Audience Insights: Organizations Overlook the Most Important Clues

Clues for increased satisfaction and visitation are often right under the noses of cultural organizations. I frequently hear executive leaders Read more

Do Expansions Increase Long-Term Attendance? (DATA)

Sometimes it feels like nearly every cultural organization is taking on a major expansion project. But do these projects Read more

Over 60% of Recent Visitors Attended Cultural Organizations As Children (DATA)

You may have guessed it was true – but here’s why this statistic matters. The idea that those who visit Read more

Cultural Organizations: It Is Time To Get Real About Failures

Hey cultural organizations! Do you know what we don’t do often enough? Talk about our failures. It’s a huge, Read more

How Annual Timeframes Hurt Cultural Organizations

Some cultural executives still aim for short-term attendance spikes at the expense of long-term financial solvency – and they Read more

Special Exhibits vs. Permanent Collections (DATA)

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

IMPACTS data

One Year of Fast Facts: Here Are Your Favorite Videos for Cultural Executives

The amazing Guy Bauer Productions team surprised me with this little video because I am a ridiculous human. I could not ask for better partners in making these videos!

Loyal KYOB readers will remember that last year, posts were published every other Wednesday as opposed to every week. But the tribe of KYOB readers was steadily growing – and I was getting more and more messages, emails, and opportunities to aid organizations with nonproprietary data and associated analysis. Something needed to change. I needed to post more frequently, of course, but my inability to make it to many conferences (dang, day job!) left me wishing for a better way to make the data shareable and accessible to cultural executives. Enter: Incredible support from the IMPACTS team and the amazing talent of Guy Bauer Productions.

The very first Know Your Own Bone Fast Facts video was posted one year ago (Admission Pricing is a Science – Not an Art), and my YouTube channel was born as a means to embed videos on this website. So far, I’ve posted 27 videos and I’ve received feedback that they’ve been shared in conferences, all-staff meetings, and board rooms. What a rush! I hope that these videos have been helpful to you in sharing fast facts with friends and colleagues and I hope that they – like other KYOB posts – have ignited passionate conversation within your institutions. (What other kind could I hope for?!)


KYOB fast facts image Some fun facts:
I’m wearing TOMS in all of the videos. (Comfort first, amiright?) Nika Vaughn Makeup Artists (earlier videos) and Makeup By Jaycie (more recent videos – and the lovely lady in the photos above) make me appear as if I kind of have my act together in the looks department (it’s a ruse). The Guy Bauer Productions team not only produces incredible videos with engaging graphics, but they are amazing partners. Shoot days are delightful celebrations of Potbelly sandwiches, donuts, drinking my weight in water, laughing with the team, “one more run-throughs,” and trying not to mispronounce “organizations” for the millionth time.

To celebrate a full year of KYOB Fast Fact videos, I would like to share your most shared and viewed of the bunch. These are the most shared and viewed on Know Your Own Bone, as a very vast majority of viewership takes place here on KYOB as opposed to YouTube.

 

Let us kick off this countdown!

 

10) Local Audiences Have Skewed Perceptions of Cultural Organizations (DATA) 

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

 

9) How Much Money Should Your Cultural Organization Invest in Getting People in the Door? (DATA) 

Here’s how much money museums and cultural organizations should be spending to get people in the door – according to data.

 

8) Data Reveals the Best Thing About a Visit to a Cultural Organization (DATA)

Hint: It’s not seeing exhibits or performances. (That is a distant second.)

 

7) The Five Best Reasons to Add Millennials to Your Nonprofit Board of Directors 

Don’t have any millennials on your nonprofit board yet? Your future might be tough.

 

6) Know Yourself: The Often Forgotten Key to a Successful Social Media Strategy

Don’t even think about creating a social media strategy without having your brand vetted by leadership first.

 

5) 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.

 

4) Nonprofit Recognition: What Matters More To Visitors Than Your Tax Status (DATA)

Do visitors know that museums  and other cultural organizations are nonprofits? Data says: Nope. Here’s what really matters to audiences about your organization.

 

3) Why Discounting Hurts Your Cultural Organization And What To Do Instead (DATA)

Discounts don’t do what organizations think that they do…

 

2) Five Data-Informed Fast Facts About Visitors To Cultural Organizations (DATA)

Visitors to cultural organizations often have certain telltale behaviors.  Just for fun, here are five of them.

 

1) The Membership Benefits That Millennials Want From Cultural Organizations (DATA)

Don’t have many millennial members? Maybe you aren’t offering a membership program that millennials actually want.

 

Thank you to all of my great KYOB readers for your support and for sharing these videos! I plan to continue making these videos for as long as they are helpful to all of you. As usual, I welcome all and any feedback! Please leave any feedback or requests in the comments! Cheers to another year of sub-three-minute (most of the time) fast fact videos!

 

Like this post? Don’t forget to check out my Fast Fact videos on my YouTube channel. Here are a few more Know Your Own Bone Fast Fact posts that didn’t make the top-ten cut, but are among my favorites:

 

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, Nonprofit Marketing 2 Comments

The Power of Social Media vs. Your Organization’s Website (DATA)

Think that your website is your organization’s most important online communications asset? Think again.

This week’s Know Your Own Bone Fast Facts video busts a myth that seems to be slow to shake for some leaders. As it turns out, your organization’s own website is NOT your organization’s most important online communications asset.

Organizations tend to understand that websites are important – because they are. Social media, though? Many are still struggling with the role that these platforms play and how potential visitors are using them. Data suggest that social media is both a more important source of information AND a more effective landing environment than an organizations own website.

 Let’s take a look at some data, shall we?

 

1) Social media is the primary information source for visitors

Take a look at the following data from the National Awareness, Attitudes, and Usage Study of over 98,000 adults. It shows where high-propensity visitors gather information about cultural organizations. As you can see, social media is the most used source of information… by a long shot. We separated mobile web and web and those are the second and third most important sources of information for audiences. This includes not only your website, but information gathered from any online source that is not a social media channel or peer review site like Yelp or TripAdvisor. The difference between “mobile web” and “web” is simply that mobile web platforms are accessed on a mobile device. For organizations that still don’t have mobile-friendly websites, this is a bit of a wake-up call to prioritize this. For clarification, the numbers are in index value (not number of responses, as the sample size is contemplative of those who profile as high-propensity visitors among the 98,000 people in the study). In other words, “web” and “mobile web” are essentially in the same pool because they encompass “the web,” we simply cut them out to see if the medium/channel played a role. (It does – mobile web plays a bigger role in the “web” overall value.) When we combine mobile web and web, the index value is between the two values (i.e. 471-503) – not additive.

Word of mouth (recommendations on the phone or over dinner, conferences, etc.) is the fourth most used source of information, followed by peer review sites (again, that’s Yelp and TripAdvisor).

IMPACTS - sources of information for HPVs

 

Communication channels that talk WITH audiences significantly outperform those that talk AT audiences. With index values over 100 for all “talk WITH” channels and below 100 for all “talk AT” channels, the divide is amazingly clear. We’ll discuss this more in a KYOB post going up on August 17th, but this evolution is not worth glossing over. It is critical for organizations to understand as the new reality of the world in which we live. The fact that many seasoned leaders know more about traditional, talk AT channels does not make them effective compared to our newer and primary methods of communication. This does not mean that traditional channels are unimportant. Rather, it underscores the new realities of our connected world.

While social media is the primary source of information for the composite market, this data is specifically cut for high-propensity visitors – or, people have the demographic, psychographic, and behavioral attributes that indicate an increased likelihood of visiting a cultural organization (museum, aquarium, historic site, zoo, symphony, theater, etc.). The lean toward social media isn’t just for younger likely visitors. Data suggest that all-aged likely visitors profile as being “supper-connected” to the web.

 

2) Social media is the most effective online landing environment to inspire action

The chart above indicates the distribution of more than 65 million referrals from the online advertising campaigns of six cultural organizations in 2015. It is organized by the category of landing environment where folks were most likely to be engaged by the organization – or, to become a member, donor, or visitor.

 

IMPACTS - VSO online referrals

These landing technologies were not subjectively determined. Instead, we used algorithms to match users with the content that would best foster engagement with the organization based on their behaviors. As you can see, users were routed to an organization’s social media platforms 39% more frequently than they were routed to an organization’s own website. Nearly half of the referrals were routed through social media or peer review sites. Social media channels allow folks to see your organization in action: what it stands for, what it posts everyday, how it interacts with and values its communities.

This finding reaffirms the value of third-party endorsements: What others say about you is more important than what you say about yourself. In fact, what other’s say about you is 12.85 times more important than things that you say about yourself. In sum, data indicate that social media channels are the most effective sites to land potential visitors in order to motivate action.

 

Of course, organizations certainly benefit by having their own websites, but social media is our audiences’ primary source of information and key online influencer. Many organizations may be accustomed to having web designers in the decision-making room and those folks – especially when they deal with engagement strategy, which these folks today should all be doing  – are important. But many leaders still seem to be confused about the importance of social media community managers. They shouldn’t be. These folks are more than just “those people who do social media.” Data suggest that they are an organization’s most important connectors.

Social media motivates visitation, inspires donations, and secures new members. It is a channel that champions connection in our connected world. Websites are important. Social media and social media community managers are absolutely critical as well. We need them both, but most of all – we need to stop treating social media as a communication add-on. It is the most important avenue for connection.

 

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, Digital Connectivity, Fast Facts Video, Financial Solvency, IMPACTS Data, Myth Busting, Nonprofit Marketing, Sector Evolution, Trends 4 Comments

The Value of Shared Experiences Within Cultural Organizations (DATA)

The value of shared experiences at cultural organizations - KNOW YOUR OWN BONE

Exhibit and program content is important, but visitors who have the best experience aren’t the ones that come for the content.

At cultural organizations (museums, performing arts organizations, aquariums, botanic gardens, historic sites, zoos, etc.), we tend to really value our content experts – and for good reason! Without great content, what stories could we tell? How could we educate and inspire visitors? Certainly, the “what” of visiting a cultural organization is important (the program, the exhibit, the performance), but organizations often overlook the fact that who people are “with” is often more important.

Sometimes we get so wrapped up in the nuance of our content that we forget why people visit us and why they most value us: Cultural organizations are facilitators of shared experiences.

I have previously documented the best attributes of a visit to a cultural organization, and sharing time with family and friends massively trumps anything exhibit or content related. Here’s a look at this important data. As you can see, spending time with friends and family is more than twice as important as the content of the exhibit, program, or performance. This data comes from the National Awareness, Attitudes, and Usage Study of over 98,000 US adults.

IMPACTS - The best thing about a visit to a cultural organization

WITH > WHAT – and it’s not even close. This finding is a big deal and it turns the way that internal experts think on its head. According to our visitors, the best thing that we do is connect them to one another. At cultural organizations, interacting with people matters. Take a look at “interacting with staff/volunteers/performers.” It’s (comparatively) trailing “seeing/interacting with exhibits/performance.” Connecting with people onsite is important – and deploying engaging frontline staff may be the most straightforward and reliable way to increase visitor satisfaction.

This finding brings up an interesting question: Do people feel differently about the visitor experience based upon what they believe to be the best part of the experience?  And, what – if anything – does this portend in terms of optimizing the visitor experience?

Below, we’ve organized the data based upon folks’ “best” visit attribute. For instance, all of the people who think that time with friends and family is the best part of the experience are in one column, everyone who said it was the exhibits or performance are in another, etc. Below are the findings for overall satisfaction, value for cost of admission, and intent to re-visit. For the sake of easy reading and summarization, I’ll call the folks who report “time with friends and family” and/or “interacting with staff/volunteers/performers” as WITH visitors – because to them, WITH>WHAT.  Here’s the value of shared experiences to cultural organizations. 

 

1) WITH visitors report the most visitor satisfaction

IMPACTS - overall satisfaction by best thing

In fact, both types of WITH visitors (“Time with family and friends” and “interacting with staff/volunteers/performers”) are most satisfied with their experiences.

As a conceptual tip (that helps for the sake of comparison): Consider “Day off work/school.” For these folks, the best thing about a visit to a cultural organization isn’t unique to a cultural organization. Rather, it’s simply that they have the day off. This group is still obviously a very important group to watch. After all, schedule is the top motivator for visitation to a cultural organization.

 

 

2) WITH visitors report the greatest bang for their buck when it comes to paying admission

IMPACTS - Value for cost by best attribute of visit

Visitors who find time with family and friends to be the best thing about a visit report the highest value for cost perceptions. This means that they think that paying admission to get in your door was most worth the money. One reason why value for cost perceptions are important because they help inform optimal admission prices.

This finding is important because it tackles a potential, negative internal reaction from some in the industry: the concern that “time with friends and family” could happen anywhere. Certainly, it could. But what this data suggests is that there may be something particularly special about sharing experiences with family and friends within visitor-serving organizations – and it makes our admission prices all the more worth it to have those experiences in these environments.

 

3) WITH visitors are more likely to visit again within one year

 IMPACTS - intent to revisit based on best attribute of visit

Check this out! Not only are WITH visitors most likely to re-visit within one year, but they are significantly more likely to do so!

Visitors who identified sharing time with family and friends as the best attribute of a visit to a cultural organization reported both significantly higher levels of satisfaction and value for cost perceptions than did those reporting content (e.g. exhibits, performances) as the best attribute of a visit to a cultural organization.  Moreover, persons who reported sharing time with family and friends as the best attribute of a visit also indicated a 25.5% greater likelihood of re-visiting the organization within one year when compared to persons who cited exhibits as the best attribute of their visit!

(Don’t be too discouraged about the low values of “learning something new” folks. We know that our education missions don’t play the hugest role in motivating visitation and they play only a small role in visitor satisfaction, but they play an important role in justifying visitation after the visit is over. Here’s that data.)

 

These data reaffirm the role of cultural organizations as facilitators of social interaction. More than connecting people to content, cultural organizations connect people to people.  Given this information, it may seem odd that so many resources are focused on the content aspect of an experience (think exhibits and galleries and theaters) and seemingly less energy on the aspects of an experience that support social interchange. (What if we valued our floor staff as much as we value our exhibits teams?!) We need our content. Our content allows us to tell the stories that make people want to come through our doors to be inspired. We know that content is important. I don’t know that all cultural organizations are aware that being facilitators of shared experiences is even more important to visitors. At cultural organizations, our content becomes the bridge that connects people to one another.

I’ve seen this news (the fact that WITH is so much more important than WHAT) create anger within cultural organizations. In the face of this information, I’ve seen leaders say that one phrase that effective, successful leaders never say: That this doesn’t apply to them and there’s nothing for them to learn from this overwhelmingly unassailable data.  This reaction is a mistake.   In our digital age, we want folks to be engaged and make real connections – to our stories and to one another! In that sense, this data is incredibly uplifting. This data does challenge our ivory towers. Indeed, we are educators and inspirers…. but we are also facilitators of connection and community – and THAT is what our audiences love about us most. 

 

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, IMPACTS Data, Myth Busting, Sector Evolution, Trends 2 Comments

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:

 

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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:

 

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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.

 

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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)