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

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

The Top Seven Macro Trends Impacting Cultural Organizations

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

The Three Most Overlooked Marketing Realities For Cultural Organizations

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

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

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

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social mission

The Top Seven Macro Trends Impacting Cultural Organizations

These seven macro trends are driving the market for visitor-serving organizations.

Big data helps spot market trends. The data that we collect at IMPACTS is no different. (After all, it is big data!) There are certain trends that come up again and again, and they provide clues as to how cultural organizations may best evolve to remain relevant.

Unsurprisingly, visitor-serving organizations are not immune to the forces affecting the rest of the world. In other words, it’s rather common to see market trends that affect for-profit and government entities affect visitor-serving organizations as well. Makes sense, right? As much as we may sometimes wish we lived in an alternate reality with regard to things like adequate marketing investments, we, too, are members of this Planet Earth in all it’s economically-driven glory.

But that’s not all bad news. Just because “but we’re a nonprofit” increasingly isn’t a thing, that doesn’t mean that the reality is all that sobering. Some of the key trends affecting the market at large right now are areas wherein nonprofits traditionally shine! These seven macro trends manifest themselves in not only IMPACTS data tracing public perceptions and expectations of cultural organizations, but in much of the data that you’ll find coming from any reliable source right now for nearly any economically-concerned entity. Yes, cultural organizations are economically concerned entities. That may sound gross to my friends on the mission-execution end, but it’s important for cultural organizations to stay afloat so that they can…well, execute missions.

These macro trends are largely informed by the realities of our living in a more connected world than ever before – but they seem to affect nearly everything that organizations do onsite and offsite. They seem to affect the way that the market views the world right now, and its expectations for brands and experiences. These are the seven words and concepts that my clients and coworkers are probably the most sick of hearing every time we review a new set of data. (A possible exception may be the term “symbolic capital,” because I personally love it and thus I try to sneak it into most conversations – and not always seamlessly.)

Because these trends are apparent in much of the market data, there are lots of links to Know Your Own Bone in this article –so feel free to dig in and deep dive a bit!

 

Personalization

Just as the world that we live risks increased noisiness with all of the information that we have at our fingertips, it’s similarly becoming increasingly personalized. Ads, status updates, and online experiences are increasingly targeted and personalized for us. As such, personalization is becoming the expectation for folks. Obviously, this has implications for cultural organizations in the online realm. There’s an expectation that organizations will respond to people on social media on a personal level, that ads and posts will be relevant to them (this is why smarter targeting is important), and that we’ll interact with our most important supporters equally well offsite as we do onsite.

Positive, personalized interactions between staff members and visitors is the single most reliable way to increase visitor satisfaction onsite. Simply put, personalized experiences – be they online or onsite – have a greater likelihood of being relevant.  Personalization can be a smart relevance hack.

Similarly, alongside personalization is the decreased interest in standardized experiences. This can be seen in the decrease in interest in group sales and the growing popularity of personalized tours and experiences (à la Museum Hack). Disney World has added a feature to its famous Haunted Mansion ride wherein the hitchhiking ghosts hold up a sign that mentions your home city as your doombuggy ride draws to an end. In It’s a Small World, the riders’ names appear on those multi-lingual goodbye flowers. The Disney experience is increasingly self-curated and can be personalized. Immersion and interaction are driving concepts behind the new Star Wars Land set to open in 2019. While the high-propensity visitor profile is not the same to Disney World as it is to cultural organizations (e.g. they don’t necessarily have the same demographic, psychographic, and behavioral attributes that indicate likely visitation), I mention Disney World because it’s an entity with significant visitation that is capitalizing on the personalization trend.

 

Social connectivity

Connectivity is king – and, like the other macro-trends on this list – this is true both onsite and offsite. Offsite may seem rather obvious: Social media plays an important role in driving visitation to cultural organizations, and it’s a critical element of the visitor engagement cycle. High-propensity visitors to cultural organizations qualify as being “super-connected” to the web in that they have access to the web at home, at work, and on a mobile device. This is true of the folks who are most likely to visit cultural organizations regardless of age. (So, nope, not just millennials).

Onsite, social connectivity makes perhaps its biggest splash: Data suggest that who people are with is often more important than what they see when they visit a cultural organization. Not only that, folks who value “with > what” also have the most satisfying experiences and a greater intent to revisit. Social connectivity is another reason why personalized interactions between staff members and visitors matter. While interactions with staff can lead to the greatest increases in visitor satisfaction, rude staff are the single biggest onsite dissatisfier for cultural organizations by a large measure. For performance-based organizations (e.g. ballets, theaters, symphonies) rude guests is the second biggest dissatisfier. Interactions with humans matter big time, folks.

Sure, we’re mighty connected online in today’s world – but being connected to humans onsite is just as critical as ever before. In fact, onsite digital connectivity does not increase visitor satisfaction as much as good ol’ face-to-face communication. (But onsite digital does increase visitor satisfaction so I propose that you aim to rock both.)

 

Social mission

Corporate social responsibility has been called mandatory for for-profit companies today. Simply put, it’s increasingly an expectation that organizations will give something back. That’s part of the reason why the market is increasingly sector agnostic – it doesn’t matter much if your organization is nonprofit or for-profit. What matters is that you do the social good that you say that you do. Organizations that highlight their missions outperform those marketing primarily as attractions. It’s cool to be kind. While social missions may sound like a unique differentiator for nonprofits, they’re not. For-profit companies increasingly have well publicized “so whats?” too.

Not only that, members that like your organization for its mission generally invest more by purchasing more expensive memberships and find greater satisfaction in their memberships than transaction-based members who primarily seek event access and discounts. Here’s the data. Simply, what folks want from memberships is changing. With all the talk about armchair activism, we find that people really do want to actively take part in and contribute to something meaningful.

 

Entertainment vs. education

Boy-oh-boy is this a big topic right now in the cultural sector. IMPACTS has tons of data about the importance of being educational vs. being entertaining, and the results are both obvious and frustrating: We need to be both – but not necessarily equally or in the same way. We need to understand the collaborating role that these two visitor experience aspects play in driving behaviors and, specifically, getting folks to act in our organizations’ interest by paying us a visit, becoming a member, or making a donation.

This is a bigger discussion than I intend to tackle in this article, but here’s a very basic overview of how they work together. Simply, entertainment value drives visitor satisfaction and visitor satisfaction is critical for attendance and solvency. Period. Entertainment value is fiercely important. When we act like “entertainment” is an enemy to “education” instead of its often times greatest partner, we do our organizations a grave disservice. That said, education value serves as an important, unique differentiator that may play a role in the decision to visit a cultural organization instead of taking part in a different leisure activity. (“Interest in an alternative activity” is the biggest reason why folks with reported interest don’t make it through the door.)

Why is this on a list of market trends? Because though the words may be different, this issue isn’t unique to cultural organizations.  Folks want to have a pleasurable experience and having a “so what?” or “it’s good for me/my loved ones” can serve as a competitive advantage when compared to other services/experiences when perceived entertainment value is relatively equal to the alternative. It’s the root of much corporate social responsibility and it requires a tough conversation about reputational equities.

 

Real-time and authentic

This trend is roped to personalization and social connectivity. Social media and digital engagement are real-time, and audiences expect responses in real-time. The real-time trend mirrors the rise of certain social media channels and features, including Snapchat (now, Snap), Instagram and Facebook stories – not to mention live video. These platforms allow for limited professional editing by brands and organizations, forcing – in a way – a kind of authenticity that heretofore organizations could more carefully manage. These trends force behind-the-scenes culture to the front lines. Is your organization really doing interesting things? Show it.

Trends toward real-time and more (seemingly) authentic engagement underscore the need for organizations to walk their talk. It’s time to show and not simply tell. We “show” by what we post online each day and through onsite experiences. Because of the increased want for self-curation and consumer power (discussed next), these trends affect visitation and also philanthropic giving.

 

Consumer control

Everyone is a curator today, but this trend isn’t about literally allowing audiences to curate collections in cultural organizations. It’s about consumer power and control borne of folks having a whole heck of a lot of information at their fingertips nowadays. People want to decide things for themselves because they can. It’s why walking our talk matters. It’s why social media increasingly empowers giving decisions. All this being said, the market views cultural organizations as expert and trustworthy, and that’s a valuable reputational equity that we possess.  (I have the data on this ready to go up  next week, so stay tuned.) We need to walk a fine line to be successful…an “open and yet expert” line.

On social media, we’re seeing this trend take place a bit in SMS messaging, Snap, and Instagram. We can post publically to our “friends,” and we can send private messages to our maybe-more-real friends. We have more and more power to decide who sees our posts.

This trend plays nicely with personalization. As mentioned above, we increasingly expect personalized experiences and interactions, but once the personalized message hits us, folks want to decide on their own if visiting an organization is worth the time and energy investment. This is the reason why more visitation decisions are informed by an organization’s social media channels than an organization’s website.

 

Integrity

This one is big right now, and it’s showing up rather dramatically in market data. We have fake news on the mind! Like trends toward authenticity, desired integrity necessitates that an organization walk its talk.

Not only is the US divided politically, we are divided in terms of how people view the economy as well. Unfortunately for cultural organizations, high-propensity visitors aren’t super happy with things right now. (High-propensity visitors are people with the demographic, psychographic and behavioral attributes that indicate likely attendance to nonprofit, visitor-serving organizations.) Visitor confidence in cultural organizations remains at a dramatic low because, simply, it’s difficult to tell what we stand for during this highly politicized time. Organizations that have stood behind their social missions during this time have reaped important reputational rewards. Why? Integrity, folks. It’s a big deal right now for the people who actually go to museums, aquariums, gardens, and performing arts organizations.

But this trend isn’t necessarily a “political” one. It’s infiltrated operations. A demonstrated lack of integrity is the biggest dissatisfier for high-level members to cultural organizations. We know their names and cell phone numbers perhaps too well when carrying out solicitations, but we suddenly forget who they are when they’re onsite. That’s a disconnect. Some organizations even have (sometimes completely ridiculous, over-the-top) member-ID-checking-police guarding their entrances as if they were border checkpoints. Unsurprisingly, questioning the integrity of our own members is also high on their list of membership dissatisfiers.

 

These seven macro-trends are strongly connected to one another. The organizations that will succeed in reaching new audiences (which data suggests needs to be a primary goal for cultural organizations)  and cultivating engagement are those that don’t simply aim to “one-off program” their way to success. Organizations may be best served to integrate these trends into the new reality of how they operate and do business.

Do these trends sound familiar? Do they ring a bell? Excellent! We can declare importance, but the market determines our relevance. These trends provide a peek into how audiences are doing that. Let’s keep these macro-trends in mind and keep moving forward.

 

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

 

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

Posted on by Colleen Dilenschneider in Community Engagement, Digital Connectivity, Nonprofit Marketing, Sector Evolution, Trends Leave a comment

Hubs for Human Connection: The Social Role of Cultural Organizations (DATA)

Hubs for Human Connection: The Social Role of Cultural Organizations

Heartbreaking tragedy has dominated the recent news. Monuments around the world shine brightly with the colors of the French flag, and conversations about the roles of cultural organizations to create common ground in diverse societies are in full swing.

Sometimes several data sets come together to highlight an overwhelming trend – like how personalization is affecting everything about the market’s experiences with cultural organizations. Another data-supported reality that resonates as all the more profound in light of the recent tragedy is this one: Successful cultural organizations today are actually all about connections to and between people.

Data suggest that at our best, cultural organizations are social and facilitate human connection. 

I’m not (only) talking about social media, or re-considering reverential silence policies in galleries or at concerts. I’m also talking about what people consider to be the best thing about a visit to a cultural organization (i.e. who they are with), and the most effective way to increase visitor satisfaction (i.e. more human connection).

Our collections, programs, and performances are important, but they are only important insofar as they inspire, educate and connect people. Here are five, data-informed reasons for cultural organizations (museums, aquariums, performing arts organizations, historic sites, botanic gardens, etc.) to take going social seriously and consider integrating it into everything that they do.

Side: I love it when data reveals positive things about human beings and human nature, so I share these types of data a lot. For those of you who are regular KYOB readers, you might consider this post a sort of “KYOB’s Greatest Hits.”

 

Human connectivity, folks…

 

1) It is the best thing about visiting a cultural organization

Data suggest that who visitors are with is often more important than what people see when they visit a cultural organization. Check out my Fast Facts video from last week for the quick run-down.

When it comes to visiting a cultural organization, with > what.

What is so compelling isn’t so much that visitors believe that spending time with friends and family is the best thing about a visit to a cultural organization. Indeed, what is so striking is the fact that who people are with is more than twice as important as what people see. That’s a whole heck of a difference. This data underscores the role of cultural organizations as facilitators of shared experience – a role that many organizations may overlook in favor of more object-centric programming that overvalue the isolated experience of a visitor. (You can read more about this data here).

IMPACTS- With over what data

 

2) It is how we want to experience cultural programming

I was with the IMPACTS team in a meeting with Stanford University discussing the engagement of students and community members alike in classical music. The group began discussing opportunities around “shaking up” the way that audiences experience classical music, and the merits of making the concert-going experience more “social.” One of the University’s leaders suddenly exclaimed, “It’s getting back to performing Handel in the same, social way that the music was experienced in Handel’s time!”

We all stopped in our tracks. We thought being social in this environment was more of a new idea. Lifting the demand for silence at certain programs? Serving food (chewing while listening)? World-class musicians performing important, inspiring, and moving pieces while mingling with listeners? Many might consider that sacrilegious! One can well imagine avowed classicists muttering under their breaths, “These uncultured young people are destroying classical music!”

In reality, the concept of orchestrating isolated cultural experiences in shared spaces is the relatively new idea. In Handel’s time, music was enjoyed socially – audiences ate, drank, and generally partook in all sorts of merriment while musicians filled the concert hall with beautiful melodies. Why is being social in shared spaces considered “new” when it is the very way that many types of art were intended to be enjoyed, discussed, and explored?

Perhaps it’s a classic case of “the more things change, the more that they stay the same.” Why would the idea of going social (at least in some contexts) be perceived as an attack on the arts?

After all (and for example), dedicated listening to classical music only accounts for 20.9% of all classical music listening activity – and the behavior doesn’t vary as dramatically between students (i.e. “young people”) and non-students as some might suspect. Some organizations may choose to focus their programmatic offerings to try to fit into that 20.9% of their audiences’ dedicated listening time…but why not create programs to include the other 79.1%?

The data below represents the classical music listening behaviors of 915 undergraduate students, and 2,115 non-student adults living in the San Francisco Designated Market Area. The commonality of behavior is particularly interesting as students and non-students spend 79.1% and 82.8% of their time (respectively) listening to classical music while also doing something else.

IMPACTS- classical music listening behaviors

These data are particularly interesting because they indicate self-selected cultural behaviors – classical music listeners (arguably among the most “traditional” of contemporary cultural participants) report that only about 1/3 of their time spent engaging with content is experienced in a state of solitude (e.g. dedicated listening or while reading). The balance of their engagement invites connection and a public context – while traveling, while dining, while cooking, while exercising. For the vast majority of time for its listeners, classical music accompanies another activity or supports a social context…it is not a dedicated activity.

Yet, too many organizations that present classical music create environments focused solely on dedicated listening, and, indeed, actively dissuade a social context. And these organizations are not alone – there seems to exist a false dogma in some organizations that dedicated, solitary experiences are the preferred way to engage with a cultural experience. The data suggest otherwise. Perhaps the audiences of Handel’s time had it right – culture may be a component of a greater, social experience.

 

3) It is the most effective way to increase satisfaction

This data is a KYOB classic and I have made a Fast Facts video on the related findings that you may find of interest. Don’t have two minutes and thirty-five seconds? Here’s a brief summary:

Supporting interactions between a staff and a visitors significantly increases visitor satisfaction. These interactions (we call them personal facilitated experiences (PFEs)) also increase perceived admission value, employee courtesy, entertainment value, and education value.

A PFE is a one-to-one or one-to-few experience and a prime example of personalization. It is a staff member or volunteer essentially saying, “I see you. I would like to share my knowledge and passion with you.”

PFEs are so successful at increasing visitor satisfaction because they involve humans connecting with other humans. Check out the first chart in this article about the best thing about a visit to a cultural organization. Interacting with staff is just behind seeing/interacting with exhibits or performances. This further underscores the incredible importance of with>what.

Personal facilitated experiences are so effective at increasing visitor satisfaction that they can be used to increase visitor satisfaction by daypart. (Again, for more on this data, click here.) Human connection is where it’s at, folks.

PFE satisfaction by daypart

 

4) It is how we determine reputation and make visitation decisions

This is probably the tidbit of information that I go through or reference most in my work at IMPACTS. I find myself referring to it several times a week in meetings and it’s the driving reason behind the need for many organizations to evolve. See my Fast Facts video – How Social Media Drives Reputation – for more information.

Reputation is absolutely critical for driving visitation. Reputation is the second most important decision making utility when it comes to driving high-propensity visitors to cultural organizations. In today’s world, reputation creation and management (and sometimes demise) is overwhelmingly a social function.

What people say to one another about your organization is 12.85 times more important in driving your organization’s reputation than things that your organization says about itself. In our connected world, reputations are determined by what you put out and what folks say about you on social media, earned media, peer review sites like Yelp and TripAdvisor, and what people say to their friends and family.

“Social” (and not just social media) represents how we make visitation decisions.

Diffusion of messaging- IMPACTS

 

5) Is a reliable indicator of successful organizations

Here’s another set of data that I’ve presented and written about recently – and that IMPACTS continues to monitor over time. (Stay tuned! I have a video summary of this data hitting my YouTube channel next week.)

Being good at your social mission is good business. Organizations that highlight their mission consistently outperform organizations that market themselves primarily as attractions. The best way to show this data is using two, composite metrics:

Revenue efficiency contemplates revenue streams (including admission, membership contributions, and program revenues) relative to operating expenses and the number of people that an organization serves.  A more “revenue efficient” organization is generally more financially stable.

Reputational equities contemplate visitor perceptions such as reputation, trust, authority, credibility, and satisfaction. Basically, it is the market’s opinion of how well an organization delivers its mission and experiences. In the interest of maintaining appropriate confidences, I’ve anonymized the organizations represented. You’ll still get a good sense of the trend. Each letter represents one of 13 notable US museums.

We reliably observe that those organizations that the market perceives as most effectively delivering on their mission are the same organizations that achieve the greatest revenue efficiencies. Since IMPACTS commenced tracking this metric several years ago, the data continue to evidence a strong correlation between reputational equities and revenue efficiency.

IMPACTS- Museums revenue and reputation correlation

 

“Going social” isn’t new. It’s one of the oldest natural behaviors that we know as human beings. Especially during this difficult time, let’s be places where people can come to connect to one another – and to the past and the future.

Yes, it’s a smart business move. I have put all of these “greatest hits” together so that folks interested in putting social connectivity at the heart of their organizations have the data that they need to support the important conversations taking place right now. The math is there. Let’s get our hearts on board.

We are connected. We long to be connected. And we reward places that connect us.

 

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, Digital Connectivity, Financial Solvency, IMPACTS Data, Myth Busting, Sector Evolution, Trends 1 Comment

Finding: Museums That Highlight Mission Financially Outperform Museums That Market Primarily as Attractions (DATA)

seafood watch

This article kicks off a four-part series intended to help visitor-serving organizations understand and respond to emerging trends that will impact their ability to achieve their financial and mission-related goals. Learn more about the series here. 

Data suggest a “new” draw to your organization that is now key to engaging both visitation and donor support. Well, actually, it’s not “new” – it’s the reason why your organization exists: Your mission. How credibly the market perceives your organization in terms of your ability to effectively deliver on your mission has a very strong positive correlation with your organization’s financial performance.

An analysis of the recent financial performance of a large and representative number of visitor-serving organizations coupled with the public perceptions of these same organizations reveals an outcome that may not be surprising for those who keep tabs on consumer behaviors: Organizations perceived as “best-in-class” in terms of mission delivery reliably outperform organizations that rely more on their reputations as “attractions” when it comes to their financial bottom lines.  In other words, mission and business are not in conflict – being superlative at your mission is good business!

There are three overall findings relating to the “mission is good business” trend:

1) Organizations perceived as more credible actors in terms of fulfilling their mission financially outperform peer organizations whose reputational equities relate primarily to their roles as attractions

IMPACTS collects and analyzes attitudinal and awareness data for 224 visitor-serving organizations in the US (and that may even include your own). This data and analysis informs the development of key performance indicators that reveal trends and correlations affecting visitor-serving enterprise.  The charts below indicate the relationship between 35 visitor-serving organizations’ financial performance in terms of “revenue efficiency” coupled with the market’s perception of these same organizations’ “reputational equities.”  (In the interest of maintaining appropriate confidences, I’ve “anonymized” the findings)

First, a few quick definitions (with advance apologies for the analytical jargon):

Revenue Efficiency: A composite metric contemplative of onsite-related earned and contributed revenues (e.g. admission, contributions, grants, membership, programs) contemplated relative to the cost to deliver onsite services (i.e. operating expenses) and the number of persons served onsite.  Generally, a more “revenue efficient” organization exhibits more favorable financial key performance indicators (e.g. greater revenues, greater net operating surplus) and reduced financial volatility than does a less revenue efficient organization.  Data informing the IMPACTS revenue efficiency calculation are commonly available in an organization’s financial statements, annual reports, and Form 990 filings.

Reputational Equities: A composite metric contemplative of numerous visitor perceptions such as reputation, trust, authority, credibility, and satisfaction that collectively indicate the market’s opinion of an organization’s relative efficacy in delivering its mission.  As mentioned previously, IMPACTS collects perceptual data from 224 visitor-serving organizations in the US to inform its reputational equities calculation.

KYOB aquariums reputation and revenue

Aquariums are a good place to start because (a) in addition to tackling the mission of inspiring audiences, they are also increasingly engaging audiences on broader conservation issues; and (b) aquariums tend to be more reliant on earned revenues than their museum and zoo brethren who may have greater public funding and/or endowment support. In short, absent the safety net of large endowments and government appropriations, aquariums are among the most market-driven businesses in the nonprofit sector, and translating positive reputational equities has an enormous financial benefit for these organizations (and, in inverse, lessened reputational perceptions bear tremendous risk to an organization’s bottom line).

Generally, revenue efficiency follows reputational equities (so working to increase reputational equities tends to positively affect revenue efficiency). Thus, we can reasonably surmise that year 2014 may bring continued challenges for Aquariums H, I, K and L should they choose not to prioritize remedy for their lacking perceptions as credible actors when it comes to delivering on their missions.

KYOB zoos reputation and revenues

Much like aquariums, the zoos that are perceived as credible actors in regard to their mission achieve the greatest revenue efficiency. Again, in the example indicated by the assessed zoos, the relationship between reputational equities as a predictor of financial success is clear and compelling.

KYOB museums reputation and revenues

Again, when segmented by museums (in the above example, all of the assessed organizations would be rightfully classified as either “art” or “natural history” museums), the trend holds true: Those museums perceived by the market as the most esteemed in terms of fulfilling the promise of their missions achieve the greatest financial performance.

You’ll notice that out of the 35 organizations represented in this assessment, Museum H is the only organization that does not indicate the relationship between reputational equities and financial performance – and, even in this exception to the trend, the difference is very slight.

 

2) Your organization must increasingly be MORE THAN an attraction but it still must be an entertaining destination.

The reputational equity metric is contemplative of overall satisfaction and data indicate that providing an entertaining experience is an extremely important component of visitor satisfaction. To be clear: The data do not support abandoning efforts to deliver an entertaining experience in the hopes of enhancing your organization’s reputation as a credible, mission-related authority. Instead, data support efforts to underscore your social mission and demonstrate topic expertise alongside location-based content to help drive visitation and provide insight into the entertaining and inspiring experiences that you provide.

Simply put, people want to visit organizations that are more than just attractions.

 

3) The importance of underscoring reputational equities is likely to grow as millennials increasingly comprise a greater percentage of museum audiences

The analysis indicating the relationship between favorable reputational equities and financial performance for visitor-serving organizations aligns with multiple findings concerning the influence of social missions (in business-speak, think “corporate social responsibility”) on consumer purchasing behaviors. Namely, people – and especially millennials – are more likely to purchase products that support a mission.

The data has long suggested that millennials are particularly public-service motivated, and as Gen Y has become a more powerful market segment (indeed, millennials are the largest generation in human history), organizations have experienced a “market shift” in support of organizations that support “social good.”

That sounds great for educational, conservation, and cultural organizations such as museums, aquariums, and zoos, right? Well…maybe not…especially because millennials are generally sector agnostic. Millennials tend to support organizations and businesses that appeal to them regardless of whether or not there is 501(c)3 designation involved. (In other words, while the IRS may care about your tax-exempt status, the market increasingly does not!) This means that in terms of securing support, many nonprofits are “competing” directly with for-profits for the market’s time, attention, and resources.

Organizations that have marketed themselves too heavily as attractions without underscoring their mission and social impact have lost a valuable opportunity to differentiate themselves as superlative to a critical demographic. Potentially worse yet, they may have built their reputations based on motivations that millennials don’t care about. Case-in-point: Take a look at what millennials want out of a zoo, aquarium, or museum membership compared to older generations.

Organizations that the market favorably perceives as more than “just an attraction” tend to financially outperform organizations perceived primarily as attractions.  Money follows reputational equities. Zoos, aquariums, and museums that have been trying to “sell” the wrong brand attributes may find themselves struggling even more in the future as emerging audiences emphasize mission and social impact as vital attributes of the relationship that they seek with the organizations that they support.  Year 2013 was only the tip of the iceberg. Perceptions are changing and the data affirms a strong, encouraging trend:

Finally, it’s cool to be kind.  More than that, it’s plain good business.

National Aquarium cleaning debris

National Aquarium

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 Colleen Dilenschneider in Community Engagement, Financial Solvency, Fundraising, IMPACTS Data, Myth Busting, Nonprofit Marketing, Sector Evolution, Trends 1 Comment