Market to Adults (Not Families) to Maximize Attendance to Cultural Organizations (DATA)

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Why Those With Reported Interest Do Not Visit Cultural Organizations (DATA)

Data suggest that a sizable number of people report interest in visiting cultural organizations…and yet over thirty percent of those Read more

MoMA Sees Reputation Boost After Displaying Muslim Artists (DATA)

Here’s what market research reveals about MoMA’s decision to display artwork from artists hailing from the Muslim-majority nations affected Read more

Five Videos That Will Make You Proud To Work With A Cultural Organization

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Data Reveals The Worst Thing About Visiting Cultural Organizations

The primary dissatisfier among visitors to both exhibit AND performance-based cultural organizations is something we can fix. What is the Read more

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Community Engagement

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

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, 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.

 

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, 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.

 

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 Financial Solvency, IMPACTS Data, Myth Busting, Nonprofit Marketing, Sector Evolution, Trends 3 Comments

Minding Your Ps and Qs: The Importance of Early Adopters in Marketing Your Nonprofit (DATA)

Early Adopter

Nonprofit marketers increasingly understand the importance of reach and remaining top-of-mind when it comes to building affinity with potential visitors and donors in the digital era.  In a perfect world – one with unlimited resources – we would simply throw money at our marketing channels until everyone heard our message. However, in the real world of finite marketing budgets, many organizations mistakenly target the broadest swath of their market under the misguided notion that maximizing marketing efficacy depends on a “target the majority” strategy.

Instead, the modern nonprofit should understand that the number of people who see your message (i.e. how many) is significantly less important than the imitative value of the people who see your message (i.e. who).

Savvy marketers understand the critical importance of targeting “Market Makers” (as opposed to the broader market) to efficiently generate and sustain sales velocity…and the reasoning behind this strategy is undeniable.

As a friendly heads-up: I’ll warn you all that this post is a little wonkish (bear with me!), but for those of us who don’t have a degree in economics, here’s the play-by-play from an English major with a master’s degree in public administration (read: not math) who gets to see these items in action every day in her work with IMPACTS.

 

1. No amount of paid media (“P”) overcomes a lack of reviews from trusted sources (“Q”) when it comes to elevating reputation, driving attendance, or securing donations

IMPACTS - Diffusion of messaging

This model (which I’ve shared before) also demonstrates how dramatically marketing has changed in the last twenty years. Paid media (“P”) used to be the fastest way to reach the most people. Now – thanks to technology – we have more real-time access to reviews from trusted resources (“Q”) than ever before…and the ability to promulgate these views with the press of a touchscreen.

While some organizations seem to be afraid of harnessing the power of “Q“, sophisticated organizations may view this shift as one of the best things happening in the marketing world. We’ve flipped the influence potential from outlets controlled by third-party publishers and broadcasters to one primarily influenced by our own relationships with our audiences! Now, marketers have the opportunity to reach people and foster relationships via a much more effective and influential method (i.e. word of mouth from trusted sources).

 

2) Certain people have higher “Q” values than others (and thus serve as more trusted resources for spreading your message)

IMPACTS - importance of Q value

We all have a friend who, when they make a recommendation, we listen. These are the friends whom we consider to be “in-the-know.” They’re the first ones to go to the new, cool restaurant, and the first to sport the season’s best fashion.  In marketing-speak, they have a high “Q” values (AKA “high imitative values”). Like positive reviews in The New Yorker or The New York Times, reviews from these high “Q” value folks can make a world of difference for an organization. These folks are likely your “Market Makers” – the trend-starters and experts that get your organization’s ball rolling…and keep it in motion.

Similarly, we probably all have a friend (erm…or two) who, when they make a recommendation, we smile and nod but won’t touch that product with a ten-foot-pole.  These people have low “Q” values and, unfortunately, many organizations target these folks just as much as high “Q” folks with their broader marketing strategies.  Worse yet, without endeavoring to identify and target  “Market Makers,” an organization may be wasting valuable resources on “Laggards” who only adopt a product when it is on the precipice of being passé.

 

3) The “Q value” of the individuals you target determines the “velocity” of your message (how sustainable it will be over time)

IMPACTS - Q velocity

Imagine the adoption model above as a roller coaster. Now imagine that your organization’s goal is to engage the maximum amount of the audience.  As anyone who has screamed their lungs out while plunging down the big hill surely knows, the higher up the roller coaster starts, the more velocity the roller coaster has available to propel itself up and over other obstacles. If the ride starts at a height that is insufficient, the cart will not have the requisite velocity to reach its desired destination (i.e. your maximum audience).

In other words, if you start your marketing effort by “marketing to the middle” (i.e. the early majority), then the models suggest that your efforts will only gain the necessary velocity to carry your message through the late majority.  Sure – this strategy stands to reach 68% of the audience…but it ignores the most influential Market Makers who promise long-term relevance and sustainability.  Perhaps this explains why many visitor-serving organizations have essentially flat-lined their levels of visitation in spite of growing populations levels.

 

Bottom line: To increase reach and promote your brand most effectively, it is critical that your nonprofit targets Market Makers.

The web and social media allow for personalization. Taking the time and energy to identify and target high “Q” individuals (content creators, online critics) is among the most efficient, impactful, and valuable type of market research available to an organization.

Does this mean that the only folks who should matter in your nonprofit marketing strategy are Innovators and Early Adopters? Of course not. Your organization must be ready to engage other audiences, as that is – of course – the goal of targeting Market Makers: To leverage their imitative behaviors to help you reach broader audiences.

Clearly, not all online audiences are of equal value, yet organizations regularly (lazily?) develop strategies for their online audiences as if they were a single, homogenous constituency.  This is akin to developing “a targeted strategy for all things that breathe.” It is time for organizations to think of their online audiences with the same degree of segmenting sophistication that they lend to donors.  Identifying your Market Makers, targeting these highly influential persons with your messaging, and trusting their imitative values to amplify your message to the balance of the market are the hallmarks of an efficient and effective marketing strategy.

Who knew that your mother was such a prescient marketer when she told you to mind your Ps and Qs? (Sorry, guys. I had to…) 🙂

 

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Posted on by Colleen Dilenschneider in Community Engagement, Digital Connectivity, IMPACTS Data, Nonprofit Marketing, Sector Evolution, Trends 3 Comments

Time, Treasure, Talent: Priority Confusion on Nonprofit Boards Limits Success (STUDY)

Finding: Nonprofit board members grossly overestimate the importance of their own time and talent, and believe personal philanthropy to be the least of their responsibilities in the “time, treasure, talent” continuum.

time treasure talent

For nonprofit executive leaders, “Give [money], get [money], or get off [the board]” seems to have been a board development maxim since the beginning of nonprofit-time. Despite this fact, many CEOs consistently struggle to raise meaningful funds from their board members. This may be due to a convenient untruth that board members may be using as an excuse to sidestep the “give, get, or get off” maxim: The belief that time, treasure, and talent are of equal value to a nonprofit organization.

A recent study conducted by IMPACTS reveals that, among visitor-serving organizations, there is a stark perceptual delta between executive leadership and board members when assessing the primary asset that board members bring to their organizations. And perhaps unsurprisingly, this difference of opinion regarding board responsibilities is pronounced within “smaller” organizations (i.e. those serving 500,000 or fewer visitors annually).

IMPACTS (the predictive technology company for which I work) was engaged to develop intelligence and analysis concerning the efficacy of nonprofit boards of trustees.  The related research and interviews sought to improve the understanding of the optimal role of the board as it relates to the governance and operation of the contemporary, nonprofit, visitor-serving organization.

The data collection processes included quantitative intelligence gathering and qualitative interviews with both the executive leadership and members of the boards of 49 nonprofit, visitor-serving organizations (e.g. aquariums, museums, performing arts organizations and zoos).  The study sought to include a broad, representative sample of nonprofit organizations of various types, usage levels, and annual operating budgets.

 

1) Staff leadership believe that securing funds is by far the most important role of board members

 

IMPACTS staff perspective of board role

Giving/securing “treasure” for an organization is clearly identified as the most important role of a board member by CEOs and other executive leaders. Lending “talent” (think of an attorney on the board providing legal counsel) holds significantly less value according to these same leaders.

Qualitative assessments from leaders reveal that the delta between “treasure” and “talent” may be in large part due to an organization’s strong preference to buy talent with treasure (as opposed to relying on the “in-kind,” donated talent of their board members). Executive leadership tends to believe that this type of “hired,” on-demand, best-in-class talent puts the organization in a better position to succeed than does a board member who is potentially less specifically qualified and/or has less time dedicated to the organization. (Not to mention the fact that many nonprofit organizations have conflict of interest policies that limit or restrict a board member’s participation in aspects of the organization’s operation.)

 

2) With the exception of larger organizations, board members believe that lending their own talent is their key role and raising funds is the least of their responsibilities

 

IMPACTS Board perspective of board roles

An argument may be made that organizations serving greater than 500,000 annual visitors are necessarily larger operations and may reliably attract more experienced, “sophisticated” board members than smaller organizations. This type of board member may have more experience on a greater diversity of boards, and may have a better understanding of the needs of nonprofit organizations and their own role on the board.

 

Key Finding: Nonprofit board members over-emphasize the importance of their own time and talent

 

IMPACTS Board and staff perspective of board roles

Some may say that my interpretation of these assessments assumes that the nonprofit CEOs have a better perspective of what will lend success to an organization than board members themselves. I’d like to propose an alternative point of view in regard to the survey outcomes: Board members seem to believe that their biggest contribution is a thing that the organization isn’t always asking for (i.e. their respective talents), and the single thing that many organizations require most to keep their doors open is the very thing that many board members do not view as their primary responsibility (i.e. treasure). From this perspective, some organizations serving 500,000 or fewer visitors per year (or boards of any nonprofit organizations with “smaller” annual revenues) may be stuck in a cycle:

Nonprofit board members may disproportionally view their own “talent” as beneficial because they don’t perceive that the organization possesses equivalent talent on-staff. So, because the organization lacks internal capacities, its board members disproportionally value their  own (occasional, off-staff) “talent” – but in valuing their talents over their “treasure,” they limit the organization’s ability to develop more robust resources and capacities. Thus, the organization comes to depend on board “talent” largely because its board members choose not to alternatively supply the organization with sufficient “treasure.”

Does this mean that board perspectives are unimportant? Most certainly not. The experiences and connections afforded organizations by their board members are important assets. However, if they don’t positively impact the long-term solvency of an organization in a meaningful way, then these connections may not be worth as much as “status board” members seem to believe them to be. Connections, networks and experiences are all latent benefits that may be made manifest in terms of an organization’s financial health. Unlike these potential latent benefits that board members lend to an organization, donations provide direct benefit.  Ultimately, organizations quantify financial health in numbers – and numbers don’t lie.

 

In Their Own Words:

“I think that it takes all three (i.e. ‘time, talent, and treasure’) to be a great board member. Arguably the greatest talent of all is realizing that your time is less valuable than your treasure.”- Chief Executive Officer, attendance = 500,000 – 1 million 

“A particular challenge for many of our new board members is the time that it takes for them to understand that we didn’t ask them on the board because of their professional abilities and talents. We asked them on the board to gain access to the wealth that the practice of their professional abilities and talents has enabled.”- Vice Chairman of the Board of Trustees, attendance = 250,000 – 500,000

“I’m proud of the way that our board has evolved. It now understands it has an absolute and significant giving imperative. With all due respect to our board members’ abilities and talents, if you don’t give in a meaningful fashion, then you are short for our world.”- Chief Executive Officer, attendance = >1 million

“It drives me crazy that we still have board members who think that their job is to critique staff decisions, plan galas, and stuff envelopes. As a donor, it is embarrassing that the outside world considers these people to be my peers.” – Member, Board of Trustees, attendance = 100,000 – 250,000

“The best thing about leading a large organization was saying goodbye to the ‘bake sale boards’ of my past where every financial crisis was met with a social-status-elevating fundraiser that never netted any real funds but was deemed a success if it got the chairwomen mentioned in ‘Town & Country.’”- Chief Executive Officer, attendance = >1 million

“As a board member, you have two obligations: Number One is your fiduciary obligation to the organization. Number Two is your financial obligation to the organization. The entire ‘time, talent, and treasure’ discussion is bunk – a board member’s duty is to ensure that the organization is able to buy the time of those resources possessing the most talent.” Chief Executive Officer, attendance = 250,000 – 500,000

“Honestly, our board is a joke. They want to derive every social benefit and milk every professional network that comes from being on our board, but they don’t think that they should pay for the privilege. We’ve let ourselves become a status symbol…the worst sort of trophy wife. What I would do to fire the whole lot of them and start over!” Chief Executive Officer, attendance = 500,000 – 1 million

“On our board, it is both implicitly and explicitly understood that you pay for the privilege of your vote. There is no representation without taxation. If you don’t like our arrangement, then, frankly, we’d prefer that you not serve on our board.” – Chief Executive Officer, attendance= >1 million

“Over the years, I’ve been asked to speak to other boards about how they, too, can increase their respective board giving capacities. Invariably, they cite an inability to ‘attract heavy hitters’ to their boards. I ask them to survey the room – the so-called ‘heavy hitters’ don’t keep company with people who don’t value personal philanthropy. No one wants to be the deep pockets on a board who subsidizes their fellow board members. So, if a board wants to raise more money, the first step that they need to embrace is significantly increasing their own personal giving in the hopes of attracting more like-minded philanthropists. The second step often involves stepping aside and allowing these philanthropists to assume your position on the board. The best board donors try to replace themselves with even better donors on a regular, ongoing basis.”- Chairman of the Board of Trustees, attendance= > 1 million

“I appreciate how invested with their time our board members are, but I’d be lying to say that I didn’t wish that they weren’t equally invested with their money. We struggle to meet the giving benchmarks of our peers. My board’s answer to EVERYTHING is ‘Let’s have a fundraiser!” or “Let’s try for this grant!” – never anything out of their own pocket. They’re in love with other peoples’ money.”- Chief Executive Officer, attendance = 250,000 – 500,000

“A sure sign of a lousy board is a bunch of ‘talented’ people on your marketing committee. That’s where organizations dump the folks whose sole currency is hot air.”- Chief Executive Officer, attendance = 100,000 – 250,000

 

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Posted on by Colleen Dilenschneider in Financial Solvency, Fundraising, IMPACTS Data, Myth Busting, Sector Evolution 7 Comments

Non-Nuclear Proliferation: Who is REALLY Visiting Museums Nowadays?

family visiting museum

Is your nonprofit or museum still operating under the assumption that most of the folks visiting zoos, aquariums, museums, and performing arts venues are doing so with their nuclear families? Think again. Data concerning visitor-serving organizations (VSOs) reveals that travel party constructs have evolved. While only seven years ago a majority of visitors attended VSOs with their nuclear families, the majority are now visiting with significant others.

Why does this matter? Well, if you don’t know who your audience is, then it is more difficult to target them or retain their support. And keep in mind: Your “audience” is a dynamic group comprised of both online and onsite persons, as well as would-be and actual visitors alike. In other words, just because you are marketing your nonprofit to families and households with children doesn’t necessarily mean that they comprise the majority of your audience.

In fact, my colleagues and I at IMPACTS have observed this evolving reality within many of our client VSOs.  Several clients who have been predominantly marketing to their perceived, “traditional” base (i.e. the nuclear family) have had to adapt their engagement strategies to recognize the emergence of persons who visit without children.

To illustrate this change, I’ll present two sets of data: one for the U.S. composite audience (which includes travel party construct data for a representative sample of the total US population), and another for high-propensity visitors (HPVs, or those persons possessing the demographic, psychographic, and behavioral attributes that tend to suggest an increased likelihood to visit a VSO). One quick note: The data represent “discretionary consumer behaviors” – that is to say, it does not contemplate educational groups, field trips, and other group-motivated activities.

Let’s start by examining the change in travel party constructs for the overall U.S. population:

IMPACTS US Composite Visiting Party Construct

 

Notice that the dominant travel party construct has changed from “with family” to “with spouse.” Currently, nearly 50% of the overall U.S. population visiting a VSO is doing so without a child (quantified above in the “By self” + “With spouse” + “With friends” categories). This same cohort grew by 11% during the relatively brief tracking period!

Now let’s take a look to see with whom high-propensity visitors (HPVs, or, the folks that largely butter your bread) are attending organizations…

 IMPACTS HPV Visiting Party Construct

For HPVs, we witness a similar decline of people visiting with children…and, keep in mind, this behavior is amongst those persons most likely to visit your organization in the first place! Here are four noteworthy takeaways from the data:

1) The number of families attending VSOs has decreased

During the quantified duration, VSOs experienced a 10% decline in family visitation (from 41.8% in year 2006 to 37.5% in year 2012) and a 13% decline amongst HPV families.  Part of this decline relates to our evolving demography – there is a corresponding decline in “birth over death rate” amongst the educated, affluent populations that have historically comprised many VSOs core audiences.  Fewer children means fewer “traditional” families…so if your VSO’s primary selling point is “great for the kids,” then you may expect to see a fall off in your attendance numbers.

2) The number of folks attending VSOs as couples has increased

Among the overall US population, the percentage of people visiting VSOs with their spouses or significant others increased 14% during the assessed duration.  For the same period, “HPV couple” visitation increased by 10%.

Many organizations are observing this increase in “couples” visiting VSOs and are tailoring their marketing efforts accordingly.  At IMPACTS, we are often tasked by clients to assess the relative “favorability” (i.e. do people “like” the campaign) and “actionability” (i.e. how likely is the campaign to motivate visitation) of potential advertising campaigns, and what we increasingly find is that while “family-centric” advertising may risk engaging adults without children, more couples-focused messaging generally does not alienate family audiences.  Why?  The market has an intrinsic understanding that many VSOs are well-suited for families and children… often the “break-through” market for additional engagement is couples without children.

3) Grandparents are the new babysitters

Grandparents are increasingly important decision-makers when it comes to bringing a child to a VSO.  This may be symptomatic of more dual-income households or of a broader societal trend toward more grandparents raising their grandchildren, but the prominence of grandparents as both heads of households and proxy parents is clear.  Many VSOs have acknowledged this trend by re-imagining their family membership programs to be more contemplative of grandparents.  Other organizations are adjusting their marketing and communication techniques to better engage this growing market segment.

4) The evolution of the travel party construct is not a museum phenomenon, but a reflection of the overall market

When you consider all of the data, the shifts that we’re observing in terms of travel party construct aren’t at all surprising.  Rich, white folks – who still make up a substantial number of HPVs  – are having fewer children. From a societal point of view, the traditional “family” has undeniably evolved. Baby boomers – another demographic that has a high percentage of traditional HPVs – are bringing their grandchildren to their favorite museums, operas, and botanical gardens.  And, of course, the Baby Boomers are a huge generation – so a corresponding increase in people visiting with grandchildren makes chronological sense. Generation Y – the largest generation of all  – is taking over the market, having children later in life (and, thus, are more likely to visit with friends or significant others), and also having children out of wedlock (and, thus, are more likely to visit without a spouse).

 

At IMPACTS, we develop specific data for our VSO partners and it yields very similar findings across the board. In nearly every case, the organization is a tad surprised to learn that while they had their noses to the grindstone, the world turned. These changes affect not only how VSOs target audiences for marketing purposes, but also how they cultivate members, gather financial supporters, create appropriate programs, and engage with online and onsite audiences.

Still not a believer? Though the percentage of movement may seem small, it is indicative of a significant trend. If you can, take a moment to visually survey your current visitors. Suddenly, you may realize that the world is changing and it’s taking your museum with it.

 

*Top image photo credit belongs to Margaret Middleton’s On Exhibit

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Posted on by Colleen Dilenschneider in Community Engagement, IMPACTS Data, Myth Busting, Nonprofit Marketing, Sector Evolution, Trends Comments Off on Non-Nuclear Proliferation: Who is REALLY Visiting Museums Nowadays?

Urgent Evolution: Marketing Your Nonprofit to the Audience of Tomorrow (DATA)

IMPACTS Historic visitor substitution

There are many reasons why your visitor-serving organization should be marketing to Millennials and other emerging audiences in order to ensure its long-term relevance and solvency. However, the single most urgent reason to target these audiences is that the “historic” museum visitor market is slowly dwindling, and organizations that do not evolve their marketing strategies risk long-term survival.

At IMPACTS, we collect ongoing, nationwide (and crazy-massive) data sets of the US market, and have uncovered the demographic, psychographic and behavioral attributes that tend to suggest one’s likelihood to go to or otherwise support a visitor-serving organization (zoo, aquarium, museum, botanic garden, performing arts organization, etc.). We call folks possessing these indicators high-propensity visitors (HPVs). While individual organizations may have slightly varying HPVs, we’ve found that there are several characteristics that a vast majority of organizations’ audiences share. And we’ve found something alarming: visitor-serving organizations’ (VSOs) “historic” visitors are leaving the market at a faster rate than new HPVs 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” HPVs. Sound like a small difference? 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 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 our emerging HPVs. This means – as an industry – evolving our target audiences.

Though we observe broad negative substitution indicators for VSOs nationwide, the specific data referenced above contemplates VSOs residing within the top 50 metro markets as determined by Nielsen (a cohort representing nearly 70% of the US population).

 

Why is this happening? Our data points to three primary reasons:

 

1)   Rich, white people are having fewer children.

(Too blunt or refreshingly direct?) For the vast majority of U.S. visitor-serving organizations, this demographic represents their historic visitor. These folks are statistically more likely to have the household income, leisure interests, educational attainment levels, and psychographic profiles that tend to suggest an increased propensity to visit a museum, zoo, aquarium, botanic garden, performing arts venue, etc.

 

2)   The United States population is growing increasingly diverse with folks that aren’t currently planning a visit to your organization.

(I’m going for “charming directness” again!) Museums and other cultural visitor-serving organizations have not yet succeeded in breaking the conceptual barrier of being top of mind destinations for non-HPVs. At IMPACTS, we see disappointingly low perceptions of zoos, aquariums, museums, and performing entities as “a place for people like me” in the minds of emerging audience members.  (We call these perceptions “attitude affinities.”) Though select organizations are successfully executing strategies to engage these emerging audiences, the large-scale wave of change that we are seeking may only occur when we can alter the overall perception of VSOs as a sector.

 

3)   Millennials are taking over the market, but VSOs are reluctant and/or slow in figuring out how to attract them.

Millennials can be a gosh-darn confusing bunch for older generations to understand. As digital natives, we simply think differently. If you feel like your organization is always trying to play catch-up to capture this audience, it’s because most VSOs are!

Millennials (born roughly 1980 to 1995) represent the single largest generation in human history (nearly 20 million kiddos larger than the Baby Boomers) and too few organizations are currently cultivating them as donors or even potential visitors. Some aren’t targeting Millennials because older generations just don’t see how they could be that important in driving business (“My kids can’t dictate how I do things!”) Well, most Millennials aren’t kids anymore, and the sheer volume of this generation means that they are already starting the lead the market. Some believe that Millennials just won’t be significant donors so they aren’t cultivating this group (despite evidence that – despite debt and student loans – this generation is incredibly confident about its financial future and may be more financially responsible than older generations). Other VSOs aren’t targeting Millennials because they simply don’t know how or don’t have the proper skillset on staff. (If that’s your thing, here are some baseline pointers for marketing to Millennials). Regardless, this is a demographic that nonprofit organizations simply cannot afford to ignore. As “historic” HPVs – who think and behave in a way that executive leaders understand – leave the market, there will be a void. In fact, this largely contributes to the negative substitution at hand.

 

In sum, visitor-serving organizations need to evolve their target audience in a big way. And they need to work together to do it soon. Data suggests that many visitor-serving organizations are already observing the challenging effects of  negative substitution (e.g. declining attendance levels).  Of course, this doesn’t mean altogether ignoring the “historic” visitor that is currently many an organizations “bread and butter”…because, indeed, these people will continue to visit (albeit in increasingly smaller numbers).

Negative substitution quantifies the urgent need to evolve, and moreover, compellingly indicates the risk of “standing still.” In order to foster a change in market perception of VSOs as welcoming and relevant, organizations will need to start adapting their engagement strategies and outreach initiatives. Perhaps you’re thinking, “Really? Another thing that I need to worry about in the midst of so much market change?” The answer is, “Yes.” Let’s start worrying. Let’s evolve.

 

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Posted on by Colleen Dilenschneider in Community Engagement, Financial Solvency, IMPACTS Data, Millennials, Myth Busting, Nonprofit Marketing, Sector Evolution, Trends Comments Off on Urgent Evolution: Marketing Your Nonprofit to the Audience of Tomorrow (DATA)

Trust Your Audience: Data Debunks Nonprofit Social Media Fears

the scream

Despite the myriad good reasons to be using social media (including data indicating social media’s leading role in motivating visitation and donor support), some nonprofit organizations and museums have been hesitant to open content-related communications to online audiences. They wonder: What if someone posts something bad about us? What if they use our Facebook page to promulgate viewpoints that are contrary to our mission or practices? What if they say something inaccurate on our expert page?

Data suggests that fears regarding radical trust may be largely unfounded and/or dramatically over-emphasized. Why? Because there is proof that people do not believe everything that they read online. Though this may sound axiomatic or silly to some (“Of course people don’t believe everything that they read online!”), organizations that don’t trust their online audiences to make informed, intelligent assessments often cite this doubt as a justification to not embrace open authority. Simply put, many organizations are frightened by social media and the means by which it empowers online audiences to express their respective points of view – which may be negative about the nonprofit, factually incorrect, or even “irrational.”

The data concerning this reticence to trust is quite clear: Organizations that instinctively move to limit communications – or react to a crisis only when standing on the sidelines is simply no longer an option – are failing their constituents. Here are three things to consider regarding reticence to engage on social media due to fears of opening authority to others:

 

1. Data suggests that social media is used by the public to gather information to form opinions… and not as a tool to dictate facts

Online audiences visit your social media sites to assess how you react and engage with the public in order to determine their level of personal affinity with your organization. They want to make their own decisions about what they think about your posts…and, similarly, they consider comments from others (and your responses to these comments) as key components of their information-gathering process.

Consider data from IMPACTS regarding the general public’s trust of various marketing channels and note the level of trust that the public ascribes to social media:

IMPACTS- Trust in Marketing Channels

I’ve posted this data before highlighting the reach, amplification, trust and overall weighted-values of various information channels. It may well be the single most “expensive to acquire” data freely available to nonprofit organizations on Know Your Own Bone. (Read: I hope that you’ll please take advantage of this free-to-you information that was originally funded by for-profit clients. After all, that’s why I write!)

This data indicates the public’s relatively low trust in social media when compared to other information channels with higher publication thresholds (e.g. newspapers) and “traceable,” credible endorsers (e.g. word of mouth). While the findings suggest that social media is, overall, the most powerful channel as a source for information, it additionally indicates that the public understands that there are some crazy people on social media.

Online audiences do not believe that other fans typing on Facebook walls are writing truisms in stone. While these comments may exist for the world to see, what is more important is how organizations react to these comments…

 

2. Online interactions establish relevance and transparency… and may clarify negative comments that organizations fear

As described previously, online audiences referencing your website and social media platforms are making decisions about how to feel about your organization. It is important that you are transparent, trustworthy, and authentically engage with these potential online evangelists. Some may even test you like this little lady did in her post on the Smithsonian National Museum of Natural History’s Facebook page…

Smithsonian Facebook Comment

This interaction demonstrates the importance of responding to comments and interactions on your social sites – even, at times, when “negative” comments strike. If the museum hadn’t responded, the public may have perceived that the museum does not pay attention to online audiences, so why bother engaging? Worse yet, such perceived indifference may have actually inspired additional negative sentiment. At the very least, not-yet visitors to the Smithsonian National Museum of Natural History may consider that perhaps the museum is indeed “really boring” without having uncovered that feedback from this user was not sincere.

Nonprofit leaders need not fear comments such as the one above because being an “online organization” allows for both social media users and the nonprofit to uncover information that may aid other users in determining their level of trust in these communications.

 

3. Online interactions provide constructive feedback that, if acted upon, may position your nonprofit to evolve and thrive

While some executive leaders may claim to fear comments from less educated audiences than their own employed “experts” posting on social platforms, many may actually be concerned about receiving plain old negative feedback that stakeholders might observe on these same sites. They may fear that these critiques might then resurface in board rooms or donor conversations.

Avoiding feedback by denying a platform for conversation is rejecting low-hanging fruit to aid in the improvement of the organization. For executive leaders or marketing managers for which this is the case, well, you may have bigger issues within your organization than not being active on social media.

As the world changes (new technologies arise, new generations take the lead…), organizations confront numerous challenges. Often, the severity of these changes is correlated with how quickly the organization can evolve and adapt in alignment with changing constituent and stakeholder needs. Organizations that fear feedback may already know that they are behind the times. The solution to this is not to back away, but, rather, to consider embracing the insight that social media interactions may provide for your organization.

Leaders may be surprised how positively a simple, “Thank you for your feedback. We hear you and we’re getting started on fixing that by…!” resonates with online audience members with thoughtful, informative gripes (provided, of course, that you indeed start to address issues that arise and further complaints do not surface that may indicate insincerity). Also, executives and managers may breathe a little more easily knowing that – if a comment is legitimate – your organization probably (hopefully?) has the knowledge required to respond to thoughtful, negative feedback in a considered and helpful manner.

All this is not intended to suggest that negative comments do not have the ability to impact your brand. Instead, it suggests that organizations who fail to actively engage their audiences, do not respond to interactions, and adopt a “hear no evil” position when confronted by a challenging comment are doing themselves a grave disservice by not treating these moments as important customer service (and audience engagement) opportunities. In the end, if an organization rightfully considers thoughtful, negative comments as opportunities to listen, obtain feedback, and improve, and if the public is already considering the veracity of fan comments, what plausible excuse remains for an organization to fear social media?

You can’t argue with crazy. And, you can’t argue with facts. The public has figured this out. Isn’t it time that nonprofit organizations catch-up with the public when it comes to the ways and means by which we communicate with our constituents?

Barely a few weeks removed from our nation’s most recent Inauguration, please excuse me as I play off of arguably the most famous inaugural address in our history to drive an important point home for nonprofit executive leaders: When it comes to social media, perhaps the only thing that we have to fear is fear itself.

 

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Posted on by Colleen Dilenschneider in Community Engagement, Digital Connectivity, IMPACTS Data, Myth Busting, Nonprofit Marketing, Sector Evolution, Trends 3 Comments