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

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

The Top Seven Macro Trends Impacting Cultural Organizations

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

The Three Most Overlooked Marketing Realities For Cultural Organizations

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

Are Mobile Apps Worth It For Cultural Organizations? (DATA)

The short answer: No. Mobile applications have been a hot topic for a long while within the visitor-serving industry. Read more

Breaking Down Data-Informed Barriers to Visitation for Cultural Organizations (DATA)

Here’s a round-up of the primary reasons why people with an interest in visiting cultural organizations do not actually Read more

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

IMPACTS data

Mission Motivated vs. Transaction Motivated Members: What Your Cultural Organization Needs To Know (DATA)

Data suggest that members to cultural organizations often fall into one of two categories – and the categories tell a lot about how to engage these members.

I originally debuted this important data during my keynote at the Pennsylvania Museums Conference this spring. Today, I’m excited to share this information in this week’s Know Your Own Bone Fast Facts video. This data may help directly pave the way for the future of membership for cultural organizations. As usual, when I refer to cultural organizations, I am talking about museums, aquariums, botanic gardens, zoos, performing arts organizations, and other mission-driven organizations that welcome visitors.

At cultural organizations, we tend to lump members together as one audience – but data suggest that most folks are driven to become members based upon one of two very different motivating factors. Understanding these motivating factors may allow us to develop more effective membership programs. This data illustrates that what we consider “membership” may actually be two related – but different – programs.

IMPACTS surveyed members of 118 cultural organizations that charge admission. These organizations range from museums to zoos to orchestras. For the study, we collected open-ended responses regarding the primary benefit of membership. We found that people who purchase memberships to cultural organizations do so for six primary benefits: Free admission; belonging to the organization; supporting the organization; contributing to mission impact; exclusive access to events, and member discounts.

Conceptually, these six benefits fall into two groups: transaction-based members and mission-based members. Transaction-based members are those whose answers may not surprise leaders at all, because their reported primary benefits align with the benefits that most organizations market for membership. Transaction-based members value free admission, exclusive access to events, and member discounts. No surprises there for membership teams, most likely. In fact, you may even be thinking, “Thank goodness that those member discounts are being valued!” Indeed, for some folks, they are valued.

Mission-based members (as we will call them) are driven to become members for reasons more directly related to an organization’s mission. Mission-based members value belonging to the organization, supporting the organization, and contributing to mission impact. These folks value the meaning of membership more than the transaction-based benefits.

We found it interesting that the top six benefits reported by members could be divided in this way and we wanted to dig in deeper. Does a member’s primary benefit affect how they perceive and value their membership? As it turns out, it definitely does. We organized responses based upon what members identified as their primary member benefit, and we immediately spotted some noteworthy differences.

 

1) Mission motivated members find greater value in their memberships

People whose primary motivation was to support the organization, belong to the organization, and contribute to mission impact found their membership to be 14.5% more valuable than people who joined primarily for free admission, discounts, or event access.

Value for cost by membership benefit

 

2) Mission motivated members pay more for memberships

Does that mean that these folks might be more likely to buy higher-level memberships? Yes! As it turns out, mission motivated members in the survey were paying 42% more for memberships than transaction motivated members – and, as a reminder, they are still finding their membership to have 14.5% higher value for cost.

membership cost by primary benefit - IMPACTS

 

3) Mission motivated members are more likely to renew their memberships

Members that are primarily mission motivated are also more likely to renew their memberships. In fact, mission motivated members are 14% more likely to annually renew their membership than those whose primary benefit is free admission.

propensity to renew membership by primary benefit - IMPACTS

This data suggest that what we call “membership” to cultural organizations may actually be two, different products: membership and an annual pass benefit. It is certainly a balancing act, as mission motivated members are primarily motivated by mission-based factors, but transaction based benefits may not hurt the deal. Perhaps it is us within the industry who blur the line and discourage mission-based members from being fully cultivated.

Consider this: many cultural organizations tend to believe that free admission is the most important benefit of membership. Indeed, it is a significant motivator for many members– but it’s also the benefit that cultural organizations highlight and market the most – sometimes at the expense of mission-related benefits. When we make our memberships primarily about transactions, we neglect the motivations of our most meaningful members.  Go pull up nearly any membership page to a cultural organization right now and I’ll bet that the primary selling point that you see is free admission, and the concept of supporting mission impact is presented as a “feel good” that is secondary to “the deal.” Again, this isn’t to say that free admission isn’t important to members and an appropriate benefit for member categories, but if you were a truly mission motivated potential member looking for your ideal way to support the organization, you may find that the method of support that you want does not exist. Or rather, it may exist, but you may not feel that optimal “passion match” because your own motivations are secondary to transaction-based benefits.

Members whose primary motivation is mission-related, find greater value in their memberships, are willing to pay more for memberships, and they are most likely to renew their memberships. These are our people and prioritizing them is a smart move. Let’s use this information to create more effective membership programs that optimize support for our organizations and support long-term solvency.

 

Like this post? Don’t forget to check out my Fast Fact videos on my YouTube channel. Here are a few related posts from Know Your Own Bone that you might also enjoy:

 

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, Fast Facts Video, Financial Solvency, Fundraising, IMPACTS Data, Myth Busting, Sector Evolution 1 Comment

What Wealthy Donors Consider Before Making a Gift Greater Than One Million Dollars (DATA)

It isn’t necessarily your organization’s mission that matters most to ultra-wealthy donors…

Some data sets are worth going over twice and making a video about them so that they sink in. This week’s Fast Facts video is one of those data sets. After all, what organization couldn’t benefit by better understanding what factors inform and motivate a gift of more than one million dollars to a nonprofit organization?

The results of this study are worth blazing into our brains. While you may have guessed that the items topping the charts would be on the list, you may not have guessed that they would be the MOST important factors when high net worth donors considering making a gift.

SO, how can organizations engage high net worth donors? To get to the bottom of this million-dollar question, we asked these individuals themselves. The answers might not be what you think.

We define an Ultra High Net Worth Individual as someone with net assets greater than $50 million. 38,000 such individuals reside in the US, and that’s the greatest number of UHNWIs in the world. The study below collected responses from 112 ultra high net worth individualsFor the study, undertaken by IMPACTS, individuals were asked open-ended questions to identify their most important considerations with regard to making a gift greater than one million dollars to a nonprofit organization. Individuals were then asked to rank considerations from 1-10 in terms of their importance.

Here’s what we found:

UHNWI donor considerations

There’s a tie for the first place consideration. Who else has given to an organization and how much other major donors have given are the most important factors when these folks consider making a major gift. Who is on the board is the next consideration, followed by the how much those board members have contributed, round out the most important factors informing ultra high net worth individual giving.

Interestingly, it isn’t until the fifth, sixth, and seventh considerations that the impact of a major gift, mission, and the organization’s commitment to that mission make an appearance.

To whom an organization’s mission matters, matters most when it comes to making a large gift.

These findings are not altogether surprising. Successful fundraisers know that money often follows money, and that social connections play a big role in securing gifts from very large donors. But what’s interesting is that simply being good at your mission often isn’t enough. You need to have demonstrated that your mission is worthy of investment among high-impact individuals.

These data also demonstrate the importance of having a connected board that is willing to put its money where its mouth is. After all, if the folks on an organization’s board don’t care enough about an organization’s mission to support it in a meaningful way, then why should someone else?

Mission and impacts are important. After all, data suggest that the mission and purpose of the organization play important roles in securing quality board members in the first place. That said, once the board is complete and it comes time to look for high net worth donors, having wealthy evangelists (or a group of them!) advocating for your organization may be critical for success when it comes to fundraising.

This information may be seen as a call to action for board members – the data underscores why organizations need them most. And, interestingly, studies reveal that board members often misunderstand their role as financial supporters within cultural organizations. It’s time for all of us on boards to step up. Again, if we’re not giving or championing the cause of our institutions, how can we reasonably expect someone else to do so?

It’s also a wake up call for staff members. The identity of donors and board members and their giving fuel major gift decisions. Certainly, staff may play a role in facilitating and supporting connections between board members and potential donors, but what matters most to donors are the philanthropic commitments of their peers. If board members don’t step up, then it is difficult for organizations to overcome this internal giving deficiency. And that’s exactly what board members who do not give adequately create – a deficiency.

For all of us on boards, let’s rise to the occasion. We’re in the most target-rich country for ultra high net worth individuals in the world. Our development staff can do great things, but they need our support when it comes to our most potentially impactful donors.

And nonprofit organizations: When you get a big donation from a key player, milk it. Shine lights on it. Celebrate it. Leverage it. Knowing what motivates giving for ultra high net worth individuals can only help us better reach our goals.

 

Like this post? Please check out my YouTube channel for more video fast facts! Here are a few related posts from Know Your Own Bone that you might also enjoy:

 

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, Fast Facts Video, Financial Solvency, Fundraising, IMPACTS Data, Sector Evolution 2 Comments

Attracting Diverse Visitors: Cultural Organizations Overlook The Most Important Factor (DATA)

Attracting Diverse Visitors to Cultural Organizations- Know Your Own Bone

Organizations mistakenly identify underserved audiences based more on ethnicity and race than what these audiences consider their most distinctive attribute – age. 

Cultural organizations (i.e. museums, performing arts organizations, aquariums, historic sites, etc.) are experiencing a phenomenon known as negative substitution of their historic visitors. Simply put, more people who share qualities with historic visitors are leaving the market than are being replaced. In essence, the US market is running lower and lower on older, white people. This means that organizations need to update and broaden the profiles of our typical visitors now in order to thrive in the future.

We need to engage new audiences and make them our regular audiences. Specifically, we need to get better at reaching two broad “types” of people: millennials and “minority-majorities.” Really, though, we need to reach millennials – because the “minority-majorities” that aren’t representatively visiting cultural organizations are overwhelmingly millennials.

There has been an increasing amount of talk about so-called “minority-majority” populations in the US. In general, the phrase “minority-majority” describes a population cohort that has traditionally comprised a minority of the US population, but has recently grown to represent an emerging majority of the US population. An example on a national level are children under the age five – of whom 50.2% (i.e. the majority) represent historic ethnic and racial minorities (e.g. Hispanic, African American, Asian, etc.)

Today, four states (California, Hawaii, New Mexico, and Texas) and the District of Columbia are minority-majority. Additionally, 13 of the 40 largest US metropolitan areas are minority-majority.

Even the connotation of the phrase “minority-majority” risks further confusing the matter.  In the past, minority populations were defined primarily by race. As the US grows ever more ethnically and racially diverse, emerging minority-majority populations are increasingly defined by age.  

Let’s dive into some data that can help us better reach young people, and in doing so, engage people of more diverse racial and ethnic backgrounds:

 

1) Minority-majority audiences are young

According to July 2014 US Census Bureau data, there were 148.6 million people in the US under the age of 35 – or, 46.6% of the total US population! If you further organize these data and exclude more elderly populations, there were 299 million persons in the US under the age of 75…and half of them were aged 34 or younger.

Millennials and minority-majorities are a huge part of the same audience. Data indicate that nearly 22% of adult millennials have visited a cultural organization in the US within the past year. However, as millennials comprise approximately 30% of the US adult population, the data suggest that millennials are representatively underserved as a cultural audience.

Millennials are clearly an emerging audience, yet, all too often, conversations concerning emerging audiences seem to focus less on age and more on race as an indicator of underserved populations. When we talk about millennials, we are also talking about the 47.35% of millennials that are NOT White non-Hispanic.

Why do organizations seem to think of white millennials as millennials, and distinguish millennials of other ethnic or racial backgrounds primarily as minority-majorities? 

Kind of weird, right?

US adult millennial population

The Hispanic population of the United States as of July 2014 totaled 55.4 million, making people of Hispanic origin the nation’s largest ethnic or racial minority. In addition, Census Bureau data indicate that Hispanics, with a median age of 29 years, are younger than most other racial or ethnic groups. By comparison, the median age for non-Hispanic Whites in 43. (The median age for non-Hispanic Blacks is 34, and the median age for Asians is 36.)

Because Generation X is such a relatively small generational cohort, youth has only recently started to demographically prevail.  One could argue that young people are the emerging minority-majority population in the US.

 

2) Millennial audiences are generally underserved by cultural organizations regardless of race

Representative visitation is an issue for nearly all millennial audiences, not only minority-majorities. These data suggest that perhaps the notion of “underserved audiences” has less to do with historic definitions based on ethnicity and race, and much more to do with a generational disengagement.

 IMPACTS - millennial cultural attendance by ethnicity

The above chart indicates that most US adult millennials are underserved in terms of representative cultural participation…regardless of race or ethnicity.  Excepting the relatively modest number of adult millennial Pacific Islanders, Native Alaskans, and American Indians, only adult millennial Asians representatively participate in US cultural organizations.  The three largest racial cohorts (i.e. White non-Hispanic, Black or African American, and Hispanic) – comprising nearly 90% of the US adult millennial population – are all massively underserved. 

Why is this the case?  I posit that it is because organizations observe that they’re not representatively engaging these audiences and think of it as a matter of race and not a generational disconnect.  If it were solely a matter of race, then White non-Hispanics would be representatively participating…but they’re not.

 

3) Millennials generally do not consider race to be a primary defining attribute 

Perhaps one of the reasons that cultural organizations are not representatively engaging minority-majority audiences is because we are developing engagement strategies and programming based on assumptions concerning culture and heritage. We miss the mark when we decide that ethnicity matters most to this audience. We would be better served to understand that we need strategies based on the psychographic and behavioral attributes of a generation that does not consider ethnicity as a primary differentiator. After all, this generation is nearly 50% not “white!”

Take a look at this data from the National Awareness, Attitudes & Usage Study of more than 98,000 persons (including more than 24,000 millennials):

IMPACTS US adult millennial indentifiers by ethnic background

When asked to describe themselves, millennials generally did not self-describe based on ethnic or racial criteria. (The sole exception were Black or African American millennials, and even in this example, racial identity was not their most frequent self-descriptor. Black or African American millennials identify with being young more frequently than they self-describe based on race.)

To more representatively engage young Hispanics as an emerging audience, for instance, significantly more attention should be focused on the “young” part of the equation and less attention on the “Hispanic” descriptor (which doesn’t show up as a frequent self-description by Hispanic millennials). In order to better connect with emerging audiences, organizations need to see these audiences as these audiences see themselves. Otherwise, organizations risk a massive disconnect with the very audiences with whom they are trying to engage.

Interestingly, most every other word that these groups use to describe themselves could apply to other generations.  Youth is their self-described unique attribute.

Also, adult millennial audiences self-identify as “young” before they generally identify by their gender!  (Perhaps this also helps to explain the rise of the transgender rights movement at this moment in US history.  Transgender persons have always existed…why is it that now the movement finds increasing acceptance and salience?  It may be because millennials – the largest generation in US history – identify as “tolerant” and “friendly” and “kind” and “hopeful” ahead of their own gender!)

Millennial cohorts identifying themselves as “friendly” and “kind” is great for cultural organizations! It underscores much of what we know: To millennials (and, increasingly, to all audiences), your organization’s mission matters! This finding also aligns with millennial wants for membership programs.

 

4) There is no meaningful difference in visitor satisfaction based upon race

The data below indicate overall satisfaction for adult millennials segmented by race – and shows that there is no meaningful distinction in overall satisfaction based on race. These data, too, come from the National Awareness, Attitudes & Usage Study.

US millennial overall satisfaction by race

Regardless of race, millennials visiting cultural organizations are generally satisfied.  So our engagement challenge is not one of content – millennials of all races enjoy the experience once they have been engaged.  This finding suggests that the improvement opportunity lies more at the top of the engagement funnel.

In other words, having special Cinco de Mayo programming (i.e. content) may not necessarily better engage Hispanic millennial audiences.  Having programming that appeals to millennials – regardless of race – is perhaps a better means of engaging with Hispanic millennial audiences.  Basically, from an engagement perspective, the operative word in the “Hispanic Millennial” descriptor is “Millennial” and not necessarily “Hispanic.”

 

I have been party to many conversations with cultural leaders asking, “How do we more representatively engage the African American population of Washington DC?” and “How do we better connect with the Hispanic population in Los Angeles?”  These conversations belie the sense that many organizations believe race to be the key differentiator in terms of representative engagement.  Instead, these same leaders should be asking themselves, “How do we engage young people in Washington DC?” and “How do we engage young people in Los Angeles?”

If organizations representatively engage young people – members of the most diverse generation in US history – then organizations will also do a much better job of representatively engaging more racially diverse audiences.  Again, the median age for Hispanics in the US is 29.  The median age for non-Hispanic Whites in the US is 43.  Developing strategies to representatively engage young people is a “two birds, one stone” move: Representatively engaging young people concurrently means representatively engaging more racially diverse audiences. 

All of this is NOT to say that ethnicity and racial background are unimportant. Cultural and heritage awareness and sensitivity are important considerations for all organizations.  And, from an engagement and programming perspective, emerging personalization trends recognize the uniqueness of more diverse audiences.  However, the data does suggest that the way we think of our audiences isn’t necessarily the way that they think of themselves. The data suggest that America has never been more of a melting pot…yet too many organizations seem to silo audiences based on increasingly less relevant segmentation criteria such as ethnicity and race. Cultural organizations need to get better at attracting millennials of all races and ethnicities.

In the end, this is good news. It suggests that efforts to representatively engage millennial audiences should reach all millennial audiences. It’s another drop in the bucket for forward-facing organizations prioritizing transparency, social good, connectivity, communication, personalization, and digital engagement.

Audience diversity for cultural organizations is increasingly a function of representatively engaging young people – not necessarily trying to target specific racial or ethnic groups with one-off, race-based programming.  If organizations representatively engage young people, in turn, they will engage more racially diverse audiences.

 

 

Like this post? Please check out Fast Fact videos on my YouTube channel for more insights. Here are a few related posts from Know Your Own Bone that you might also enjoy:

 

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 4 Comments

Millennials Spend More Than Others On Food and Retail at Cultural Organizations (DATA)

Here’s what your organization needs to know about why this is happening.

This week’s Know Your Own Bone Fast Facts video takes a look at the onsite food, beverage, and retail purchasing habits of different generations at cultural organizations. You may be surprised by the findings….

Check out this chart from IMPACTS that is based on data from the ongoing National Awareness, Attitudes and Usage Study of 98,000 adults and counting. The chart indicates the respective percentages of visitors who make an onsite retail or food and beverage (F&B) purchase while visiting a cultural organization in the U.S.

IMPACTS consumer behaviors at VSOc

Millennials spend more money than previous generations on retail and food while attending cultural organizations. As you can see, millennials are nearly 22% more likely to make an onsite retail purchase than are Baby Boomers, and they are 10% more likely to make a retail purchase than members of Generation X. Not only that, millennials are 32% more likely to eat on site while visiting than Baby Boomers, and 11% more likely to eat on site than members of Generation X. Per capita millennial spending is 28% greater than that of Baby Boomers. That’s a big difference!

This information may be added to the important list of reasons why millennials are particularly awesome visitors to cultural organizations and why it’s incredibly important that organizations start reaching them at representative rates. The case for millennials being worth their bang for an organization’s-sustained-investment buck is growing stronger and stronger.

Why are millennials spending most and how can organizations utilize this information?

What we are seeing here is simply the applicability of broad trends affecting the cultural sector. Here are a few data-based factors that may be at play:

 

1) Millennials go out to eat more often than do other generations.

There are quite a few studies on this. And when we do go out to eat, we generally spend more money.

 

2) Millennials are more socially conscious consumers.

That said, this trend is also increasingly affecting all generations. This is relevant because most cultural organizations tend to be at least somewhat considerate about their food and beverage offerings. Think about the Monterey Bay Aquarium’s Seafood Watch, and other organizations with food options or initiatives focusing local, sustainably sourced food in their cafes. In fact, food offerings with supporting narratives that underscore food ethics (and then put signs on the table, notes on the menu to help tell that story) tend to result in more sales than food options without a narrative.

 

3) Millennials were raised in an aggregated experience environment.

Instead of an individual store, we went to malls growing up…and some of these malls had movie theaters, restaurants, bowling alleys and climbing walls. “One stop consuming” may be a concept that makes sense to this generation in this situation – and may be why some studies have even uncovered that millennials may prefer brick-and-mortor store shopping to online shopping when they can go. Not to mention, an aggregate environment makes things a whole lot easier for folks with small children.

 

Millennial trends are affecting our retail and food and beverage sales in a big way. Let’s harness the factors fueling this opportunity so that we can provide the best possible experiences for our visitors. Not to mention, let’s make the most of these opportunities so that we can secure additional funds to support our missions and operations.

 

Like this post? You can check out more Fast Fact videos on my YouTube channel. Here are a few related posts from Know Your Own Bone that you might also enjoy:

 

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 Fast Facts Video, Financial Solvency, IMPACTS Data, Millennials, Trends Comments Off on Millennials Spend More Than Others On Food and Retail at Cultural Organizations (DATA)

Why Cultural Organizations Are Not Reaching Low-Income Visitors (DATA)

Why Programming for Low-Income Audiences are Unsuccessful

Data suggest that some types of cultural organizations are perceived as more welcoming than others. Here’s how we could do better.

With missions to educate and inspire audiences, many visitor-serving cultural organizations (e.g. museums, zoos, aquariums, theaters, symphonies, etc.) aim to serve low-income audiences in addition to their high-propensity visitors. So, just how good of a job are organizations doing when it comes to engaging lower-income audiences, and how can we make it even better?

Attitude affinities are a way of quantifying how the market perceives an organization in terms of its hospitableness and attitudes towards certain types of visitors. In summary, attitude affinities inform responses to visitor questions such as, “Is this type of organization for people like me? Do people like me ‘fit-in’ at this type of organization? Are people like me made to feel welcome and comfortable at this type of organization?” Extant data indicate a strong correlation between attitudes affinities and intentions to visit an organization. If people don’t feel welcome at an organization, then they are less likely to visit that organization.

IMPACTS quantifies attitude affinities on a 1-100 continuum, whereby the higher the value, the more welcoming (or greater affinity) a visitor perceives the organization. Data indicate that intentions to visit decline when attitude affinity-related metrics drop below 63 on this 100 point continuum. Due to this observed decline in intentions to visit, persons reporting attitude affinities ≤62 are generally not considered to be likely visitors because they do not feel welcomed by the organization.

Certain types of organizations seem to struggle more with negative attitude affinities as a barrier to onsite engagement than do others. Before we dive into the data, it is worth noting the attitude affinities have nothing to do with content – these are not measures of if people prefer animals to art. These are measures of peoples’ perceptions of feeling welcome at any organization. In other words, some organizations may defensively blame these numbers on a phenomenon innate to their content, but that’s generally not the case. After the data, I’ll discuss this a bit more. For now, let’s dive in!

 

IMPACTS - Art museum attitude affinities

As represented in the above chart, 552 of the 1,385 person sample population (39.86%) indicate attitude affinities ≤62 – suggesting that for four of 10 adults, a perception of not feeling welcome at an art museum poses a significant barrier to their onsite engagement. Remember: these metrics don’t even begin to contemplate other barriers like content interest/relevance, transportation, or schedule (a key barrier for general audiences). Out of the gate, four of 10 members of the US market don’t feel welcome in an art museum. But, hey, it’s not just art museums…

 

IMPACTS - History museum attitude affinities

510 of the 1,372 person sample population (37.17%) indicate attitude affinities ≤62. The data indicate that history museums are perceived to be slightly more welcoming to lower income audiences than are art museums.

 

IMPACTS - Science museum attitude affinities

448 of the 1,390 person sample population (32.23%) indicate attitude affinities ≤62 – suggesting that for approximately three of 10 adults, a perception of not being welcome at a science museum or science center poses a significant barrier to their onsite engagement.

We have combined science centers and science museums because the market generally does not differentiate between these two types of organizations. This lack of differentiation may sound like blasphemy for folks working in a science center or science museum, but the market doesn’t parse the nuance that may differentiate these types of organizations. (Preempting a question: No – the data is not meaningfully different when science centers and science museums are separately distinguished for this type of analysis.)

 

IMPACTS - Aquariums attitude affinities

300 of the sample size of 1,335 persons (22.47%) indicate attitude affinities ≤62 – suggesting that for approximately two of 10 adults, a perception of not being welcome at an aquarium poses a significant barrier to their onsite engagement. Comparatively, this is excellent news for aquariums “walking their talk” in terms of being seen as welcoming places! Loyal KYOB readers know that aquariums serve a bit like crystal balls for the future of cultural organizations because they tend to be both the most for-profit and nonprofit among their visitor-serving brethren. Market forces dictate that aquariums, as a simple means of business survival, often need to address changing attitudes, behaviors, and engagement strategies years before other types of organizations that may rely on large endowments and government support.

 

IMPACTS - Zoos attitude affinities

277 of the 1,512 persons sampled (18.32%) indicate attitude affinities ≤62 – suggesting that for less than two of 10 adults, a perception of not being welcome at a zoo poses a significant barrier to engagement. Good work, zoos!

 

Orchastra and symphony attitude afffinities

703 of the 1,540 persons sampled (45.65%) indicate attitude affinities ≤62 – suggesting that for nearly half of the sampled adults, a perception of not being welcome at an orchestra or symphony poses a significant barrier to their onsite engagement. Yikes!

However, for several orchestras and symphonies, this data would hardly qualify as surprising. Many orchestras and symphonies have been challenged by dwindling audiences and are experimenting with creative engagement strategies to better cultivate new constituencies. These data may suggest that overcoming the barrier to engagement may have less to do with promoting a new artist or performance, and more to do with promoting effective access programming.

 

In sum, what do these negative attitude affinities look like among the cultural organizations discussed here? At the risk of inserting one of the most glass-is-half-empty charts to ever grace KYOB (but in the spirit of “real talk”) here’s a summarized analysis: (Don’t worry! There’s a lesson here for improvement so we can move toward beating this! More after the chart…)

IMPACTS - Negative attitude affinities

Why are attitude affinities better for some organizations than for others? There’s a possible, data-informed reason. But first, I need to myth-bust the immediate go-to reason that is probably popping into many-a-reader’s head right now:

 

A) Attitude affinities do not generally correlate with admission price

It was my first thought, too. (Or I guess it would have been if I didn’t do so much data-driven work with regard to admission pricing). Data suggest no correlation between admission cost and attitude affinities. The average visitor to an aquarium reported paying approximately 52% more to visit than did a visitor to an art museum, and also reported 73% lower negative attitude affinities. In other words, persons who don’t feel welcome at an organization don’t necessarily do so because of cost-related factors.

It is important to remember that admission price is not an affordable access program. These things are different. Admission pricing enables successful affordable access programming by supplying the funding required to actually serve low-income audiences – a thing that many organizations (even free ones) aren’t doing very well.

IMPACTS - Average admission price paid

 

B) Attitude affinities DO correlate with lack of awareness of access programming

Interestingly, when it comes to tactics to mitigate cost as a factor to visitor engagement, households reporting annual incomes >$250,000 are significantly more likely to be aware of an organization’s affordable access programming than are households with annual incomes <$25,000. In other words, there are more people annually earning $250,000 receiving messaging about access programming than the people that actually need the access programming! In the case of orchestras and symphonies, high-income households are 3.35x more likely to be aware of an organization’s affordable access programming than are low-income households for which these programs are created!

IMPACTS - Access programming awareness

Low-income audiences that most need access support or assistance are comparatively unaware of access programming opportunities from these types of organizations. BUT that doesn’t mean that those organizations aren’t offering them (as evidenced by the relatively high awareness of these access programs among households with annual incomes >$250,000).

The reason why this is happening is that same reason why “free days” to cultural organizations attract people with higher average annual incomes than do non-free days: Organizations market access programs to high-propensity visitors and historic audiences because those are the folks that they know how to reach. This is happening because organizations generally neglect making meaningful, sustained investments in promoting these programs to the audiences whom they most intend to serve.

Underserved audiences are by their very definition not currently engaging with our organizations. They are not onsite to complete audience research surveys. They are not on our email lists. They are not following us on Facebook. They don’t like our Instagram posts or retweet our messages. So when we boast of our affordable access programs using these channels, we are mostly speaking with our current constituencies.

Engaging underserved audiences requires a sincere and sustained investment. We can create the greatest access programming possible, but if the people who need it aren’t made aware of it, they are unlikely to engage with our organizations.

In order to reach these audiences, we need to have a different messaging strategy than we do to reach other types of visitors. This means building relationships with leaders in lower-income communities to help spread the word, partnering with organizations that already serve these audiences (e.g. churches, schools, libraries, etc.), and actually thinking about how these hopeful audience members make decisions. It is completely different than the marketing and PR that you are already doing in order to reach non-affordable access audiences (i.e. the people that you need to engage in order to keep your lights on and make that messaging to lower-income audiences possible).

Lack of access programming awareness is not the only barrier to engagement for low-income audiences. There are a whole host of barriers to access that cultural organizations should work to overcome (including schedule, relevance, content disinterest, transportation, etc.). These data focus on attitude affinities and do not aim to resolve other barriers to engagement. That said, it stands to reason that access may be the key issue on the critical path to engagement. After all, if audiences are not aware that you offer an access program for them, then, well, they aren’t aware that you offer an access program for them. These folks may not know that you are doing anything to reach them in the first place!

On the surface, these data may look like bad news – but they’re not. This is potentially good news because we can see something that is happening and how it may be unknowingly sabotaging our access programming. More importantly, we can fix it! This information allows us to stop spinning our wheels and focus on where our access programming may be getting stuck – in our messaging.

 

Like this post? Please check out my YouTube channel for video fast facts! Here are a few related posts from Know Your Own Bone that you might also enjoy:

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, Trends 6 Comments

Local Audiences Have Skewed Perceptions of Cultural Organizations (DATA)

Regardless of region or cultural organization type, local audiences are the hardest to please.

As cultural organizations, we tend to love our local audiences. We provide them with all sorts of benefits, believing that local audiences are our best audiences. But, interestingly, data suggest that some of that love may be unrequited.

This week’s Fast Facts video features data that may be tough for organizations to swallow, but may prove important in improving their respective understanding of their audiences. Knowing how local audiences perceive organizations will help them develop more effective strategies for successfully engaging these visitors. As it turns out, local audiences have a skewed perception of the organizations that are closest to them – and it’s not good.

IMPACTS tracked perceptions among 118 visitor-serving organizations in the United States that charge admission. This study comprised multiple types of cultural organizations, including museums (e.g. art, history, science, children’s), zoos, aquariums, botanic gardens, theaters, and symphonies. All organizations were located within the United States, but from different cities and states throughout the country – including both major metro markets and less populated regions. The data ALSO includes both large organizations that are recognized nationally AND more community-based museums that singularly pride themselves on serving locals. In other words, you “This doesn’t apply to me” this data at your organization’s own risk.

For this particular data set, we wanted to know the value for cost perceptions of people attending cultural organizations – or, how good of a value these audiences thought that they received with regard to their visitation experience. (Know Your Own Bone readers have seen this type of perception metric used before.) Take a look at what we found when we cut the data by travel distance.

 IMPACTS value for cost by distance

Local audiences believe that the value of the visitor experience is less worthy of the organization’s admission cost than non-local visitors to the same institution. On average, people living within 25 miles of the organization (or, locals) indicate value for cost perceptions that are 14% lower than those of regional visitors!

But so many organizations offer discounts for locals. Are these folks even paying full admission? No. On average, the locals in this data reported paying 20% less than regional visitors – and they still report that the value wasn’t as worthy of the cost as non-local audiences paying full admission!

Okay. But local audiences are probably more satisfied with their experience, right? After all, the organization is right there strengthening the reputation of their own city, and, again, many are getting in at a reduced cost.

Nope again. Take a look at the data cut for overall satisfaction in regard to distance traveled. Locals report satisfaction levels that are 11% lower than regional visitors who had the same visitor experience.

IMPACTS local satisfaction

This probably seems nuts to many people. What is going on?! Three important things are happening here, and recognizing them may help us create programs for locals that provide a more satisfying and valuable experience.

 

1) People value what they pay for.

These findings support the well-known tenet of pricing psychology that people value what they pay for. Personally disagree in a statement of defense? I didn’t make up this fact – it’s well known by economists and takes place in many situations. And this reality is obvious in the data here. The locals reporting the lowest levels of satisfaction were generally the ones visiting at the most deeply discounted cost basis.

 

2) Folks believe that good things are far away.

We reliably uncover the misconception among locals that if something is that great, it probably isn’t in their backyard. That’s a false premise, but it tends to permeate local perception. Amazingly (to me), this is even true in New York City. But the finding makes sense. Ask someone about the greatest cultural experiences and they are more likely to cite famous entities overseas or across the country than an organization nationally perceived as equally satisfying and successful that is located in the respondent’s community.

 

3) Cultural organizations have created local entitlement

This point is by far the most important: Many organizations have trained locals to feel entitled to free or reduced admission, perpetuating this whole cycle of low satisfaction and low value for cost perceptions. In essence, we created and keep on promulgating this very problem…and we have spread it around like a plague. And it’s a nasty one, lowering our perceived value, devaluing our missions, reducing satisfaction in our experiences, and promulgating not-so-great reviews and word of mouth endorsement.

Locals are obviously incredibly important to our organizations, but there’s an opportunity to design better access programming opportunities for local audiences that are not unintentionally perceived as entitlements. This may mean focusing more on promotional strategies and unique events than everyday discounts.

 

This is the kind of data that I get a chance to share that is likely to make organizations angry. And I can write about it and we can elevate ourselves as a sector and get smarter about our engagement strategies, or this powerful finding could remain private for IMPACTS clients. Keeping it private doesn’t help anyone. The data that makes leaders angry is often the most valuable data. It makes us angry because it challenges something that we thought was “safe.” It makes us think harder. And I believe that thinking harder is always good.

Knowing the true challenges attendant to engaging local audiences means that we are one step closer to overcoming them. Locals may not always be the best audiences for cultural organizations – and it’s largely because of organizations overlooking basic economics and training our audiences into self-sabotaging practices.

 

Like this post? Please check out my YouTube channel for more fast facts! Here are a few related posts from Know Your Own Bone that you might also enjoy:

 

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, Fast Facts Video, Financial Solvency, IMPACTS Data, Myth Busting 1 Comment

Admission Price is NOT a Primary Barrier for Cultural Center Visitation (DATA)

Cost is not a primary barrier to visitation Know Your Own Bone

It’s time to get real about why many people aren’t visiting cultural organizations. Generally, price is not the biggest barrier. 

Cultural organizations have their work cut out for them today. These visitor-serving organizations (museums, historic sites, aquariums, zoos, theaters, symphonies, etc.) are experiencing negative substitution of their historic visitors, often resulting in decreased attendance – at least until organizations get better at reaching underserved audiences such as millennials and “minority majorities”.

It’s a big challenge…and the best way to overcome this challenge is to identify and remove the true barriers to visitation for likely visitors. In order to do this, we need to get smarter about which barriers are real and which are excuses for organizations to avoid the need to think critically about their audiences.

We need to knock it off with the excuse that folks aren’t visiting cultural organizations primarily because of admission pricing.  The simple fact is that scant data exist to suggest that admission cost is the primary culprit when it comes to barriers to visitation. When we mistakenly blame price as the primary culprit for lack of engagement, it holds organizations back from providing better access opportunities and more relevant content. Before we dive deeper into the data, here are four important reminders regarding admission pricing:

A) Admission pricing is a science, not an art.

Determining your admission price should involve neither looking around at other institutions nor sitting around a table of executives and saying, “I guess $20 sounds right…”

B) Admission pricing is NOT related to affordable access.

In other words, organizations that charge admission should charge admission and also have intelligent, targeted access programming for low-income audiences if this is part of their mission. Data suggest free days are not a magical elixir when it comes to attracting low-income and other types of underserved audience. Subsidizing admission prices as an affordable access strategy is neither effective nor sustainable because admission pricing is binary – people can either afford it or they cannot. When organizations subjectively lower their data-informed admission price, they hurt themselves AND they are still unable to better engage underserved audiences.

C) Free admission is not a cure-all for engagement.

In fact, data suggest that free admission has relatively little sustained impact on attendance. It is difficult to find a single celebrated economist who denies this fact.

D) Not everyone wants to visit cultural organizations.

The people who want to visit cultural organizations (i.e. they have the demographic, psychographic, and behavioral attributes that indicate an increased likelihood of visiting an organization), are NOT generally low-income audiences. Not everyone wakes up thinking that it would be fun to visit a museum…but the kinds of people who are so inclined do have some things in common. The reality is that the majority of the people who actually visit cultural organizations are able and willing to pay to do so.

Certainly, this is not to say that organizations can charge anything they’d like! But it is to say that this price issue that causes anxiety among the sector isn’t quite the issue that we make it out to be. Now that these baseline conversations are out of the way, here are three items to consider that underscore the fact that cost is often hardly the visitation barrier that many organizations believe it to be:

 

1) Cultural organizations charging admission have similar value for cost perceptions as other experiences

Consider this data from the National Awareness, Attitudes and Usage Study of Visitor-Serving Organizations (an ongoing study with a sample size that recently surpassed 100,000 US adults) that quantifies the value for cost perceptions of various leisure activities that charge admission. This is a measurement of how valuable an attendee believes the experience to be relative to the price of admission. (Or, how much bang that a visitor believes that they got for their buck.)

IMPACTS - value for cost of experiences

Cultural organizations that charge admission generally have very favorable cost perceptions – especially when compared to other admission-charging, leisure activities. In fact, folks paying admission to attend a museum, zoo, aquarium, live theater, classical concert, or ballet report – on average – getting better bang for their buck when compared to attending a rock concert or a sporting event (e.g. MLB, NBA, NFL)!

For some reason, it seems that even some cultural leaders who fiercely believe in the value of their organizations worry that people may be feeling ripped off by having to pay to visit a cultural organization. This is not the case. It’s not even close to the case. I don’t know why even our own industry leaders seem to think this, but it is a myth and we need to bust it.

Cultural organizations provide value to people – and this isn’t some inter-industry pep talk! Data demonstrate that cultural experiences are generally worth paying for. Period.

 

2) Organizations that charge admission generally have higher satisfaction ratings than organizations that do not charge admission

The data below measures overall satisfaction as reported by 1,639 individuals who attended these seven types of cultural organizations as both paying and non-paying visitors. In other words, each respondent attended the same type of organization (e.g. science museum) within the past two years, and had at least one experience in which they were charged admission, and at least one in which they were not – either because a similar organization of the same type offers free admission or they attended on a “free day.”

IMPACTS - Free vs paid admission satisfaction

The basic tenant of pricing psychology holds true that people value what they pay for. Organizations that charge admission do not have lower satisfaction metrics than organizations that do not charge admission. In fact, the opposite is true: Organizations that do not charge admission tend to have lower visitor satisfaction rates!

Long story short: Free admission is neither a cure-all for satisfaction nor for increased visitation.

 

3) Cost is not a primary barrier to visitation

This data also derives from the ongoing National Awareness, Attitudes and Usage Study of Visitor-Serving Organizations. We wanted to know why folks who reported having an interest in visiting a cultural organization hadn’t actually visited within the past two years. The results are probably not what some might imagine:

IMPACTS - Barriers to repeat visitation

With an index value far less than 100, cost (i.e. being “too expensive”) is hardly a significant barrier at all! True barriers to visitation revolve around relevant content (i.e. preferred alternate activity), access challenges, and schedule. Schedule issues are a very big deal – and they are among the most prominent barriers to engagement that cultural organizations of every kind prefer not to address.

 

There are many reasons why visitors may not be attending cultural organizations, but for those who are likely to attend, cost is not a primary barrier. We need to move this conversation forward, and in order to do so, we need to retire untrue assumptions and excuses about our barriers to engagement. Sure, people like free stuff. But what cultural organizations offer is valuable and people are willing to pay for it.

Let’s put cost to rest as the immediate “go to” excuse for lower visitation and start focusing on real ways to increase access and create programs that truly fulfill our missions of educating and inspiring audiences. There’s work to be done and we are delaying progress with this excuse that allows us to overlook our biggest opportunities for engagement.

 

Like this post? Please check out my YouTube channel for video fast facts! Here are a few related posts from Know Your Own Bone that you might also enjoy:

 

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, Myth Busting, Sector Evolution, Trends Comments Off on Admission Price is NOT a Primary Barrier for Cultural Center Visitation (DATA)

Why Donors Stop Giving Money to Cultural Organizations (DATA)

Why Donors Stop Giving to Cultural Organizations

Why do some people make a donation (or a few) to a cultural organization and then simply stop giving? The top three reasons stem from the same issue.

Cultural organizations exist to carry out their missions (which often relate to educating and inspiring visitors) – but they cannot achieve these missions if they are unable keep their doors open and their lights on. Simply put, we need our visitors and donors in order to thrive.

It would be wonderful to think of annual donors as fish that we can keep as trophies and mount on our walls. (As in, we catch them and then they are forever ours!) But donors are actually like fish that we catch and then throw back into the sea – hoping that we can use evolving tactics to catch that same fish year after after. This is especially the case if the fish is a $250-$2,500 donor. (That’s a fancy fish!)

While it’s great when we can “catch” and cultivate a $250-$2,500 donor, we all have observed that not every donor renews their gift on an annual basis. So, what gives? Why do some donors fail to renew their contributions?

Take a look at this chart, provided by IMPACTS Research and informed by the 98,000 person sample that comprises the National Attitudes, Awareness, and Usage Study. This chart represents the responses of previous $250-$2,500 annual donors who did not make another gift to the same visitor-serving organization within the past 24 months.

IMPACTS - Why donors stop making contributions

The reason that we segment by the $250-$2,500 range is because we noticed that the repeat giving rate was much, much, much higher for annual donors at the >$2,500 level.  We posit that this because (a) larger donors don’t have the same financial constraints in terms of affordability factors; (b) they are likely very committed to the organization/cause (as evidenced by their higher level of giving); and (c) higher level donors often receive a higher level of attention from an organization. In other words, they are less likely to slip through the development “cracks.” Of course, this still happens all too often…

Notice anything interesting about the top three responses? 

 

1) The top three reasons why donors drop out of giving are due to relationship management issues

Not being thanked for a previous gift, not being asked to donate again, and lack of communication about the impact of one’s donation all represent massive communication fails. Advances in relationship management technologies are supposed to make communication fails increasingly rare – but, the data suggest that many of us remain our own worst enemies when it comes to retaining donors.

CRM stands for “customer relationship management.” CRM is an organization’s approach to managing interactions with current and future customers (or – in the case of cultural organizations – constituents, visitors, and supporters). It’s a bit of a jargon term for “How your organization connects with people and manages relationships.” And it’s important – especially because giving money can feel very personal and, today, audiences want to support something meaningful. If your organization fails to reassure supporters of the impact of their gift – heck, if your organization fails to thank folks for their gift – than there’s definitely an opportunity to re-evaulate your organization’s CRM strategies and tactics.

The fact that not being thanked for previous gift holds the spot as the leading reason why folks stop giving to an organization feels a bit incongruous with the values of the types of organizations that we are supposed to be. We are doing good. And we want people to do good with us. Do we have an excuse for not even acknowledging precious folks who do exactly what we want them to do? I’m not sure that, “I’m too busy to write every $250 donor or member an email” counts in today’s world…

 

2) Expectations of personalization today are unforgiving toward forgetful organizations

This is a good segue to the next point: Personalization trends are affecting everything. We now live in a 24-hour world of constant connection. Most folks expect responses within one hour on social media, and all of our ads and even our newsfeeds are tailored specifically according to our interests. Personalization trends are altering long-held CRM and even programmatic beliefs within cultural organizations. Indeed, change can come slowly for nonprofits, and if there were only a single urgent (and perhaps obvious) need to adapt personalization into cultural organizations, thanking and communicating with donors may just be it.

Also, keep in mind that “not being asked to donate again” isn’t about collateral and messaging so much as it’s about personalized communication. Reaching out to folks to ask them to give again is an opportunity for connection and personalized interactions. If an organization sees “not asked to donate again” in this data and thinks, “Let’s send that form letter out 10 more times,” then that organization is missing the point.

A donor online is a donor off-line  – and lack of a personal touch just doesn’t cut it anymore.

 

3) Connectivity is king (and losing donors for CRM failures indicates lack of awareness of this reality)

Essentially, the top three reasons why people discontinue giving are because organizations are forgetting that today, connectivity is king. Content is no longer king for many reasons – but one of them is because many staff members “not my job” the word “content.” Similarly, CRM sounds like marketing jargon (because it is), but other departments – and especially fundraising and membership – “not my job” customer and community management today at their own expense. In fact, community and customer management may be just as – if not even more – important for development and membership teams as it is for marketing teams because big donors lead to big donors and word of mouth from customers drives all other avenues of engagement and revenue – including the gate.

 

The good news about these top three responses is that organizations can change them. These challenges to sustained giving may only be issues because they represent “growing pains” as organizations evolve to meet the needs of our super-connected audiences. But realizing the need to evolve and update our outdated systems is critical for change.

While this data may be a tad embarrassing, it’s something that we can control – and that’s great news! Let’s fix our development and membership communication issues and remove the top three barriers to our $250-$2,500 donors continued giving. After all, our donors want the same thing as we do: To make the world a better place.

Our donors are supporting us. Let’s support them back.

 

Like this post? Please check out my YouTube channel for video fast facts! Here are a few related posts from Know Your Own Bone that you might also enjoy:

 

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

Posted on by Colleen Dilenschneider in Community Engagement, Digital Connectivity, Financial Solvency, Fundraising, IMPACTS Data, Myth Busting, Sector Evolution, Trends 6 Comments

Schedule Drives Visitation to Cultural Organizations And Nobody Is Talking About It (DATA)

Examining Schedule- the top influencer for visitation

 Organizations often overlook the single biggest factor influencing attendance. Here’s the data that nobody’s talking about. 

The schedule of a potential visitor plays a leading role in a visitor’s decision to attend a cultural organization, but many organizations don’t think twice about schedule (focusing instead on items such as cost of admission, special events, or the content of a program or exhibit). These items are not unimportant, but the data on the importance of considering audience schedule is unassailable. Want more people to visit? It’s time to understand the leading roles that schedule and hours of operation play in the decision-making process.  

Let’s use data to bust some popular myths about visitor motivations, and take a look at four misunderstood bits of information regarding the role of “schedule” in the visitation decision-making process:

 

1) Schedule is the single biggest factor contributing to visitation (not cost or specific content)

It makes perfect sense: If a visitor-serving organization is not operating when people can or want to visit, then those people aren’t going to visit. In Western Europe, folks are more willing to schedule their work and personal lives around visiting a cultural organization that has a good reputation. (Of course, a shorter work week and more generous vacation time allowances in Western Europe help create more schedule flexibility!) In the United States, that’s just not happening.

IMPACTS- Discretionary decision making utility model A high-propensity visitor is a person who demonstrates the demographic, psychographic, and behavioral attributes that indicate an increased likelihood of visiting a cultural organization. These are the people who are most likely to visit our organizations, and they are “where our bread is buttered” in terms of visitation. People in the United States – including high-propensity visitors – do not generally reorganize their lives in significant ways in order to visit cultural organizations if their operating hours are inconvenient or conflict with work (or school) commitments.

Notice also that schedule is a significantly more important factor in the decision-making process than is cost for high-propensity visitors. Keep in mind that many “minority majorities” and (especially) millennials qualify as high-propensity visitors – and that high-propensity visitors are not necessarily the same as historic visitors. (There seems to be this weird idea that millennials and “minority majorities” are the same as affordable access audiences and are unwilling or unable to support cultural organizations…but there’s abundant data demonstrating that this is not the case – though we do desperately need to get better at attracting these emerging audiences.) The key to meaningful engagement for people who are interested in your content may not be cutting admission by $5 (which data suggest doesn’t work), but, instead, may be establishing hours of operation that better conform to our audience’s preferences.

 

2) Take a close look at when you are open and when audiences are easily available to visit (because they often are not the same)

Take a look at this data from the National Attitudes, Awareness and Usage Study of 98,000 adults and counting. You’ll notice from the last four bars that folks generally do want to visit cultural organizations! You’ll also notice from the first two bars that although folks indicate an interest in visiting, fewer actually do visit. What gives?

IMPACTS - Visitor Attitudes

We dug in a little bit deeper as to why people who report interest in visiting cultural organizations may not actually visit: For people who would like to visit a cultural organization but haven’t visited, schedule conflicts (including ill-suited hours of operation) are the primary barrier. Take a look at how these schedule conflicts stack up:

 IMPACTS - Visitation Barriers

Work schedule conflicts make perfect sense as the leading barrier to visitation for folks who may be otherwise interested in attending an organization. Think about it: Most of the time, cultural organizations with operating hours are generally only operating when people are at work! And some potential visitors have professions that keep them busy working during the weekends as well.

Weekend activities are precious. For potential visitors who do not work on the weekends, there’s steep leisure activity competition – including simply staying home and binge watching Netflix. And when folks can take a holiday (as seen in the data above), there are often other commitments to tend to that take precedent – such as visiting family. Moreover, students tend to be in classes during traditional weekday hours of operation.

When we add all of these things up, it begs the question: How do cultural organizations determine their hours of operation? Do we have these hours because that’s how we’ve always done it? And, knowing what we know about today’s connected, real-time world, would we still choose to be the most inaccessible in the early mornings before folks head to work and in the evening when they have their most discretionary leisure time?

Of course, this issue may require an industry evolution (revolution?) to resolve. We’ve spent years training audiences to visit us during holidays and weekends (a tacit acknowledgment that 9a-6p schedules may suit no one but our staff). Retraining audiences is hard to do…but changing the public perceptions of cultural organizations and better serving our missions may necessitate a good, hard look at how we approach our hours of operation.

 

3) Organizations are unlikely to move visitation to a shoulder season without risking overall attendance

Perhaps the biggest industry misconception about schedule as a motivator for visitation may be that many organizations think that they can change it. This is a difficult – if not impossible task – and more often than not, results in a very poor reallocation of resources.

Take a look at this 10-year analysis of attendance by month to 78 US visitor-serving cultural organizations. The analysis indicates clear “peak” and “off-peak” seasons. This data indicates the time periods when people want to visit cultural organizations (given the current schedules that cultural organizations keep) – clearly illustrated by the fact that these are the times when people are, in fact, actually visiting.

IMPACTS -Monthly attendance to VSOs

The chart below organizes the monthly attendance data by season. The summer season accounts for nearly 37% of total attendance. Also, the spring season, driven by the traditional spring break holiday from school, accounts for approximately 27% of an organization’s total annual attendance.

IMPACTS Seasonal attendance to VSOs

Now that we’ve established that the market obviously has clear seasonal visitation preferences, let’s bust some backward thinking. It is a myth to believe that efforts during off-peak seasons can easily “make up” for poor performance during the peak spring and summer months. Think of it this way: If your organization welcomes 200,000 visitors per year, and 14% of them are visiting in July, an emphasis on increasing attendance during the month of October (when only 6% of visitors historically attend) is not going to produce the total visitation impact as would maximizing peak season attendance. This is especially true in our world of finite resources. Increasing an investment in an off-peak season often means reallocating investments from peak seasons. This alternative use of funds is very unlikely to produce a net benefit for the organization.

Q: What if an organization reallocates some of its resources from peak season to off-peak season? A: It’s not usually a wise financial move. Here’s a case study from my work at IMPACTS that clearly demonstrates the point. Consider the recent example of a large visitor-serving organization (annual attendance >1,000,000) that developed a strategy to increase year-end visitation during the holiday season by reallocating some audience acquisition investments that had been traditionally deployed during the peak season. As a heads-up, this was a relatively modest reallocation of investments and the organization was still investing at a considerable level during the peak season…just not as much as it had in the past. Let’s call this reallocation of resources in an attempt to alter visitation the organization’s “shoulder strategy.”

IMPACTS Shoulder season investment case study

Attendance during the holiday season did improve by 1.17% – but at the expense of attendance during the peak season (which declined by 4.00%). More importantly, a 1.17% increase in attendance during the holiday season only equated to an additional 3,306 visitors…while the 4.00% decrease in peak season performance cost the organization 108,840 visitors. In other words, it proved impossible for the organization to “make up” peak season attendance during an off-peak period by reallocating peak-season resources to the off-peak period. Here’s a look at this information another way.

IMPACTS Shoulder season strategy outcome chart 

There are few meaningful ways to fully compensate for underperformance during a peak season by emphasizing the off-peak season, nor is it likely that a significant investment in the off-peak season will return significant attendance benefits to the organization when compared to the potential of that same investment deployed during a peak season. Schedule is simply too important of a factor to our audiences for them to alter their behaviors to suit our preferences – after all, we don’t define our peak seasons, our audiences do!

Certainly, there are things that an organization can do to try and encourage attendance during less popular months – but don’t rob from peak seasons to pay for an off-peak opportunity. Your organization needs to make its hay when the sun is shining.

When trying to encourage greater visitation during off-peak seasons (hopefully through additional investment rather than taking from peak season resources), remember that discounts artificially increase visitation and change visitation cycles. In fact, discounts do a whole host of not-awesome things for your long-term bottom line. When you discount, you are simply displacing visitation from another season, decreasing visitor satisfaction, devaluing your brand and – perhaps most importantly – decreasing the likelihood of any return visitation at all.

 

4) Attendance loss from unexpected closures is greater than most organizations realize (and it is not generally replaced)

We are often wrong about the impacts of an unforeseen closure for two, big reasons that are important to understand beyond the framework of attendance and revenue projections. When an organization is closed at a time that it might otherwise be open, visitation generally is NOT displaced to other times of the year. And, to top it off, we lose more people than simply those who had planned to attend the organization that day. I wrote a separate post about this earlier this year when snow was hitting the East coast, and it’s worth revisiting here.

Take a look at the math and see just how much we underestimate the lost annual attendance due to unplanned, short-term facility closings. The chart below illustrates data from 13 organizations over a three-year analysis and includes a range of cultural, visitor-serving organizations (each represented by letter). The “Expected Decline” value indicates the number of visitors as a percentage of annual market potential that were expected to be lost by an unforeseen facility closure. If an organization’s market potential analysis suggested attendance of 1,000 visitors on a given Tuesday, and the organization was instead closed that day, then the expected decline in annual market potential would be 1,000. Pretty logical, right? The “Actual Decline” value indicates the actual, observed percentage decline relative to an organization’s annual market potential.

IMPACTS- Immitative value applied analysis

 

 Every organization quantified in the study indicated an actual decline greater than the expected decline. There are two, important reasons why expected and actual decline do not align in commensurate measure.

First, organizations underestimate attendance loss during these days because they do not understand the role that schedule plays in visitation. When people plan to visit an organization, but those plans fall through, visitors are not likely to simply “come back next month.” Those visits are generally lost.

Second, when we close for any reason, we don’t merely lose the people who were going to visit. We lose the recommendations, social media posts, and shared stories of all of the people who were going to visit that day – and the impact of the loss of earned media can be huge. In fact, for every one visit lost due to an unplanned closure, the net annual impact on market potential averages a decline of 1.25 visitors. Thus, if a sustained interruption to your operation results in 20,000 fewer visits, then the annual impact of this business disruption is likely to be lost attendance of 25,000 when compared to your organization’s market potential. Again, you can read more about this here.

To be clear, I’m not suggesting that organizations never have unexpected closures! Things happen for which we cannot always plan – and sometimes situations arise which simply make it unsafe for staff or visitors to make it to our institutions. What I am saying is that we consistently underestimate the “now or not-anytime-soon” nature of schedule as a primary influencer of visitation decisions.

 

Considering the critical role that schedule plays in audience motivations, one would think that we’d talk about our hours of operation at least as often as we discuss our reputations, our special exhibits/programs, and our admission cost. But we don’t. As cultural organizations, we talk a lot about accessibility. However, many of us seem to overlook the most basic foundations of this concept – our schedule and open hours. It’s time to take a hard look at the primary barrier to visitation so that we may more effectively carry out our collective missions of making the world a more educated and inspired place.

 

Like this post? Please check out my YouTube channel for some video fast facts! Here are a few related posts from Know Your Own Bone that you might also enjoy:

 

Interested in getting blog posts, tips, and some 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, Myth Busting, Nonprofit Marketing, Sector Evolution, Trends 4 Comments

Which Is More Important for Cultural Organizations: Being Educational or Being Entertaining? (DATA)

From a visitor’s perspective, which is more important for cultural organizations: Being entertaining or being educational? Here’s what the data says.

This week’s Fast Facts video briefly outlines a data-informed aspect of the “Entertainment vs. Education” debate.

There seems to be an ongoing tension within organizations regarding the relationship between providing an entertaining experience and an educational experience for visitors. All too often, we seem to act as though the two forces are at-odds with one another.

Sometimes, the entertainment value of a visit to a cultural organization gets an internal bad rap. After all, cultural organizations are mission-driven and one of their goals is often to educate. “Entertaining” occasionally seems to be a sort of dirty word – much like considering visitors as “customers” and the idea of “selling” admission. They are concepts/words that might make some staffers uncomfortable. In the best interests of the organizations that we love, however, we need to at least embrace these ideas or risk less solvent futures.

The truth is that providing education and entertainment are both important to our visitors – and knowing exactly how these elements contribute to the visitor experience may help inform future strategies and conversations. So, let’s take a look at some data from a visitor perspective and get to the bottom of this relationship.

 

1) Entertainment drives visitor satisfaction and re-visitation

To tackle the question regarding the importance of entertainment versus education, let’s start by considering the data that goes into developing a visitor satisfaction metric.

Individual evaluation criteria – such as entertainment and education values – aren’t weighted equally because the market is not influenced by them equally. Many organizations aiming to achieve higher overall satisfaction measures mistakenly believe that every aspect of a visitor’s experience is equally important – and that’s just not true. To visitors, some criteria (such as employee courtesy) have more weight than others (such as the quality of the gift shop). With that in mind, here’s a look at some of the weighted attributes that influence overall satisfaction – informed by the market and IMPACTS Research. (These data derive from the National Awareness, Attitudes & Usage Study of more than 98,000 US adults concerning visitor-serving organizations.)

IMPACTS Overall satisfaction weight

Yes, folks. This is indeed a data-informed chart of exactly how much each aspect of the visitor experience contributes to overall satisfaction when visiting a cultural organization such as a museum, zoo, aquarium, historic site, performing arts event, etc.

Entertainment experience is the single greatest contributor to overall satisfaction. Education value influences only about 5% of overall satisfaction, whereas entertainment value influences more than 20% of overall satisfaction. Favorability is the visitor’s perception of how “likeable” the organization and its experiences are – and the entertainment quotient of the experience contributes even more to overall satisfaction than does favorability. That’s saying something.

The fact that entertainment value drives visitor satisfaction is cut-and-dry and non-negotiable. And any company or organization telling you otherwise is likely paid by an entity that really, really doesn’t want to evolve. Providing an entertaining experience is absolutely critical for visitor satisfaction, and, thus, return visitation. In short, cultural organizations need to be at least somewhat entertaining in order to stay alive.

 

2) Education justifies visitation

It’s clear that providing an entertaining experience is more important for satisfying visitors – but education isn’t chopped liver. Data suggest that being educational plays a critical role in justifying a visit to a cultural organization after the visit is over.

Take a look at this data from IMPACTS (again, from the National Awareness, Attitudes & Usage Study):

IMPACTS Primary visit purpose

Learning something new and different, seeing something new and different, and wanting a child to learn something new and different are the top three stated responses regarding the primary purpose of a visit after that visit is over. This is a big deal, because it means that while the educational aspect of an organization’s mission may not necessarily bear extraordinary influence on how satisfied a visitor is during their onsite visit, it is thereafter recalled as a primary factor motivating the visit – and this is good news! It helps to reinforce the purpose of cultural organizations externally, underscoring our drive for social good. (And this has financial benefits, too. Organizations that highlight their mission financially outperform those marketing primarily as attractions!)

 

In sum, entertainment value makes a visit satisfying but education value helps justifies a visit. Successful organizations aim to make education entertaining. It’s not a battle, but a balancing act wherein fun and learning work hand-in-hand to make both visitors and the organization better.

I could have guessed that,” many of you may be saying. Well, that’s good. Now when we enter conversations from either the mission or revenue angle, we can be a bit more informed by visitor-driven, industry-wide data. There may be some hard facts to face here, but they are important: We need to prioritize being both educating and educational – and quit thinking of “entertainment” as a dirty word.

 

Like this post? Please check out my YouTube channel for more fast facts! Here are a few related posts from Know Your Own Bone that you might also enjoy:

 

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, Fast Facts Video, Financial Solvency, IMPACTS Data, Myth Busting, Sector Evolution, Trends 3 Comments