organizations, many VSOs (and museums, in particular), get wrapped up in this bad, bad practice when times get tight.

In my world, we refer to organizations that prioritize special exhibits over building affinity for permanent collections as committing “blockbuster suicide.” And – though I won’t throw any organizations under the bus by mentioning their names – I’ll bet that you can think of an organization or two that has “committed suicide” in this way and is now in quite a financial pickle.  These museums train even their closest constituents to wait for expensive exhibits in order to motivate a return visit. Not only is this plan ineffective and ridiculously short-sighted, but it’s also very expensive.

In an economy that increasingly relies on maximizing earned revenues from a finite audience, the margin of financial success is very small. Many organizations cannot afford expensive vanity projects that do little to improve net revenues but add significant costs to their financial model.  Alternative uses of funds that focus on improving the visitor experience frequently realize better returns than the costs to actualize a “special” exhibit.  While many organizations have become very astute at calculating per capita revenues, it may also be wise to similarly calculate the per capita operating costs attendant to serving your visitors.  We reliably observe that exhibits increase per capita operating costs at a level that exceeds any short-term increase in per capita revenues.  In other words, there is little evidence to recommend the viability of special exhibits as a sustainable revenue maximization strategy.

 

C) Visitor-serving organizations that discount to increase word of mouth and drive attendance experience the backlash of negative reputational equities.

What about social media? Can’t we use that to drive attendance? Yes, data suggest that utilizing social media to increase reputation in order to drive attendance is effective and indeed you should! However, when times get tight financially, we see many organizations resort to offering discounts via social media…and offering discounts via social media is a big mistake. This practice cultivates a “market addiction” that has long-term, negative consequences on the health of your organization.

Moreover, the more steeply you discount, the less likely visitors are to return. (Here’s the data again). People also tend to value what they pay for. Those who visit your organization at a discount are also statistically less satisfied with their experience and report more negative reviews than those who come in at full price (Hey, you devalued your brand first!). So much for crossing your fingers for better word of mouth as the result of a discount…

 

 

2) Now look at how most organizations decide how to price for admission:

Many organizations price their admissions based on what we at IMPACTS have termed “unintentional collusion.” Take a look back in time to your most recent conversation about pricing. The origin of your pricing framework probably went something like this:

IMPACTS unintentional collusion pricing

This happens because organizations misunderstand a fundamental principle of pricing.

Museums actually have different reputational equities and thus differing values that the market is willing to pay for a unique experience. If you’re a zoo that is charging the same admission as a nearby children’s museum (or vice versa), then your organization may be ignorantly “leaving money on the table” by relying on the comparative price of a neighboring or “like” organization. Each museum actually has an optimal price index (often best derived as the result of data-based price analyses) wherein the optimal price to visit an organization maximizes revenues without demeaning attendance potential. Along these same lines (and for the reasons stated above), I’d like to offer up a concept that is increasingly critical for the long-term health and vitality of many VSOs:

The amount of revenue that your organization secures is more important than the amount of attendees that walk through your door.

Many executive leaders and board members have a shockingly hard time understanding this necessary – and completely pragmatic – evolution in visitor-serving “business” practices. Many have been hardwired over time to think of success as the number of people that walk through the door. (Why do we even think this way anyway?! It’s an outdated preoccupation with a relatively meaningless nonprofit output.)

The most direct and savvy way to reap the benefits of your labors cultivating evangelists and working to increase your reputation?  Utilizing it to increase your revenue. And when attendance plateaus at the time that your brand is at its most premium, the most efficient way to do this is to adjust your admission price accordingly.

 

3) Optimized pricing will necessitate conversations about affordable access programming that serves lower-income and other underserved constituencies (in other words, programming that actually works)

If your organization has been value-advantaged (“leaving money on the table”) when it comes to your admission price, then raising the price of tickets may, indeed, increase the barrier for low-income households to attend your organization. Because affordable access is often a key part of many organizations’ missions – or even required in order to be eligible for certain grants and government funding opportunities -  getting smarter about pricing will mean getting smarter about affordable access programs as well.

Experience at IMPACTS has shown time and time again that many affordable access programs are extremely inefficient. Specifically, many affordable access programs achieve startlingly little in terms of providing targeted benefit to low-income households and, instead, allow discounted access to those who would otherwise be able and willing to pay full price. These programs are neither capturing low-income households, nor are they increasing revenues so that museums may more effectively and efficiently fulfill their missions. They are glorified discount programs that organizations offer so that they may check off a symbolic box of “affordable access.”

As visitor-serving organizations realize the need to pay attention to pricing and maximize their investments, there will be incentive to re-evaluate affordable access programs so that they actually work. Namely, that they provide an opportunity for low-income households and other targeted underserved audiences to visit the organization without concurrently discounting admission for those who would be willing to pay full price for your unique experience.

All of this is a long way of saying that nonprofit organizations are finally going to have to think about money and stop defending outdated nonprofit dogmas that tend to demonize revenue as a “necessary evil.”  Museums, zoos, aquariums, performing arts and other cultural organizations are big business – accounting for $135 billion in annual economic activity and more than 4.1 million jobs.  Instead of considering volume of visitation as a key performance indicator, we ought to instead focus on meaningful outcomes and recognize that our collective ambitions to achieve social good require revenues.  In other words, there is no mission without money. 

 

*Photo credit: Telegraph, AP (The photo choice has nothing to do with the Metropolitan Museum of Art’s pricing!)

Interested in getting blog posts, tips, and some silly social media geekery periodically delivered in your Facebook newsfeed? Like my Facebook page (or ) Or for more regular sharing of nonprofit marketing information, follow me on Twitter

Posted on by colleendilen in Arts, Big ideas, Branding, Community Engagement, Exhibits, Management, Museums, Nonprofit Marketing, Nonprofits, Public Management, Public Service Motivation, Social Change, Social Media, The Future, Words of Wisdom 2 Comments

Audiences Are Changing on Social Networks. Is Your Nonprofit Ready?

social media party

Here’s help to make sure that your social strategy can hold up to inevitable change.

This article is part of a four-part series intended to help visitor-serving organizations understand and respond to emerging trends that will impact their financial and mission-related goals. Learn more about the series here. 

While many professionals conceptually understand that audiences and behaviors on specific social media platforms shift over time, there seems to be a disproportionate concern among organizations about how to react to these types of changes. This concern may indicate a need for a broader, more integrated online strategy to best communicate your unique brand attributes to your audiences.

There seems to be a general sense of worry among organizations about Facebook’s evolving demographics in particular (younger audiences may be spending less time on Facebook in favor of other networks) and what this means for an organization’s engagement strategy. Facebook, with over 1.23 billion active monthly users as of January 2014, remains the most utilized social media platform – and, yet, somewhat shockingly, I’ve overheard leaders at multiple organizations frustratingly say things along the lines of, “This whole shift means we need to really reassess our strategy and reconsider if we should be on Facebook.”

Really?!  Did organizations think that all audience segments were only on one platform and would forever only be on one platform? Organizations should be prepared for both changes in the number of platforms that audiences use, and shifts in the ways that audiences actually use them.

Here’s how smart organizations approach these (and other inevitable) demographic shifts and social media evolution that we are sure to see in the very near future:

 

1) Make change a constant in your digital communications strategy and adjust accordingly (and accept that this approach may contrast a more traditional, slow-moving nonprofit mentality)

 

Shifts in platform usage are entirely expected, and if your organization finds itself surprised by evolving usage patterns, then that surprise – in and of itself – is cause for concern. Organizations should anticipate changes in who is using specific social media sites and how they are using them.

Social media platforms are constantly changing (which are utilized and how). This understanding is a cornerstone of an effective social strategy. The rapidity of social media evolution is the genesis of many organizational tensions, including: difficulties in measuring true key performance indicators related to social media; ever-increasing staff needs related to digital engagement; and the perils of “writing in stone” an engagement plan that becomes functionally irrelevant weeks after its publication. Digital engagement simply doesn’t work this way. To be effective, tactics must evolve to best meet audience needs while serving your organization’s broader strategies.

If your organization is paralyzed by the concept of shifting demographics and the evolving uses of specific social media networks, then it may indicate that your organization’s social media strategy is too focused on tactics and not sufficiently thoughtful of overarching marketing goals and strategies. For instance, a strategy may be to utilize content to improve your reputational equities as an expert on mission-related topics with a goal of increasing financial support. Posting a specific status on Facebook that is related to your mission (but also relevant to your audience on that platform) is a tactic. If you need to change that specific status to best serve a different audience than that which may have been on Facebook a year ago, then that specific tactic has evolved. When considered this way, can you see how extreme preoccupation (rather than acceptance) of the need to evolve tactics may be indicative of a lacking or unclear overarching strategy?

In short, updating your strategy may be difficult but updating your tactics should be expected. If it’s too hard to update your tactics, then you may have tactics standing in for your strategy…and that’s no strategy at all.

 

2) Keep tabs on where your market and supporters are/are going as social media networks evolve (and they will). Be present at those parties.


Remember: you need your community of supporters more than they need you. Act accordingly by making it easy and by providing compelling reasons for your audiences to connect and engage with you…or they won’t.

Stick with me here (because I love bad metaphors): Let’s say that your potential supporters hang out at a reoccurring, weekly party. Things are going great! You totally hit it off with the early adopters drinking a microbrew on the lawn, you spend time talking long-term goals with the preppy, high-achievers on the porch, and you also make time to bond with folks who are already your good friends in the kitchen. You’re building and maintaining relationships. This party seriously rocks!

…Until the early adopters decide to start spending time at another party…and the preppy folks from the porch attend a different party yet. You’re torn (and, because you’re a nonprofit, your resources are limited, which makes this even more frustrating).  Suddenly, your potential reach has lessend because you are no longer building relationships with key market segments who may profile as important influencers and supporters.

Because the market is the arbiter of your organization’s success, it’s generally best for you to keep on top of where your audience is and what they are doing and go to them.  As we head into the madness of March, at IMPACTS we offer a quick tip familiar to any basketball junkie: “Beat the market to the spot.”  In basketball and business alike, it’s the difference between shooting free throws and fouling out of the game.

Go with your key stakeholder or target audiences to the new parties and, once you’ve determined which parties are worth your energy (more on this to follow), then be ready to greet “old friends” as they arrive.

 

3) Understand that digital platforms are not mutually exclusive and multiple (thoughtful) presences often allow for more effective influence as platforms evolve


If your organization can only be in one place at one time, then consider expanding your resources because you may be missing or mishandling too many “touch points” to be effective. There may not be a single “magic pill” social media site that allows for the most efficient or effective influence on all of your audiences.

Let’s go back to my earlier party metaphor: Thanks to the web, it’s possible for an organization to have a presence at more than one party (or, on more than one platform). That said, we still need to make a decision: Knowing that having a presence on additional platforms takes resources, being on which platforms will be the most efficient use of our resources?  Nonprofits don’t need to be on every social media platform – especially if they cannot put proper energy into that platform. (If you go talk to those hip folks on the lawn, but you come off as a true outsider or barely make an effort to communicate, then you’ve done yourself more of a reputational disservice in being there then you would have been simply staying away.)

Decide which platforms are worth your time and energy based on where your market is most heavily influenced and you will have the most effective “touch-points.” But know that – increasingly – this is likely more than one platform (though 73% of adults focus on five social networks, sometimes certain platforms may be ripe for more targeted audiences). When demographics and uses change, respect the communities that you’ve already formed online. The quality of your fans is more important than simply pursuing reach, and be very cautious about abandoning one platform for another without careful consideration of how this will affect your current community. (Preempting the assumption: No! Many current users will not immediately follow you to another platform.)

The increasing fragmentation and micro-segmentation of audiences – such as young users spending less time on Facebook and more time on other platforms – may indicate that your organization should be prepared to be in more than one place at one time.  In turn, this may necessitate re-allocating resources to maintain connections and foster engagement with your online audiences.

In sum: Yes – millennials (or others market segments) may leave Facebook or other platforms, but, NO – it shouldn’t be something that strategic marketers necessarily need to worry about. Right now, Facebook remains a primary engagement tool for a majority of the market that is active on social media. That could (and likely at some point will) change. If your organization 1) has a solid strategy and identified goals, 2) thoughtfully continues to consider the value of each platform while making execution decisions, and 3) understands the possible need to cultivate extra resources to engage audiences on multiple platforms, and then your organization will not only easily adapt to changes without a hitch, but it will thrive.

 

*Photo credit: ed Social Media

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Posted on by colleendilen in Big ideas, Branding, Community Engagement, Generation Y, Management, Marketing, Museums, Nonprofit Marketing, Nonprofits, Public Management, Social Media, Technology, The Future, Words of Wisdom 2 Comments

Trends Report: Four Trends That Will Affect Visitor-Serving Organizations in 2014

Big Data

2014 is off to a speedy start – and it is already clear that there are some big, data-informed trends that are likely to hit organizations this year.  I will be posting weekly for four weeks (in what I’m calling a “Trends Report” series) regarding key trends that may help your organization make sense of some big data so that you can be best prepared this year. In short, I’ll help make four predictive, data-informed 2014 trends accessible and explain what they mean in a way that’s (hopefully!) easy to understand. 

But before I do that, I want to put on my “business cap” and give you a quick summary of the four trends I’ll be covering. Want the below information as a .pdf white paper? It’s right here:  IMPACTS Trends Report Summary on Know Your Own Bone.

Data and analysis indicate four trends that promise to influence market perceptions and, in turn, audience engagement strategies for visitor-serving organizations in year 2014. In an effort to share this intelligence and spawn impactful industry discussion, I will be I will be posting articles here to Know Your Own Bone offering both in-depth analysis of these key trends and their respective implications for visitor-serving enterprise.  This series of articles will debut on Wednesday, 5 February, and continue thereafter on a weekly basis as a four-part series.

Summarized below is a preview of the trends that I will explore in the upcoming Trends Report series on Know Your Own Bone:

1) The increasing importance of social mission in driving attendance

To be posted on 5 February: Data support the increasing importance of highlighting an organization’s social mission in order to maximize contributed and earned revenues alike. An analysis of financial performance for many visitor-serving organizations reveals an interesting empirical observation: Generally, organizations perceived by the market as the most credible, authoritative “social good” actors also achieved better financial performance indicators (e.g. higher earned revenues, more contributed income) than would-be peer organizations that promote themselves primarily as “attractions.” The observation of this perceptual and performance delta attests to data concerning the evolving purchase/giving motivations of the US population…and especially millennials (a “sector agnostic” and “super-connected” generation heavily influenced by social mission). 

 

2) Utilizing social media to cultivate donors and promote giving

To be posted on 12 February: In 2014, successful organizations will understand the need to look beyond “vanity metrics” (i.e. fan and follower count), and focus on the quality and strength of the varied relationships formed on social platforms.  The days of “one size fits all” social media practices are officially over. Fundraising and donor engagement initiatives will continue to evolve in the online space (in addition to in-person and other, more traditional engagement methods), and this evolution will necessitate more informed, personalized donor cultivation leveraging real-time digital platforms. Instead of viewing “online giving” as a donation conveyance channel, organizations will realize that it is an increasingly important (and expected) component of a broader donor cultivation and retention strategy, and that it – like all other fundraising communication methods – is more about the people than the platform.

 

3) Adjusting strategy for changing audiences on social platforms

To be posted on 19 February: Many professionals understand that audiences and behaviors on specific social media platforms shift over time; however, IMPACTS has identified a disproportionate concern among visitor-serving organizations about which platforms are “in” and “out” in terms of efficiently engaging their respective audiences. Specifically, there is concern about Facebook’s evolving demography and the correlative impact of this shift on organizational engagement strategies and tactics. This article will propose a framework for contemplating ongoing social media platform evolution that underscores the need for a broader, more integrated online strategy based on reputational equities and how to best communicate these brand attributes and differentiators to your audiences.

 

4) The need for more informed, data-driven pricing practices

To be posted on 26 February: Austerity measures and the loss of heretofore “reliable” funding mechanisms pitched many European cultural organizations into a tenuous financial state and catalyzed a conversation concerning the sustained solvency of visitor-serving enterprise worldwide. In an increasingly competitive market where volume-based increases are less likely remedies to the new economic reality that emphasizes earned revenues, 2014 will mark the year when organizations will need to “get smart” about leveraging data to develop intelligent, efficient price indices. In turn, analysis of an organization’s pricing structure will likely – and necessarily – foster additional discussion concerning the creation of more effective affordable access programming.

I hope that you will find the analysis of these trends and topics helpful to both you and your organization! If you want to follow along with the weekly series without fuss, please subscribe to Know Your Own Bone on the right hand column of this site to have them delivered to your email inbox.

 

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Posted on by colleendilen in Big ideas, Branding, Community Engagement, Leadership, Management, Marketing, Museums, Nonprofit Marketing, Nonprofits, Public Management, Social Media, Technology, The Future, Words of Wisdom Leave a comment

Does Your Nonprofit Believe This Myth? The Best Indicator That An Organization Is Bad At Social Media

Wheel ROI

The easiest way to spot an organization that completely misunderstands the role of social media is to look for those boasting that it’s cheap or free. It’s not. And it hasn’t been for a while now.

Social media arguably represents your single most impactful marketing channel. Believing social media is free is especially dangerous for nonprofit organizations. Carrying out an effective content strategy and monitoring online platforms takes time…a lot of it – not to mention talent, buy-in, strategy, cooperation, and integration. While social media may have initially boomed among nonprofit organizations due to the ability to set up free profiles on various platforms, that certainly doesn’t mean that maintaining an effective online presence is “cheap” – let alone free.

If you still think social media is cheap or free, then you are doing it wrong. Here’s why:

 

1) Time is money

And executing effective digital engagement strategies takes a lot of it. This point, however, is especially exacerbated for nonprofit organizations that frequently stretch employee responsibilities.  

What executives often refer to as “social media responsibilities” encompasses much more than simply “posting stuff on Facebook.” It involves the development and ongoing evolution of content strategy, constant content creation, real-time and ongoing “listening,” social care (e.g. Did you know that 42% of folks who post a question on your Facebook wall expect a response within one hour?), and keeping abreast of engagement strategies and evolving platforms in the digital media realm – which move at a breakneck pace. Cut corners on these and you may not reap the benefits of social and earned media, negating any investment in this powerful method of communication.

Think one person can do all this well while they are stretched thin with other responsibilities and expected to manage social media “on the side?”  Organizations that treat employee time and energy like bottomless renewable resources risk resource depletion, burnout, and speedy staff turnover. In terms of social media, turnover without a clearly defined social media strategy often results in inconsistent tone, sporadic postings, unclear calls to action, and alienating or inappropriate content (such as “selling” too hard or promulgating marketing messages that appear “spammy” and result in negative feedback).

 

2) Talent is money

Successful online engagement necessitates an understanding of how the market communicates and makes decisions – as well as a keen ability to align aspects of social media communications (like the Four T’s of Online Engagement) to optimize initiatives and individual posts. It takes an understanding of public relations and a knack for communicating with an open authority mindset.

What all this means is that it’s not likely that, say, Jack Smith – who suddenly has free time on his hands after serving as an A/V tech at last month’s donor event – taking over your online engagement efforts is a good idea. In fact, it’s probably a very, very bad one. Social media (and earned media and word of mouth resulting from social media efforts) are incredibly potent communication tools and they are easy to mess up…and the consequences can be colossal in terms of trust in your brand.

 

3) Hiring more people is money

Don’t have the time and talent on staff? You’ll have to hire someone. And as social care needs increase (i.e. as more and more people turn to social media for real-time conversation, information, and question-answering – a need which is already rather aggressive) you may need to hire more people.

 

4) Good content is money

Facebook’s algorithms generally aim to deliver more effective content to more people, while suppressing content that is unlikely to merit significant engagement. This means that your content needs to be engaging in order to reach the most people – or even to be delivered into your fans’ newsfeeds. Content is still king on social media, and as other organizations improve their content and initiatives, your organization will need to keep up or it will be drowned out by content that is deemed more effective.   Time required to create quality content aside (where much of this cost resides), creating this content costs money in terms of cameras and like technologies, staging, design, etc. This doesn’t mean that all videos or content must be “expensive” to produce in order to be successful – but it does mean that if you don’t have the tools to make content that will aid in engagement rates then…well, you just cannot create or maximize that strategy.

 

5) Effectively utilizing platforms is money

Social media monitoring tools often cost money – and monitoring (or “listening”) is critical for even social media mediocrity, let alone success. It’s possible to find “free” tools, but some require an investment to get to the information that may actually be helpful to your organization.

Also, social media platforms are increasingly becoming “pay-to-play” in regard to promoted or sponsored posts. If you want to stay in the “game,” it is wise to consider these options at least from time to time as they may help your organization rise above social media “noise.”

Finally, learning tools for your staff like conferences and webinars cost money. Unfortunately, this kind of development often gets cut within some organizations, but social media platforms and best practices are constantly evolving. Your organization may benefit to know what is going on so that it may adapt and most effectively utilize digital tools.

 

6) Buy-in and integration is money

Marketing is the wingman for your mission-based departments so that they may score some action with donors and constituents. In order for PR and Marketing departments to be most effective in delivering engaging messages, they need support (both content and ongoing communication) from multiple other departments within the organization. This means that – for effective organizations – there is a portion of nearly everyone’s time that is ultimately dedicated to social media initiatives. Social media requires time above and beyond “the usual suspects” within marketing and PR departments.

Within a museum, for instance, social media managers need aid from curators and collections staff in creating accurate, expert content. They need to coordinate with guest relations to uncover methods of communicating important dates and museum information. They need to be in constant communication with operations folks to answer questions about logistics and customer service – and in dialogue with education departments to answer content-related questions in real-time. Moreover, they need to work with development to make sure that members and donors are recognized and “courted” on social media platforms. In short, social media is an “every department” job and organizations that deny this are “leaving money on the table.”

 

Not only is social media NOT cheap, it is a very real investment. And it’s one that your organization would be unwise not to make. At broader, industry conferences, it always looks the same: an organization steps up to discuss their social media practices (presumably, because they think they are good at it) and start with a slide that says, “Why are we on social media?! BECAUSE IT’S FREE!”  It leaves me baffled and, indeed, wondering how they do it.

How can you execute social media strategies that bring about monetary support without spending any time on strategy (or anything else related to social media), without creating any kind of content, without any talent, with ignorance of all changing platforms, and without time or support from anyone? Increasingly, you can’t.  And if you think you can with a minor investment, then you probably aren’t seeing any of the real strategic, monetary benefits of having an online presence at all.

 

*Image photo credit goes to Rob Cottingham

Interested in getting blog posts, tips, and some silly social media geekery periodically delivered in your Facebook newsfeed? Like my Facebook page. Or for more regular sharing of nonprofit marketing information, follow me on Twitter!

Posted on by colleendilen in Big ideas, Branding, Community Engagement, Management, Marketing, Museums, Nonprofit Marketing, Nonprofits, Social Media, Words of Wisdom 3 Comments

Myth-Busting Museum and Nonprofit Best Practices. Is Your Organization Celebrating its Own Demise? (DATA)

mythbusting

It sounds dramatic, but it’s true: Many organizations still apply “best practices” for short-term wins that data suggest leave them far, far worse off in terms of achieving their long-term goals.

As I’ve recently reported, If I weren’t providing market insight and analysis for museums and nonprofits for a living, I’d want to be a host of the show “Mythbusters.” It occurs to me, however, that in my own profession, I already get to do a whole lot of myth-busting.  And I’ve written a whole bunch of myth-busting posts to boot!

Here’s a myth-busting round-up of my three, favorite situations in which executives and board members most frequently (and cheerfully) celebrate their own decline. Dramatic? I’m channeling my fit-for-TV alter ego.

 

1) The Myth of the Special Exhibition that Permanently Boosts Your Attendance

The hope that visitors to special exhibits will become your regular museum-goers is often where this myth begins (It’s just not true) – but it runs far deeper. Blockbusters are anomalies – NOT a sustainable business plan. Museums that frequently feature these kinds of exhibits find themselves engaged in “death by curation” – a vicious cycle of having to host progressively bigger and more expensive exhibits in order to maintain their level of visitation over time as visitors create connections with transient highlights rather than the museum’s permanent collections. (In my line of work, dependency upon special exhibits is also fittingly called “blockbuster suicide.”)

At best, these special exhibits support an unsustainable, short-term increase in attendance that often leaves executives patting themselves on the back. Next year, when that same executive must pay double for another special exhibit that yields only a portion of the hopeful attendance boon, the executive will usually blame the exhibit instead of considering the short-sightedness of the business strategy.

 

2) The Myth of the Social Media Discount that Helps Your Organization Achieve Its Goals

Offering discounts or giving away your admission for free is generally a bad idea – and it’s an extremely bad idea to do this on social media. Like “death by curation,” offering discounts (even once) via social media channels creates a cycle that is detrimental to your organization’s strategic goals. Specifically, it creates four, huge problems: 1. Once offered and promulgated by your organization, your community comes to expect more discounts. 2. (And perhaps most importantly) your community will wait for discounts. Once so trained by an organization to respond to discounts, the data compellingly indicate that potential visitors will actually defer a full-price visit and, instead, watch your social accounts for a chance to come for less money. 3. The steeper the discount, the less likely the visitor is to come back again. (This is symptomatic of having perceptually devalued your experience to the point that it loses all its hard-earned premium connotations.  In other words, discounts frequently succeed in doing little more than “cheapening” your reputational equities.) 4. Discounts rarely capture new audiences. Instead, they allow folks who would have otherwise paid full-price (that’s moola for your mission!) to come for less money.

 

3) The Myth of Social Media Success Metrics

There are just so many myths here. Here’s some bustin’: Your number of followers on social media channels doesn’t matter because not all social media users are of equal value to your organization.  Thus, smart organizations know better than to rely too heavily on vanity metrics because they are not key performance indicators, but, instead, diagnostic metrics. Website metrics are not immune to these myths as well. For instance, your organization may reasonably aim to get eyes on its website or feet in the door (if you’re a museum). Increasingly, organizations cannot do both.

 

There are loads of busted myths all over Know Your Own Bone – but these three are my very favorite.  I think that is because they are extremely prevalent and seem to be deeply engrained in the way that many executives view success.

Runners-up include the fact that what people see at the museum is less important than who they are with, and entertainment is more important to visitor satisfaction and long-term solvency than education. For nonprofits looking to hire social media positions, here are some counter-intuitive tips: don’t hire for Klout score and absolutely skip someone with long-term, formal schooling in social media…and scratch that “professional writing experience” requirement. Someone too focused on this may not be your best bet for an accessible tone on social media.

In fact, Know Your Own Bone may be an entire blog about data-informed nonprofit and museum myth-busting and future-proofing. Hmmm…I like that. It makes me feel a bit like a superhero defending the honor of visitor serving organizations! Now, back to the action-packed task of dominating PowerPoint slides for this week’s Meetings of Myth Devastation! (Wait…Not cool? Did I lose you? Oh well…It was fun while it lasted.)

 

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Posted on by colleendilen in Big ideas, Branding, Community Engagement, Exhibits, Management, Marketing, Museums, Nonprofit Marketing, Nonprofits, Social Media, The Future, Words of Wisdom Leave a comment

Why Your Visitors Are Not Buying Tickets Online (And Why It May Be Your Fault)

Ticket sales cartoon

“We added online ticketing to our website…so why aren’t more people buying their tickets online?”

This question seems common among certain leaders in museums and visitor-serving organizations (generally, because it’s true). Unfortunately, it also seems to have found a life as a shortsighted, defensive rationale for not investing in web-based platforms to engage visitors. Perhaps it hasn’t occurred to these leaders that the market is no dummy – simply deploying online ticketing doesn’t necessarily mean that the market will be inclined to actually use it.

Museum high propensity visitors profile as being “super-connected” with access to the web at home, work and on mobile devices. They use social media and online platforms to make visitation decisions. So why aren’t a vast majority of visitors buying tickets online to most organizations?

Because while you may think that you’re making life easier for your potential visitors by selling tickets online, many organizations actually make the act of purchasing a ticket a more expensive and/or more cumbersome process for their would-be visitors. While it’s inarguably “better” and more efficient for an organization to have the market avail itself of online ticketing, until the benefits of buying tickets online outweigh the costs (in terms of both convenience and currency) most people won’t do it. Here are four common conditions that may create needless barriers to your market purchasing a ticket online:

 

1) It is impossible (or exceedingly difficult) to purchase tickets via mobile platforms

Mobile web is among the fastest growing communication channels.  According to Pew Research, 56% of American adults have a smartphone and 29% of cell owners describe their phone as “something they can’t imagine living without.” 34% of mobile users go online mostly using their phones (as opposed to another device such as a desktop or laptop computer). On top of all this, more than 5 billion people will use mobile phones by 2017.  This is all a long way of saying that smartphones play an increasingly critical role in motivating and facilitating museum visitation decisions. If your potential visitors cannot easily purchase tickets on a mobile platform, then you’re missing a critical opportunity to act in your visitors’ interests…and you’re making it hard for them to act in yours.

 

2) Purchasing tickets online is time consuming, and perhaps more cumbersome than applying for a mortgage

I’m exaggerating…kind of.  Have you ever tried to purchase a ticket on your own website? If yours is like the ticket buying interfaces of many visitor-serving organizations, then this is an elaborate, multi-click process that requires digital maneuvering between websites and a seemingly never-ending array of repetitive requests for personal information.

I’ll quote myself from a previous post on the matter: For many organizations, selling admission is a critical component of their financial plans. We live in a world where you can buy an airline ticket from San Francisco to Tokyo on a smartphone in less than 60 seconds, but it frustratingly requires five long minutes to purchase a ticket to some museums on the same device.

Some organizations have entered into long-term agreements with ticketing providers and are apt to shrug their shoulders and excuse their bad practices by saying, “Well, there’s nothing that we can do about online ticketing. We have a contract.” As a reminder: To the market, this is a “you” problem. The market doesn’t know that you’ve signed a contract with a company that doesn’t meet your needs – only that you’re not meeting theirs. (Which is especially strange when you consider that in this situation, their interest is to act in your interest!)

 

3) It costs more to buy tickets online than at the gate

Speaking of entering into long-term agreements with ticketing providers, many of them take a cut of online ticket sales or require a fee that is, in turn, imposed upon your visitors so that they must (quite literally) pay for your organization’s decision to engage with the ticketing provider. To organizations perhaps less concerned with their customer service standards, this may sound like a problem for the visitor (“Hey, this is what happens if you want to buy tickets online”). Smart organizations, however, realize that such fees present a significant barrier to entry.

Many organizations are very deliberately priced so as to maximize revenue without “leaving money on the table.” The market is very sensitive to pricing. The market reacts differently to a price point of $19.95 than it does to $21.95 – and the fees charged by ticket providers may well exceed the threshold at which your market finds value in your admission price. Organizations that charge additional fees for online transactions may unintentionally undermine their otherwise sound, research-based pricing strategies.

 

4) Your museum has likely trained people to buy tickets at the door

Thanks to newly designed (or renovated) facilities, improved wayfinding, and efficient entry procedures, visitor-serving organizations have become quite good at enabling hassle-free onsite access…and this relative ease of access also erodes one of the potential incentives of buying a ticket online (i.e. the convenience of buying online as opposed to waiting in line).

Many visitor-serving organizations have actually trained visitors to simply show up with a reasonable expectation of buying a ticket and gaining access to facilities with a minimum amount of wait time.  Think about it: If you’ve visited a museum time and again and never encountered a significant wait or been denied access due to a sell-out, would you alter your behavior without reason?  Now, add to this learned behavior the various disincentives of higher ticket prices due to online fees and the inconvenience of trying to purchase a ticket on your smartphone, and it is no wonder that some organizations struggle to meet their online sales goals.

The good news? If your organization wants to increase online ticket sales, these conditions are subject to improvement. You absolutely can increase online ticket sales – if you are willing to consider the transaction from the perspective of your audience. The big takeaways: Executing strategic initiatives on online platforms aren’t simple IT functions, and certainly don’t operate on an “if you build it, they will come” basis. Like absolutely everything else related to your organization, if you aim to inspire action online, you must consider overall market perception, behaviors, and incentives. 

 

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Posted on by colleendilen in Branding, Community Engagement, Management, Marketing, Museums, Nonprofit Marketing, Nonprofits, Technology, Words of Wisdom 2 Comments

Five Characteristics That Differentiate Museum and Performance Arts Visitors From The General Market (INFOGRAPHIC)

Today I am breaking my “post every-other-week” rule to share with you a simple infographic that I’ve made with the data compiled in last week’s post on the attributes of high propensity visitors. This is the first image that I’ve tried to make with any kind of IMPACTS data, so let’s see what you all think… Please feel free to share, tweet, pin, and post this infographic if it is helpful to you!

Expect a fresh post as usual on Wednesday of next week and please enjoy this image and data in the meantime:

KYOB IMPACTS High Propensity Visitors Inforgraphic

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Posted on by colleendilen in Big ideas, Branding, Community Engagement, Management, Marketing, Museums, Nonprofit Marketing, Nonprofits, Public Management, Words of Wisdom 8 Comments