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

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

The Top Seven Macro Trends Impacting Cultural Organizations

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

The Three Most Overlooked Marketing Realities For Cultural Organizations

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

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

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

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

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

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

Marketing to adults increases visitation even if much of your current visitation comes from people visiting with children. Here’s Read more

visitors

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

Attracting Diverse Visitors to Cultural Organizations- Know Your Own Bone

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

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

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

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

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

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

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

 

1) Minority-majority audiences are young

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

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

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

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

Kind of weird, right?

US adult millennial population

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

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

 

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

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

 IMPACTS - millennial cultural attendance by ethnicity

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

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

 

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

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

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

IMPACTS US adult millennial indentifiers by ethnic background

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

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

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

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

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

 

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

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

US millennial overall satisfaction by race

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

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

 

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

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

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

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

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

 

 

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

 

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

Posted on by Colleen Dilenschneider in Community Engagement, Financial Solvency, IMPACTS Data, Millennials, Myth Busting, Nonprofit Marketing, Sector Evolution, Trends 4 Comments

Audience vs. Market Research: A Critical Distinction for Cultural Organizations

An overreliance on audience research may be the very thing holding back even the smartest of cultural organizations.

With so many cultural organizations nowadays boasting audience research capabilities, why is the industry struggling so severely in terms of engaging new and emerging audiences? We’re confusing audience research and market research – and that difference is the topic of this week’s Know Your Own Bone – Fast Facts video.

Not a video person? No problem. This information is important, so here’s a summary:

 

Most cultural organizations collect and focus on AUDIENCE research

Audience research is any research conducted on specific audience segments to gather information about their attitudes, knowledge, interests, preferences, or behaviors. For cultural organizations, audience research is often conducted on current visitors and past visitors. It often comes in the form of exit surveys, zip code collecting, and reaching out to members and visitors through email lists or online communities (to name a few sources of these types of data).

Audience research is the most common type of research carried out by cultural organizations by a long shot – and some organizations even have their own audience research departments! These data help us uncover information related to who is visiting, why they are visiting, and what the people who are already engaging with the organization think.

 

Organizations often struggle with collecting MARKET research

Market research, on the other hand, is any organized effort to gather information about target markets – including the folks who may NOT be visiting an organization.

Market research can be tricky, though, because someone who is not visiting your organization cannot fill out an exit survey. They may not be a part of your online community, and they aren’t likely on your email lists. Simply put, they aren’t a part of your audience yet. The industry’s inability to reach underserved audiences relates directly to our lack of market research and a general overreliance on audience research.

 

Organizations need both types of research, but our lack of MARKET research risks big sustainability issues

Audience research has tremendous value for perfecting programming, but that’s not where the industry needs the most help right now. In order to remain solvent and relevant in today’s world, cultural organizations desperately need to engage new audiences.

Unlike audience research, market research helps organizations find out who is NOT visiting and why they aren’t visiting. This is a big deal because organizations are doing a really not-awesome job reaching new and emerging audiences! Not to mention, cultural organizations (museums, performing arts organizations, aquariums, etc.) are experiencing a phenomenon called the negative substitution of the historic visitor. This means that for every one person who profiles as a historic visitor who leaves the market, they are being replaced by less than one person. Millennials are not visiting cultural organizations at representative rates, and engaging people of diverse racial and ethnic backgrounds – who make up more and more of the US population each year – is perhaps our greatest opportunity to secure our futures. In other words, the demographic makeup of the US is changing and we really need to get better at reaching new audiences and making them our new regular audiences.

 

It is impossible to fully understand market perceptions of your organization and reach new audiences if you only study the people who are already in your community.

To succeed, organizations need both types of research.

 

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

 

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

Posted on by Colleen Dilenschneider in Community Engagement, Financial Solvency, Nonprofit Marketing, Sector Evolution, Trends 3 Comments

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

Why Programming for Low-Income Audiences are Unsuccessful

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

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

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

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

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

 

IMPACTS - Art museum attitude affinities

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

 

IMPACTS - History museum attitude affinities

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

 

IMPACTS - Science museum attitude affinities

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

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

 

IMPACTS - Aquariums attitude affinities

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

 

IMPACTS - Zoos attitude affinities

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

 

Orchastra and symphony attitude afffinities

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

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

 

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

IMPACTS - Negative attitude affinities

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

 

A) Attitude affinities do not generally correlate with admission price

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

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

IMPACTS - Average admission price paid

 

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

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

IMPACTS - Access programming awareness

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

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

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

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

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

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

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

 

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

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

 

Posted on by Colleen Dilenschneider in Community Engagement, IMPACTS Data, Myth Busting, Nonprofit Marketing, Sector Evolution, Trends 6 Comments

Local Audiences Have Skewed Perceptions of Cultural Organizations (DATA)

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

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

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

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

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

 IMPACTS value for cost by distance

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

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

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

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

IMPACTS local satisfaction

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

 

1) People value what they pay for.

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

 

2) Folks believe that good things are far away.

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

 

3) Cultural organizations have created local entitlement

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

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

 

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

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

 

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

 

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

Posted on by Colleen Dilenschneider in Community Engagement, Fast Facts Video, Financial Solvency, IMPACTS Data, Myth Busting 1 Comment

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

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

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

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

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

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

 

1) Entertainment drives visitor satisfaction and re-visitation

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

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

IMPACTS Overall satisfaction weight

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

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

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

 

2) Education justifies visitation

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

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

IMPACTS Primary visit purpose

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

 

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

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

 

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

 

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

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

Five Data-Informed Fun Facts About Visitors to Cultural Organizations

Visitors to cultural organizations often have certain telltale behaviors.  Here are five of them.

This week’s Fast Facts video is a fun one that shares a few data-informed findings about the kind of people who visit cultural organizations. Thanks to IMPACTS, I’ve got my hands on a whole bunch of trend data and sometimes little fun facts are just…well, fun!

Here are five, data-informed fun facts about high-propensity visitors to cultural organizations. 

 

The introduction, conclusion, and one of the fun facts merit a deeper, written dive. There a few important, extra takeaways worth noting from this video (that are not the five fun facts themselves):

 

1) Not everyone wakes up wanting to visit a cultural organization

Yes, I think that this is a bummer just like you do. If everyone wanted to visit cultural centers, we wouldn’t be having so much trouble engaging more diverse audiences or even attracting millennials at representative rates. Cultural organizations often have a hard time admitting to themselves that their likely audiences aren’t “everyone.” This certainly does not mean that we shouldn’t try to get “unlikely” visitors in the door. We really, really should – and in fact, we need to evolve our business models and better engage these audiences in order to survive. But the reality is that some people are more likely to visit cultural organizations than others.

As much as our industry may appreciate a scapegoat, data and economists alike have been proving to us for years that free admission is not the cure to engagement that many imagine it to be. The sooner that we move on from this, the sooner we can create affordable access programs that actually work (here – read this, too), and the sooner that we can create business models that are more sustainable.  We are so busy fighting to maintain our belief in the myth of free admission curing engagement, attendance, and participation issues that we aren’t moving forward, or even thinking creatively or strategically about how to stay alive and relevant long-term. But I digress…

A high-propensity visitor is a person who demonstrates the demographic, psychographic, and behavioral attributes that indicate an increased likelihood of visiting a cultural organization (e.g. museum, aquarium, botanic garden, historic site, symphony, theater, etc). High-propensity visitors are the folks who keep our bread buttered – they are the folks who visit, donate, and reliably engage with our organizations. This video covers five, random fun facts about these people.

 

2) Visitors are extremely connected to the Internet

High-propensity visitors are 2.5x more likely than the average person to qualify as being “super-connected.” This means that they have access to the web at home, at work, and on a mobile device. In fact, these folks acquire information regarding leisure activities almost exclusively via the web, social media, and peer review sites like Yelp and TripAdvisor. Visitors to cultural organizations have constant connection to the Internet – meaning that what cultural organizations do online is really, really important.

Interestingly (though unsurprisingly), millennial high-propensity visitors are crazy super-connected. That said, the folks that are going to attend a cultural organization are all looking things up online and using the web and social media, regardless of age.

 

3) Likely visitors are not necessarily rich

“No kidding,” you’re probably thinking if you’re reading this before watching the video. After seeing the five fun facts about high-propensity visitors, though, you may be thinking that high-propensity visitors must be very rich. Being a high-propensity visitor has nothing to do with being “rich.” Plenty of not-super-rich people have a cat or dog, like to hike or ski, enjoy a nice meal with a great glass of wine, and occasionally travel overseas for vacation. This person doesn’t have to be a multi-millionaire. (I mean, they could be, but they don’t have to be to possess these behaviors.)

Being a high-propensity visitor is indicated by how someone chooses to spend the money that they have – not that they have tons of it. How someone chooses to spend thier money is a choice. So is how someone chooses to spend their time. Being a high-propensity visitor isn’t innately about being rich or poor. It’s about how someone chooses to invest his or her leisure time and money.

 

These three items may seem obvious to some, but they are worth extra attention because they tackle a few myths: 1) That likely visitors to museums include everyone (especially when admission is removed); 2) That the web and social media play “supporting” roles in reaching, attracting, and retaining audiences; and 3) That the most likely visitors to cultural organizations are rich. These popular beliefs are false. We know they are false. And yet they permeate too many, critical conversations.

Once we better know our audiences, then we’ll be best able to serve them.

 

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

 

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

Posted on by Colleen Dilenschneider in Community Engagement, Digital Connectivity, Fast Facts Video, IMPACTS Data, Millennials, Myth Busting, Nonprofit Marketing 1 Comment

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

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

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

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

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

High Propensity Visitor Indicators -Millennials

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

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

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

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

 

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

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

 

3) Millennial visitors are the most connected visitors

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

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

 

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

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

 

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

 

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

Posted on by Colleen Dilenschneider in Community Engagement, Digital Connectivity, Fast Facts Video, Financial Solvency, IMPACTS Data, Millennials, Myth Busting, Nonprofit Marketing, Sector Evolution, Trends Comments Off on The Hidden Value of Millennial Visitors to Cultural Organizations (DATA)

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

Free Days Do Not Reach Underserved Audiences

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

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

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

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

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

 

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

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

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

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

 

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

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

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

Annual household income on free days- IMPACTS

Educational attainment on free days- IMPACTS

The common, defensive response to this data is to make an excuse and say that this data does not apply to your organization’s free days. After all, you may have attended your organization’s free day and you saw a lot of folks who seemed like they might be affordable access audiences. Indeed, you probably did – but you probably didn’t truly see as many affordable access audience members as you would see on a paid admission day when you weren’t looking for affordable access audiences. This topic may be our industry’s best example of confirmation bias.  Free days engaging higher earning households instead of affordable access audiences is the rule – not the exception. At IMPACTS, we are asked to supply this kind of information to many grant-making entities. So please, instead of making excuses, do your organization a favor and actually look into this situation. Increasingly, smart grant-making entities are catching onto these things and are aching to see programs that actually engage the targeted audience segments.

 

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

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

Repeat visitors on free days- IMPACTS

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

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

 

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

This fact is basic, overlooked, and often a driving reason for the last two conditions: A majority of organizations don’t even reach out to affordable access audiences regarding their free days. Instead, we tend to target high-propensity visitors- the people we know how to target. Here’s an entire article on the data behind why cultural organizations have such a hard time attracting low-income visitors on free and reduced admission days. 

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

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

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

 

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

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

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

 

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

 

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, IMPACTS Data, Myth Busting, Nonprofit Marketing, Sector Evolution, Trends 21 Comments

Why Discounting Hurts Your Cultural Organization And What To Do Instead (Fast Fact Video)

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

Check out this week’s KYOB Fast Facts video to get the two-minute low-down on discounts verse promotions (Hint: promotions are a much better idea – and, yes, they are extremely different). 

Discounting Is Bad Business For Cultural Organizations

It’s true: “Getting discounts” is often cited as the top reason why many people engage with an organization’s social media channels. So it seems logical that if you want to bump your number of fans and followers, offering discounts is a surefire way to go. And it works – if your sole measure of success is chasing these types of meaningless metrics. But, before you go crazy with discount offers on social networks just to get your “likes” up, here’s another thing that’s true: Offering discounts – especially via public social media channels – cultivates a “market addiction” that often has long-term, negative consequences on the health of your organization. In many ways, offering discounts creates a vicious cycle whereby a visitor-serving organization realizes and ever-diminishing return on the value visitation.

A discount is when an organization offers free or reduced admission to broad, undefined audiences for no clearly identifiable reason. Offering discounts devalues your brand and often makes it look like your organization’s admission isn’t priced correctly in the first place. This is generally true for discounts delivered via all channels, but discounts breed a special type of pervasive problem when they are offered on the digital platforms. When an organization provides discounts, it often results in five not-so-awesome outcomes:

 

1) You verify that your communication channels are sources for discounts and, thus, encourage your community to expect these discounts

Posting a discount to attract more followers on a social media channel (or to get people to engage with a social media competition, etc.) will very likely result in a bump in likes and engagement. But know that in doing this, you are verifying that your social media channel is a source for discounts.

Discounting attracts low-level engagers who are more likely to be following your channels for a discount than they are for any reason related to your mission. It is far better for your brand and bottom line to have 100 fans who share and interact with your content to create meaningful relationships than it is to have 1,000 fans who simply like you for a discount.

I can hear the rumbling now: Some of you are thinking, “But we’ve used discounts to attract more likes and it worked” (i.e. it generated more likes on social media). That’s not surprising at all. Over time, however, these low-level engagers may stop following you or simply disengage if you do not continue to offer discounts. That is, after all, the reason why they followed you in the first place…and you have shown them that, yes, indeed, you will post discounts on social media.

Generally, these people are not actual evangelists – and cultivating real evangelists to build a strong online community is the whole point of social media. You want folks who actually care about what you’re doing.

 

2) Your community will wait for discounts before deciding to visit, thereby altering visitation cycles

Data indicate that offering coupons on social media channels – even once – causes people to postpone their visits or wait until you offer another discount before visiting you again. Worse yet, the new discount generally needs to be perceived as a “better” offer (i.e. an even greater discount) to motivate a new visit. This observation is consistent with many aspects of discount pricing psychology, whereby a stable discount is perceptually worth “less” over time. In other words, the same 20% discount that motivated your market to visit last month will likely have a diminishing impact when re-deployed. Next time, to achieve the same outcome, your organization may have to offer a 35% discount…and then a 50% discount, etc. You see where I’m going with this…

 

3) You are not necessarily capturing new visitation with discounts

In fact, data from IMPACTS suggests that many of the folks using your discount were likely to visit anyway…and pay full price! This is a classic example of an ill-advised discounting strategy “leaving money on the table.”

“But visitation increased when we offered a discount!” you say. But did it really? The average person in the United States visits a cultural center once every 19 months. When an organization offers a discount, it is rarely actually attracting larger volume of visitation to the organization. Instead, the organization is often simply accelerating its audience’s re-visitation cycle on a one-time basis. This sounds great…until the organization realizes the significant downside to this happening: Your audience just visited your organization without paying the full price that they were actually willing to pay and  likely won’t visit your organization again for (on average) another 19 months. 

Think of it this way: A visitor coming to your organization in May may be (on average) likely visit to again the following December (i.e. in 19 months). Let’s say that you offer them a discount that motivates them to visit in October instead of December. Now, you’ve linked their intentions to visit to a discount offer and decoupled it from what should be their primary motivation – your content and mission! And, by doing so, you’ve created an environment where content as a motivator has become secondary to “the deal.” In other words, you will have moved your market from their regular visitation cycle to a visitation cycle dependent on an ever-increasing discount. Can your organization afford to keep motivating visitation in this way?

A note: Different organizations generally have different visitation cycles. 19 months is a US average. Regardless of how many months make up your organization’s visitation cycle, discounting disrupts that cycle and partners it with a perceived “deal.”

 

4) Discounts actually decrease the likelihood of re-vistation

What of the idea that discounts get people to try your organization and become regular attendees? It’s largely a myth. In fact, the steeper discount, the less likely folks are to re-visit within one year. This is classic pricing psychology at play: People value what they pay for. If your organization’s admission price is set at an optimal point, then your organization has largely removed price as a barrier to engagement, and discounting actually does the exact opposite of what many organizations think that it’s doing. That “discounted trial” that some organizations believe that they are offering falls flat because the folks who profile as being likely attendees are able and willing to pay the full price. Your organization is demonstrating that it devalues its brand and, in turn, audiences devalue your brand.

Hey. You started it.

IMPACTS-Revisitation and discounts

 

5) Your organization becomes addicted to discounting

Organizations sometimes confuse the response (i.e. a visit) to the stimuli (i.e. a discount) with efficacy. Once a discount has been offered to motivate a visit, we regularly witness the market “holding out” for another discount before visiting again. And what are organizations doing while the market waits for this new discount? Often times the answer is that they are panicking.

If you run an organization that offers discounts, you’ve probably spent some time in this uncomfortable space – we observe the market’s behavior (or, in this case, their lack of behavior), and begin to get anxious because attendance numbers are down. What’s a quick fix to ease the pain of low visitation? Another discount! So we offer this discount…and, in the process, reward the market for holding out for the discount to begin with. That is the insidious thing about many discounting strategies: They actually train your audience to withhold their regular engagement, and then reward them for their constraint. We feed their addiction and, in turn, we become addicted ourselves to the short-term remedy that is “an offer they can’t refuse.”

Like most addictive – but ultimately deleterious – activities, there is no denying that discounts “work” – provided that your sole measure of the effectiveness of a discount is its ability to generate a short-term spike in visitation or increase low-level social media “likes.” But, once the intoxicating high of a crowded gallery or filled theater has passed, very often all that we’re left with is a nasty hangover.

 

Promotions are a better strategy

“But aren’t promotions pretty much the same thing as discounts?” No. They aren’t. Many organizations fail to stop and consider the differences between discounts and promotions and, specifically, the different effects that each has on the perceptions of the cultural organization offering the opportunity. If your organization confuses the two, then you’ll likely end up paying the price. Literally.

Promotions offer a targeted benefit for certain audiences for an identifiable reason. The biggest difference between promotions and discounts may be how they are each perceived. As previously mentioned, discounts offer free or reduced admission to a broad, undefined audience for no apparent reason. Promotions celebrate your community. Examples of promotions may include reduced admission for mothers on Mother’s Day, a pricing special to celebrate a new program, or a reduced admission day for local audiences. Promotions demonstrate why an organization is offering free or reduced pricing in the communication of the promotion. That reason is usually something that celebrates an organization’s mission or an organization’s audience, and it is made clear that it is something special.

While some may learn the differentiation between these two approaches and consider it to be a framing of communication, it’s actually a reflection of an organization’s culture. Whether an organization’s go-to strategy includes either promotions or discounts demonstrates a great deal about the organization and the thoughtfulness of its engagement approach, as well as the value that it places on its reputation. In the end, one approach is more about your organization’s flailing attempts to hit specific attendance numbers at the expense of its brand and mission, and the other is more about your organization’s relationship with target audiences and communities.

Promotions make people say, “Wow, I feel valued by this organization!” Discounts make people say, “Hey, I got in cheap.” The approach that respects both the organization and its community beats out the short-sighted discount strategy when it comes to increasing long-term visitation.

 

Want to see more Fast Fact videos? Subscribe to my YouTube channel, or check them out here:

 

 Please subscribe over on the right hand column to get KYOB posts delivered right into your email inbox. Interested in getting tips and some silly social media geekery periodically delivered in your Facebook newsfeed? Like my Facebook page. Or for more regular sharing of nonprofit marketing information, follow me on Twitter

Posted on by Colleen Dilenschneider in Community Engagement, Digital Connectivity, Fast Facts Video, Financial Solvency, IMPACTS Data, Myth Busting, Nonprofit Marketing Comments Off on Why Discounting Hurts Your Cultural Organization And What To Do Instead (Fast Fact Video)

The Most Reliable Way To Increase Visitor Satisfaction To Cultural Organizations (Fast Fact Video)

It’s probably not what you think.

It isn’t a brand new wing or fancy new exhibit. Today’s KYOB Fast Facts video explains why providing a certain kind of interaction with frontline staff may well be a visitor-serving organization’s most impactful and reliable investment.

 

Words to know to be in-the-know:

 

Personal facilitated experience (PFE):

A one-to-one or one-to few-interaction between a staff member and visitors. This may include wayfinding aid, a cart experience, or any kind of personal attention paid to an individual, couple, or small family onsite. This does not include shows or group tours. Instead, PFEs are more personalized experiences. The thing that sets PFEs apart from other interactions between visitors and frontline staff (shows, tours, etc.) is that personal facilitated experiences provide personalization by way of personal attention. 

 

A look at the data

Here’s a closer look at the data from the video. Though this particular data is from one IMPACTS client that serves as an example, we are finding these types of interactions to be successful in increasing admission value, entertainment value, education value, and employee courtesy perceptions across the board.

IMPACTS- PFE admission value

IMPACTS- PFE entertainment experience

PFE educational experience

IMPACTS- PFE employee courtesy

In fact, PFEs are so successful in increasing visitor satisfaction that they can be used to elevate satisfaction perceptions by daypart. This may be particularly helpful if your organization is undergoing construction, setting up an event before closing, has an exhibit or program down, or has something else taking place that may otherwise negatively impact visitor perceptions.

PFE satisfaction by daypart

No matter how you cut it, deploying engaging frontline staff is a smart investment for increasing satisfaction and other visitor perception metrics. Let’s start the conversation here before we talk about blockbuster exhibits, expensive programs/exhibits, and draw out a plan for a new wing of the building.

 

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Posted on by Colleen Dilenschneider in Community Engagement, Fast Facts Video, IMPACTS Data, Nonprofit Marketing, Trends 2 Comments