Three New Trends For Cultural Organizations That Are Not New At All

Those “new” trends that need to be embraced within cultural organizations? They aren’t new at all...so let's stop being Read more

The Hidden Value of Millennial Visitors to Cultural Organizations (DATA)

Data suggest that millennial visitors possess three behavioral characteristics that make them cultural organizations’ most valuable audiences. Okay, okay. Read more

The Surprising Reason Why Organizations Underestimate Attendance Loss During Closures (DATA)

When cultural organizations experience unforeseen facility closures, they lose more visitors than simply those who were planning to visit Read more

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 Read more

Real Talk: Why Cultural Organizations Must Better Engage Millennials (DATA)

Millennials are cultural organizations' most frequent and loyal visitors...but this audience remains underserved.  Here's why that's a big problem Read more

How Much Money Should Your Cultural Nonprofit 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 Read more

Museums

The Hidden Value of Millennial Visitors to Cultural Organizations (DATA)

Data suggest that millennial visitors possess three behavioral characteristics that make them cultural organizations’ most valuable audiences.

Okay, okay. You’re sick of talking about the importance of reaching millennial audiences…even though industry data suggest that cultural organizations are not attracting these audiences at the rate that we should be AND millennials are not “growing into” caring about arts and culture. But let’s put all that aside for a moment…

This week’s KYOB Fast Facts video covers three behavioral characteristics that data suggest make millennials particularly important audiences. I’ve written about them before with the data cut a bit differently.

Take a look at these findings from IMPACTS that compares three behavioral characteristics of Baby Boomers (born 1946-1964), Generation X (born 1965- 1979) and millennials (born 1980-2000) who profile as high-propensity visitors to cultural organizations (i.e. museums, performing arts organizations, aquariums, historic sites, etc.). That is, they demonstrate the demographic, psychographic, and behavioral characteristics that indicate an increased likelihood of visiting a cultural organization. Like much of the data that I am able to share here on KYOB, it comes from the ongoing National Attitudes, Awareness, and Usage Study.

High Propensity Visitor Indicators -Millennials

Let’s briefly go over these findings one-by-one:

1) Millennial visitors are most likely to come back within the year

Millennials are revisiting more often than other generations. In fact, millennials make up the majority of visits to cultural organizations because they are revisiting these types of organizations. And this is awesome! It means that attracting millennial audiences gives us bang for our audience acquisition buck. In fact, with index values under 100 for both Baby Boomers and members of Generation X, non-millennials are actually unlikely to revisit a cultural organization within one year.

Coming back is important because it helps these audiences grow potentially longer-lasting relationships with these institutions. Why focus on attracting cultural center-loving individuals who are likely to pay a single visit to a cultural organization when there’s a whole host of cultural center-loving millennials that are likely to visit more than once?

 

2) Millennial visitors are most likely to recommend a visit to a friend

Sometimes our reputation for having big mouths pay off! Millennial visitors are more likely than Baby Boomers or members of Generation X to recommend a visit to a friend when they have a good experience. This means that not only are millennial audiences most likely to revisit a cultural organization within a one-year duration, but they are also most likely to tell others to do the same. Talk about payoff!

 

3) Millennial visitors are the most connected visitors

This is important: All high-propensity visitors to cultural organizations profile as being “super-connected.” That is, they have access to the web at home, at work, and on mobile devices. Though the web plays a big role in the connectivity of millennials, it is undeniably critical for Baby Boomers and members of Generation X as well (as evidenced by index values coming in at over 100 for all three groups). If you work for a cultural organization and you are trying to get people in the door, data suggest that the web is insanely important in order to effectively attract any demographic. Got it? Good. I’ll move on…

It’s great that millennials are most likely to come back and also to tell their friends to pay a cultural organization a visit…but they are also the most connected audiences among the three generational cohorts – by a long shot. The constant connectivity of millennials means that this audience shares messages with their friends and family (likely also high-propensity visitors) with a reach that’s a bit like traditional media on steroids.

 

When you put all of this together, the case for prioritizing millennial engagement is rather compelling. While a Baby Boomer may visit once per year and not necessarily recommend their experience to a friend, millennial visitors are more likely to come back and tell LOTS of their friends to do the same. Millennials may be the best connectors to other millennials – and perhaps simply to other people in general.

When data are considered, the task of reaching millennials may even seem less like a burden and more like an opportunity. (Too much? Okay. I won’t push you. I’ll just encourage you to scroll back up to the chart and let the data do the talking.)

 

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 Community Engagement, Digital Connectivity, Fast Facts Video, Financial Solvency, IMPACTS Data, Millennials, Myth Busting, Nonprofit Marketing, Sector Evolution, Trends Leave a comment

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.

This week’s Fast Facts video covers a big misconception that folks working within cultural organizations (often unknowingly) promulgate: That being a nonprofit is a key differentiating factor to their audiences. As it turns out, data suggest that your organization’s tax status is relatively unknown among visitors and non-visitors alike.

This video explores the data. Not a video person? (That’s cool. You do you.) Here’s what you need to know:

 

1) The majority of people in the US do NOT think cultural organizations are nonprofits

Check out this data from IMPACTS that uncovers the percentage of the US adult population that believes that cultural organizations such as museums (e.g. art, science, history), zoos, performing arts centers, botanic gardens, and aquariums are nonprofit organizations. Like much of the non-proprietary data that I am able to share on Know Your Own Bone, the findings informing this analysis come from the ongoing National Awareness, Attitudes, and Usage Study of 98,000 adults (and counting).

KYOB- Nonprofit recognition data

The findings may be a tad alarming to some. I’ve personally heard the “but we’re a nonprofit” excuse for not keeping up with financial realities (among other things) more times that I can count. This data flips the popular excuse for lack of evolution on its head. Not only are most non-visitors to these institutions not aware that cultural organizations are nonprofit organizations, but over half of the people who do visit these types of organizations are unaware that they are nonprofit organizations.

Take a look at history museums, for instance. Only 47.2% of visitors to history museums know that they are nonprofit organizations. The other 52.8% of visitors (over half) are unaware that they are reliant on philanthropic support: They believe that the organizations are for-profit entities, or government-funded operations that are otherwise provided for by their taxes.

Regardless of the reason for the misperceptions, more than half of visitors to ALL cultural organizations do not believe that they play any role in keeping these organizations healthy or alive after walking in the door. Beyond paying admission (to what they consider a business) or paying their taxes (to an organization with free admission because their taxes fund a government-operated entity), the majority of visitors risk believing that there is no further need for their support.

 

2) The market is sector agnostic

The misconception that these types of cultural organizations do not need support as nonprofit organizations is a problem – but how big of a problem? We’ve created a situation wherein people think admission to cultural organizations is largely either a pre-paid entitlement (thanks to taxes), or a fee paid to a for-profit company. Admission to most cultural organizations are neither of these things.

Tied to the misconceptions regarding the need to support cultural organizations is another market-based truth: Today’s audiences are generally sector agnostic. This means that they don’t much care about an organization’s tax status. They care about how well your company or organization does what it claims to be expert at doing. Loyal Know Your Own Bone readers (you guys rock) know that I’ve shared this nonprofit recognition data before in a post about how, today, for-profit and nonprofit organizations compete against one another. At IMPACTS, we continue to find evidence supporting this fact nearly every day.

Let’s be honest: Market confusion makes sense in the case of many nonprofit, visitor-serving organizations. We’re nonprofit, but our operations often follow a traditional economic utility curve. In other words, unlike giving to a charity that supports the homeless, people are “paying” for the personal experience of visiting our organizations. But unlike SeaWorld (for instance), those revenues cycle exclusively back into our social missions to educate and inspire…because that’s what 501(c)3 organizations do. And that brings up another potential point of confusion: Disney World, SeaWorld, and Universal Studios are for-profit companies – and SeaWorld hits the “we’re mission-driven” button hard (or rather, it tries to). It makes sense that the market might give up on differentiating visitor-serving nonprofits from for-profits! And until recently, most nonprofit, visitor-serving organizations were marketing themselves primarily as attractions – NOT mission driven organizations. Some laggard nonprofit visitor-serving organizations still do…

 

3) The tax status of cultural organizations is not their differentiating factor

So far this is looking bad. Our audiences largely don’t know that we rely on their support in order to stay alive and they are sector agnostic so they, in a sense, don’t even care that we are nonprofit. So what do our audiences care about? How well we carry out our missions.

But nonprofits don’t “own” social good, and that’s a big reason for evidence of the market’s sector agnosticism. Corporate social responsibility is a necessity for companies today. There are countless articles on the importance of for-profit companies “doing good.” It is a key tactic for gaining more customers. And that’s interesting because there are still some cultural organizations that do this weird, outdated thing where they try to overlook their social advantage and exclusively promulgate “visit us today!” messages (and even offer discounts that devalue their brand and cause even more sector confusion for cultural organizations). It’s like some of them are trying to be like Disney World…

Being good at your mission is good business. Data demonstrate that organizations highlighting their missions outperform organizations marketing primarily as attractions. Perhaps, in all of our “But we are a nonprofit” excuse making, we missed the true differentiator that has provided us that tax status in the first place: Our bottom line of making a difference.

Our key differentiator is not our tax status, but that our dedication to making a difference is embedded in the very structure of how we operate. There’s a thought that we need to run “more like for-profit companies” (and in some ways we do, but the blanket directive is an ignorant miss). But look around. For-profit companies are actually trying to be more like us in the sense that they want audiences to know that they stand for something that makes the world a better place.

 

4) Communicating nonprofit status is critical in order to make the case for support (but it is a secondary communications goal)

When people don’t know that we are nonprofit organizations, it is a lot more difficult to secure members and donors. For that reason, we do need to better communicate our need for support. But perhaps before we ask for support, we need to do a better job showing the world what supporting us means. In other words, the lack of knowledge about our need for support may be indicative of a long-term communication and programmatic failure.

We educate. We inspire. We connect. We conserve. We teach. We change the world, one mind at a time. But perhaps the misconception about the need for support stems from our own communications focused not around how we change the world, but how we don’t change the world: “Visit!” “Discount!” “New exhibit!” Those messages are important, but are they most important? After all, can we blame the market for not knowing that we are nonprofit organizations if we bury the missions and ideals that are the foundation for our existence in more commercial messages and programs?

 

Fewer than half of U.S. audiences are aware of the nonprofit status of cultural organizations. That’s a big deal, because it makes it harder to secure support. But it’s also a good reminder that audiences are increasingly sector-agnostic, and our competitive advantage may not be our tax status, but what our tax status means: That we are here to change the world.

 

Like this post? 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, Myth Busting, Nonprofit Marketing, Sector Evolution, Trends Leave a comment

Real Talk: Why Cultural Organizations Must Better Engage Millennials (DATA)

Why Cultural Organizations Must Better Engage Millennials (Know Your Own Bone)

Millennials are cultural organizations’ most frequent and loyal visitors…but this audience remains underserved.  Here’s why that’s a big problem for the future well-being of the industry.

“We need to be better at engaging millennials!” You’ve heard this before. Likely, you’ve heard it more times than you can count. Even if you are a millennial working within a cultural institution, you’re still probably sick of the sentiment. You’re probably sick of it even if you know that data suggest that millennial audiences are cultural centers’ best audiences.

The need for cultural organizations (e.g. museums, zoos, aquariums, symphonies, theaters, botanic gardens, orchestras, etc.) to reach millennial audiences is deeper and more complicated than we may realize.

I’d like to ask you a favor.

Indeed, I’m going to land here at the end of this post: “We need to be better at engaging millennials.” Instead of closing this tab before you dig in and saying, “yeah, yeah, yeah…” I hope that you’ll stop and consider why we need to reach millennial audiences…why it’s a big deal, what it means for our solvency, and why its so hard for some of our executive leaders to do.

Here are four things that all cultural organizations should know about millennial visitors and our efforts to engage them:

 

1) Millennials are the most frequent attendees to cultural organizations

 

Bet some of you didn’t see that coming! Check out this data from the National Awareness, Attitudes, and Usage Study that represents a sample population of more than 98,000 respondents. These particular data compare millennial and Baby Boomer visitors in terms of the composition of attendance to the 224 visitor-serving cultural organizations contemplated in the study during the past five years

IMPACTS- Millennial vs Boomer visitation 

Millennials make up the largest share of visitors to cultural organizations and the observed trend indicates growing percentages year over year. Millennials aren’t coming. Millennials are here and they are already the largest realized audience visiting cultural organizations. This means that the “We need to cultivate millennials while satisfying our current, baby boomer audience” sentence is baseless. And you want it to be baseless. If baby boomers still actually make up the majority of your visitors, then you’re behind. 

This means that programs and initiatives that engage millennials should be in full force right now and integrated into operations. Programs that engage millennials should be recognized as your new way of life. And, please, don’t worry too much about engaging, interactive, authentic, trustworthy, dynamic, participatory, expert, real-time programs alienating members of Generation X and some Baby Boomers. The market at large increasingly has these things ingrained into how they evaluate brands and organizations as well.

Don’t forget that the “white space” here isn’t simply Generation X. It also includes Traditionalists (the generation before the Baby Boomers) and Generation Z (the generation after Generation X). And thank goodness that millennials are the most frequent visitors to cultural organizations! Millennials represent the largest generation in human history, so if they weren’t attending organizations more than their other, large-generation (Baby Boomer) buddies, it would be a huge problem. Cultural organizations as a whole engaging anything smaller than the data-informed expectation for audience engagement relative to their cohort size is very bad news…

 

2) But millennials remain underserved as organizations underperform the business opportunity 

 

…See, but that’s the problem: Millennials ARE NOT attending at the minimum expected levels. To evaluate this, we need to step back and look at visitation to our organizations in the context of the US population. In 2015, there were 322 million people in the United States. Adult baby boomers made up 23.6% of the U.S. population and adult millennials made up 27.1% of the U.S. population.

IMPACTS- Millennials are underserved

According to the National Awareness, Attitudes, and Usage Study, only 21.9% of adult millennials visited a cultural organization in 2015. To be merely representative, 27.1% of visitation should be adult millennials. The simple fact of the matter is that cultural organizations are underserving millennials when compared to the U.S. population. (“Underserved” means that participation – be it attendance, enrollment, etc. is less than the representative population.) In other words, cultural organizations are underserving millennial audiences by a factor of 19%.

To those of you thinking, “Yeah! But at least we’re getting them!” …I like you, because you are a glass-is-half-full person…but maybe it’s time to strap on your thinking cap a little tighter. Serving representative audiences is one of the top grantmaking considerations for many audience engagement initiatives that are seeking support. Not only that, underperforming the opportunity by 19% with this particular audience puts us in a doubly bad place because of this generation’s attributes and its word-of-mouth-informed visitation cycles.

 

3) Millennials are the most loyal audiences with the highest lifetime value

 

According to the National Awareness, Attitudes, and Usage Study, 23.8% of boomers said they visited a cultural organization (any cultural organization) in 2015. But Boomers only comprise 22.5% of cultural attendance. Meanwhile, only 21.9% of adult millennials visited a cultural organization, but they comprise 30.9% of total US cultural visitation. What does this mean? Millenials are far more likely to revisit within the year than other generations. They are the most loyal. It proves that millennial “intent to visit” is manifesting itself as actual visits.

IMPACTS- Millennial visitation loyalty

Combine this good news data with the bad news data on how much we are underserving millennial audiences, though, and the picture isn’t a pretty one: For every one millennial that we fail to engage as a sector, we miss out on 1.411 visits to cultural organizations.

If 30% of cultural visitors are millennials, are 30% of organizations’ resources allocated to engaging them? Probably not. We should be representatively engaging this audience because, well, that makes cut-and-dry business sense. Our missions may depend on it.

This is a big deal! Any organization that continues to underserve its best, most frequent, and most loyal customers – that also make up the majority of the country’s population – in the way that cultural organizations are doing risks going out of business. 

 

4) Why this change may be understandably hard for Baby Boomers in cultural organizations

 

Boomers know better than anyone that not all audiences are created equal. They know that because they’ve been by far the most valuable audience for a very long time.

Why is it so hard for Baby Boomers to grasp the necessity of engaging millennials and do more than talk about this audience in conference rooms? Why do they say, “We need to engage millennials,” only to move forward with frozen mindsets?

I’m no psychologist here and I may be going out on a limb, but I work predominantly with Baby Boomers that I have the honor of seeing in action every day, so I’ll give this an outsider shot: Baby Boomers may still think of themselves as primary target audiences (despite data indicating otherwise) because they were trained to think of themselves that way. They’ve have been the apple of every marketer’s eye for decades. For at least 25 years, the Baby Boomers that succeeded most were the ones who were best at marketing and creating programs for themselves. They were trained to successfully engage themselves and they were rewarded for successfully engaging themselves. Most boomers were appropriately predisposed and actively incentivized to reaffirm their generation’s own importance. Thus, it would make sense that there would be a want for boomers to keep doing what they do best: creating programs for themselves. That’s where they’re expert- and being expert at targeting Baby Boomers is why they are successful.

Basically, this same issue is likely to arise with us millennials if a large generation steps up to the plate in our own future. (And when it does, will one of you kindly forward this post to me from your 4D interactive teleportation wrist watch thingy to remind me that I knew it would be equally difficult for us to pass the baton?)

And things get even more difficult yet for Boomers. They may have imagined that they’d pass the baton in more conventional, chronologically successive terms to Generation X. Instead, they need to make a symbolically bigger leap and pass it (largely) to Millennials. It’s got to be hard to (kind of) skip a generation. Certainly, there’d be a conceptual belief that Traditionalists might pass an equal amount of influence to Boomers, who might pass an equal amount of influence to Generation X, who might pass an equal amount of influence to Generation Y…but data doesn’t demonstrate that that’s a smart move.

(Generation X, the always-impossibly-cool-in-my-mind, autonomous, and unlucky generation sandwiched between large and needy millennials and baby boomers, is roughly half the size of Generation Y. So if Generation X and Generation Y combined to form Generation XY, millennials would compose nearly 2/3 of that generation. This is also makes Generation X an often untapped resource to help bridge the generation gap because they seem to see all the crazy that’s above them and that’s below them with clarity in some cases. But I digress…)

 

 

All organizations have finite resources. In today’s world of hyper-targeting, every dollar we spend chasing one demographic is a dollar that we cannot spend chasing another demographic. The data is clear that cultural organizations are underserving millennial audiences. On top of that, millennials are our audiences with the greatest likelihood of re-visitation. Now, I don’t know if we’re the best audiences for post-it notes or patio furniture or tea pots – but millennials (which obviously include the 44.2% of us that are from “minority race” backgrounds) are definitely the most critical audience for cultural organizations to engage right now.

This does NOT mean that Baby Boomers and Generation X are not important targets. But it does mean that the percentage of energy, effort, and investment should be allocated representatively to the percentage of each age cohort’s market potential. Three factors should influence how your organization prioritizes its investments and dedicates its energy: 1) the size of the cohort; 2) the buying power of cohort; and 3) the cohort’s propensities to participate. Millennials represent the largest opportunity on all three fronts and, thus, create a compelling case for where to allocate representatively significant investments of resources.

I’ll end where I promised, but I hope that the sentence carries more meaning and understanding than it did at your last staff meeting: We need to get better at engaging millennials.

 

Like this post? 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 Leave a comment

Most Popular Posts of 2015 For Cultural Organizations

Most Popular Posts of 2015 for Cultural Organizations

From data on free admission to donor desires – here are the top ten most popular posts on Know Your Own Bone in 2015.

Happy New Year! I hope that 2015 was a great year for you and your organizations! 2015 brought many new adventures on this front: speaking engagements, lectures, remarkable projects, travel and conversation with amazing clients across the globe, and the launch of Know Your Own Bone Fast Facts videos and my presence on YouTube.

I am grateful for all of the wonderful attention, link-love, thought-fuel, and shop-talking that Know Your Own Bone readers have provided and continue to provide. I write Know Your Own Bone because I (with the support of IMPACTS (the company that patiently puts up with my asking, “Is this information proprietary?!” during every interaction)) believe that information that can be used to help move cultural organizations forward should be shared so that it can best do its duty. I hope that this little corner of the Internet has been helpful to you and your organizations- and I look forward to connecting with even more of my incredible readers and their mission-driven organizations in 2016. There are a lot of great projects in the works for this upcoming year thanks to all of the attention that Know Your Own Bone is receiving and I cannot wait to share them with all of you!

My favorite thing that I’ve noticed about KYOB readers is that they are curious leaders who aren’t afraid to ask hard questions within their organizations.  I love that.

In keeping with my annual new year tradition of posting the year’s most popular posts, here are the (all data-based) articles on Know Your Own Bone that received the most attention in 2015:

 

How Free Admission Really Affects Museum Attendance

Spoiler alert: It doesn’t much. And misunderstanding this may jeopardize industry solvency. Free admission is far from the engagement cure-all that some of its supporters believe it to be. Here’s the data.

.

What Ultra Wealthy Donors Consider Before Supporting a Nonprofit

How can nonprofit organizations engage high net worth board members and donors? To get to the bottom of this million-dollar question, we asked these individuals themselves.

 

Three New Pricing Realities For Visitor-Serving Nonprofits in the Twenty-First Century

It’s hard for cultural organizations to exist (let alone thrive) in the long-term without a sustainable revenue strategy that optimizes pricing. Want to keep moving your mission moving forward and your doors open? It’s time to end the debate on these pricing-related topics.

 

Free Admission Days Do Not Actually Attract Underserved Visitors to Cultural Organizations

In reality, free days often do the very opposite of mission work.  It’s true: Free admission days do not usually engage affordable access audiences. Here’s data that should make organizations think twice about their free days and underserved audience engagement strategies.

 

The Game Has Changed: Nonprofits Now Compete With For-Profits

An organization’s nonprofit status may carry neither the perceptual weight nor the relevance that many leadership teams imagine…and nonprofits may be sabotaging their own opportunities for support because of it.

 

Audience Acquisition: The Cost of Doing Business for Visitor-Serving Organizations

Optimizing marketing investments are increasingly a product of math and science (decidedly not “intuition” or “trial and error”). So here it is: the data-informed equation for how much money organizations should be spending in order to maximize opportunities for financial success.  (Heads up: I’ve got a fast facts video of this information coming to you all during the first week of 2016. Get pumped!)

 

Death By Curation: The Exhibit Strategy That Threatens Visitation and Cultural Center Survival

Blockbuster exhibits sound nice, but they often create a negative cycle that threatens the solvency of the visitor-serving organizations that deploy them. The “bigger, better, more expensive” business model is financially unsustainable and it alienates audiences.  Check out the data.

 

Why Millennials May Be The Most Valuable Generation for Cultural Nonprofits

The sheer size of the millennial generation makes them a critical target audience, but data suggest that millennial visitors may actually be the best visitors. Here’s why.

 

Influencing Leadership: Three Findings to Effectively Communicate with Cultural Executives

Potentially innovative, groundbreaking ideas risk dying on the vine if they aren’t understood and supported by an organization’s – and an industry’s – leadership.  Before you can change the world, you likely need to change some minds. Here’s data that will help.

 

Visitation to Increase If Organizations Evolve Engagement Models

Attendance to cultural centers is on the decline, but data suggest that forward-facing organizations may see improvements by 2020 if they move forward intelligently. Here’s what organizations need to know.

 

Thanks again to each and every one of you for following along with KYOB! Here’s to a great 2016 for all!

 

Interested in getting blog posts, tips, and some silly cultural center/nonprofit geekery on your social media channels? Like my Facebook page,  follow me on Twitter, or subscribe to my YouTube channel. 

Posted on by Colleen Dilenschneider in Community Engagement, IMPACTS Data, Sector Evolution, Trends Leave a comment

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.

If millennials (folks born between 1980 and 2000) are the largest generation in human history, why don’t they make up a vast majority of members for cultural organizations? Today’s Know Your Own Bone – Fast Facts video dives into research about the kinds of membership benefits that this generation actually wants.

If you think that millennials just don’t want to be members to cultural organizations, then think again. IMPACTS data reveal that millennials report more interest in joining many cultural organizations as members than do their Generation X and Baby Boomer predecessors. Here’s the data (regarding zoos, aquariums, and museums in this case) courtesy of the National Awareness, Attitudes and Usage Study:

IMPACTS data- Membership interest by age cohort 2015

 

And it’s not just a “this year” thing. Interest in membership among millennials is actually on the rise. Notably, interest in memberships among Baby Boomers is on the decline.

 

IMPACTS generational membership interest multi-year

 

In terms of potentially engaging millennials as members, this is great news! But the findings would be even more promising if more organizations knew what it is that millennials want from a membership to a cultural organization. We looked into this question on behalf of a large (annual visitation >1million people) aquarium client with a conservation mission. We found that what millennials want from a membership is a tad different than what older generations want. Take a look:

 

IMPACTS data- Primary benefits of membership

Notice that, with the exception of free admission, the primary benefits of membership according to millennials are less transaction-based than are the responses from their preceding generations. Millennials care about “belonging,” “supporting,” and “impact.”

This information should inform how cultural organizations go about creating and marketing membership programs to these audience members. If we keep focusing on the benefits that millennials don’t actually value – and miss opportunities to highlight our mission impact – then it may be difficult to create long-term relationships with these young supporters. These responses from millennials may not come as a surprise. After all, in today’s world, your mission matters – and carrying out that mission is critical for an organization’s solvency. 

Want to attract millennial members? Make sure that you have the types of memberships that millennials value.

 

Like this video? You can check out more on my YouTube channel. Here are a few Fast Fact post 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 updates and information, follow me on Twitter

Posted on by Colleen Dilenschneider in Community Engagement, Fast Facts Video, IMPACTS Data, Millennials, Myth Busting, Nonprofit Marketing, Sector Evolution, Trends Leave a comment

Free Admission Days Do Not Actually Attract Underserved Visitors to Cultural Organizations (DATA)

Free Days Do Not Reach Underserved Audiences

In reality, free days often do the very opposite of mission work. Here’s the data.

This post is going to make people angry. And that’s a good thing. Get angry. Being challenged helps us think critically and evolve our strategies to more effectively serve our missions and audiences.

I made some folks angry when I shared data and pointed out the compelling economic research behind why free admission is not a cure-all for getting folks to visit cultural organizations. How much does free admission really affect attendance? Turns out, not all that much. I’ve also pointed out that admission pricing is a science (not an art), and how admission pricing is such an emotional topic for cultural organizations is because we confuse admission with affordable access programming. As a sector, we cultural organizations often really mess that up.

Today I’d like to share another data-based finding that should turn our traditional business strategies upside down: Free admission days do not usually engage affordable access audiences. In fact, data suggest that free days often accomplish the very opposite of their intended purpose for many cultural organizations.

Here are four, data-informed realities regarding free days for cultural organizations. (This includes museums, aquariums, zoos, theaters, symphonies, historic sites, etc.) It’s time to face some realities and put on our collective thinking caps…

 

1) Admission price is not usually the primary barrier to visitation

When contemplating a free program or event, many organizations mistakenly believe that, “If we build it, they will come.” It is a line from a great movie, but it’s an ineffective business practice. Admission price usually isn’t the primary barrier to engagement for non-visiting audiences. It just happens to be our most convenient excuse.

True primary barriers for non-visiting audiences usually revolve around other factors than simply cost. These often include things like reputation (i.e. they just aren’t interested in the content and programs), transportation and parking (“How are we going to get everyone together and get there?”), or schedule (“That’s awesome that you have a free day on Tuesday. I have to work on Tuesday.”) When the primary barrier to visitation is anything other than admission price, then having a free day becomes relatively irrelevant. An admission fee is straightforward, but for many potential visitors, other barriers are the most challenging part of the visitation equation.

When we think that making something free means that everyone will come, then we are assuming that visiting us is the most important thing in every potential visitor’s life after cost savings. We all know that’s not true… and, somehow, we still resist thinking critically about primary barriers to entry. We aren’t taking the time to do the necessary market research that enables us to be more responsive to audience needs. Sometimes admission really is a big barrier to entry. Yes – money is precious. Many organizations seem to know this. But time is precious, too. Too many organizations seem to forget this.

 

2) Free days attract higher earning and higher educated audiences than paid attendance days

This is a hard pill to swallow: For most organizations, data suggest that people who visit on free days actually have higher household incomes and educational attainment than people who visit on non-free days. For many organizations, free days are reaching a relatively small number of true affordable access audiences – and a whole heck of a lot of people who could pay to support your organization through regular admission or membership instead.

Check out this data from IMPACTS that is collected from 48 cultural organizations that offer regular, scheduled free days in an effort to reach affordable access audiences. The sample represents museums, performing arts organizations, and other visitor-serving organizations.

Annual household income on free days- IMPACTS

Educational attainment on free days- IMPACTS

The common, defensive response to this data is to make an excuse and say that this data does not apply to your organization’s free days! Know this: Free days engaging higher earning households instead of affordable access audiences is the rule – not the exception. At IMPACTS, we are asked to supply this kind of information to many grant-making entities. So please, instead of making excuses, do your organization a favor and actually look into this situation. Increasingly, smart grant-making entities are catching onto these things and are aching to see programs that actually engage the targeted audience segments.

 

3) Free days engender less trial from new audiences than paid admission days

Why do folks visiting on free days have higher household income levels? One of the reasons is because data suggest that the folks actually attending free days are more likely to be repeat visitors than on paid attendance days- and repeat visitors often profile as higher-income high propensity visitors. The people who attend free days for cultural organizations have usually visited the organization before, and the free day is simply accelerating their pace of re-visitation.

Repeat visitors on free days- IMPACTS

“Great!” you may say. “We are getting folks to come back!” But now think about this: These people are coming back for free and they are higher earners who could have been converted into members. “Free” actually provides an incentive for your most likely and loyal audiences to visit you again. These are the very same people who – with proper cultivation – likely profile as potential members. Free days directly cannibalize membership opportunities and do not engender increased trial from underserved audiences. 

You may notice a few audience members that you believe to represent your organization’s underserved audiences roaming your halls on a free day. But keep in mind, you’re likely looking for these types of people on these days. (There likely are some affordable access audience members- just fewer than there are on paid admission days.) Instead of offering proof of the efficacy of your initiative, these sightings are more likely a classic case of confirmation bias (i.e. the tendency to search for data that confirms one’s hopes or preconceptions). When considered in the relative context of total attendance, many free days don’t engage a higher percentage of first-time visitors than do non-free days.

 

4) Cultural organizations do not generally target affordable access audiences for free days

This fact is basic, overlooked, and often a driving reason for the last two conditions: A majority of organizations don’t even reach out to affordable access audiences regarding their free days. Instead, we tend to target high-propensity visitors- the people we know how to target.

Underserved audiences are not in your database. These audience members are not likely on your email list (they are underserved!), in direct mailings (you don’t know their names!), or following you on social media (they don’t visit you!). Many of them also may not be subscribers to the local newspaper (depending on the demographic subscribed to that newspaper). When we use our traditional communication channels to spread messages about free days, we are often primarily connecting with high-propensity visitors instead of underserved audiences.

But we don’t make affordable access promotions available primarily to upper middle-class, educated people because we’re stupid. We often use these channels because we don’t want to lose even more money. Reaching real affordable access audiences is a true investment. It often involves buying advertising that specifically targets those audiences who do not generally engage with your earned and social media programming. It occasionally requires creating programs that do not interest traditional audiences. It means spending money so that audiences who are not likely to provide any significant financial support can engage with your organization and not contribute admission revenue on top of it.

Many organizations may be relatively comfortable with the notion of needing to spend money to make money. But affordable access programs often require spending money to better achieve our missions… and lots more money than a loss of a day of revenue.

 

In a way, many organizations unknowingly do free days to feel better about themselves and their missions – not because they work.

This doesn’t mean that free days are always a bad idea. Sometimes the situation is complicated and that’s when having a free day could logically be on the table as a smart move. For instance, a government entity may request access for locals in order to provide significant support.

We will only create effective programs that reach underserved audiences when we realize that many past practices have been largely inadequate at achieving the very outcomes that they are created to achieve. The fact that underserved audiences exist at all means that, well, we haven’t been effectively engaging all of our potential audiences – even when we’re free.

 

Like this post? 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, Myth Busting, Nonprofit Marketing, Sector Evolution, Trends 20 Comments

Admission Pricing is Not An Affordable Access Program (Fast Fact Video)

Admission pricing and affordable access are two completely different things that are frequently – and inappropriately – conflated in many conversations. Let’s untangle them and move forward.

Check out today’s new video on the true relationship between admission pricing and affordable access programming.

I’ve recently written about the data-informed evidence that free admission is not a cure-all for engagement. What matters when it comes to engaging audiences are the programs and experiences that an organization offers – not free admission. “Free” does not necessarily mean “worthy of one’s time.”

One of the biggest reasons why the topic of free admission is so sensitive is due to a deeply-rooted (and unhealthy) confusion: The idea that admission pricing and affordable access programs are even close to the same thing. The only thing that admission prices and affordable access programs have in common is that they determine how (and how much) someone “pays” to attend an organization. When organizations jumble up admission and affordable access, they commit one of today’s biggest engagement blunders: They “welcome all” instead of “welcoming each.” Our world, our audiences, and our economics are simply too advanced for this old, “welcome all” approach.

A deeper look at the data:

In reality, optimal admission pricing enables affordable access programming. Within the realm of “affordability,” things can be relatively affordable – that is to say, less expensive is naturally more affordable.  However, once prices cross a certain threshold, being “unaffordable” is binary: A price is either affordable, or it isn’t. Effective affordable access programs that actually reach underserved audiences cost money and require investment. If an organization charges less than its data-informed, optimal admission price, then it may not generate sufficient revenues to support effective affordable access programming.

IMPACTS has consolidated data from different types of cultural organizations and there’s an important lesson here: When organizations deny their optimal, data-driven price point and instead charge “a little bit less,” their admission prices still aren’t affordable for underserved audiences. Moreover, they are too low for a vast majority of the people who actually attend these organizations.

IMPACTS Affordability is binary

As you can see in the consolidated data, a $15 ticket is no more practically affordable for a household earning less than $35,000 per year than is a $20 ticket, so when an organization decides not to charge its optimal price point, the organization both leaves money on the table AND is still unable to reach underserved audiences.

Keep in mind: These prices are compilations from several types of visitor-serving organizations and they illustrate that there’s a certain point in which affordability is binary. So please don’t go rushing off and charging $9…that has absolutely nothing to do with what your high-propensity visitors (the people who actually visit and like going to cultural organizations) are willing to pay. A better way to use this data is to note the difference between what folks earning less than $35,000 per year consider affordable and what the balance of your audiences are willing to pay.

Different household incomes have different capabilities when it comes to paying admission. Here’s another look at the composite data that underscores the point. Trying to find a “middle ground” admission price-point both leaves money on the table from audiences able to pay the optimal rate and also still excludes affordable access audiences.

IMPACTS- General admission pricing analysis

Again, this is consolidated data among different types of cultural centers and nonprofit visitor-serving organizations. It demonstrates why and how affordable access and admission pricing are two, separate strategies and are not intended to stand in for any specific organization’s due diligence in determining its optimal pricing strategy.

As a reminder: Value advantaged means that your organization is leaving money on the table. Value disadvantaged means that you may be starting to jeopardize attendance.

In sum, admission and affordable access are separate strategies. Organizations need a strategic price point for high-propensity visitors, and another completely different strategy to reach, celebrate, and welcome underserved audiences. It’s time that we remove the emotion and start recognizing the necessity of “welcoming each” via unique avenues of access.

 

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Posted on by Colleen Dilenschneider in Community Engagement, Fast Facts Video, Financial Solvency, IMPACTS Data, Myth Busting, Sector Evolution, Trends 3 Comments

How Free Admission Really Affects Museum Attendance (DATA)

Free Admission is not a Driver of Museum Attendance or Engaging New Audiences (DATA)

Spoiler alert: It doesn’t much…and misunderstanding this engagement tactic may jeopardize industry sustainability.

The debate about whether museums should be free is a big one right now. It’s the source of a lot of discussion in the popular press and nonprofit boardrooms alike. What seems to be lost in this discussion are due consideration of two very important factors: First, does eliminating the cost of admission actually help engage underserved audiences? And, second, in a time marked by increasing austerity measures that threaten traditional cultural funding, is eliminating a key earned revenue source sustainable as a long-term business model? The truth is that free admission comes with a cost. Free admission is far from the engagement cure-all that some of its supporters believe it to be.

Am I suggesting that free admission to museums and other cultural organizations is an altogether bad idea? Of course not. For those organizations whose financial models depend less on earned revenues (i.e. those with mega endowments or significant public funding), free admission may prove viable. However, for those organizations whose mission delivery depends on their business viability, then the issue of free admission is a far more complex topic.

Certainly, varying perspectives and important considerations inform this broader conversation, but I’m going to stick to the facts regarding only one aspect of this big issue. For the sake of facilitating intelligent, data-informed conversation about an emotional topic, let’s acknowledge some established facts regarding admission pricing and attendance: 

 

1) Not everyone is interested in visiting museums- and admission price is NOT the primary barrier to engagement

This is a fact that data folks know well, but it’s one that we often overlook as an industry. At IMPACTS, we gather a lot of information on the general public, but we focus particularly on high-propensity visitors (those people who demonstrate the demographic, psychographic and behavioral attributes that indicate an increased likelihood of visiting a cultural organization). These are the people who actually go to museums and cultural organizations. They are the people who say, “Yeah! I’d like to do that!” when the suggestion of visiting a museum emerges. Not everyone is a high-propensity visitor – not by a long shot. In spite of all of our best engagement and marketing efforts, some people simply aren’t going to visit our organizations for several different reasons. As it turns out, admission fees are generally not a major factor in their lack of inclination to visit a museum.

Volker Kirchberg’s landmark analysis, “Entrance Fees as a Subjective Barrier to Visiting Museums,” published in the Journal of Cultural Economics, found that admission cost is a secondary factor when considering a museum visit. A lack of time (i.e. schedule considerations) or a simple lack of interest (i.e. relevance) were far more important factors in one’s decision not to visit a museum than were admission fees. In other words, a decision not to visit a museum is often more a function of lifestyle than finances.

When we consider the population subset of high-propensity visitors (HPVs) – our most likely audiences – cost absolutely pales in comparison to schedule and reputation when it comes to factors influencing their discretionary leisure activities. A big contributor to this often-overlooked fact is that, for both the general public and high-propensity visitors in particular, their time is more important than their money. This data from IMPACTS shows this well:

IMPACTS HPV time verses money

Need even more supporting analysis? According to national survey of museum visitors in New Zealand (Ministry for Culture and Heritage, New Zealand, A Measure of Culture: Cultural experiences and cultural spending in New Zealand), convenience and time are more important factors than cost when it comes to considering a cultural experience. The study further revealed that for those persons who visit museums but are unable to visit more often, the main barriers are lack of time (54%), travel distance (30%), and a lack of transportation (15%). For those who had not visited at all, the main barriers were lack of time (49%), travel distance (29%), and a lack of transport (18%). In fact, for both visitors and non-visitors, cost was only cited as a factor 11% of the time – again, this finding doesn’t diminish cost as a factor…but it does lend perspective to its relative importance in the public’s decision-making process.

Similar results were found in the Visitors to Museums and Galleries Study published in the UK by The Council for Museums, Libraries, and Archives. 32% cited a lack of time as a primary barrier, 22% a lack of interest, 19% a lack of anything they want to see, and 11% noted difficulties simply getting to the site of the organization. Only 8% of those sampled cited admission charges as a negative factor.

In sum: Admission fees are generally not a primary visitation barrier.

 

2) Free admission does not significantly affect long-term attendance.

Admission price doesn’t significantly change intentions to visit for first-time visitors – further reaffirming that if an audience isn’t interested or doesn’t have the time, then “free” won’t get them in the door. There seems to be a sort of thought that free admission means that attendance numbers will go through the roof…and, if an organization does experience a short-term “novelty” spike, then this increase will be sustained. Again, data suggest the contrary. Check out this data from the National Awareness, Attitudes and Usage Study of Visitor-Serving Organizations (which is updated annually and has tracked the opinions, perceptions, and behaviors of a sample population totaling 98,000 US adults):

IMPACTS intent to visit by admission price

The data indicate that intentions to visit within any duration do not significantly increase as the price of admission decreases or is even eliminated. In fact, in most instances, audiences indicate greater intentions to visit organizations that charge more than $20 for an adult admission than those that are free.

It doesn’t stop there. The definitive work on the (negligible) impact of admission price on sustained museum visitation was published by noted economists William Luksetich and Mark Partridge in Applied Economics in their analysis, “Demand Functions for Museums Services.” Their study suggests that the adverse effects of admission charges on attendance are small and ”relatively easy to alleviate.”

That, “If it’s not free, people won’t go” argument? The data has spoken. It’s not a thing.

 

3) Free admission accelerates re-visitation- but for audiences who are already visiting

Free admission does accelerate the re-visitation process – but mostly from existing audience members. This finding is from a study by the UK’s Department of Culture, Media, and Sport (DCMS) – whose members instituted free admission in year 2001. The DCMS study found that attendance increases frequently attributed to removing admission fees were often due to the same audiences visiting more frequently – NOT necessarily from engaging new audiences.

Basically, to the degree that organizations consider an attendance increase as a successful outcome of eliminating admission pricing, the key visitor count to examine isn’t total visitation – it’s unique visitation. For example: Let’s say that a museum with an admission fee receives 400,000 annual visits from 300,000 unique visitors (1.33 visits per unique visitor).  Then, the same museum decides to “go free” and annual attendance increases by 15% to 460,000 visitors – but from the same 300,000 unique visitors (1.53 visitors per unique visitors). In this hypothetical example, annual attendance went up…but unique visitation remained the same.

Again, data from the National Awareness, Attitudes and Usage Study of Visitor-Serving Organizations reaffirms this finding:

IMPACTS intent to revisit by admission price

Whereas free admission does not impact intentions to visit for first-time visitors, it does increase intentions to re-visit for existing audiences. The implication? It may not be wholly accurate for an organization to declare success by citing raw attendance numbers as proof of the efficacy of a free admission policy. There isn’t evidence that free admission generally cultivates increased visitation from new audiences. 

 

4) We need to engage emerging audiences- and free admission is not a cure-all for greater industry challenges

Data suggest that cultural organizations need to be reaching new audiences right now if we want these types of organizations to be around in the future. Offering free admission in an attempt to appeal to emerging audiences isn’t a complete solution to a more complex problem. We need to reevaluate our strategy for engaging new audiences because the “free admission” fix may not prove sustainable. Moreover, focusing on free general admission may be distracting organizations from cultivating more effective engagement strategies and programs for reaching new audiences.

Consider that Smithsonian Institute museums – without admission fees – saw total attendance decline by nearly 7% from 30 million visitors in years 2012 and 2013 to 28 million visitors in year 2014. In the same duration, the US population increased from 314 million (2012) to 319 million (2014). Also, in the same duration, overseas visits to the US increased from 29.8 million in 2012 to 34.4 million in 2014. Visitation to many museums – even world-famous, free museums – is not keeping pace with population growth.

Our industry is rife with examples of how even organizations with free admission are unable to cultivate increased (or, in many cases, even stable) attendance levels – particularly when considered in the prevailing context of overall population growth and travel to the United States. Free admission does not serve as engagement panacea. For example, In 1997, attendance at the Baltimore Museum of Art – then with an admission basis – approximated 320,000 annually. In 2006, the Baltimore Museum of Art eliminated admission charges. Today, onsite annual attendance is down 44% to 180,000. The organization attributes this decrease in attendance to the BMA’s recent renovation project. There are many factors that affect attendance and admission pricing is hardly the cure-all that many imagine it to be.

 

This data simply scratches the surface of this controversial debate. There are other, incredibly important factors to consider: individual business models, the impacts of increased reliance on contributed revenues and government funding, opportunities to develop more agile operations so as to allow museums to be more audience-focused, and even the reputational equities attendant to being a “free” organization versus one with an admission fee.

One thing is for sure: Critical conversations are taking place and organizations are realizing that it’s time to evolve both their engagement models and their financial plans. We have too much to lose not to move forward in the most fully-informed manner possible. If we want to keep museums alive, we need to think about engagement, audience motivations and barriers, and actual economics.

 

Like this post? 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, Myth Busting, Sector Evolution, Trends 27 Comments

Fast Fact: Admission Pricing is a Science- Not an Art (VIDEO)

Organizations don’t have to guess when it comes to determining an optimal admission price.

Let’s try something new – starting today. I’d like to introduce you to a new project: Know Your Own Bone: Fast Facts for Cultural Executives. Traditional Know Your Own Bone posts will continue to be posted every-other Wednesday. In the weeks between, I will be posting short (around three minutes or less), Fast Facts videos featuring a key takeaway for cultural executives and staff members alike. I hope that you will provide me with feedback, and I am eager to know what you all think! Let’s start here:

Admission pricing is a science. Check out the video to learn why.

 

A deeper dive into data:

Unintentional collusion drives many-an-organization’s pricing strategy, but it’s a bad practice (or, at least a silly one). Today, your organization should be looking at data to inform its optimal price point for admission. Here’s an example of an organization’s data-informed pricing “sweet spot” that data suggest is neither leaving money on the table nor jeopardizing attendance. Every organization has this kind of optimal price point:

Adult Admission Analysis- Aquarium

Your pricing should be contemplative of the attributes of your organization’s high-propensity visitors (jargon translated: it should consider the people who profile as being actually interested in attending your organization). The above example indicates relative price inelasticity between $15.95 and $19.95 – suggesting that as many folks would visit the organization at a $19.95 as they would if the price were $15.95. If this is your organization and you are charging $15.95, you’re not losing visitors – you’re losing revenue that can help keep your doors open and your mission alive.

Different markets, different audiences, and different experiences demand different price points, so I want to emphasize that while this graph is a real example, it’s not necessarily a replicable model for your organization. (Read: I’m not encouraging everyone out there to charge $19.95. I would encourage THIS organization to change $19.95.)

To illustrate, here’s another example of a pricing analysis for a different organization and experience:

Adult admission analysis- performing arts

Finding an organization’s optimal price point has two, basic steps: Collecting data and modeling the data. Optimal pricing is informed by the type of data typically acquired via the conduct of an awareness, attitudes, and usage study that includes price-related metrics and perceptions from visitors and non-visitors alike. From there, price elasticity of demand models aid organizations in quantifying the demand for your experience. If you don’t have the know-how the collect this data on your own or you need help with the models, universities make excellent partners – as do professionals with experience working in this space! The point is: In today’s world – in which data is increasingly available, and more organizations are collecting it – there’s no excuse for blindly following the “leader” or simply guessing when it comes to your organization’s optimal admission price.

 

Words to Know to Be In-the-Know:

 

Unintentional collusion:

Many organizations unknowingly have strategies based upon unintentional collusion. Unintentional collusion is what happens when an organization follows the “leader” thinking the leader knows something that they don’t. Basically, it’s when somebody guesses and other organizations simply copy that guess. When organizations do this, they reaffirm one another’s unscientific strategies.

Value advantaged:

Admission pricing that is set too low and thus “leaves money on the table” for an organization. It is a price point that fails to maximize the data-informed level of revenue that an organization may be able to achieve.

Value disadvantaged:

Admission pricing that is set too high and risks jeopardizing attendance. It is a price point that fails to inspire visitation among those who profile as likely visitors because the high cost to attend poses a barrier to engagement.

Let’s stop guessing when it comes to admission pricing. Today, pricing is not an art. It’s a science.

 

I hope that these Fast Fact videos will provide thought-fuel for your organization! Please let me know if you have thoughts or feedback so that I may evolve these videos to be most helpful over time.  The next short video will be posted on August 19th.

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 8 Comments

Why Millennials May Be The Most Valuable Generation for Cultural Nonprofits (DATA)

Data Show That Millennial Visitors May be Most Valuable Visitors for Cultural Organizations (DATA) {Know Your Own Bone}

The sheer size of the millennial generation makes them a critical target audience, but data suggest that millennial visitors may actually be the best visitors. Here’s why.

Millennials are the largest generation in human history. We know that they are a critical audience to engage now in order for cultural organizations to exist later. And, quite frankly, you’re probably tired of hearing about this public-service motivated, connected, social, educated, super-duper-special, hierarchy-hating, everyone-is-an-MVP bunch. (Heck, I’m a true-blue millennial and I’m right there with you!) However, all this talk about the need to engage millennials seems to still be met with an eye-roll and a “Here are even more things that we need to do for them” attitude from too many executive leaders. It seems that the size of this generation is the primary reason driving the need to engage millennials for many…and that’s an important reason. But it’s even close to the whole story.

Let’s change this attitude. Let’s do it with data.

Data suggest that millennial visitors are an organization’s most loyal – and they do much more loyalty-driving work for organizations than older audiences. When it comes to engaging millennials, a little is a lot more likely to go a long way. (But…that doesn’t justify organizations doing a little.) This generation is most likely to work for you. Overall, millennials are arguably a cultural organization’s most valuable visitors.

High-propensity visitors (HPVs, in my world (hold judgement on the acronym)) are people who possess the demographic, psychographic, and behavioral attributes that indicate an increased likelihood to visit cultural organizations such as museums, aquariums, gardens, performing arts organizations, historic sites, science centers, zoos, etc. These are the people who actually go to cultural organizations and data can bring to light what these folks have in common. Interesting findings arise when we take a look at millennial high-propensity visitors compared to non-millennial high-propensity visitors. Here are three, data-informed millennial visitor qualities that work to an organization’s terrific advantage compared to more traditional audiences:

High-propensity visitor indicators by age

(A quick note on the data: It comes from IMPACTS and the National Awareness, Attitudes and Usage Study of Visitor-Serving Organizations, first published in 2011 and updated annually thereafter. Since its initial publication, the study has tracked the opinions, perceptions, and behaviors of a sample population totaling 98,000 US adults, and is believed to be the largest and most comprehensive study of its kind.)

1) Millennial visitors are most likely to come back sooner.

Millennial high-propensity visitors have a shorter re-visitation cycle than even other generations of high-propensity visitors. In fact, millennial high-propensity visitors are 30.9% more likely to revisit an organization within one year than high-propensity visitors aged 55 or older. That’s a big difference. Moreover – and to the possible surprise of many – millennial HPVs are 20.5% more likely to join as a member than HPVs aged 55 and older. (Though those age 35-54 still take the cake when it comes to likelihood to become a members.) Millennials are an organization’s most loyal high-propensity visitors when it comes to driving repeat visitation. Capture us, and the data suggest we are most likely to come back – and relatively quickly!

 

2) Millennial visitors are more likely to spread positive word of mouth about cultural organizations to drive visitation.

As a reminder (that I provide on KYOB constantly): Data suggest that reputation is a key driver of visitation, and what other people say about your organization is 12.85x more important in driving your reputation than advertising. So what people say about your organization to one another is really important in getting people in the door. We millennial HPVs shine here compared to other HPV generations, and are 18.1% more likely to recommend experiences to a friend than those aged 35-54 and 20.5% more likely than HPVs aged 55 and older. Show us an organization that we like, and we are significantly more likely than older generations to endorse that organization to other people. Millennial high-propensity visitors are more likely than any other generational cohort to provide your organization with what data indicate is the single most valuable form of marketing.

 

3) Millennial visitors reach more people.

Why does being most likely to recommend a cultural experience to a friend particularly matter? Because millennial high-propensity visitors are crazy “super-connected.” This means that we are empowered to recommend experiences with a collective reach that’s like “traditional media” on steroids. “Super-connected” means that these folks are most likely to have access to – and be engaged with – the web at home, at work, and/or on mobiles devices. Admittedly, this can be an incredible asset or detriment to organizations based upon whether or not an individual had a positive or negative experience, but, provided that your organization is doing it’s best on the “satisfying experience” front, positive experiences can go a very long way.

We’re also much more likely than other HPV generations to make purchases online, further underscoring that if your audiences aren’t buying tickets online, it may have to do with your own organization’s online ticket buying strategy. As the world becomes more digital, more folks are making purchases online. Millennials are more than twice as likely to have made a large purchase online within the last year than folks aged 55 or older.

 

4) Millennials likely have the highest lifetime value.

This generation’s size and lifetime customer value suggest that organizations that successfully engage millennials stand to reap a big reward. Millennials are the youngest of the three generations (i.e. Millennials, Generation X, and Baby Boomers) currently visiting cultural organizations – meaning that millennials have the longest expected lifetimes to contribute value as customers. In addition, the large size of this demographic (nearly twice that of Generation X) compounds the composite lifetime value of engaging this audience.

Note that high-propensity millennial visitors are more educated than their generational predecessors. This is important to understand, because often when organizations say, “Let’s target millennials!” they mean ALL millennials. That’s not always a bad move. But, the reality is that millennials who currently profile as being likely to visit cultural organizations are a subset of the population just as high-propensity visitors from other generations are a subset of the population. Not everyone on the planet thinks, “Hey, I’ll do that!” when someone suggests visiting a cultural organization. For various reasons (e.g. free time, access to transportation, cultural background, income, etc.), that’s just not the case with some people. A goal of efficiently engaging millennial audiences is to tap into high-propensity visitors – those persons most inclined to visit in the first place (i.e. “the path of least resistance”).

Heads-up: We also aren’t watching a lot of live TV. Those aged 55 and older are nearly 60% more likely to be watching more than 10 hours of weekly live TV than we millennials. So if you’re appearing on a morning news show, we’re less likely to be tuning in. It may be beneficial to record that segment and put it somewhere where we can see it later if millennial viewership is a particular goal

.

Compared to other generations, millennial high-propensity visitors are more likely to visit more often. They are also super-connected and more likely to spread an organization’s message, providing incredibly valuable word of mouth endorsement. All things being equal, millennial audiences may well be a cultural organization’s most valuable visitors.

Let’s stop rolling our eyes and get psyched about engaging these cheerleaders! (Too much enthusiasm? I’ll it step back.) Here: Let’s change how we frame the conversation. Instead of groaning about the “otherness” of millennials, let’s embrace this opportunity to engage a new cohort of folks who will visit us again and again, tell their friends, and – if we do our jobs right – will be around loving us for a long time.

 

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