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Museums

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.

 

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 colleendilen in Community Engagement, Financial Solvency, IMPACTS Data, Millennials, Myth Busting, Nonprofit Marketing, Sector Evolution, Trends Leave a comment

Influencing Leadership: Three Findings to Effectively Communicate with Cultural Executives (DATA)

Influencing Leadership at Cultural Institutions

Here’s a data-informed peek at what influences leaders in cultural institutions.

I’m in the business of cultural sector evolution and – given that the cultural business model is in need of an update – we at IMPACTS have been looking at how the opportunity for evolution may be best understood. We work directly with many industry leaders (the Chiefs, or the “Cs”), and recently had occasion to scour the minds of these executives in order to better understand how they obtain information, and the roles that various information channels play in influencing their executive decisions. Potentially innovative, groundbreaking ideas risk dying on the vine if they aren’t understood and supported by an organization’s leadership. We wanted to find out more about how to keep that from happening.

The data below is from a survey of 306 executive leaders working at nonprofit visitor-serving organizations (e.g. museums, aquariums, cultural centers, theaters, orchestras, zoos, historic sites, etc.). The study identified the primary information channels that executives use to inform their decision-making processes, and further measured the relative trust and influence that these same leaders ascribe to the various information channels. These values are quantified on an index value basis – a way of assessing and comparing these measurements in relative terms (i.e. an information channel with an influence value of 200.0 is 2x as influential in the surveyed leaders’ decision-making processes than is an information channel with an influence index value of 100.0).

The findings of this study are relevant to anyone whose profession requires influence, motivation, and collaboration with or among leaders.  If we know what informs and influences leaders, then we can more effectively communicate with, and, in turn, influence leadership. Before you can change the world, you likely need to change some minds. Here’s data that will help:

 

1) Timeliness matters

KYOB IMPACTS - Sources of information  for cultural leaders

Let’s start with the obvious: It’s easiest to reach fellow leaders via the information sources that they are actually using.

Books and manuals generally have some influence power and are perceived as trustworthy and relatively influential sources (more on that in the charts that follow). This is frequently because book publishers employ credibility protectors such as fact-checkers, researchers, and editors, so leaders often regard this information channel as an expertly vetted, reliable source of information. But, it also takes time to write, edit, publish, and distribute (not to mention read) a book. That may be why the data suggest that leaders aren’t primarily relying on books and manuals for information (which they reference for information approximately 3.5x less often than they do online daily news sources). So, yes, books are potentially influential – if you can get the leader to read the book!

Data suggest that more timely information channels win the day when it comes to providing value as an information resource for leaders. Consultants/industry experts, peer-to-peer communications, and especially daily newspapers and blogs are timely by nature. Timely information sources are likely to be more right-now relevant than sources with more labored publication processes.

In addition to books, industry publications (often published periodically) and conferences (typically occurring annually) struggle to meet the timeliness requirement that agile leaders demand of their most important information sources.

 

2) Experts are far more valuable than participants

KYOB IMPACTS - influence of sources for cultural leaders

Perceived expertise is a significant driver of influence. Daily newspapers are definitionally timely – and the perceived prestige, credibility, and expertise of publications (think The New York Times, The Washington Post, The Wall Street Journal, The Boston Globe, etc.) inure to the benefit of their journalistic staff. There’s a high level of trust and influence embedded in these brands despite the fact that the web allows nearly anyone to be a “reporter” these days. Sources perceived as expert – such as industry experts, consultants and industry executives – dominate influence on leaders.

KYOB IMPACTS - Trust of sources for cultural leaders

Conversely, sources based heavily in participation don’t perform nearly so well. Not everyone who participates in something is an expert. This may be a challenge for industry publications and conferences – they often feature far more participants than experts. More heavily participation-based (versus expert-based) sources often supply unfiltered noise in the already-noisy world of an executive leader…a circumstance that may be the opposite of helpful in the eyes of the “Cs.”

I wonder if – as the most effective leaders increasingly play the symbolic role of a conductor within organizations – the influence, trustworthiness, and go-to value of professional staff will increase. That’s a tide that may necessarily turn as cultural organizations evolve: Leaders may need to trust the (increasingly nuanced and specialized) experts that they hire in order to simply run their organizations.

Fun fact: Leaders right now utilize printed newspapers far, far more frequently than the general population. Nope, it’s not because printed newspapers are different than online newspapers in terms of content – it’s because today’s head-honchos are generally educated Baby Boomers who simply still prefer getting their news in print.

 

3) It’s a small world after all

What leaders say to one another is far more influential than what non-peers say to leaders. This is evident when observing the high impact of peer-to-peer communications and industry experts. Leaders seek out and listen to other leaders.

While this may be slightly disappointing for non-Chiefs, I urge these future leaders to look at the very bright side of this finding: If you can influence a small group of leaders, then you may be able to influence the entire sector. Hopeful? Perhaps. But identifying this narrow band of very specific influencers could prove enlightening for both current and future leaders alike – especially considering the imperative to evolve the way that many nonprofits do business. Think of other relatively small groups of folks who knew one another and changed the course of history. The Beat Generation. The Lost Generation. The Cultural Institution Reinvention Generation? Perhaps change in this sector is not so different. Or, perhaps I just want an excuse to include references to both Jack Kerouac and F. Scott Fitzgerald in a post.

Ours is not a kingdom, it is a collaboration. To influence leaders, we must compellingly communicate a point of view…and it’s easiest to do this when we communicate in consideration of leadership’s most preferred, trusted, and influential information sources.

 

Like this post? Here are a few related posts from Know Your Own Bone that you might also enjoy:

 

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Image credit: Scientific American

Posted on by colleendilen in IMPACTS Data, Sector Evolution, Trends 2 Comments

Six Ways Personalization Trends Are Affecting Museums and Cultural Centers (DATA)

Personalization trend in cultural organizations

The personalization trend is here. And it’s affecting nearly everything visitor-serving organizations do.

 

Once in a while – usually when considering topics for a trend meeting with clients – I look over collections of recent IMPACTS data and glaring patterns emerge. Sometimes these trends are obvious – like myth-busting traditional ways of thinking that data suggest are now largely irrelevant. Sometimes they come together to tell a story about sector evolution and solvency. And other times – like today- they represent a connection so glaringly apparent (because it is already in the broader business media spotlight) that I’ve mentioned it only in passing.

Personalization has been an increasing and unrelenting theme in much of the data collected regarding visitor-serving organizations – and it is begging for more attention in the world of cultural centers. Typically, conversations about personalization within these institutions are interpreted as a need for crowd-sourced exhibits/programs or more creative, online initiatives. And those can be excellent ways to actively incorporate personalization into an engagement strategy! What’s decidedly NOT excellent is assuming that personalization doesn’t affect nearly everything in regard to operations and engagement these days. This goes way beyond new exhibit development and social media stunts. 

Personalization is one of the most important trends for brand evolution today and is predicted to continue to emerge as a hard-hitting trend. And, if you haven’t heard, 2015 is the year of personalization. Personalization has been sited – alongside transparency – as an increasingly required brand attribute and a prime example of how the Internet has changed the world in which we live.

From the Share a Coke initiative to the secret sauce of Netflix, Amazon, Hulu, Spotify, and Pandora, personalization initiatives are everywhere. Most of all, personalization serves as a helpful lens through which to consider initiatives and the evolution of engagement practices.

Gone are the days of one-size-fits-all communications online and offline. Personalization is actually playing a role in nearly all aspects of visitor-serving organizations – beyond the creative development of new exhibits and programs. Personalization has lead to the emergence of the following trends:

 

1) An increased need for onsite personalization to increase satisfaction levels

Data suggest that personal interactions between staff and visitors significantly increase overall satisfaction, improve value perceptions, and contribute to a more meaningful overall experience. IMPACTS data has uncovered that a single personal facilitated experience (PFE) during a visit can have a major impact on satisfaction levels. A PFE is a one-to-one or one-to few interaction that occurs between an onsite representative of the organization and a visitor.  And not only do PFEs increase satisfaction levels, but they also increase perceived value for admission, education value, staff courtesy, and entertainment value. See the data here.

IMPACTS satisfaction by daypart PFE

Organizations may even deploy PFEs as a mitigation strategy to minimize the impact of crowding perceptions on overall satisfaction! The chart above shows data points from a representative organization with whom IMPACTS works. Keep in mind: The experiences represented by PFE and non-PFE visitors are largely the same (same facility, same content, same basic experience) – except for the opportunity to have a personalized experience with a staff member.

 

2) A growing disinterest in group tours and standardized experiences

Your organization isn’t imagining things: It’s harder to attract leisure tour groups today than in the past. This mass, standardized experience business has been in decline – and the data suggests that it’s not because the salespeople suddenly got bad at their jobs.  It’s because people do not want to go on the same old, standardized group tours.  This makes sense: During a time in which audiences are leaning toward more personlized experiences, many group tours are currently the precise opposite – every experience is commonized.

IMPACTS group tours are fun way to visit museums

The Y-axis in the chart above indicates the mean scalar variable response so as to indicate the level of agreement with the statement on a 1-100 scale.  Anything much below 60 tends to indicate a level of disagreement (i.e. “not fun”).

Perception of the enjoyment of museum visits through group tours not only started out at less-than-impressive levels when IMPACTS began tracking the metric in 2008, perception has since been in steady decline. This is also the case in regard to group tours to zoos and even cities, suggesting that it isn’t the museum group tour that’s “broken” – it’s the group tour concept itself. Similar data exists for sporting events, aquariums, theme parks…you name it. Again, the personalization trend is at odds with the standardized experience of group tours – regardless of the venue. More on this here.

 

3) The expectation of social care on digital platforms

When organizations consider social media and personalization, they often think about creative initiatives. However, this may be missing the boat. There’s an ongoing expectation for personalization that may be more critical to your organization than more creative, additive endeavors.

The buzz term for personal, customer service-like community management issocial care” and it is hugely important for all organizations. Why? Online audiences expect engagement from organizations.

Consider this data by Lithium Technologies: 70% of Twitter users expect a response from brands they reach out to on Twitter, and, of those users53% want that response in less than one hour. The percentage of people who expect a response within the hour increases to 72% when they’re issuing a complaint. And there’s more: 60% of respondents cited negative consequences to the brand if they didn’t receive timely Twitter responses. That said, it isn’t only negative comments for which audiences seek interaction…

Lithium expect response within hour of tweet

This may all sound doom and gloom, but according to the same survey by Lithium Technologies, there’s a benefit to interacting with folks on social media sites:

Lithium positive response data

 

4) Promulgating connective content with personal meaning

By now, organizations likely understand that an organization’s number of followers on social media doesn’t matter. The quality of followers is more important than having thousands who do not promulgate your messages and are disinterested in acting in your organization’s interest.

Content is no longer king. Connectivity is king. Content can operate in isolation, but connectivity requires a kind of “passion match” between the organization and the potential supporter or advocate. This “passion match” is personal, and – while indeed many exhibits or specific programs are being developed for more unique audiences – the understanding that personal connection is the goal is driving the content strategies of intelligent organizations to post not what the most people on social media will like, but what actual, potential supporters will find most meaningful.

 

5) The availability of more diverse membership structures

The concept of personalization may begin with allowing for alternate gateways to engagement and understanding that the “one-size-fits-all” approach to membership simply isn’t optimal anymore. One data-based example of this can be seen in IMPACTS work with a large (over one million visitors per year) visitor-serving organization with a mission related to conservation. More on this finding here.

IMPACTS- Benefits of membership

Adults under thirty-five provide a sneak-peak into the need for organizations to create alternate programs to cultivate new and emerging audiences. Extant data indicate that members of Generation Y are public service motivated and appreciate a feeling of belonging and connectedness with one another and with a cause. This is consistent with the responses gathered from millennials in the data above. Instead of being interested in the more “transactional perks” of membership, this generation desires a feeling of connectedness with a broader social good. Creating a range of membership programs that engage different audiences allows for more personalization in approach. Is the primary “passion match” between members and your organization actually transactional? For some it may be. But what about the increasing majority that care about impact and connectivity?

 

6) The evolution of digital platforms and technology usage

Thanks to the personalization trend, the role of email has changed. It is no longer effective for “spamming” groups of people, but rather for cultivating individual audience members based on their “passion matches.” Personalized emails deliver six times higher transaction rates, but seventy-percent of brands fail to use them.

Moreover, data suggests that static websites and homepages are no longer the digital platform motivating visitation decisions.  Increasingly, social media plays an important role in this process thanks to the personalization and perceived transparency that it provides. Simply put, folks can log onto social media sites and see how well an organization actually “walks the talk” of its mission by way of the content that it posts – and make decisions about the organization on their own.

There is buzz about the importance of utilizing mobile devises to hone in on personalization opportunities. This is a particularly good idea right now because Google has announced that there are now officially more searches taking place on mobile devices and tablets than laptops and desktops. Let the personalization trend continue!

 

Ours is an era of personalization – every experience is increasingly tailored. And data suggest that more standardized experiences suffer in comparison. It’s time that cultural centers ingrain this brand attribute into overall organizational strategy in order to future-proof their experiences and offerings, and better attract and retain donors and supporters.

 

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 ) Or for more regular sharing of nonprofit marketing information, follow me on Twitter

Posted on by colleendilen in Community Engagement, Digital Connectivity, Financial Solvency, Fundraising, IMPACTS Data, Millennials, Nonprofit Marketing, Sector Evolution, Trends 5 Comments

Group Tour Interest in Decline: Why Museums Should Invest Elsewhere (DATA)

group tours

Investing in attracting tour groups is an increasingly futile endeavor for museums. Here’s the data and what to do instead.

Many visitor-serving organizations increasingly bemoan the challenges associated with the leisure group tour market. (This being a different attendance category – and revenue line item – than school groups.) Typically, visitor-serving organizations have salespeople dedicated to the process of soliciting tour groups. In other words, their job is to get group business.

This business has been in decline – and the data suggests that it’s not because the salespeople suddenly got bad at their jobs.  It’s because people do not want to go on group tours.  This makes sense: Ours is an era of personalization- every experience is tailored.  Group visits are the exact opposite – every experience is standardized.

Your organization isn’t imagining things: It’s harder to attract leisure tour groups today than in the past. Here are three, data-based reasons to utilize full-time staff (FTEs) in a way that is more likely to drive actual visitation than futilely increasing investments in the leisure tour group market:

 

1) People do not think group tours are a fun way to visit a museum

IMPACTS group tours are fun way to visit museums

The Y-axis in the chart above indicates the mean scalar variable response so as to indicate the level of agreement with the statement on a 1-100 scale.  Anything much below 60 tends to indicate a level of disagreement (i.e. “not fun”).

Perception of the enjoyment of museum visits through group tours not only started out at less-than-impressive levels when IMPACTS began tracking the metric in 2008, perception has since been in steady decline. This is also the case in regard to group tours to zoos and even cities, suggesting that it isn’t the museum group tour that’s “broken” – it’s the group tour concept itself. Similar data exists for sporting events, aquariums, theme parks…you name it. Again, the personalization trend is at odds with the standardized experience of group tours – regardless of the venue.

We decided to look into this a bit more, and the outcomes to this inquiry were also extremely telling (although perhaps altogether unsurprising)…

 

2) Group tours do not likely have a sustainable future

 IMPACTS group tours are fun chart

Like the previous chart, the data above also demonstrate a mean scalar variable response so as to indicate the level of agreement with the statement on a 1-100 scale. Again, dipping below 60 tends to indicate a level of disagreement (i.e. “not fun”). The data here is unassailable: The market – and especially millennials – do not think group tours are fun.

Millennials represent the single largest generation in human history and will make up the largest consumer segment of the market for the next 40 years at minimum. These folks don’t think group tours are fun – and their perceptions are declining rapidly. “We aren’t trying to attract millennials with group tours anyway,” you say? Well, the general market (even excluding millennials) doesn’t think group tours are much fun either.

This trend toward the negative perception of the enjoyment of group tours – like most evolution within the industry – mirrors the general market preference for more tailored experiences. On social media, the ads that come up in your newsfeed are picked just for you. Email has evolved to become a more personalized way to tell important stories than an opportunity to “spam” with broader messages. Audiences want to decide what they think of organizations for themselves. Today, everyone’s a curator. Group tours embody the opposite of these market preferences – the regulated, homogeneity of a common experience.

 

3) There are areas in which staff resources for group tours may be reallocated in order to truly drive visitation.

I think it’s interesting that some organizations that claim to not be able to afford to augment their social teams still maintain group salespeople.  The alternative use of those same funds would likely have a better ROI more broadly engaged to support the communications effort.

Digital engagement isn’t the only area in which data suggest alternative investments may yield more visitors and donor support. Indeed, any position that supports more personalized experiences has been proven to drive both reputation and satisfaction levels within institutions. Investing more in front-line staff and deploying personal facilitated experiences is an urgent need that many institutions are overlooking.

In short: Museums often have full-time staff dedicated to managing a program that many folks don’t even want. At the same time, there are data-supported audience “touch points” that may not be receiving adequate investment. Once a month, one of us at IMPACTS seems to get asked, “What can we do to improve our leisure group business?”  The answer is: Get out of the group business (and get into the personalization business)!

 

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 ) Or for more regular sharing of nonprofit marketing information, follow me on Twitter

 

Posted on by colleendilen in Community Engagement, IMPACTS Data, Millennials, Myth Busting, Trends 8 Comments

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

Visit us v2

Here it is: the data-informed equation for how much money organizations should be spending in order to maximize opportunities for financial success.  

Data suggest that approximately 70% of visitor-serving organizations are not investing optimal funding in acquiring audiences.

Marketing budgets seem to be an unnecessarily emotional topic for many nonprofit organizations. Optimizing marketing investments – like admission prices – are increasingly a product of math and science (read: decidedly not “intuition” or “trial and error”). They need not be based on fuzzy-feelings and inappropriate loyalties to failing business models that ignore the realities of the outside world.

We live in a pay-to-play world where organizations have to spend money to make money. When it comes to budgeting for audience acquisition costs, many organizations seem to have fallen into that familiar trap of “last year plus 5%” that lazily assumes the continued efficacy of the same old platforms and strategies. Of course, such a strategy completely ignores shifting advertising cost factors, evolving platforms and channels, and technological innovation. Say it aloud: Nonprofits do not operate in a vacuum and cannot afford to ignore the changed economies and technologies of the world around them.

Several organizations that have made this realization have asked IMPACTS if there is an equation to inform their audience acquisition costs so as to maximize their opportunities for financial success. And, the findings of a three-year study suggest: Yes, there most certainly is!

 

The key equation for acquisition costs

Let’s first establish a few definitions and “same page” this conversation:

Audience acquisition costs are the investments that an organization makes in advertising, public relations, social media, community relations…basically, anything and everything intended to engage your audiences.

Market potential is a data-based, modeled outcome that indicates an organization’s potential engagement with its audiences. For most organizations, “market potential” primarily concerns onsite visitation. In other words, it answers the question, “If everything goes well, how many people can we reasonably expect to visit us this year? (NOTE: Market potential may not match an organization’s historic attendance – organizations “underperform” their market potential all the time…for reasons that we’ll soon explore.)

Earned revenues are the product of admissions, memberships, merchandising, food and beverage, facility rentals…basically, all revenues attendant to the onsite experience that are supported by audience acquisition investments. These revenues exclude annual fund, grants, endowment distributions and other sorts of philanthropy.

Here’s the equation to maximize your market potential (as suggested by the recently completed three-year study):

 IMPACTS audience acquisition equation

Expressed another way: Optimal Audience Acquisition Costs = 12.5% of Earned Revenues. For example, if your organization generates annual earned revenues of $20 million, then this would suggest an annual audience acquisition investment of $2.5 million.

Further, additional analysis would suggest that 75% of the audience acquisition costs should be earmarked to support paid media (i.e. advertising). So, of the $2.5 million suggested above for audience acquisition, nearly $1.9 million should support paid media.  The remaining 25% (or, in this example, approximately $600,000) would support agency fees, public relations expenses, social media, community engagement – all of the programs and initiatives that round out an integrated marketing strategy. Forget to invest that 25% at your own peril. Earned media is critical for success and many social media channels are also becoming pay-to-play.

And now the other side: Why such a large percentage allocated to paid media? Again, ours is an increasingly pay-to-play world. Rising above the noise to engage our audiences frequently means investing to identify and target audience members with the propensity to act in our interest (e.g. visit our organizations, become members, etc.). There is tremendous competition for these same audience members – from the nonprofit and for-profit communities alike.  Think of the most admired and successful campaigns in the world – do Nike and Apple rely on 3am cable TV “bonus” spots that they get for a reduced rate and that don’t hit target audiences? Nope. While earned media plays a major role in driving reputation, paid media plays an important role in a cohesive strategy – and doing it right costs money.

 

The equation in action

How does the study suggest this equation? Check out the chart below. It indicates the relationship between performance relative to market potential (i.e. how well the organization actually performed when compared to its market potential) and the audience acquisition investments made by 42 visitor-serving organizations (including aquariums, museums, performing arts organizations, and zoos) over a three-year period:

IMPACTS - Audience Acquisition

The data strongly suggests that there is a correlation between an optimized audience acquisition investment and achieving market potential. It also indicates the perils of “underspending the opportunity” – a modest investment intended to achieve cost-savings may forfend exponential revenues. (Though the data never has – and likely never will – support it, many organizations seem to foolishly hold dear to the notion that they might somehow “save their way to prosperity.”)

Additional analysis indicates that the studied organizations invested an average of 7.9% of earned revenues toward audience acquisition…but only achieved 76.0% of their market potential. However, the organizations achieving ≥95.0% of their respective market potentials invested an average of 12.7% of their earned revenues toward audience acquisition.

In no instance did an organization investing less than 5.0% of earned revenues on audience acquisition achieve greater than 60.0% of its market potential.

Overall, the data suggests that the “sweet spot” for audience acquisition investment is in the 10.0-15.0% of earned revenue range. Splitting the difference (and further supported by the findings of organizations achieving ≥95.0% of their market potential in the study) gives us our 12.5%.

NOTE: Before we start parsing the nuances of media planning and creative approaches to advertising, let’s baseline the conversation by acknowledging that each of the studied organizations were led by competent persons operating with the best of intentions. Yes – “great creative” matters – but it doesn’t offset an inadequate marketing investment. Sure, a viral social campaign helps…but it doesn’t negate the importance of other media channels. In other words, there aren’t exemptions from the need to invest in audience acquisition for visitor-serving organizations that rely on earned revenues.

If your organization is struggling to meet its market potential, it may have less to do with all of the usual suspects such as parking, staff courtesy, special exhibits, pricing, etc. and more to do with an antiquated view of the necessity of meaningful marketing investments. Can your organization overspend? You bet. However, that doesn’t seem to be the problem confronting most visitor-serving nonprofit organizations. If your organization is struggling to meet its market potential, then it may be that in today’s pay-to-play world, you simply aren’t paying enough to play in the first place.

 

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 colleendilen in Digital Connectivity, Financial Solvency, IMPACTS Data, Myth Busting, Nonprofit Marketing, Sector Evolution, Trends 15 Comments

Three New Pricing Realities For Visitor-Serving Nonprofits in The 21st Century (DATA)

Admission tickets

Want to keep moving your mission moving forward and your doors open? It’s time to end the debate on these pricing-related topics.

As the visitor-serving industry (museums, theaters, symphonies, historic sites, etc.) broadly struggles with declining attendance trends and a potentially unsustainable reliance on kindness and not commerce, “getting your price right” is more important than ever to nonprofits who depend on the gate to support their missions. Too high of a price may serve as a barrier to visitation. Too low of a price risks leaving money on the table and all of the attendant fiscal challenges associated with failing to maximize earned revenues.

Much is happening in the world that changes/challenges the way that traditional visitor-serving nonprofits operate: social media and technology, the need for real-time transparency, and changing demographics in the United States and beyond are just a few, prominent factors influencing our industry. And, these factors are changing everything from internal operations to membership products and the role of fundraising. And, unsurprisingly, the information age requires embracing new realities related to pricing.

Let’s end the debate on these three pricing-related topics and get on with the business of running effective businesses that enable meaningful missions:

 

1) Pricing is NOT an art (Pricing is now a science)

Determining the optimal price of admission is no longer a trial and error process. In fact, it’s anything but a “guess” (however well-educated). Data is playing an increasingly important role in the way that institutions operate for good reason.

A near-decade of research including hundreds of interviews with US visitor-serving nonprofit organizations strongly suggests that many pricing models are the product of “unintentional collusion” (AKA “the blind leading the blind”). This deeply-flawed model fails to contemplate two critical factors when it comes to informing a pricing strategy: (i) the fact that a proximate (or competitive, or peer) organization has established a price does not necessarily mean that it is an optimal price; and (ii) the market tends to view organizations – however “alike” they may be – in very unique terms, and this uniqueness frequently extends to pricing.

Unintentional collusion looks something like this:

IMPACTS unintentional collusion

Thanks to readily available data and analyses, there is no reason to base pricing on anything beyond an organization’s own, unique equities. For every organization, there is a data-based “sweet spot” in which admission prices are optimal.

Let’s consider a quick example of what an optimal pricing strategy looks like when charted (Note: This particular example is from a performance-based entity, but this way of considering pricing applies to any type of admission):

 IMPACTS ticket price analysis example

In the above example, the data-informed analysis suggests that pricing less than $75 for a ticket to the performance (more specifically, to a “premium” seat at a non-matinee, live performance) would be “value advantaged” – a polite euphemism for leaving money on the table! However, anything above $75 pushes the price into the “value disadvantaged” realm – a place where the price poses a needless barrier to entry (and, generally, one where the increased per capita revenues will not offset the decline in attendance). For every category of admission, every organization has an optimal price – one that is neither value advantaged nor value disadvantaged.

Organizations guess their price (without leveraging data to inform their pricing strategy) at their own risk. Getting the price wrong can alienate potential visitors and supporters if it’s too high, and make it difficult to raise prices to an optimal value over time if price starts too low.

Looking for ways to help support a price increase? Well, data suggest that a whiz-bang new exhibit or facility expansion isn’t necessarily coupled to an increased price tolerance. Instead, efforts to improving an organization’s reputation or the overall satisfaction of visitors are much more reliable indicators of increased value for cost perceptions.

 

2) Admission pricing is NOT affordable access (Admission enables affordable access)

A thought that sometimes emerges once an organization’s optimal pricing has been quantified is strangely, “but that’s too expensive to provide affordable access!” Admission is not a substitute for affordable access. Admission and affordable access programs are completely different things…and an organization needs to establish its optimal pricing strategy in order to support effective affordable access programming.

In other words, if you subsidize price in the name of affordable access (i.e. artificially lowering the price to create a value advantaged pricing condition), you are limiting your organization’s ability to fund quality programs that DO provide true affordable access. Making your entire pricing strategy an “affordable access program” leaves money on the table as folks pay an admission price below what they (the market!) indicate they were willing to pay for your experience.

When it comes to the truest definition of affordable access, an admission price point of $15 or $20 or $25 is functionally irrelevant to many of our most under-served audiences…most any price at all may pose an insurmountable barrier to visitation.

What if you aim to provide affordable access for the community? Won’t a high admission price deter folks? The data suggest “no” – at least not the people who were able to pay in the first place – but that doesn’t mean it’s not a good idea to develop true access programming to better engage constituents for whom price is barrier while also considering strategic promotions that celebrate your community. Speaking of which…

 

3) Discounts are NOT promotions (Promotions serve a purpose beyond cheap access)

Promotions celebrate community while discounts devalue your brand. These are very real and very different things. The biggest differentiating factor is the question “So what?” If the point of providing a discount is simply admitting folks for a lower price, then the discount is a bad idea that devalues your brand. (And, as a reminder, data suggests that all discounts provided through social media are bad business for nonprofit organizations.) However, if an organization’s answer to “so what?” is “to celebrate a community” and that purpose is made clear in external communications, then the program that you are describing is a promotion. The feature of a promotion may include a special pricing opportunity – think special pricing for mothers on Mother’s Day, or differentiated pricing for local residents.

Discounts make people say, “I got in cheap.” Promotions make people say, “I feel valued.” Discounts are not only meaningless, but data suggest that they also lead to less satisfying overall experiences and even increase the time before a return visit! While this may be surprising to some folks, it’s classic pricing psychology in action.

IMPACTS intent to revist

 

 

If visitor-serving organizations aim to keep providing inspiration and education to the masses, then the first imperative is to exist – and it’s hard to exist (let alone thrive) in the long-term without a sustainable revenue strategy that optimizes pricing.

Pricing strategies – and even pricing psychologies – are not mysterious so let’s stop guessing. The data is not uncertain.

 

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 colleendilen in Financial Solvency, IMPACTS Data, Myth Busting, Sector Evolution 4 Comments

Most Popular Posts of 2014 for Museums and Nonprofits

KYOB Happy 2015What a year! From the strategic evolution of nonprofit organizations to marketing channel efficacy to the need for millennial board members… These are your (a rather focused tribe of industry leaders) favorite KYOB posts of 2014.

Thank you for reading, engaging with, and passing along Know Your Own Bone among your organizations and circles of industry professionals. I continue to be blown away by your passion for elevating mission-driven organizations – and I am honored to aim to provide market insight for such a thoughtful and hard-working bunch of nonprofiteers! I’m thrilled by the prospect that these posts may be providing value for your friends, colleagues, fellow board members and executives, and even college and graduate students. You folks motivate me to keep provide nonprofits and visitor-serving organizations with intelligence regarding market behaviors and perceptions and I hope that my work being a nonprofit/for-profit double-agent has been of value!

Here are KYOB’s most viewed and passed-along posts of 2014. These are the posts that my analytics suggest you emailed around the most, shared with your friends and colleagues, and got the most attention within graduate programs and professional development curriculums:

 

Why Social Media Is The New Force Empowering Giving Decisions

Here are three ways that social media engagement on real-time, digital platforms is changing the nonprofit sector and empowering potential donors to make more intelligent giving decisions.

 

Signs of Trouble for the Museum Industry (DATA)

As the US population grows, the number of people attending visitor-serving organizations is in general decline. And this is a very big problem for sustainability without a digital-age shift in our business model. Here are three behaviors we need to adapt to reset our current condition.

 

Five Things I Have Learned As a Millennial Working with Baby Boomers

Here are my five most valuable lessons that I’ve learned as a millennial “change agent” at work in the land of Baby Boomers.

 

 The New Trickle Down Effect: Why Nonprofits Are Innovators for Industry

Indeed, when it comes to innovation, some of the best R&D happening in our space is being pioneered by nonprofits. Here’s why.

 

Is Your Organization Living in the Past? Nine Outdated Ways of Thinking That Are Hurting Your Organization

If any of these outdated beliefs still linger within your organization, then your nonprofit may be suffering both in terms of finances and mission delivery. It’s time to retire these obsolete practices once and for all.

 

Six Urgent Reasons to Add Millennials to your Nonprofit Board of Directors

Don’t have at least one millennial on your Board of Directors yet? Here are six, critical reasons to call up the nominating committee and work on getting some impressive millennials aboard your nonprofit Board right now.

 

How to Score an Informational Interview: 7 Tips for the Information Age

“Picking someone’s brain” needs an update. Here’s how to actually get an “informational interview” in today’s world.

 

Data Update: Efficacy of Various Marketing Channels (Social Media Still Top Spot)

Social media is an enormously important component of your overall marketing and communication strategy. In fact, data support it as one of the most efficient and effective channels to engage your users and constituents.

 

Why Talking About the Future of Museums May Be Holding Museums Back

Many resources focusing on “the future” are actually communicating about emerging trends that are happening right now…and when we call them “the future” we do our organizations a grave disservice. Here’s why.

 

 The Relevance Test: Three Key Concepts to Future-Proof Nonprofit Organizations

While recognizing the progress that has been made, here are three conflicting perceptions that visitor-serving organizations must internally resolve in order to remain relevant in our ever-evolving era

 

Cheers to an incredible 2015 for all of your mission-driven organizations! May this next year bring you and your organizations much success.

Thanks again for following along!

 

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

Posted on by colleendilen in Trends Leave a comment

How Nonprofits Use Language as a Barrier to Progress

Inigo Montoya - You keep using that word

Want to be a relevant, digitally engaging, and future-facing organization? You may be starting out on the wrong track. While it seems like a no-brainer, the first step is to actually understand what those words mean…because it seems that many executive leaders and staff members may not.

Before you skim ahead and chalk up these issues to “semantics,” consider that when a term is used incorrectly by leadership within an institution, other members of the organization begin to use it in the same way. When these important – and, definitionally, misunderstood – terms become “cheat” words for industry evolution, problems emerge. At the very least, the organization (if not the industry) is destined to be laggard until we either get the meanings right or someone creates a NEW word to represent the thing that the original word should have meant in the first place.  These matters of “semantics” are misguiding our industry.

Misusing (or perhaps unintentionally “redefining”) important concepts for strategic evolution happens constantly. I see it in my work every day – not to mention in public communications from nonprofit CEOs. Perhaps it’s because I’m a digital native myself, or because I work primarily with Baby Boomers to whom these words may seem relatively new in a contemporary context, or because I’m constantly in the thick of conversations regarding strategic change with my clients…but I find myself consistently feeling like Inigo Montoya (without the cool ‘stache) when words like “relevant,” “digital,” “engagement,” and the “future” come up. Interestingly, it seems that the meanings of these four important words have been jumbled together.

Cheating ourselves by not truly considering the meanings of these words may be playing a role in declining attendance to visitor-serving organizations and their increasingly grim business models. It’s certainly not helping us correct the effects of negative substitution facing the industry.

Let’s dive into these examples. Here are those four words that nonprofits often “cheat” themselves out of by (knowingly or unknowingly) redefining their meanings. In no particular order, ladies and gentleman…

 

1) Relevant (vs. current)

It seems that when someone asks, “How can we make our organization more relevant?” the proposed solutions involve tactics that are current (e.g. utilizing social media, providing analysis of a current event on a blog, or adding a widget to a website). But what if the question was phrased, “How can we make our organization more meaningful to our constituents?” (That, folks, is the true opportunity embedded within the word “relevant.”) When we use or interpret “relevant” to mean “current,” we miss the boat on more important conversations with greater potential to elevate individual organizations and the industry at large.

Being relevant is about connectivity, not content. Connectivity is king. Being current can certainly go a long way in making your organization more relevant to individuals, but promulgating the use of “relevance” to instead imply “current” shortcuts important conversations about how to actually connect with constituents and inspire them to act in the interest of your organization’s mission.

 

2) Engagement (vs. social media interaction)

Without a doubt, fostering engagement is critical for securing support in the information age. The more folks feel a connection with your organization by whatever means, the more relevant (yes, the real meaning of the word) an organization may become. Like being “relevant,” “engagement” is about connectivity. It heightens an organization’s ability to foster feelings of affinity that motivate a desired behavior.

Engagement actually means “to become involved in.” Engagement does not mean, “create a moment of semi-detached, low-level maybe-interest on a trackable social media platform”…so let’s stop using it that way. We miss out on important discussions about impact and strategy (and confuse ourselves by further  contributing to the social media data dilemma) when we reduce “engagement” to simply mean something like “Facebook likes.”

 

3) Digital strategy (vs. technological skillset)

I’ve saved the two most important for last. Industry misuse of the word “digital” may be the entire reason why many organizations aren’t very good at translating it into visits, membership, financial support, or even lasting engagement. Here’s a truth bomb: “Digital strategies” are actually real-life, human-being engagement strategies. As much as many folks working in organizations want to write “all things digital” off to the IT guys (or even the marketing department alone), humans do not think in HTML. Technological skillsets come in handy when deploying tactical, isolated aspects of these strategies. In other words, “digital strategies” are not necessarily about platforms, but about people. So executives should really stop saying, “I don’t understand that” as an excuse for digital illiteracy. This actually translates into, “I know nothing about how to engage our audiences – particularly on their preferred platforms – and I probably should not continue to hold my current position given how remarkably unqualified I am relative to the moment.” The data is pretty unassailable on this front.

Want to dig deeper into this dilemma? Here are five reasons why conceptually separating out “digital” is a problem that is making it harder for nonprofits to succeed.

 

4) Future (vs. present)

Talking about the “future” of organizations may be holding them back. Many industry resources supposedly focusing on “the future” are actually communicating about emerging trends that are happening right now…and when we call them “the future” we do ourselves a grave disservice for several reasons. (For a full run-down, check out this article.) Among those is the fact that calling things that are happening in the present “the future” excuses putting off critical issues, implies uncertainty (even though the data is anything but uncertain), and this misuse of the word also fosters a false and undeserved sense of “innovation” when many organizations are not even keeping up with the day-to-day realities of the world that we live in.

 

These “matters of semantics” are playing big roles in the progress (or lack thereof) of nonprofits and visitor-serving organizations. My hope is that by identifying these “cheats” we may open our minds (and our mouths) to having bigger, more meaningful conversations about the future of our own organizations and nonprofits at large.

 

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 colleendilen in Community Engagement, Nonprofit Marketing, Sector Evolution, Trends Leave a comment

Signs of Trouble For The Museum Industry (DATA)

Main Hall and Stairs Mational Museum Warsaw

As the US population grows, the number of people attending visitor-serving organizations is (still) in general decline. And this is a very big problem for sustainability without a digital-age shift in our business model.  It’s not just museums. Many visitor-serving organizations – science centers, historical sites, aquariums, zoos, symphonies, etc. – are failing to keep pace with population growth.

Consider: In the five-year duration spanning 2009-2013, the US population increased by 3.5% from 305.5 million to 316.1 million. The majority of this growth occurred in major metropolitan areas – the very population dense regions where many visitor-serving organizations are located. Indeed, nearly one in seven Americans live in the metropolitan areas of the country’s three largest cities – New York, Los Angeles and Chicago.

However, during the same duration, data indicate that attendance at many nonprofit, visitor-serving organizations has declined. In fact, of the 224 visitor-serving organizations contemplated in the 2014 National Awareness, Attitudes & Usage Study of Visitor-Serving Organizations (NAAU), 186 organizations (83.0%) reported flat or declining attendance. And this is neither a regional nor curatorial content-specific finding – the study representatively contemplates visitor-serving organizations of every size, type, and area.

Many organizations are hesitant to acknowledge attendance challenges…especially when they have historically cited being the “most visited” as an indicator of their expertise and effectiveness. I sense that pressure from governing boards also plays a role – particularly as many organizations have been tasked to maximize earned revenues (often inevitably linked to visitation). Perhaps most concerning of all are attempts to blunt the challenge by proposing half-measures as remedy – you’ll no doubt recognize the “don’t worry, we’re going digital!” excuse and the related practice of sending mid-level staff to innovation conferences as attempted evidence of progress. (This last excuse may be especially worrisome as it seems that many staff members tasked to “innovate” may not actually be empowered to carryout their plans for advancement.)

But, regardless of the excuse, the numbers suggest that our industry risks becoming less relevant to future audiences. What does this mean to visitor-serving organizations? Let’s look at a few examples. (Note: To keep this from being a huge, overwhelming chart, I pulled out major metro markets and a few areas cited as “up and coming.”)

KYOB VSO attendance - IMPACTS

To illustrate, the population of the Atlanta, GA Metropolitan Statistical Area (MSA) has increased in the past five years by 9.4%. During the same duration, visitation to the Atlanta-area organizations contemplated in the NAAU study indicates an attendance decline of 4.6%. Think about that – if engagement were keeping pace with population growth, an organization with an annual attendance of 1,000,000 in year 2009 would reasonably expect to welcome 1,094,000 visitors in year 2013. Instead, on average, the studied organizations saw attendance decline from the theoretical 1,000,000 visitor level in year 2009 to 954,000 visitors in year 2013. Measured against the expectations of population growth, visitor engagement underperformed by 140,000 visitors!

The expectation would be for attendance to increase alongside population growth – otherwise, it is indicative of underperforming the opportunity.  Again, the findings are stark and concerning for organizations in the engagement business:

KYOB VSO Performance against expectations - IMPACTS

In most any other business, if you saw the market steadily increasing in size and your product’s usage in steady retreat alongside it, you’d likely think, “This business model sucks.”

Well, our business model sucks.

Confronted with this evidence, I’ve heard leaders recycle tired strategies of securing larger donations from an aging donor base, and plans to gain more grant funding from governments and foundations. Generally, they aim to “pivot” from a reliance on earned revenues to (hopefully…fingers crossed!) additional contributed revenues. Except no. The visitor-serving industry doesn’t need to pivot. It needs to reset.

Here are three behaviors we need to adapt to reset our current condition:

 

1) Stop citing poor previous efforts as evidence that something will not work

Some visitor-serving organizations will declare that they “already tried” something after investing only the most minimal of resources necessary to claim effort. This is a surefire recipe for failure …yet, it happens all of the time. Here’s a quick example: Many organizations will offer options to buy tickets online and simply invest enough to create a webpage for it. Then when nobody uses that method to buy tickets they say, “Look! We tried that and nobody bought tickets that way!” Actually, nobody bought tickets that way because your site wasn’t mobile friendly, it takes 10 different screens to buy a ticket, it requires several pages of personal information, it’s confusing and time consuming, and it costs more. Often it’s an organization’s own fault when data-informed things don’t work, but organizations frequently take a half (or maybe a one-tenth) approach to something and basically (knowingly or unknowingly) set it up for certain failure. This is just one, basic example.

“Our crummy product failed, ergo everything related to this project won’t work” justifies stagnancy by masking it with false wisdom. Organizations think that they are cutting-edge for trying something without any conviction, and that the wisdom they received from their inevitable failure justifies closing the book on really big things like digital engagement. How does this even make sense? This type of excuse-making is a shortcut to irrelevance. Just stop doing it.

 

2) Stop defending past decisions

This seems to be a particularly hard one for many leaders to embrace. After all, it may be human nature to defend one’s past decisions as “right” and “good.” And, at the time when they were made, they probably were. But times change. Today, we are witnessing incredible changes – many borne of technological advancement – accelerating progress at a revolutionary pace. By what rightful reason do we think that we’re exempted from the prevailing changes affecting the rest of the world?

Just because you spent thousands and thousands of dollars on print material doesn’t spare you from the necessity of hiring an online community manager. On a more substantial investment scale, those millions of dollars that you invested in a new entrance to facilitate faster put-through times doesn’t exempt you from developing a mobile ticketing platform that may make ticket counters increasingly obsolete. This is a lesson to learn in real-time (as opposed to retrospectively): Repairing and updating past decisions is often more time-consuming and, ultimately, more expensive in the long run than starting anew. It’s OK – heck, even encouraged – to approach the current condition untethered to the past. That was then, this is now.

 

3) Embrace the inevitable path of progress

Max Anderson, CEO of the Dallas Museum of Art, gave a short ignite talk at the most recent Museum Computer Network conference. The topic of his talk was how to “persuade your museum director to help you” (i.e. how to get him/her to invest in “innovation”). From the beginning of the video it’s easy to see one of the biggest, most glaring problems in our industry: He begins his talk by asking how many museum directors are at the conference. Very short awkward silence ensues…followed by laughter. Really?! Are even our conferences about innovation and new ideas attended primarily by middle managers?!

The reason for the lack of executive decision-makers at many conferences is not necessarily the fault of museum CEOs (as the conferences aren’t always adequately geared toward Directors). But it’s not wholly the task of middle managers to communicate and justify the imperative to remain relevant to CEOs either. There’s a messed up barrier to betterment here, and it has more to do with a flawed structure than simple lexicon within an antiquated museum hierarchy. His talk is absolutely true, probably staggeringly helpful, and thus amazingly messed up at the same time.

We’ve developed this detrimental idea that “digital” has to do with “tech” (not people), and “innovation” isn’t necessary for survival. Max Anderson’s “primer on the psychology of museum directors” underscores that the status quo (and, of course, legacy!) is what museum directors are primarily interested in…but the status quo isn’t working to bring in more people by creating crowds OR buzz. Efforts to abide the current condition fundamentally ignore the challenges imposed by a broken model. Changing lexicon is a pivot. Pivots sound pretty. Pivots sound agile. After pivoting, however, you may be facing in a different direction but you’re still standing in the same place.

Millennials – the largest generation in human history – may necessitate an update to the visitor-serving model in the information age. These “kids” will soon have kids, who will eventually have more kids, and if we continue to ignore the reality of negative substitution in our attendance, then we may soon have no museums, aquariums, or symphonies for those “kids” to go to at all. (OK – perhaps some hyperbole. We likely won’t have zero museums. Just more empty ones.)

 

The forces of change that propel the world forward are not going away. If we don’t change our model to one that is more sustainable, then we risk going away. This is a moment when our biggest barrier to engaging emerging audiences is holding dear to our increasingly irrelevant plans and practices. We need a reset. And it’s up to all of us to put our heads together and make it happen.

 

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 colleendilen in Community Engagement, Financial Solvency, IMPACTS Data, Myth Busting, Nonprofit Marketing, Sector Evolution, Trends 3 Comments
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