Special Exhibits vs. Permanent Collections (DATA)

Special exhibits don’t do what many cultural organizations think that they do. If fact, they often do the opposite. Read more

Eight Realities To Help You Become A Data-Informed Cultural Organization

Is your organization integrating market research into strategic decision-making processes yet? Here are eight important things to keep in Read more

A Quarter of Likely Visitors to Cultural Organizations Are In One Age Bracket (DATA)

Nearly 25% of potential attendees to visitor-serving organizations fall into one, ten-year age bracket. Which generation has the greatest Read more

People Trust Museums More Than Newspapers. Here Is Why That Matters Right Now (DATA)

Actually, it always matters. But data lend particular insight into an important role that audiences want museums to play Read more

The Top Seven Macro Trends Impacting Cultural Organizations

These seven macro trends are driving the market for visitor-serving organizations. Big data helps spot market trends. The data that Read more

The Three Most Overlooked Marketing Realities For Cultural Organizations

These three marketing realities for cultural organizations may be the most urgent – and also the most overlooked. This Read more

Community Engagement

Personalizing the Onsite Experience Increases Satisfaction in Visitor-Serving Organizations (DATA)

volunteer harvard museums Data suggest that personal interactions between staff and visitors significantly increase overall satisfaction, improve value perceptions, and contribute to a more meaningful overall experience. Here’s how.  As many of my regular readers already know, I’m captivated by the relationship between “physical touch” (old fashion, face-to-face communication) and “digital touch” (digital communication) in visitor-serving organizations – and how these forces work together to make these organizations more relevant and financially stable.  The data regarding how these forces work together is rather compelling…and I’ve even spoken about it before. Digital touch increases reputation and aids in driving attendance – but physical touch provides the “there-there” in a way that technology has yet to supplant. We monitor both reputation and visitor satisfaction for numerous visitor-serving enterprise at IMPACTS, and we’ve found one type of “physical touch” to be extremely potent in increasing visitor satisfaction: When attendees have a personal facilitated experience (or, as we affectionately call them, a PFE) remarkable things reliably occur.

What is a personal facilitated experience?

A PFE is a one-to-one or one-to few interaction that occurs between an onsite representative of the organization and a visitor. This representative could be a docent, volunteer, or any other organization-associated individual who has a direct interaction with an individual visitor, family or couple. A traditional museum cart experience provides a PFE. A volunteer showing you your seat at the theater provides a PFE. An entryway greeter provides a PFE. So does a stationed volunteer, a wayfinder, or even a particularly attentive clerk at a museum store. Shows, talks, or tours – while certainly providing value to one’s overall experience – do not constitute a PFE, as the market considers PFEs powerful due to the personalized attention and one-on-one nature of the interaction. While we’ve found that these other types of encounters provide an efficient density of interaction, they do not always provide the kind of personalized experience often prerequisite for a steep increase in overall satisfaction.

PFEs increase metrics that are critical to overall experience

Take a look at the data below from a representative organization with which we partner at IMPACTS. The column on the left quantifies visitor perceptions of an organization based on specific evaluation metrics (e.g. admission value, education experience, entertainment experience, and employee courtesy), while the right side indicates the same values for visitors reporting at least one personal touch-point. Visitors who had similar experiences onsite – with the exception of a PFE – report very different perceptual outcomes. 

PFEs generally increase the perceived value of admission.

In other words, those who have a PFE believe that they got a better bang for their buck after paying admission to visit an organization.

 IMPACTS Admission PFE

PFEs also increase perceptions of entertainment experience, educational experience, and employee courtesy.

However, these metrics don’t all contribute to overall satisfaction equally. Here’s  the data on the breakdown.

 IMPACTS Entertainment PFE

Educational

IMAPCTS employee courtesy PFE

 

PFEs can be utilized to increase visitor satisfaction by daypart

If your organization is in the midst of a construction project or simply gets crowded during certain peak times of day, an organization may deploy PFEs as a mitigation strategy to minimize the impact of crowding perceptions on overall satisfaction.

 IMPACTS satisfaction by daypart PFE

Digital and “physical” touch work together to secure the financial futures of visitor serving organizations and keep folks coming in the door so that organizations may march steadily toward accomplishing their missions. I write about the increasingly critical importance of personalization on digital media for visitor-serving organizations, but we must remember that people online and people offline are still people – in fact, we want them to be the same person! Personalization – a trend that is getting a lot of buzz in the online space – is just as important onsite. Facebook and other social media sites are getting smarter about personalization –  ads are more intelligent, and millennials expect personalized experiences. Gone are the days of one-size-fits-all communications and “touch” points… online and offline.   Want to hear more about the data-supported relationship between digital and physical touch as they relate to satisfaction in visitor-serving organizations? Check out my WestMusings: Ten Minute Museum Talk or join me at MuseumNext in the UK where I’m thrilled to dive deeper in a keynote in June.  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 *Photo credit: Harvard Museums of Science and Culture

Posted on by Colleen Dilenschneider in Community Engagement, IMPACTS Data, Nonprofit Marketing, Sector Evolution, Trends 5 Comments

Finding: Museums That Highlight Mission Financially Outperform Museums That Market Primarily as Attractions (DATA)

seafood watch

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

Data suggest a “new” draw to your organization that is now key to engaging both visitation and donor support. Well, actually, it’s not “new” – it’s the reason why your organization exists: Your mission. How credibly the market perceives your organization in terms of your ability to effectively deliver on your mission has a very strong positive correlation with your organization’s financial performance.

An analysis of the recent financial performance of a large and representative number of visitor-serving organizations coupled with the public perceptions of these same organizations reveals an outcome that may not be surprising for those who keep tabs on consumer behaviors: Organizations perceived as “best-in-class” in terms of mission delivery reliably outperform organizations that rely more on their reputations as “attractions” when it comes to their financial bottom lines.  In other words, mission and business are not in conflict – being superlative at your mission is good business!

There are three overall findings relating to the “mission is good business” trend:

1) Organizations perceived as more credible actors in terms of fulfilling their mission financially outperform peer organizations whose reputational equities relate primarily to their roles as attractions

IMPACTS collects and analyzes attitudinal and awareness data for 224 visitor-serving organizations in the US (and that may even include your own). This data and analysis informs the development of key performance indicators that reveal trends and correlations affecting visitor-serving enterprise.  The charts below indicate the relationship between 35 visitor-serving organizations’ financial performance in terms of “revenue efficiency” coupled with the market’s perception of these same organizations’ “reputational equities.”  (In the interest of maintaining appropriate confidences, I’ve “anonymized” the findings)

First, a few quick definitions (with advance apologies for the analytical jargon):

Revenue Efficiency: A composite metric contemplative of onsite-related earned and contributed revenues (e.g. admission, contributions, grants, membership, programs) contemplated relative to the cost to deliver onsite services (i.e. operating expenses) and the number of persons served onsite.  Generally, a more “revenue efficient” organization exhibits more favorable financial key performance indicators (e.g. greater revenues, greater net operating surplus) and reduced financial volatility than does a less revenue efficient organization.  Data informing the IMPACTS revenue efficiency calculation are commonly available in an organization’s financial statements, annual reports, and Form 990 filings.

Reputational Equities: A composite metric contemplative of numerous visitor perceptions such as reputation, trust, authority, credibility, and satisfaction that collectively indicate the market’s opinion of an organization’s relative efficacy in delivering its mission.  As mentioned previously, IMPACTS collects perceptual data from 224 visitor-serving organizations in the US to inform its reputational equities calculation.

KYOB aquariums reputation and revenue

Aquariums are a good place to start because (a) in addition to tackling the mission of inspiring audiences, they are also increasingly engaging audiences on broader conservation issues; and (b) aquariums tend to be more reliant on earned revenues than their museum and zoo brethren who may have greater public funding and/or endowment support. In short, absent the safety net of large endowments and government appropriations, aquariums are among the most market-driven businesses in the nonprofit sector, and translating positive reputational equities has an enormous financial benefit for these organizations (and, in inverse, lessened reputational perceptions bear tremendous risk to an organization’s bottom line).

Generally, revenue efficiency follows reputational equities (so working to increase reputational equities tends to positively affect revenue efficiency). Thus, we can reasonably surmise that year 2014 may bring continued challenges for Aquariums H, I, K and L should they choose not to prioritize remedy for their lacking perceptions as credible actors when it comes to delivering on their missions.

KYOB zoos reputation and revenues

Much like aquariums, the zoos that are perceived as credible actors in regard to their mission achieve the greatest revenue efficiency. Again, in the example indicated by the assessed zoos, the relationship between reputational equities as a predictor of financial success is clear and compelling.

KYOB museums reputation and revenues

Again, when segmented by museums (in the above example, all of the assessed organizations would be rightfully classified as either “art” or “natural history” museums), the trend holds true: Those museums perceived by the market as the most esteemed in terms of fulfilling the promise of their missions achieve the greatest financial performance.

You’ll notice that out of the 35 organizations represented in this assessment, Museum H is the only organization that does not indicate the relationship between reputational equities and financial performance – and, even in this exception to the trend, the difference is very slight.

 

2) Your organization must increasingly be MORE THAN an attraction but it still must be an entertaining destination.

The reputational equity metric is contemplative of overall satisfaction and data indicate that providing an entertaining experience is an extremely important component of visitor satisfaction. To be clear: The data do not support abandoning efforts to deliver an entertaining experience in the hopes of enhancing your organization’s reputation as a credible, mission-related authority. Instead, data support efforts to underscore your social mission and demonstrate topic expertise alongside location-based content to help drive visitation and provide insight into the entertaining and inspiring experiences that you provide.

Simply put, people want to visit organizations that are more than just attractions.

 

3) The importance of underscoring reputational equities is likely to grow as millennials increasingly comprise a greater percentage of museum audiences

The analysis indicating the relationship between favorable reputational equities and financial performance for visitor-serving organizations aligns with multiple findings concerning the influence of social missions (in business-speak, think “corporate social responsibility”) on consumer purchasing behaviors. Namely, people – and especially millennials – are more likely to purchase products that support a mission.

The data has long suggested that millennials are particularly public-service motivated, and as Gen Y has become a more powerful market segment (indeed, millennials are the largest generation in human history), organizations have experienced a “market shift” in support of organizations that support “social good.”

That sounds great for educational, conservation, and cultural organizations such as museums, aquariums, and zoos, right? Well…maybe not…especially because millennials are generally sector agnostic. Millennials tend to support organizations and businesses that appeal to them regardless of whether or not there is 501(c)3 designation involved. (In other words, while the IRS may care about your tax-exempt status, the market increasingly does not!) This means that in terms of securing support, many nonprofits are “competing” directly with for-profits for the market’s time, attention, and resources.

Organizations that have marketed themselves too heavily as attractions without underscoring their mission and social impact have lost a valuable opportunity to differentiate themselves as superlative to a critical demographic. Potentially worse yet, they may have built their reputations based on motivations that millennials don’t care about. Case-in-point: Take a look at what millennials want out of a zoo, aquarium, or museum membership compared to older generations.

Organizations that the market favorably perceives as more than “just an attraction” tend to financially outperform organizations perceived primarily as attractions.  Money follows reputational equities. Zoos, aquariums, and museums that have been trying to “sell” the wrong brand attributes may find themselves struggling even more in the future as emerging audiences emphasize mission and social impact as vital attributes of the relationship that they seek with the organizations that they support.  Year 2013 was only the tip of the iceberg. Perceptions are changing and the data affirms a strong, encouraging trend:

Finally, it’s cool to be kind.  More than that, it’s plain good business.

National Aquarium cleaning debris

National Aquarium

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Posted on by Colleen Dilenschneider in Community Engagement, Financial Solvency, Fundraising, IMPACTS Data, Myth Busting, Nonprofit Marketing, Sector Evolution, Trends 1 Comment

New Data Reveals How Your Organization Can Improve Its Online Advertising

Marketoonist rather be earned media

Data suggest that landing your online audiences on peer review and social media content rather than the e-commerce (e.g. ticket sales) portion of your website is now one of the most effective ways to maximize online conversions.

Because how the market uses websites has changed with the widespread use of social media and other word-of-mouth inspired outlets, the way to optimally utilize websites to inspire desired behaviors has changed as well. Namely, the frequent and oft-cited “rule” that the best online ads lead only to direct conversion sites (or your own website for that matter) is now… well, irrelevant.

In the not-too-distant past, the prevailing wisdom was to “land” your online customer on the web page where they could transact business with you with the least number of clicks (i.e. land them on the “buy tickets” page).  Today, the data suggest that a more informed customer – one who has availed him/herself of the information and reviews of third-parties such as those found on many social and peer review platforms – are more likely to complete a transaction than a customer whose primary online experience with your organization was an ad.

Consider the chart below – chosen as it is generally representative of customer behaviors for many visitor-serving organizations (e.g. museums, aquariums, zoos, performing arts centers, etc.) with online ticketing capabilities –  quantifying the “abandon rate” (i.e. the percentage of persons who initiated but did not complete an online behavior) segmented by the representative organization’s landing page (i.e. the web page where the customer was routed after clicking on an ad): 

IMPACTS ad abandon rates data

 

Immediately, you notice that the abandon rate for customers who land on a “buy tickets now” type landing page is 19.6% higher than the abandon rate for customers who are first routed to a web page featuring third-party reviews.  Similarly, the abandon rate is 15.8% higher for a customer landing on a “buy now” page when compared to customers first routed to a social media channel.  In fact, the data indicate that in terms of actually translating a click to a conversion, that the absolute worst thing that an organization can do is route its online advertising to a “buy now” type of landing environment.

In today’s world of heightened connectivity and increased empowerment of potential customers to make informed decisions based upon perceptions of reputation and brand transparency, your customers expect access to product information, reviews from trusted resources, and reliable customer support.  (Is it any wonder that the most admired and successful visitor-serving organizations – and, for that matter, the most rapidly growing brands from most any sector –  invariably have the most robust reviews and social care/social CRM functionalities?)

For those who do not have many dealings in abandon rates and may be shocked that abandon rates may be high at all, here’s some background: Abandon rates for all types of e-commerce hover around 74% – in other words, on average, three out of four persons who click on an item to buy online don’t actually end up completing the transaction.  Consider more broadly: It’s often only after proceeding to the “checkout” page that a customer can learn the shipping costs, the delivery timeframes, or even if their preferred method of payment is accepted  In the case of many visitor-serving organizations, compound these factors with cumbersome website navigation and outdated e-commerce functions, and it’s no wonder that abandon rates for some organizations approach 90%.  The point is: Overcoming abandonment issues is a very real part of an organization’s online strategy, and any finding that moves the needle even slightly on this front has potentially huge implications in terms of visitor engagement and earned revenues.

At IMPACTS, we leverage “big data” and sophisticated technologies to deliver highly-customized, micro-targeting online advertising…and we have a LOT of intelligence on what works and what doesn’t. (For my regular readers thinking, “But Colleen, I thought you worked in active, digital engagement?” I do. I specialize in the Coefficient of Imitation realm of brand perception (reviews from trusted sources) while IMPACTS, more broadly, takes on the Coefficient of Innovation (paid media)). These two functions (paid advertising and earned media) serve as a relay team handing the baton (i.e. the customer) from one runner to the next – the advertising function can be a “conversation starter” that attracts the attention and interest of a wide audience; the social media and other digital communication tools are the functions that manage the relationship with the customer across the finish line (i.e. the conversion). This may be a helpful way for organizations to think about the often necessary interactions between word-of-mouth and paid media-related methods of cultivating desired affinities and behaviors.

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 Colleen Dilenschneider in Community Engagement, Digital Connectivity, IMPACTS Data, Nonprofit Marketing, Trends Comments Off on New Data Reveals How Your Organization Can Improve Its Online Advertising

What Museums Can Learn From Online Dating (Hint: Touch Really Matters) (VIDEO)

*Accessing this post via email and having problems viewing the video? You can watch it here

Is social media hurting the onsite visitor experience? Data suggest that in today’s world, museums need to be masters of both offsite communication (social/earned media) and onsite, face-to-face communication in order to be successful. Increasingly, a museum’s business strategy cannot thrive without one or the other.

Here’s a handy (pun intended) concept that I recently presented for thinking about the relationship that “digital touch” and “physical touch” play in driving museum visitation and maximizing visitor satisfaction.

Westmusings

I was honored to have had the opportunity to take part in the Western Museum Association’s first-ever WestMusings: Ten Minute Museum Talks in October in Salt Lake City.  What Museums Can Learn From Online Dating briefly traces a museum visitor from the visitation decision-making process through a museum visit and demonstrates how “digital touch” and “physical touch” work together to “seal the deal” of getting folks in the door to experience sparks of informal learning.

Here are those slides about reputation up close (what motivates the visitation decision and the diffusion of messaging).

While I spoke about museums in connection to online dating, I had the opportunity to take part in the WestMusings initiative with three, fabulous museos who imparted their own wisdom regarding museums and their connection to similarly creative topics: Scott Stulen of the Walker Art Center spoke about cat videos, James Pepper Henry of the Heard Museum spoke about culture clashes, and Carrie Snow of the Church History Museum spoke about roller derby (in full roller derby attire, no less)! Intrigued? Check out their WestMusings here.

 

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 Colleen Dilenschneider in Community Engagement, Digital Connectivity, Financial Solvency, IMPACTS Data, Myth Busting, Nonprofit Marketing, Sector Evolution, Trends 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 Colleen Dilenschneider in Community Engagement, IMPACTS Data, Nonprofit Marketing 8 Comments

High Propensity Visitors: The True Attributes of People Attending Museums and Cultural Centers (DATA)

High Propensity Visitors IMPACTS

High propensity visitors (HPVs) are the lifeblood of a visitor-serving organization – they keep the doors open for zoos, aquariums, museums, theaters, symphonies, botanical gardens, etc. – and, accordingly, I talk about them frequently both on Know Your Own Bone and during speaking engagements. But what are some of the attributes that indicate a likelihood of visiting these organizations? Data indicates several prominent attributes of high propensity visitors…and I am thrilled to dig a bit deeper in sharing some qualities of the HPV.  

What is a high propensity visitor and why are they important?

A high propensity visitor is a person who demonstrates the demographic, psychographic, and behavioral attributes that tend indicate an increased likelihood of visiting a visitor-serving organization. Research both identifies and “weighs” the respective value of these (demographic, psychographic, and behavioral) markers to quantify these attributes that best suggest a propensity to visit. In a nutshell, these are the people with whom your organization’s “bread is buttered.” These folks are absolutely the most critical audience for both immediate and long-term solvency for your visitor-serving organization.

Think data is only good for telling us “Information 101” like gender, ethnicity, household income, and education level? Or that when I describe an HPV, I am imagining some makeup of these largely demographic statistics (i.e. “An HPV is a white woman between 35-54 with an annual household income greater than $65,000?”) Think again. While certain organizations may have a “prototype visitor” that is this cut-and-dry, this type of segmentation is far, far too oversimplified to truly convey meaningful information about your HPVs. In actuality, this demographic information teams up with psychographic and behavioral information to paint a more accurate, complete portrait of the characteristics that indicate your likely visitors.

While acknowledging that there are multiple indicators of an HPV and that, at times, the specific make up of an HPV differs from entity to entity, the following five attributes are generally reliable across the board:

1. High propensity visitors are super connected

super connected 3HPVs have broadband access at home, work, and on at least one mobile device. In fact, these folks acquire information regarding leisure activities almost exclusively via web, social media, and peer review (i.e. Yelp, TripAdvisor) platforms – further underscoring the importance of investing in web-based communications for visitor-serving organizations. HPVs are approximately 2.5x more likely to be “super-connected” than the U.S. composite market.

2. High propensity visitors are pet owners

pet ownerThe people visiting your organization have a higher likelihood than the general population of being a pet owner.  They are also 12x more likely than the general population to own a horse for leisure/hobby (amateur) use. Put another way, not all HPVs own a horse…but those who own horses have a particularly high likelihood of being the kind of person who visits zoos, aquariums, museums, and music and theater performances. HPVs are approximately 2x more likely to be pet owners than the U.S. composite market.

 

3. High propensity visitors are foodies

foodieWe know that the perception of a critical mass of opportunity (such as access to unique shopping, urban waterfront, etc.) plays a role in motivating leisure activities – but for HPVs, access to good food also plays an important role. HPVs are leisure-travel motivated for fine dining and wine experiences. They also have daily food and beverage spending of $72.43 a day per capita. HPVs are approximately 2.5x more likely to be “foodies” than the U.S. composite market.

 

4. High propensity visitors are foreign travelers for leisure purposes

foreign travelThis is a big one. Folks who invest in foreign travel for leisure purposes have a very high likelihood of also being the same people who visit cultural centers. This is perhaps a very important consideration when endeavoring to understand the extreme competition for HPVs – for many museums, you are not merely competing with baseball games and movies for your audience.  HPVs are literally considering the world as it contemplates its leisure investments. The most popular destinations for HPVs include Europe and British Columbia (often, for skiing). Their average length of stay during foreign travel is six nights.  HPVs are approximately 6x more likely to be foreign travelers for leisure than the U.S. composite market. 

 

5. High propensity visitors are low intensity outdoor activists

HikingPeople who hike, ski, or golf  are also more likely to profile as the type of person to attend a visitor-serving organization or cultural performance. HPVs are approximately 3x more likely to be low intensity outdoor activists than the U.S. composite market.

 

Understanding these items helps organizations engage audiences

When we look at data and consider market trends, we pay special attention to the evolving behaviors, attitudes, and demographics of high propensity visitors. This information can help us market to folks with the greatest likelihood of visiting cultural centers, and also create programs and experiences that are most satisfying to these individuals. These are the people who reliably keep our doors open with their attendance, and also have tremendous opportunity to deepen their engagement with our organizations as members and donors.

Thinking of your visitors in terms beyond their demographics lends invaluable insight to our understanding of our audiences.  HPVs are the leading empirical indicator of the audiences that we are serving, and the people with whom we are best engaging.

 

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Photo credits: JapanPulse

Posted on by Colleen Dilenschneider in Community Engagement, IMPACTS Data, Nonprofit Marketing Comments Off on High Propensity Visitors: The True Attributes of People Attending Museums and Cultural Centers (DATA)

Leisure Activity Motivation: How People Decide to Attend Your Museum or Visitor Serving Organization (DATA)

MET museum

When it comes to motivating attendance, data suggest that offerings outside of your visitor-serving organization’s walls often play a greater role than what is inside.

Wondering why you’re not getting more people through the door of your museum or performing arts event? It could be due to many factors – both internal and external. Often, visitor-serving organizations (VSOs) get wrapped up in their own content and confuse the role that these offerings play in motivating visitation. Namely, they think that their own content or visitor experience plays the primary motivational role. However, data indicate that an organization’s own, internal offerings generally matter less to visitors than does the market’s perceptions of the surrounding macro-environment when it comes to motivating leisure visitation.

The chart below (featuring data collected by IMPACTS) illustrates findings related to leisure activity motivation. In other words, it demonstrates the primary motivators that determine how the market decides what to do with its leisure time. (The x-axis demonstrates the percent of respondents identifying that aspect/activity as a primary motivator. Respondents with multiple primary motivators are also represented.)

IMPACTS leisure activity motivation

This data features several, key takeaways for visitor-serving organizations:

 

1) “Critical mass” plays an important role in motivating leisure activity

“Yeah, yeah – VSOs in bigger cities have more people around and thus usually get more people to come through the door,” you’re probably thinking…but there’s more at play here than one might initially think. Major metro markets contain a density of attributes and experiences such as the ones indicated on this list. However, data suggest that in terms of motivating leisure activities, some markets have stronger, “standalone” motivators than others and merely being a major metro market can be a less enticing draw than possessing a mix of other attributes. A certain way to ensure that your organization is being considered as a viable destination is to be surrounded by a core, critical mass of other leisure opportunities. Consider the Monterey Bay Aquarium (to mention a frequent example for me): Monterey itself is not a major metro market, but the aquarium’s proximity to the waterfront, unique dining, golfing, and other specific opportunities create a density of experience that makes the location a viable leisure destination. In other words, the combination of these attributes – coupled with the appeal of the aquarium – are enough to motivate people to travel 2.5 hours from a major metro market (San Francisco) to visit the aquarium.

 

2) More than ninety percent of people need external motivators in order to attend your museum or performing arts event

Visitor-serving organizations may overestimate the motivational qualities or singularity of their own offerings in driving activity motivation. The modest influence that visiting a museum (9.9%), a zoo, aquarium, or science center (8.9%), or a performing arts event (4.2%) has on the leisure decision-making process is relatively low when compared to the influence of other visitor experiences or destination attributes. This means that more than 90% of people need additional, external motivators to enter your marketplace. A museum could put a visit to a destination over the top, but it’s generally not a primary motivator. This makes sense when contemplating the opportunity trade-offs attendant to leisure decisions: Visiting Aunt Janet sounds great – but if you could visit a major metro with unique shopping near the water – and visit a museum – you might make a different decision (and maybe even bring Aunt Janet)!

 

3) Who people are with still often beats what they are doing

The highest primary motivator of leisure activity is visiting friends or family (70.4%). This mirrors other data supporting the finding that who visitors are with often means more than what visitors see when they go to a museum or other type of visitor-serving organization. This is worth extra attention, as the greatest motivator according to the market is not tied specifically to a physical aspect or feature of a destination, but rather the draw of being with loved ones.

 

4) What is good for your city in terms of increasing critical mass is also good for your organization

This is the essence of the “rising tide lifts all ships” theory of visitor engagement. Organizations that see other activities or experiences as competition for their potential audience’s time may be missing the mark. It may go without saying, but communicating the availability of unique shopping and dining, celebrating historic assets within your community, and highlighting hiking, swimming, golfing, or other activities that take place outside your walls also helps you better engage your own visitors.

Occasionally, museums and other visitor-serving organizations want to “silo” their organization as a more influential, standalone experience – a perspective that may be incongruent with the way that the market contemplates its leisure investments. Organizations should be careful to not forget that before a visitor can engage with your content they must first choose to visit your destination. Your visitors’ experience is often connected to the other experiences around you that make up their day. Promoting the robustness and vitality of neighboring organizations and the macro community is increasingly a wise strategy to maximize visitor engagement.

 

Quick note: I am pleased to be bouncing into Salt Lake City on October 12th to deliver a WestMusing: 10 Minute Museum Talk at the Western Museums Association Annual Meeting closing ceremony before hopping on the plane back to London! I’m thrilled to be delivering the talk alongside four great brains. If you’ll be there, come say hi or connect via one of my social channels!

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

 

*Top photo credit to nypress.com

Posted on by Colleen Dilenschneider in Community Engagement, Financial Solvency, IMPACTS Data, Myth Busting, Nonprofit Marketing 1 Comment

Entertainment vs Education: How Your Audience Really Rates The Museum Experience (DATA)

museum experience flickr

When considering the overall satisfaction of visitor-serving organization (VSO) attendees, data indicate that not all aspects of the experience are created equally. In fact, the individual components that collectively comprise a visitor’s onsite experience may run counter to many VSO’s differentiation and engagement strategies. In terms of maximizing visitor satisfaction, VSOs may not truly understand “where their bread is buttered,” and this misunderstanding may result in serious financial repercussions.

IMPACTS gathers data to inform the development of key performance indicators concerning 224 visitor-serving organizations (zoos, aquariums, museums, theaters, symphonies, etc.). One of the key performance indicators that we regularly quantify for specific organizations is “overall satisfaction.”  Overall satisfaction is a composite metric (i.e. a metric informed by a multiplicity of data inputs yielding a single output) that contemplates 10 source evaluation criteria (e.g. employee courtesy, admission value, retail, etc.)

In developing the overall satisfaction metric, IMPACTS doesn’t weight each evaluation criteria equally because the market isn’t influenced by each criterion equally. As indicated in the table below, the market determines the “weight” of individual criteria based on each criterion’s relative contribution to the visitor’s perception of overall satisfaction.  (The formula to calculate the respective weight of any individual criteria contemplates such factors as frequency of mention and strength of conviction.  The overall satisfaction metric updates in “near real-time” based on the most contemporarily available data so as to accurately reflect seasonal influences on the visitor experience.)  Perhaps most interestingly, in my observation, the weight of any single evaluation criteria tends to vary very little between organizations.  In other words, please don’t make the mistake of assuming that your organization is somehow indemnified from the implications of this data because you’re a symphony…or an aquarium…or a museum.  The data simply doesn’t support any notion of “exemptions” for certain types of VSOs.

IMPACTS Overall satisfaction by weighted criteria

These weighted values may be used to inform resource allocations to maximize overall satisfaction (which data indicate are critical for securing positive word of mouth, repeat visitation, etc.). The values may also inform marketing strategies for museums so that they may best communicate the educational experiences that they…oh, wait…

Well, this is awkward.

 

1. Museums may overvalue educational assets as a differentiating factor positively contributing to visitor experience.

Unfortunately for many museums’ social missions, visitors indicate that the quality of an organization’s “educational experience” matters relatively little to overall satisfaction. Many of you may have – at some point or another – heard of/been involved with a museum leadership team that is convinced that it cannot fail because of the number of academic minds at the helm that are working to further the museum’s superstar educational opportunities. Regardless of the organization, I’ll bet that they are either strapped for cash and/or rely disproportionately on public funding or grant and contributed income – which means that in the world of “Museum Darwinism” (or heck, according to the plain old rules of economics), these museums may be at financial risk.

Data suggest that museums may not be looking in the mirror clearly when it comes to understanding the value of their educational assets. Will you be a successful organization (in terms of market relevance and long-term solvency) if your greatest experiential asset is your mastery of first-rate, dissertation-worthy, you-get-a-master’s-degree-equivalent-in-a-visit content? Sadly, no. The market is the ultimate arbiter of your organization’s success, and the data suggest that even the most educational VSO risks relevance if the experience isn’t entertaining…

Oy. I said the other “E”-word…

 

2. Deny being an entertaining entity at your own risk.

As nonprofit organizations with valuable social missions, we can get rather feisty when someone compares our entity to Disneyland…and museums aren’t Disneyland for all of the important reasons that drawing that comparison probably makes nonprofit stakeholders squirm. That said, the market attributes a higher value to “entertainment experience” than any other criteria – even the overall satisfaction summary (“sum of its parts”) metric!

Organizations that try too hard to promote education at the expense of providing an entertaining experience are truly missing the mark. Remember: your organization only has the opportunity to communicate what is important after the market dubs you relevant. If nobody wants to visit, then nobody is going to participate in the educational experience that you are trying so hard to perfect.

 

3. Education and entertainment are not mutually exclusive. Aim to be BOTH but understand how each aspect individually contributes to your reputational and experiential equities and strategize accordingly.

Knowledge is power, right? If you didn’t know it (or at least suspect it) already, you do now: the market at-large cares comparatively little about the super-specialness that is your educational experience. And that’s sad for museum leaders…but the weighted value of “entertainment experience” isn’t necessarily bad for museum leaders. The knowledge of this data may make VSOs more prepared to serve both functions effectively or, better yet, make educational experiences more entertaining.

The trick may be to understand the role that each of these aspects plays within the market – and what that means for your organization. On one hand, many VSOs are nonprofit organizations with a mission to educate and some research has shown that seeking an educational experience may justify a visit for some. However, the market considers “educational experience” a relatively small piece of the overall satisfaction puzzle when visitors actually have their onsite experience.

Considered collectively, I think that it may prove worthy to further parse the differences between motivation and justification.  I observe a compelling abundance of data that suggest that entertainment is the primary motivation for a visitor experience, whereas education is often cited post-visit as a justification for having visited.  In other words, all being equal, the public will often choose an experience with an educational component over “pure entertainment” – provided, of course, that all is actually equal!  Education will not compensate for a deficiency of entertainment.

Henry David Thoreau (a personal favorite who receives a hat tip for my blog title, Know Your Own Bone) advised, “When a dog runs at you, whistle for him.” The power of this data comes in embracing the findings rather than trying harder to deny them.  Let’s strive to be the most entertaining educational entities possible.

After all, who decided that “entertainment” was the enemy of “education” anyway?

 

*Photo (and cute kid) credit belongs to Flickr user Jon van Allen

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Posted on by Colleen Dilenschneider in Community Engagement, IMPACTS Data, Myth Busting, Nonprofit Marketing, Sector Evolution 11 Comments

A Cure For Point of Reference Sensitivity: Why Visitor Satisfaction For Your Nonprofit Is Lower Than It Could Be

opinion_of_our_productIMPACTS data indicate that visitors to zoos, aquariums and museums (and other visitor-serving organizations such as historical sites, theaters, symphonies, etc.) who have never previously visited any other like organization rate their experiences 18.1% higher in terms of overall satisfaction and 14.8% higher in terms of value for cost of admission than visitors who had previously visited any other zoo, aquarium, museum, etc. Further, as the number and frequency of one’s visits increases, a visitor’s level of satisfaction and perceived cost for value of admission tends to decrease.

This is just fine if your art museum (for instance) is the first art museum that your every guest has ever visited, but it has a host of potential repercussions on your organization’s bottom line (like tackling a social mission and achieving long-term financial sustainability) if you’re the second art museum someone visits. Or third, or fourth, or fifth….

This phenomenon is known as “Point of Reference Sensitivity” and suggests that the market’s expectations are being constantly reframed by recent experiences. In short, as the market gains familiarity with an experience, it becomes increasingly harder to “impress” the market.

So, what can be done to minimize the deleterious effects of Point of Reference Sensitivity? [I will henceforth refer to Point of Reference Sensitivity as “PoRS” because a) that’s just the kind of relationship that we’ve developed and b) it sounds a bit like a disease, which may be appropriate.] PoRS is an important consideration for visitor-serving organizations with regard to key performance indicators, and not even the very best visitor-serving organizations in the world are immune to its negative effects. The commonality of PoRS, however, does not mean that it is unimportant to your own organization’s reputational performance. Just because many other organizations suffer from PoRS doesn’t “even the playing field.” The market – not other organizations – are the ultimate arbiters of your organization’s success…and data suggest that despite your best efforts (great exhibits, well-trained staff, thoughtful access programs), you are still likely to experience a decline in satisfaction over time from a sizable portion of your audience simply because folks visited other organizations before they walked in your door.

The good news is that strategic prioritization and effective PR/communications practices may provide both prophylaxis and remedy against even the most stubborn case of PoRS.

What causes PoRS in visitors?

Qualitative research related to these findings suggest that PoRS may be due, in part, to a “been there, done that” mentality that tends to accompany repeat visitation to “like” organizations. The research suggests that this sentiment stems from a perceptual belief that “like” organizations (think of one zoo compared to another zoo, or one art museum compared to another art museum) share an elemental “sameness” that challenges the market’s ability to differentiate the unique attributes of individual organizations. Further exacerbating PoRS is the premium that we tend to psychologically ascribe to “firsts” – first love, first car, first baseball game, first kiss. When someone first visits a zoo, it may be the first time that they have ever seen live animals up close, but upon visiting a second zoo, there is a loss of “newness of experience.” There may be other factors that contribute to PoRS: Perhaps the first zoo visited is in an individual’s hometown and is a point of civic pride. Perhaps the newness of the experience is matched with a memory of sharing the experience with a favorite friend or family member, thus creating a unique, personal remembrance that is difficult to duplicate and impossible to top.

How is PoRS hurting your organization?

Reputation is a leading driver of visitation, and reviews from trusted resources (such as word of mouth recommendations from friends, peer review sites like Yelp or TripAdvisor, and even social media) are the strongest contributing factors to building your reputation (12.85x greater than any paid advertising channel). Aside from the more obvious impacts of lower guest satisfaction metrics and potential declines in the likelihood of repeat visitation, PoRS may also affect your organization’s word of mouth value. This may result in securing fewer visitors, fewer opportunities to cultivate donors with affinity for your organization, and fewer evangelists to amplify and promulgate your organization’s mission.

How can your organization overcome PoRS?

Data based on visitor feedback suggest that the solution may be very simple in theory: Be more unique. One way to do this is to utilize social media and other communication resources to underscore what differentiates your organization as a unique experience. Focusing more on your mission – as opposed to your existence as a “destination” – may help. An emphasis on mission-related content may allow your organization to increase its relevance beyond being a visitor-serving destination on real-time, online platforms by more actively defining the public perception of your museum. If your organization can cultivate a reputation as “more than just a visitor-serving organization” prior to a guest’s arrival, then your organization may also improve its satisfaction-related metrics.

It seems that our mothers were onto something – “You’re judged by the company that you keep.” PoRS is particularly insidious amongst the perceptual middle ranks of visitor-serving organizations – those places that are so “destination-focused” in their communications that they end up positioning themselves as “just another museum” (or zoo, or aquarium, or botanical garden, etc.) The overcome may be in elevating your organization from the sameness of a sector by differentiating not only your experience, but by the means by which you achieve your mission (the impacts that you have and the differences that you make).

As stakeholders for visitor-serving organizations, we tend to believe that the entities that we serve (or support, or visit) are unique and superlative.  Our challenge – and, indeed, our opportunity – is to similarly articulate these differences to our visitors so that they, too, consider us as more than a place. What makes your organization unique is probably not the artifacts that you house, the collections that you keep, or the building within which you keep them. What makes you unique is the outcomes that you achieve by fulfilling your mission… and communicating these outcomes is the best defense against a nasty case of PoRS.

 

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Posted on by Colleen Dilenschneider in Community Engagement, Financial Solvency, IMPACTS Data, Sector Evolution, Trends 3 Comments

A Hint for the Future of Museums: Europe is Looking to US Aquariums

In my line of work (developing predictive data) and my spot in that line (analyzing and applying data on behalf of organizations equally concerned with social and fiscal bottom lines), opportunity often comes from keeping a pulse on the market. Along these lines, I’ve recently experienced shifts in my professional world that may be illustrative of the future of museums and the broader nonprofit community.

"7 hours and 57 minutes until I am officially based out of Chicago AND London! Let's do this!"

“7 hours, 57 minutes until I’m officially based out of Chicago AND London! Let’s do this!” (4/1/13)

In April, I officially joined the ranks of part-time expatriates (and long-haul commuters) when IMPACTS asked me to help open our London office while also maintaining a “home base” in Chicago.  Preparations for our London office enabled me to hire a Digital Marketing Manager to provide additional support to our projects, and also challenged me to be more thoughtful about how I could focus my efforts to best serve our clients.  A few months removed from my hop across the pond, I’ve been reliably asked two questions from colleagues, other museum professionals and even friends and family – the answers to which are closely related and may provide interesting insight to the museum industry:

1) Why London?

The obvious answer: proximity. I am in London largely because it is an accessible base for much of the work that IMPACTS is currently performing on behalf of visitor-serving organizations (e.g. museums) throughout the Americas, Europe and the Middle East.

The more interesting answer: market demand in Europe for the American nonprofit business model. You read that right! Any quick glance at the news tells stories of shifting economies that have created an unprecedented struggle for many of Europe’s most treasured museums.  While not-too-long ago many of the elite European institutions might have politely sneered at the suggestion of adopting a more “American model” of doing business (especially “nonprofit business!”), these sentiments are quickly shifting.

The “American model” (as it is colloquially referred to in my dealings) is a euphemism for a visitor-serving business that doesn’t rely on government support (or grants or endowments) and, instead, is a market-driven enterprise whose success hinges on engaging a diverse, sustainable constituency.

In other words, many of the world’s greatest museums – the ones that we Americans revere and admire with a distant and mysterious “otherness” – are looking to U.S. visitor-serving organizations as sources of inspiration, innovation and know-how when it comes to reinventing their business models to best respond to their current economic conditions.

2) Why do you spend so much time working with aquariums?

It’s true. I do find myself increasingly spending more time and energy working closely with aquariums. Here’s the end-game: We have an interest in aquariums because they are often cited by our clients as best-in-class practitioners of the “American model.” (Stick with me, other-types-of-museum folks. I’ll connect the dots…)

IMPACTS works with nearly every form of visitor-serving organization from art museums and symphonies to science centers and botanical gardens, and there’s one thing that we’ve found to be generally true: The market-driven practices developed by aquariums may have the greatest impact and “usability” for exalting the entire visitor-serving industry.  While the role of aquariums as models may seem surprising to many of America’s most venerable museums, the relative esteem with which U.S. aquariums are internationally regarded evidences itself in my work on a daily basis. In fact, the European organizations (including many art museums) that I work with have less interest in the “best practices” of American art museums and, increasingly, more interest in those of American aquariums.

Here’s why.  There are two conditions that make U.S. aquariums of particular interest to the global museum and visitor-serving industry:

 

A) The U.S. aquarium business model is motivated by market demand (and not overly dependent on grants, endowments, or government funding)

This is not to say that aquariums do not seek to obtain grants or secure government appropriations – but, as a group, the chart below indicates that aquariums tend to rely least on contributed and dividend revenues when compared to other types of visitor-serving organizations:

IMPACTS Visitor Serving Organization Earned Revenue

Theoretically, if government funding were to cease on a macro-level tomorrow, aquariums (as well as select museums, theaters, science centers and other more self-reliant organizations) may have the greatest chance of keeping their doors open long-term.

Also, after evaluating a representative sample of 224 U.S.-based visitor-serving organizations, aquariums generally have the smallest endowments relative to their annual operating budgets – perhaps suggesting that aquariums must be particularly attuned to the market since they have less “cushion” in their revenue streams. We see outcomes of this market responsiveness all the time: While some museums are hiring extra grantwriters and expanding their lobbying efforts for funding, many aquariums are hiring social media and online community managers because they understand that digital engagement helps drive attendance. Of course, smart museums also realize this and are hiring these kinds of people, too – but as the chart below illustrates, the lack of a “safety net” places a particular financial imperative on aquariums to be responsive to market opportunities:

IMPACTS - Visitor Serving organization endowment backstop

 

B) Many aquariums regularly invest in active, global, social missions that extend beyond education and research

I can hear you now: “But all museums aim to change the world!” I know. This does not mean that other missions are any less important – simply that many organizations with which I work consider aquariums to be at an interesting intersection between topic expertise and “right now” relevance…particularly when it comes to prominent, controversial issues such as climate change and other environmental topics. In short, while the social missions and operations of aquariums tackle education and research (two critical items that are also common among other, select visitor-serving organizations), they also take up the battle of ocean conservation. The initiatives attendant to this addition are particularly timely, global, and live in a rather elusive “save the world” space.

It’s a seemingly at-odds and extreme combination:  Aquariums may be considered among the most “for profit” of organizations in that they rely heavily on earned revenues, but they also aim to be among the most globally impactful among organizations pursuing active, social missions.

 

I “go deep” in my work with aquariums because helping them evolve and perfect their business model to remain solvent in both fiscal and social terms provides the lessons that help other organizations achieve their similarly aspirational ideals.

I’m intentionally speaking in terms of sector generalities – not all zoos rely on government funding, not every museum lives on its endowment, and, for that matter, not all aquariums are truly bringing their A-game to the “save the ocean” effort. The organizations operating with the objectives of being both market-relevant AND “big mission-serving” (aquarium or not) may be our best models for the future of museums. They can survive on their own, and they can do it while serving a very large-scale social mission.

 

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Posted on by Colleen Dilenschneider in Financial Solvency, IMPACTS Data, Myth Busting, Nonprofit Marketing, Sector Evolution, Trends 3 Comments