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

Marketing to adults increases visitation even if much of your current visitation comes from people visiting with children. Here’s Read more

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

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People, Planet, Profit: Checks and Balances for Cultural Organizations

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Community Engagement

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

5 Key Reasons Why Social Media Strategies Are Different Than Traditional Marketing Strategies

Company achievements

Social media and web-based platforms function differently than “traditional” marketing/PR platforms. While this may be obvious to some, I work closely with many experienced executive leaders who have been formally trained (and then formally practiced) more traditional marketing and communication methods. Perhaps the differences between digital and other forms of communication is something that some leaders are hesitant to acknowledge because the dramatic changes hearkened by the digital revolution might suggest that years of experience are somehow suddenly less relevant  – but I know several brave leaders who have spoken up on behalf of their years of experience doing what has historically worked…until now.

Why IS marketing and communications on social media and web-based platforms so different than marketing on NON-web-based platforms? Why don’t the same rules apply as they have for decades? Why are the lessons from the classic MBA canon (like the Harvard Business Review staple of Chester Burger’s How To Meet The Press) so outdated?  And how could key aspects of entire marketing curricula at the prestigious universities that were attended by our best and most accomplished nonprofit leaders be considered increasingly irrelevant? Surely, marketing is still marketing…

Indeed, marketing is still marketing. But times have changed (and are rapidly changing). The importance of social media in an organization’s business strategy is undeniable. We have a new platform that didn’t exist in the past – and it has changed a whole heck of a lot about how organizations “do” Communications…  perhaps because it has so drastically changed how the market views Communications.

1) Social media is not advertising. It is a different, more effective beast.

Social media is more influential than other forms of “traditional” communication when it comes to spreading your message. To explain, reviews from trusted resources (including channels such as social media and word of mouth testimonials) have a value 12.85 times greater than paid media (broadcast, radio, and other types of traditional advertising). Therefore, there’s no amount of paid advertising that can realistically overcome a deficiency of earned media. Thanks to the real-time, public nature of the web, marketing and PR have been supercharged and we are now able to maximize this other half of the messaging model. Though this model has always existed, word of mouth tended to resist scale and relied largely on one-to-one or one-to-many interactions.  The dawning of the digital age has introduced unprecedented scaling capabilities to many of our communications – where once we had Siskel and Ebert (two people speaking to many), we now have Rotten Tomatoes (many people speaking to many). Because of the introduction of scale – borne largely of digital technologies – earned media and reviews from trusted sources have never been so accessible, obtainable, contemporarily relevant, and critical for an organization to succeed.

 

2) Social media disproportionally influences market behavior

Digital platforms like web, mobile, and social media currently have the highest efficacy among marketing channels in terms of overall, weighted value (contemplative of the market’s perceived trust, and reach and amplification capability of various communication channels). This is especially true compared to more “traditional” channels such as radio and printed materials. In fact, the weighted values attributed to these channels have experienced dramatic decreases even in the last year! Instead, folks are looking to social and web-based platforms to acquire the intelligence to inform their decision-making processes – and these platforms play a significant role as the go-to source for information on leisure activities (salient if you are a museum), especially among those most likely to attend a visitor-serving nonprofit.

 

3) Social media involves evolving technologies and platforms

Unlike largely “fixed,” static media such as print and radio, the mechanisms by which digital messages are delivered and the context within which individual members of the market receive these messages is constantly in-flux. Social media and digital communications depend on rapid innovation, changing platforms, and evolving social mentalities that sink or swim in real-time. They require a strategic flexibility to succeed, and often necessitate experimentation in order to understand how to best reach particular audiences through online engagement. The classic marketing texts of the past remained relevant for decades because – arguably until now – organizations could have one spokesperson, they did have the time to prepare responses before meeting the press, and they could leave a lot more behind closed doors.

 

4) Online engagement necessitates perceived accessibility in order for organizations to succeed

The alarmingly condescending-in-hindsight, stilted tone of past marketing and PR campaigns has gone by the wayside in the age of social media. In essence, the world has become more transparent and people want to know more about the brands that they support – nonprofits included! In the past, organizations could often divulge only what they wished, but now organizations must answer straightforward questions posed on public platforms in real-time, or watch their reputation and consumer-base shrink… also in real-time. In short, this change challenges the way that many in the past have been taught to “communicate with the press.” In today’s world, organizations communicate directly with the public. And they need to be likeable and relatable.

 

5) Social media is real-time and 24/7

Though it was historically done more passively, brands have always been building relationships in real-time – even while the CEO or other appointed spokesperson was off the clock. People have spread valuable word of mouth messages at cocktail parties and talked shop on the back nine of a golf course for generations. However, from a broad public perspective, it was generally understood that an organization’s “real people” were not accessible outside of the historic “nine to five” workday. Today, the real-time nature of digital platforms have made organizations accessible at all hours and in all situations. And the public especially utilizes these platforms during moments of crisis – the very times when organizations in the past may have been particularly grateful for the ability to remain silent as they got their PR ducks in a row.  Moreover, organizations are expected to respond to inquiries on social media platforms in real time. 42% of individuals using social media expect answers to questions that they ask online within one hour. Unlike traditional media that runs as per a schedule and a plan, social media requires active management and necessitates the implementation of real-time PR strategies…all day. Every day.

 

Are all of the marketing (and even broad strategy) baseline best practices taught in MBA courses of the past and cultivated for decades becoming completely irrelevant? Of course not. However, societal and technological evolution may find these long-time graduates and folks “with X years of experience in the industry” challenging themselves to re-purpose their experiences to better apply to today’s marketing environment.  In fact, I’d propose that perhaps those seasoned individuals willing to embrace social media and digital engagement may be our greatest industry assets in adapting strategies to best suit evolving technologies. Many of the marketing best practices of the past are directly at-odds with today’s practices, and leaders who can evolve their own thinking may be the most successful in leading their organizations into the future. 

 

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, Nonprofit Marketing, 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

Lies, Damn Lies, and Statistics: The Nonprofit Social Media Data Dilemma

marketing and sales cartoon

Everyone seems to be all about the world of “big data” right now. And – as a data nerd who gets her professional kicks in that same space – I’m not (even a little bit) complaining. I’ve found in my work with IMPACTS that nonprofits are placing an incredibly strong emphasis on data collection and analysis. Ostensibly, organizations paying careful attention to their social media data may seem an encouraging trend, but in our age of information overload many organizations are misplacing emphasis on the wrong metrics – or misinterpreting the meaning of these metrics. In essence, social media metrics are becoming nonprofit (and even business) fool’s gold. 

Social media data is critical to understanding how your organization best engages with the market – and this knowledge is critical to achieving your goals. However, social media data are diagnostic metrics and NOT key performance indicators (KPIs). They inform how your organization is doing on social media…NOT the overall health of your organization. (They are related…but not the same.) Confusing the meaning and rightful application of this data can put organizations on a very arduous, frustrating path. Is a healthy organization active and engaging on social media? You bet. But high engagement numbers on social media mean absolutely nothing if your organization isn’t getting more people in the door, increasing membership renewal rates, facilitating donor-related conversations, or achieving any number of the goals that indicate the solvency and relevance of an organization.

Am I getting too jargon-y with all of this “KPI” talk? Here are some clarifications:

Key Performance Indicators (KPIs): KPIs are used to evaluate the ongoing success of an organization or a particular initiative. Success is often defined in terms of making progress toward achieving the strategic objectives that optimize the solvency of an organization. In other words, KPIs have a direct correlation to desired outputs (fundraising, visitation, etc.). For instance, for our nonprofit visitor-serving partners at IMPACTS, we measure items related to market sentiment that include metrics such as reputation (e.g. top-of-mind metrics), educational value, satisfaction, value-for-price perceptions – and other items that correlate directly to the “health” of an organization and its ability to achieve its bottom line objectives.

Diagnostic metrics: Diagnostic metrics are data points that contribute to KPI performance and aid organizations in pinpointing specific opportunities. In the online space, these metrics allow organizations to observe how effectively they are engaging audiences. However, these metrics cannot “stand-in” for KPIs because they are a sub-measurement of assessment criteria (i.e KPIs) that lead to desired behaviors. For instance, on the surface, certain social media diagnostic metrics may look positive, but if they aren’t elevating your reputation (a key driver of visitation), then…well, a “like” is just a “like.” Diagnostic metrics are also helpful for “listening” to audiences, and informing organizations of opportunities for improvement.

Here’s how they work together (flow chart style):

IMPACTS - KPIs and Diagnostic metrics

And here are three, critical points to consider concerning social media metrics:

1) Social media metrics do not directly measure your bottom line (so keep them in perspective)

A measurement indicating online reach, for instance, only measures online reach. Just because your organization reached a large number of people with a social media status doesn’t mean that anyone paid attention to it, that it was the right message, or that it strengthened any individual’s connection to your organization. Is does mean that the message had the opportunity to build a bit of affinity among a certain number of people. This is not your bottom line. More meaningful metrics include donor giving, membership acquisitions and renewals, and attendance.

2) Even when social media metrics are high, they can still be at-odds with KPIs (making it HARDER for your organization to achieve its goals)

This is a big one. If you are evaluating the efficacy of your digital strategists and social media community managers strictly by Facebook Insights numbers – knock it off (please). These metrics can be purposefully and even accidentally inflated to the detriment of organizations.  “Gaming” this system is child’s play for even the most neophyte of social media professionals.

To cut to the chase: If you’re measuring social media efficacy strictly by social media numbers and rewarding staff based on these metrics, you’re actively setting up your organization to fail. Your team may feel pressure to offer discounts or post superfluous updates that will artificially increase engagement rates (i.e. good for them in terms of their performance evaluation), but these practices will ultimately increase visitor dissatisfaction, devalue your brand, marginalize your mission, and demean your perceived reputation as “expert.”  Have you asked yourself this question: If we’re so popular online,  how come nobody is coming in person?  Chances are that you’ve created ineffective, misleading evaluation criteria based on social media metrics and not true KPIs.

3) You do not control the platforms providing key social media metrics. (They actually control YOU)

TANSTAAFL (pronounced: “TAN – staf –ful”) was a common “word” on campus at my alma mater. It stands for “There ain’t no such thing as a free lunch” (though it came from science fiction writer Rober A. Heinlein, the term was popularized by Milton Friedman, the Nobel Prize-winning University of Chicago professor – hence, the popularity on campus).  Sometimes organizations get so caught up with the ability to report numbers that they forget to think critically about social media metrics. Specifically, they forget about the concept of TANSTAAFL as it applies to social media.

Facebook and You - Product being sold

Over 15 million businesses, companies, and organizations have Facebook pages and sometimes Facebook metrics have bugs. Actually…a lot of the time Facebook metrics have bugs. At IMPACTS, we attempt to correct for bugs by gathering insight information from several organizations and normalizing it, comparatively…but if you’re a single organization, you likely don’t have this opportunity and you are, well, a wee-bit stuck with whatever information or misinformation Facebook shows you. Organizations that run more than one Facebook page likely know first-hand how common system-wide bugs are for individual pages. If you notice a bug in your Facebook Insights, the best that you can do is contact Facebook and hope – over the course of several months – that they will fix the bug. Here’s a thing to remember: Your organization is using Facebook for free or at a low cost (if you aren’t constantly buying ads, or promoting or sponsoring posts) and there isn’t a direct incentive to fix your Insights bug (that you may or may not know that you have). In short, these metrics should not be the MOST important metrics or the ONLY metrics for your organization.

There’s no doubt that social media measurement is absolutely and increasingly critical to effectively engage audiences and remain relevant with the market. These metrics are NOT unimportant. But with social media metrics being relatively accessible to non-expert evaluators, and absent the considered interpretation and analysis of their “true” meaning, organizations risk confusing isolated data points with KPIs.

Bottom line: Social media is a tool for achieving your organization’s goals. Social media metrics help organizations assess how well they are using these tools.  However, these metrics are not the end-all-be-all assessment tool in your organization’s toolbox…and organizations that misunderstand how to evaluate these metrics in terms of larger organizational goals risk confusion, frustration, and may jeopardize their long-term success. 

 

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, Myth Busting, Nonprofit Marketing, Trends 2 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

Inequality: A Nonprofit Social Media Best Practice

stand out fish 1“All men are created equal.” No doubt you’ve heard that before, and no doubt I’d have a hard time finding a public-service motivated nonprofiteer who would disagree with that sentiment. I personally agree with it…except when it comes to social media. And if you’re a smart nonprofit organization, you may risk the efficacy of your entire marketing strategy if you don’t understand that inequality of social media followers should be a founding principle in your social media plans.

Simply put, your organization’s fans and followers are not all of equal value to your nonprofit’s relevance and long-term solvency – and treating every ‘like’ the same way means purposely sabotaging your ability to achieve organizational goals through social media. Some types of fans and followers are much, much more important than others in terms of increasing amplification, spurring visitation (if you’re a visitor-serving organization) and inspiring donations.

Like most matters of organizational strategy, social media is about “knowing where your bread is buttered.” Many nonprofit organizations misunderstand the distinct importance of unique online audiences or individuals, and instead, calibrate their efforts to the average “potential supporter.” Forcing striations of unique audiences to a “mean” misses opportunities for deeper, more meaningful engagement with higher-value individuals and wastes precious resources trying to attract folks that aren’t likely to engage with your organization beyond a status “like.”

As a reminder, many of the “rules” of real life (both social and business-related) generally apply to social media – perhaps foremost amongst these truisms being Pareto’s Principle (i.e. the “80-20” rule).  Applied to social media, Pareto holds that 80% of your engagement and support will come from but 20% of your audience. 

So what audience members should demand most of your social media attention? Pay special heed to these folks:

 

Members/donors

Sounds obvious, huh? Does it sound so obvious that the person running your social media channels has access to a list of members and donors right now? Probably not. (Quick! Email or print a list and run it over! It’s cool…. I’ll wait here.) If you’re like most visitor-serving nonprofits, membership and marketing/communications operate separately, and this separation often means that this critical (and very simple) little action item has been overlooked… along with several others.

In fact, this overlook is indicative of a necessary shift in how we think about the relationship between marketing and membership in the digital age. As I’ve mentioned before, membership increasingly needs the marketing department to function – not the other way around. However, your organization needs both departments to keep its doors open. Contemplating the role of social media in cultivating donors and members is a must for organizations. Knowing who these supporters are and where their interests lie provides the marketing folks with the information that they need to a) identify these individuals; b) pay special attention to their interactions on social sites; and c) utilize this information to inform content strategy to ensure that these high-value individuals remain actively engaged.

A goal of social media for many organizations is to inspire visitation and cultivate donors (and social media is pretty darn good for that). As a little hint: those who have already proven their affinity through membership or a donation are likely to be those who will support you again and potentially provide ongoing support. If you don’t know who they are and what they like (or you’re missing an opportunity to target specific content to these audiences), then you risk losing this valuable, precious market to a competitor (for-profit or nonprofit) who is paying better attention to their wants and needs.

 

Influencers

Influencers are bloggers or other content-creators with a high-perceived word of mouth value across a range of personal networks. This is the category in which the elusive and powerful “mommy bloggers” make their appearance for many organizations. If properly cultivated, content creators provide a trusted voice to share your mission messages.

Ample data support the importance of targeting Influencers as a key component of an organization’s social media strategy. For example, 29% of consumers trust blogs over other forms of digital marketing, and blogs are even more likely than Facebook to influence a purchase decision. Influencers aren’t just bloggers. They are also active on other social media platforms. But beware to judge the strength of an Influencer simply by their follower numbers. Influencers with smaller, more focused followings sometimes have more influence than those with a larger following.

A little bit of paying personal attention can go a long way in inspiring affinity.  On a personal note, I really like to run. Though my tribe on social media is generally nonprofit and/or marketing folks, Brooks (the running shoe company) pays special attention to me. They send me free running shoes and, in turn, I know that they want some link-love and positive word of mouth when I just can’t help but share a race-related update…and I’ll give it to them willingly. Why? Because they simply let me know that they are paying attention to me. They have mentioned this blog. They keep track of what I like. I feel like they know me. I have purchased far more of their gear as a result of these efforts than the cost of their investment, and just learning a bit about me could not have taken more than five minutes of their time. There’s both a lesson and an opportunity here for nonprofits.

Another personal example? My alma mater’s Twitter account sometimes converses with me and other alumni. Without being asked, I made an online donation last month simply because they occasionally remind me that they are paying attention to me and make me feel like part of a community.

Social media unleashes the same dopamine that is released when you physically interact with someone, and we get a physiological and psychological rush of this feel-good chemical when we share things on social media. Nonprofits may do well to capitalize on this phenomenon to build affinity among those Influencers who can amplify your messages and cultivate more/higher-level visitors and donors. The broad action items are rather simple: 1. Identify these people. 2. Uncover their personal points of connection to your organization. 3. Start a conversation. Good-case-scenario: you’ll have cultivated a potential supporter. Awesome-case-scenario: you’ll have cultivated a socially influential supporter.

 

Evangelists

Evangelists are folks who have a high level of affinity for your organization’s mission and brand. These people like you (they really like you, not just Facebook-like you) and pay close attention to your content. They think you’re cool, interesting, and just downright important. High-level Evangelists are often also members or donors – and they may be Influencers as well. Some Evangelists may be non-members who are likely to share your message or support your organization with a visit (if you’re a visitor-serving nonprofit), and are ripe and ready for another level of engagement – say, providing support by attending a special fundraising event.

There are varying levels of Evangelists, and this is a broad term that we use for “folks who like you and want to help you.” They do this in different ways: Some may provide financial support, but the most common method of support that I observe is via the re-amplification of your messages. At the risk of over-simplifying this audience, these are your Facebook “sharers” who promulgate your content to their networks.

To be clear, the vast majority of people who “like” you on Facebook or follow you on Twitter (or any other platform, for that matter) are NOT higher-level Evangelists. In fact, most of your audience on social media channels likely falls into a “low-to-mid-level Evangelist” category – occasionally engaging with your organization from time-to-time but without making the brand a clear part of their online identity. To be sure, these lower-level evangelists are important. Content should aim to spark a connection with them to bump them into higher-level categories. However, these folks are not nearly as important as those who speak out about you and consistently let their friends know that they “real-life-like” your organization. Organizations should focus on higher-level evangelists because they are your likely repeat visitors and have potential to lend real-life support – either through valuable word of mouth marketing or future financial contributions.

Among online audiences, real-life donors/supporters, Influencers, and Evangelists are the most important folks to target with your nonprofit PR strategy. The quality of your fans is far more important than the quantity of your fans on social media platforms. If your organization isn’t paying special attention to key audience members, then your social media strategy is likely leaving both money and mission-amplification on the table. And these are things that most organizations cannot afford not to lose.  Not all audiences are created equal.

 

*Image photo credit  belongs to nexlevelvision.com

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Posted on by Colleen Dilenschneider in Community Engagement, Digital Connectivity, Myth Busting, Nonprofit Marketing, Trends 2 Comments

Marketing Your Nonprofit to Audiences that ACTUALLY Matter

dilbert_mediocrity

This is a bit of a tough-love post.

The nonprofit sector has lots of hard-working people trying their gosh-darn best to create social change. And, yet, there are still far, far, far too many organizations headed by smart, thoughtful leaders flailing in their attempts to concurrently achieve their missions and ensure their long-term financial futures.

Many of these same organizations have researched their perceived competitive sets to learn from their nonprofit colleagues and peers…and, well, perhaps this is part of the problem.  Namely, many nonprofit executives are collecting information and doing everything in their power to keep up with nonprofit-dubbed best practices….and, perhaps that’s why a lot of them are still flailing…and why many will ultimately fail.

As a sector, many nonprofit organizations have confused “pervasive practices” with “best practices.”

These nonprofits are doing it wrong. Our hearts are in the game, but we continue to grapple with the same issues that have always challenged our effectiveness: burn-out, low-pay, fundraiser retention, donor cultivation, long-term solvency, etc.  Albert Einstein said that the definition of insanity is “doing the same thing over and over and expecting different results.” Perhaps many of us have been called “insane” for sticking to the hard work that we do but, arguably, too few people call us out for doing the same thing over and over and thinking things are going to change.

I have a proposal of where to start stopping this insanity: Nonprofits must pay significantly more attention to the market. The market – not internal audiences and certainly not other nonprofit organizations – determines your organization’s relevance and long-term sustainability  

Here are some friendly reminders that may help your bottom lines of promulgating your mission AND promoting long-term financial solvency:

 

1) Nonprofits often determine importance but the market always determines relevance

Nobody caresLet’s not undervalue the critical role of our organizations: Many nonprofits are rightfully perceived as “content experts” in their respective fields and, as such, are highly-credible, trusted authorities.  In other words, as “experts,” nonprofits often are able to declare “importance.”

However, if the market isn’t interested in your area of expertise or does not find it salient in their lives, they may deem your “importance” to be irrelevant.  All too often, nonprofits misunderstand this relationship (or generally misunderstand the role of the public as the ultimate arbiters of an organization’s relevance), and spend significant time and resources essentially “talking at” people with their important voices.  These practices don’t amount to dialogue – and they certainly don’t foster the types of meaningful, lasting relationships that we are all endeavoring to develop with our audiences.

A part of even staying alive in the digital era is “showing” and not merely “telling.” Content is king, and building personal connections helps to provide opportunities to prove relevance and open the door to conversation regarding your “important” content. If you make your organization relevant through storytelling, you can help audiences understand what is important and why. But, and again, this is a harsh truth: If you are telling your story and solely explaining its importance without first establishing its relevance, then the market will speak…by not acting.

When evaluating the effectiveness of an organization’s messaging, I always revert to the most basic of marketing principles: What’s in it for the audience?  In other words, does my “important” message articulate a personal benefit to the target audience?  If your message doesn’t articulate a meaningful personal benefit, then it is likely to be deemed irrelevant.

 

2) The market determines the means by which nonprofits best communicate (not the other way around)

Many organizations are not adequately investing time and resources into web and social media support – in spite of abundant data that compellingly indicate that these are the most important marketing and communication platforms. Often, nonprofit leaders simply don’t understand social technology platforms (or are scared to dive in), and just keep chugging along trying to create impact through direct mail, brochures, billboards and 15 second spots on drive-time radio…in spite of data clearly indicating that no amount of paid advertising can make up for a lack of word-of-mouth advocacy like that achieved via social media.

Moreover, the more “traditional” marketing channels are considered less trustworthy than real-time communication channels, so sticking to these methods doesn’t do your organization any reputational favors. (And if your methods are so outdated, perhaps the audience may similarly perceive that your message cannot be that urgent. The market won’t wait for you to catch up.)

Here’s the point: You can have the best message in the world, but if you shout it into to an empty room, then it doesn’t matter. Nobody heard it. Instead, go to the room where the party is taking place and share your message through the channel that works best for your audiences and not the channel that makes you most comfortable.

 

3) The market (not other nonprofits) informs your strategy, so beware of unintentional collusion

follow the leaderJust because other nonprofits are doing something, doesn’t mean that they are doing it right or achieving a desired outcome…or even that they have any special information that you don’t possess. Often, nonprofits become subject to what we at IMPACTS call “unintentional collusion.” In other words, they base their practices off of what other nonprofits are doing, assuming (often incorrectly) that the nonprofit that started the trend either had some sort of “insider knowledge,” or that the decision yielded positive results. Time and time again, this proves untrue.

If you want to know what works or if something may be a good idea, look to the market and your audiences’ behaviors – not to the average operations of other flailing nonprofits. Nonprofit executives should care what the market is expecting, and not what other nonprofits are doing. For some reason, this seems to be a hard one for many institutional leaders. If the best that you want for your nonprofit is to be mediocre, then aiming for the middle or matching your marketing efforts to industry averages is the way to go. My guess, though, is that this is not what you want for your organization.

When it comes to informing your strategy, use case studies from successful organizations – for-profit and nonprofit alike – that are similar to your own in content, promised personal benefit, and primary audience. In other words, find the best of the best and learn from their examples. (Please note: By “the best of the best” I mean the organizations that are actually achieving their missions and performing well financially…not those organizations who may be getting by on perceptions that don’t align to their current fiscal realities.)

Talk to other executive leaders to discuss the outcomes of their most impactful initiatives, and match their experiences to market data to find out if a similar initiative would work for your organization. If all nonprofits aim to be the best they can be and are contemplative of how to reach their section of the market, then the industry can be elevated. If we all revert to the “average,” we cannot evolve. If we cannot evolve, then we cannot thrive in an increasingly competitive, fragmented world.

Nonprofits don’t seem to have a hard time paying attention to one another or paying attention to their own internal desires but, perhaps ironically, nonprofits are less frequently equally contemplative of the market. As a reminder to nonprofits: You need your followers more than they need you. Pay attention to what they want or you may be left alone on a soapbox self-importantly talking about yourself to a family of tumbleweeds.

 

*Image photo credit (in order) belongs to Dilbert, Hugh MacLeod, Eloqua and Funny-pics.

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Posted on by Colleen Dilenschneider in Community Engagement, Myth Busting, Nonprofit Marketing, Sector Evolution, Trends 10 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.

 

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, Millennials, Myth Busting, Nonprofit Marketing, Sector Evolution, Trends Comments Off on Urgent Evolution: Marketing Your Nonprofit to the Audience of Tomorrow (DATA)

The New Normal: Three Elements of Social Media Success for Nonprofit Organizations

Three Elements of Social Media Success KYOB

Carrying out effective audience engagement that yields returns demands constant attention to three, audience-focused moving parts. 

All too often, I encounter CEOs of nonprofit organizations who simply think that the task of carrying out effective social media consists of, well, “doing social media.” To these leaders, the task would seem to require one full-time equivalent (or, preferably less, if they can possibly get away with it!), and comprises some nebulous combination of posting Facebook statuses, re-writing press releases to masquerade as blog posts, and running around a museum with a cell phone camera.

But there is some terrific news:  While perhaps occasionally lacking specific expertise, these same nonprofit executives increasingly understand the basics – social media is important for reaching new audiences, retaining supporters, and achieving long term financial solvency. Now is an opportune time to capitalize on the salience of social media and better articulate its many values to the executive leaders and board members who approve our marketing plans and budgets.  Now is the time for we marketing professionals to empower our organizations with a vastly improved understanding of what it means to “do social media.”

“Doing social media” (i.e. developing and deploying a social media strategy) requires contemplation of three distinct – and equally important – broader tasks: content creation, community management, and social media measurement.  Here’s what these considerations entail and why neglecting to invest resources in any one of these three areas of social media management may result in an inability to achieve your organization’s goals:

 

1) Content Marketing (Building the relationship)

Arguably the most well known of the three areas of social media relationship development is the potential to use it for effective content marketing. Content is king in our digital world, and powerful content has the ability to (a) build affinity for your nonprofit organization (a key to inspiring visitation and donor support); (b) give you a bump in Edgerank (Facebook’s status-delivering algorithm); and (c) increase your brand’s “sneeze factor” on other social media platforms (think retweets and the increased ability to “infect” audiences with your message). Err…apologies to any readers in the public health field for the analogy.

In other words, creating and promulgating engaging, affinity-building content (or, content that is likely to resonate with audiences and inspire a connection with your mission) dictates your social media success in a big way. The better your content, the more people will engage with it. The more people engage with it, the more other people see it. The more other people see it, the more likely you are to access new audiences who may support your cause.

When many executives think of “doing social media,” they seem to think primarily of online content marketing. A big part of doing this effectively is creating your own content (if you’re a visitor-serving organization, then your own location-based content). This is the category into which the “find things to tweet” task falls. It’s also the category where creating videos, developing blog posts, telling stories, taking pictures, carrying out contests, and sharing news resides.

 

2) Community Management (Nurturing the relationship)

If content is king, then interaction may be queen – but not one of those subdued, subservient kind of queens… more of a sassy, equal-to-the-king kind of queen.  Social media isn’t a one-way communication channel like a television ad or printed newspaper article – or other “one-way” outlets which data suggests is decreasing in overall marketing value when compared to the web and social media.  In order to successfully execute social media strategies, organizations must be as living and responsive as their online audiences – if not more so. This means not only “liking” comments that your nonprofit receives on its Facebook wall and thanking your advocates, but also answering their questions.

The buzz term for customer service-like community management is “social care” and it is hugely important for all organizations. Why? Because online audiences already expect it of you. Consider: 42% of individuals using social media expect answers to questions they ask online within one hour. Also, according to Nielsen’s 2012 Social Media Report, one in three social media users prefer social care to contacting you via phone, and a whopping 47% of all social media users actively engage in social care. Translation: nearly half of your digital constituents are regularly using your online platforms to ask questions.

In other words, if you’re already doing social care, you’re not “ahead of the game” (though good for you – it does require time and resources which are often hard to come by in the nonprofit world). Rather, if you’re NOT investing in social care, then you may have fallen behind the prevailing best practices.

What is irrefutable is that community management is every bit as important as creating compelling content when it comes to the successful execution of a social media strategy. The web is 24/7.  People can (and do!) contact you at any time. Don’t keep your audiences “on hold” waiting for answers. Also, (please, please) don’t go dark on the weekends.

 

3) Social Media Measurement (Honoring the relationship)

The true measurements of the efficacy of your social media strategies are their collective impacts on your bottom lines of mission fulfillment and financial solvency. If you’re the Surfrider Foundation and one of the ways that you measure success is encouraging activism, then a successful social media strategy should result in greater participation in beach cleanups and heightened public support for coastal protections. If you’re a museum, then your social media strategy should manifest more visitors, engage more members, and/or inspire more program participants. In a sense, all the talk of counting followers is an ill-conceived, misguided proxy for measuring what actually matters. If your social media strategy is working well, then you’ll be closer to achieving your organization’s broader mission.

Here are two things to keep in mind as the social media world turns:

A) You don’t get “bonus points” from the market for being online. The overall weight and power of social media as a marketing channel – and several case studies containing compelling data and research that I have been privy to in my own work – suggest that NOT investing in an effective social media strategy can have devastating effects on an organization’s reputation, relevance and solvency. The market (including donors, visitors, legislators, program participants, etc.) is using social media to make decisions about your organization. Reputation drives attendance and donations.  And, in terms of reputation, we see time and time again that organizations don’t “get points” for being accessible online – they “lose points” when they are not.  They also “lose points” when they do something wrong (i.e. they aren’t transparent, share too many blatant marketing messages, withhold information, leave questions unanswered, or delete thoughtful-but-negative comments from their Facebook timelines).

Setting up a Facebook page won’t necessarily bump up your bottom lines. Social media is a tool that opens the door to increased affinity for your organization and its mission. If you’re doing it well, you won’t always see a bump in attendance…the pay-off will be in your future existence!  The era of social media has transcended the time of luxurious betterment to become a matter of absolute necessity. Do it well, integrate audiences, follow best practices and you should see an increase in reputation and, in turn, the attainment of your organizational goals. Do it poorly, and risk obsolescence.

B) Social media monitoring critically provides a real-time feedback mechanism with your audiences so that your desired outcomes are more likely to occur.  First, let’s talk about measurement because there are a lot of meaningless metrics contributing to the social media data dilemma.  Your desired outcomes are the truest measurement of success (visitation, donations, advocacy and other “bottom line” outcomes). It is important to pay attention to what kinds of content your audience is responding to so that you may produce more of that affinity-building good stuff and not just raising your fan count or like number. Your raw number of social media followers doesn’t really matter because the quality of the follower is far more important to your organization’s bottom lines than are your number of followers. In other words, an organization may more easily (not to mention effectively) achieve its goals if they have 100 true evangelists who visit, donate, and promulgate the mission than have 10,000 followers who are less engaged in the relationship.

So what is worth monitoring? Sentiment and quality engagement. That is, how potential stakeholders are interacting with your organization and its content, and what people are saying about your organization. How well you are reaching these quality audiences is also worth monitoring.  These areas focus on what counts and also provide meaningful metrics that allow you to measure improvements over time. To put it bluntly: When it comes to activating audiences, the quality of fans and their engagement is more important than numbers of fans and less meaningful engagement – by a long shot. Need a quick fix to help guide your measurements? Stop thinking about likes. Take a look at your shares instead.

Content marketing, community management, and social media measurement are critical components of a long-term social media strategy and should be integrated into the activities of an organization’s marketing and PR teams. These three components work in careful balance – miss one and the whole system is thrown off. Indeed, social media is all about relationships. Organizations that are successful are those who honor the relationship and invest in the tools for keeping this relationship strong.

 

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Posted on by Colleen Dilenschneider in Community Engagement, Digital Connectivity, Nonprofit Marketing, Trends 2 Comments