Audience Insights: Organizations Overlook the Most Important Clues

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

Do Expansions Increase Long-Term Attendance? (DATA)

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

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

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

Cultural Organizations: It Is Time To Get Real About Failures

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

How Annual Timeframes Hurt Cultural Organizations

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

Special Exhibits vs. Permanent Collections (DATA)

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

Zoos

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

You may have guessed it was true – but here’s why this statistic matters.

The idea that those who visit cultural organizations as children are more likely to come back as adults may be a “statistic” that cultural executives loosely reference as fact without supporting evidence. After all, it seems to make sense – especially for those of us toiling in the cultural realm who were sparked into history, science, or the arts as children at these very types of organizations.

*Raising my hand enthusiastically*

But is it really true that those who visit as children are more likely to be visitors to cultural organizations as adults? And how much more likely are they to return as adults to similar organizations? It’s worth looking into – especially because there are some baseline cultural best practices that don’t quite align with behavioral economics or how people make visitation decisions.

Fact or fiction:

Adults who visit cultural organizations are more likely to have visited similar organizations as children.

Let’s take a look at the data to get to the answer.

The data is from the National Awareness, Attitudes, and Usage Study and shows data organized and segmented by two queries: (1) Did the adult respondent visit the respective type of organization within the past two years; and (2) Had the same adult respondent previously visited the same type of organization as a child under the age of thirteen? These data contemplate six different cultural organization types – aquariums, zoos, history museums, art museums, orchestras/symphonies, and theatrical performances.

It’s a fact.

On average, those who visited a cultural organization as a child are 1.73x more likely to have also visited a similar organization type within the last two years than someone who did not or doesn’t recall visiting as a child.  Moreover, over 60% of recent visitors to cultural organizations attended these organizations as children. Turns out, visiting as a child may be a strong indicator of future visitation!

To write these data off by saying, “Well, I already knew that (in my gut). Time to move on,” is a lost opportunity to harness what this good news data means and leverage it to empower both opportunities for mission execution and financial solvency. Market research seeks to inform strategic decisions rather than affirm them, but this data – I believe in my own gut – is likely affirmative for cultural executives. It’s great news! While this data is likely affirmative, it is informative as well.

Here are three, critical points to keep in mind about why this information is important and worth much more thought than a passing “TL;DR” or “Well, DUH.”

 

1) Engaging children now is important for future visitation

This is the most obvious place to start. The data strongly suggest the importance of engaging children under the age of 13. Many organizations have programs for children codified within their engagement strategies for mission-related reasons. Simply, engaging children and providing informal learning experiences onsite and more formal learning experiences in classrooms is a part of what some organizations do. Consider field trips as well. Programs for children already exist for many organizations with reasoning that often seems to be more mission-related than solvency-related.

These data suggest a solvency-related opportunity to engage children under the age of thirteen – that’s a big reason why these data matter. Data suggest that these youngsters may help carry our organizations into the future by maturing into regular visitors, members, and donors. We knew that engaging kiddos with meaningful experiences was important, didn’t we? It may be even more important to both mission execution and long-term solvency than some anticipated.

 

2) Engaging children is not a magic bullet for visitation

Yes! These data are good news! However, it’s important not to “hear” that children are the most important audience to engage for organizations. That’s not what these data say. (It also doesn’t say that they aren’t the most important audiences – simply that childhood engagement seems to play a role in adult visitation.) Being perceived as a place primarily for children is a big barrier to adult engagement. There’s no point in cultivating future adult visitors if you’re not perceived as an entity that adults want to visit.

In other words, please don’t “OR” this data and blindly prioritize children over all other audiences (unless perhaps you are a children’s museum). This is “AND” information – “AND it is important to engage children.” Consider your organization type and mission, and allow that to determine just how important these data are for your organization.

Other age-related audiences are equally critical for long-term solvency. For instance, data suggest that marketing to adults rather than families can increase adult visitation – without jeopardizing family visitation! Moreover, nearly 25% of potential visitors to cultural organizations are millennials between the ages of 25-34. (We millennials reward evolution, and there are just so dang many of us that we tip the scales.)

From a not-age-related perspective, cultural organizations also need to get better at attracting people of more diverse racial and ethnic backgrounds than the historic visitor to a cultural organization. We need to become (and be perceived as) more welcoming in order to thrive long-term as a sector. Working to engage children of more inclusive backgrounds is important work, but if they grow up and don’t think/maintain that cultural organizations are welcoming, then they aren’t likely to attend.

 

3) This information may be more important for the future of cultural organizations than ever before

Whoa. Bold statement, right? I’ll explain: Cultural organizations are experiencing a phenomenon called negative substitution of the historic visitor. Essentially, people who profile as historic visitors are leaving the US market faster than they are being replaced. The US is growing more and more diverse with people who don’t necessarily feel welcome at cultural organizations.

These data may shine a light on a gateway to changing public perceptions of cultural organizations for the future: engage the children. Welcome them. Embrace them. Perhaps a key is to create a welcoming environment and working hard to solidify the notion amongst youngsters that organizations are welcoming of all people.

A challenge, again, may be that these kiddos have a positive, welcoming experience onsite, but age into the public opinion that cultural organizations are “not for people like me.” It’s an important time to engage children, but especially to engage children of diverse racial and ethnic backgrounds as regular, welcome attendees to cultural institutions. To do this, I suspect that it’s not only critical to understand the important role that childhood visitation may play, but also to simultaneously welcome the parents, family members, and communities of people who are of different backgrounds than our historic visitors.

We must do a better job of engaging new audiences. Period.

 

4) This is not about childhood visitation. It is about creating memories that begin in childhood.

It’s that time in a Know Your Own Bone article to bring up the important “R” word. Rainbows? Rollercoasters? Red wine? All excellent things, but no. I’m talking about relevance.

Though it may be a small portion of visitors, notice that there’s an entire column of folks who don’t know or don’t recall if they visited organizations as children. They don’t remember. Maybe they don’t remember if they visited at all, and maybe they don’t remember if they were under thirteen years old if/when they did. Either way, those folks are about as likely to have visited an organization as those who report that they did not visit that type of organization.

In order to know if you’ve visited an organization type, you have to remember visiting that organization type. It’s not simply welcoming youngsters in the door that matters – but actively engaging them and creating a memorable experience. I am using the word relevant as meaningful and connective rather than simply current.

Remember: creating relevance isn’t all about content interest. At our best, cultural organizations are facilitators of shared experiences. We connect people to other people and to the world around them. We make things make sense – or we surprise someone with something that doesn’t immediately make sense. We educate and we inspire.

In order to gain the benefit of adult visitation stemming from childhood engagement, children need to be…well, engaged. It may not be beneficial to welcome children in the door and say, “DONE!” It may be more beneficial to consider how we are engaging children and creating meaningful, relevant experiences for them once they are inside those doors.

 

Folks who visited cultural organizations as children are more likely to return as adults. But you knew that already, didn’t you? It feels great to share “good news data” that I believe will be reaffirming of the efforts of many cultural organizations. More importantly, perhaps, it feels great to share the specific numbers and hopefully encourage some thinking about what they mean and how organizations may best use them to keep on doing their important work.

 

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, Financial Solvency, IMPACTS Data, Sector Evolution 4 Comments

Negative Substitution: Why Cultural Organizations Must Better Engage New Audiences FAST (DATA)

Fewer and fewer people look, act, and think like “historic” attendees to visitor-serving organizations. Here’s how many fewer.

As we dive more fully into 2017, I wanted to take a moment to discuss negative substitution and take a deeper dive into how it is affecting cultural organizations. The bad news is that negative substitution of historic visitors is taking place for mission-driven, visitor-serving organizations (museums, theaters, symphonies and orchestras, science centers, botanic gardens, etc.). The good news is that the first step to evolution may be acknowledging our changing market. On that note, let’s do this…

 

Negative substitution is urgent

Negative substitution is a phenomenon occurring globally wherein the number of people who profile as historic visitors leaving the market outpaces the number of people who profile as historic visitors entering the market. It’s the driving reason for the decline in attendance to museums, zoos, aquariums, performing arts entities, and other visitor-serving organizations. Negative substitution is taking place because the market is growing more diverse, while perceptions of cultural organizations as being places for a certain kind of person have remained largely static. Simply, when there are fewer people in the market who profile as historic visitors year-over-year, and also growth in the number people who profile as “nontraditional audiences” year-over-year, the market potential risks fewer-and-fewer visitors over time.

The data below is an aggregate of all museum types that we monitor at IMPACTS (224 of them) crossed with visitation information from the National Awareness, Attitudes, and Usage Study of (currently) over 108,000 people. It includes museums related to art, history, and science, children’s museums, historic sites, performing art organizations, zoos, aquariums, and botanic gardens. The negative substitution rate for museums shows that for every one historic visitor who leaves the US market (by way of death, relocation, or migration), they are being replaced by only 0.948 of a person (by way of birth, relocation, or immigration). This may not sound impressive – but this is actually a huge difference.

Think of it this way: An organization with a stable attendance of 1,000,000 visitors may keep doing everything right by their current audiences (e.g. marketing, developing exhibits, etc.), and then might reasonably expect to engage 948,000 future visitors…and then 899,000 visitors…and then progressively fewer yet visitors over time absent interdiction. And they will be doing everything right by their current audiences!

 

In order to overcome negative substitution, we need to do a better job at attracting two, general audiences that do not visit cultural organizations at representative rates relative to their market size: millennials and not-white people (bluntly). Keep in mind, these are not entirely different audiences as millennials are the largest generation in human history and nearly half of us are of different racial and ethnic backgrounds than traditional historic visitors. Moreover, as sick as we may be of discussing it, data suggest that organizations must do a much better job at attracting and retaining millennial audiences. Negative substitution rates for different types of visitor-serving organizations generally correlate with attitude affinities – or to what degree the public perceives that an organization is “for people like me.” Though I will be referencing them later, you can learn more about different attitude affinities for different organization types in this post.

 

Overcoming negative substitution means changing the profile of the historic visitor to cultural organizations

Or rather, we need to evolve to be perceived as more welcoming to different types of people than our “traditional” visitor. Negative substitution suggests that, if we keep on keeping on attracting people that look and behave like our current audiences, we’ll slowly decline in visitation over time. Sure, we need to evolve to meet the changing expectations of historic audiences by honoring market trends of personalization, connectivity, and transparency. More than that, we need to do a better job at attracting different types of people and making them our regular attendees. (And not simply our “super special one-off-program” attendees.) We need to change up the very profile of the type of person who wants to visit a cultural organization.

Isn’t it funny that many museums are only now realizing the importance of data-informed decision-making…all the while focusing primarily on audience research that risks yielding deleterious long-term consequences by emphasizing the very programs and budget allocations that support negative substitution in the first place? To reach new audiences, we need to get smarter about market research and attracting the people who we want to visit but don’t yet attend. The people who we need to start attracting are not yet on our email lists and, by definition, aren’t onsite to fill out surveys. (Yes, Colleen. It’s… hilarious.)

The change that we need to carry out is a big deal – and we are (however slowly) progressing on the whole! In the history of museums and cultural organizations, this kind of shift has never been so urgent. Today, with evolving demographics and imperiled government funding, engaging emerging audiences matters more to our missions and financial solvency than ever before. And, indeed, many organizations are implementing new strategies to cultivate and attract new audiences. Successful organizations are changing up how we approach change.

 

How negative substitution is affecting organization types

While the overall negative substitution rate for museums is 0.948 people entering for every one person who leaves the market, we are able to further parse the negative substitution rates of specific types of cultural organizations. Here’s a sample of them and some notes that may contribute to the negative substitution rates of each visitor-serving type. Let’s go backward from those with the lowest negative substitution rates to those with the biggest opportunity.

Zoos: Among visitor-serving organizations, zoos are suffering least from negative substitution. This is true even amidst increasing discussions about animal care and welfare. Like aquariums (discussed next), zoos may more easily deliver on the promise of awe and wonder without facing some of the perceived intellectual intimidation that may be attendant to a science or art museum visit. Moreover (and interestingly), lexical analysis of data reveals that being outside may play a role in reducing negative attitude affinities for zoos. Conceptually, it makes sense: Being outside may feel more like a park or public area than being within the walls of an institution. Also, like aquariums, having the added “so what?” of conservation and the protection of animals provides an added level of reputational equity that works in this type of organization’s favor.

Aquariums: Aquariums are also suffering notably less than the museum industry average. That said, negative substitution is never a good thing – and there’s still important work to be done. A reason for these higher (comparatively) values may be that aquariums are among the types of visitor-serving organizations that are most dependent upon the market. Relatively speaking, as a sector, aquariums generally have the lowest levels of government support, the smallest endowments, and many have also emphasized their nonprofit-y conservation mission that engenders additional support. (Generally, this helps aquariums – and any organization that particularly highlights its mission.) Aquariums also may be able to capture awe and wonder without as big a risk of the perceived intimidation factor that may burden other content types.

History museums: History museums are a wee bit above the museum negative substitution average of 0.948:1.000. History organizations tend to rely most heavily on stories (or, talking about history) than other types of organizations that are perceived to revolve around specific, individual artworks or exhibits. While visitor-serving organizations are increasingly understanding the importance of creative storytelling in an effort to create relevance and resonance with visitors, history organizations may have storytelling most definitionally embedded within their reputational DNA. Storytelling and providing relevant, personalized connections are critical today – and this is also an area where history organizations have the ability to shine.

Art museums: Art museums fall just below the industry negative substitution average. Like science museums (discussed next), art museums may have distinct, perceived reputational barriers that may contribute to negative attitude affinities – or, people thinking they simply “aren’t places for people like me.” As the stern forefathers of “don’t touch,” “stay behind the line,” and “quiet, please” cultural engagement, it’s worth noting that art museums may have been starting from a rather uninviting place. With that in mind, this number still isn’t “good,” but it does show hope and acknowledge that there has likely been meaningful progress made by art museums in responding to these new market realities.

Science museums and science centers: Science museums and science centers are put together in this data because the market largely does not distinguish between science centers and science museums. I could (and likely will) write an entire post with more data on why the science museum/center market has higher negative substitution rates than the museum average and some possible superpowers for combating it, but here’s a very brief run-down:

Interestingly, among visitor-serving organizations, science centers/museums tend to be viewed comparatively as places to visit with children. While this was probably a good thing when millennials – the largest generation in US history – were the kids, it’s not great news now that millennial women are reproducing at the slowest rate in US history. Simply put, millennials are having fewer children (or no children), and they are having their children later in their lives – when they are more advanced in their careers and leisure time is particularly precious. If you’re an organization that has the public perception of being a place primarily for children, your market size is likely shrinking.

Moreover, like art museums, “science” content may be viewed as intimidating for nontraditional visitors. There may be a perceived content “language barrier” that contributes to folks thinking that science museums/centers “aren’t for people like me.” Science is a big topic with a lot of specialties! One can see how someone who doesn’t know much about the accessibility of science centers/museums might be intimidated. (Heck, even folks who DO know about the accessibility of science centers/museums may feel this way!) Combine this with the perception that these are places where you take your kids, and potential visitors may fear a “Dad looks dumb” situation.

Orchestras: Exhibit-based cultural organizations are far from the only cultural organization type in the market or included in the mentioned overall “museum” negative substitution number. Performance-based organizations are every bit as critical for a robust and vibrant cultural community. Unfortunately, orchestras (and symphonies, which have similar negative substitution rates) may be facing particular challenges in today’s world where folks can do many things at once. In fact, data suggest that multi-tasking is how many people like to enjoy music as well. But don’t write this high negative substitution rate off immediately on content disinterest or the menace of the modern world! Some performance-based organizations simply have not yet evolved to meet the desires of millennials (a critical audience!), and have instead chosen to “age” alongside their historic visitors.

Some symphonies and orchestras are mixing things up and trying out new programs – and that may be the key to their future. Certainly, among the visitor-serving organizations shown here, orchestras have the greatest need to reach new audiences – and fast. That doesn’t mean that they (or any other organization type) can’t do it. It means that some may have a longer ways to go.

Remember: Though 0.948 is the industry average, it’s still bad news.  There are no “winners” or “losers” here – but rather a look into the reality of the mission-driven, visitor-serving sector and some of the challenges facing both individual organization types, and also our industry as a whole. To change up these perceptions, we need all hands on deck. Our long-term vitality and relevance may be on the line.

 

Negative substitution correlates with attitude affinities

Interestingly – and unsurprisingly – negative substitution rates correlate with negative attitude affinities. Attitude affinities quantify how welcome and comfortable people feel at an organization. Therefore, it’s no surprise that the “ranking” of negative attitude affinities among the organization types mentioned (shown below) is a similar “ranking” as is the severity of negative substitution – with the exception of science centers and science museums. Being perceived as places “for kids” plays a large role in driving negative substitution for science museums and science centers, but it benefits these types of organizations as being perceived as relatively welcoming. There’s simply less perceived incentive to visit a science center/science museum if you don’t have small children – and fewer people do.

The data below comes from IMPACTS and the National Awareness, Attitudes, and Usage Study – and it is a summary of this data previously discussed on Know Your Own Bone. In short, it shows what percentage of people in the U.S. market do not feel like an organization type is a place for someone “like them.” How that is interpreted is in the eyes of the respondent. While data suggest that it may correlate with educational attainment (and, relatedly, with household income), it certainly does not correlate with an organization’s admission price.

Nearly four out of 10 people don’t feel like art museums or history museums are “places for people like me.” Just over three out of 10 people feel this way about science museums and science centers. Only about two in 10 people feel that an aquarium or zoo is “not for someone like me,” and almost five out of 10 people feel this way about orchestras. Again, you can read more about this data and attitude affinities here.

 

Within our industry, some tend to think of targeting “historic” audiences as the safe bet and cultivating new audiences as a secondary goal to be pursued “when funding becomes available.” This is short-sighted step on a long, slow march into obsolescence. The market is crawling with potential visitors – and they are ripe for cultivation if and when we decide to think outside of our outdated box.

The need to cultivate new audiences as regular attendees is critical for our long-term survival. The first step to overcoming negative substitution may be acknowledging this. Let’s take this information and welcome new folks through the door – not only because our world needs it right now, but because we do, too.

 

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, Financial Solvency, IMPACTS Data, Millennials, Myth Busting, Nonprofit Marketing, Sector Evolution, Trends 3 Comments

Six Concepts that Visitor-Serving Organizations Confuse at Their Own Risk

6 concepts that cultural organizations confuse at their own risk

For the sake of the future of cultural organizations, let’s stop mixing up these terms. 

There’s a good amount of information here on KYOB that has accumulated through the course of this lil’ corner of the Internet’s existence! I recently wrote a compilation post on some of the more important points regarding engaging millennials within cultural organizations. I also recently found myself in a meeting taking on “the usual clarifications” when it occurred to me that there’s an important opportunity to compile a few of those “usual clarifications” as well!

Here are six sets of terms that often get confused with one another within leadership conversations at museums, theaters, aquariums, zoos, symphonies, and other cultural organizations. When we confuse these terms… well, general confusion tends to ensue and desired outcomes are not as easily achieved. Regular KYOB readers will recognize some of these “usual clarifications” from fast fact videos.

Ready? Let’s dive in! How many of these terms or concepts does your organization regularly interchange or generally misunderstand?

 

Market research vs. audience research

Audience research is the primary type of research upon which most cultural organizations rely. Audience research is any research conducted on visitors and past visitors in order to gather information about their attitudes, knowledge, interests, preferences, or behaviors. This kind of research comes in the form of exit surveys, zip code collecting, and reaching out to members and visitors through mail or email lists or online communities, for example. Audience research is research conducted on people who are already visiting your organization. Audience research is indeed valuable, but it is often confused with market research and an overreliance on audience research may he holding back even the smartest of cultural organizations.

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 includes folks who are not your audiences (yet) and it is necessary to gather this information in order to reach new audiences. For the sake of long-term solvency, cultural organizations need to become better at reaching new audiences and our overreliance on audience research when we should be using market research results in industry problems like our inability to effectively attract low-income audiences. Market research helps spot trends and helps your organization figure out what to do next – not only to survive, but to thrive.

 

Admission pricing vs. affordable access

Admission pricing is the cost of admission for folks who visit your organization. It is an intelligently determined price point that contemplates what high-propensity visitors (people who are interested in visiting cultural organizations) are willing to pay in order to take part in your experience. “The gate” is often an important source of revenue for cultural organizations and having a considered price point ensures that your organization is neither leaving money on the table, nor jeopardizing attendance potential from those who are interested and able to support your organization. Admission price is an economically-sound business imperative for many organizations and admission pricing is not an affordable access program if your organization relies on paid admission in some capacity.

Affordable access (that is effective) is generally rather expensive for cultural organizations and it takes real investment that is usually made at least partially possible by gate revenues. Affordability is binary. An admission price is either affordable or it’s not. When organizations lower their optimal price point in hopes of “being more affordable” or “reaching underserved audiences” they aren’t truly doing either of those things. In reality, they are purposefully missing out on the very funds needed to make effective affordable access possible at all. Successful affordable access programs are targeted so that they truly reach folks who are unable to attend – not people who would generally pay full price but are just looking for a deal. Admission pricing and affordable access are two completely different means of access that play completely different roles in the sustainability of visitor-serving organizations.

 

High-propensity visitors vs. historic visitors

High-propensity visitors are folks who demonstrate the demographic, psychographic, and behavioral characteristics that indicate an increased likelihood of visiting a cultural organization. In other words, these are the people who actually visit cultural organizations. They are those awesome kinds of people who say, “Yeah! That sounds like fun!” of even “Yeah. I could do that!” when someone suggests a visit to a museum or performance.We love these folks. As much as we hate to admit it, not all people have this reaction. High-propensity visitors do not need to have visited a type of cultural organization in order to profile as a likely visitor and they are not necessarily past visitors. Instead, they are people with behaviors and characteristics that indicate the potential to visit. Many members of “new audiences” – including millennials and minority majorities  – profile as high-propensity visitors as well.

Historic visitors are the people with the demographic, psychographic, and behavioral characteristics that match traditional visitor profiles. Essentially, they are past visitors. Historic visitors profile as a high-propensity visitors, but not every high-propensity visitor matches the profile of a person who has more traditionally visited cultural organizations. Not everyone with interest in visiting today necessarily matches the profile of the kind of person who visited yesterday. Glibly (but it helps illustrate the difference), not everyone who is likely to visit a cultural organization is a wealthy, older, white person. In fact, it’s increasingly the opposite. We need to reach beyond traditional visitor profiles because we are experiencing a negative substitution of the historic visitor in the United States. The issue of confusing historic visitors with high-propensity visitors that we need to more effectively reach is often confounded by confusion related to audience research vs. market research.

 

Key performance indicators vs. diagnostic metrics

Key performance indicators (KPIs) are used to evaluate the ongoing success of an organization or a particular initiative. Success is often defined in terms of making progress toward achieving the strategic objectives that optimize the solvency of an organization. KPIs have a direct correlation to desired outputs (fundraising, visitation, etc.). For instance, for our nonprofit visitor-serving partners at IMPACTS, we measure items related to market sentiment that include metrics such as reputation (e.g. top-of-mind metrics), educational value, satisfaction, value-for-price perceptions, and other items that correlate directly to the health of an organization and its ability to achieve its bottom line objectives.  Bad metaphor: Let’s say you’re an Olympic runner. Your KPIs are your response times, race times, reflexes, muscle strength, and those things that contribute most directly to your success.

Diagnostic metrics are data points that contribute to KPI performance and aid organizations in pinpointing specific opportunities but they can be a distraction if they are given the same attention as KPIs. These metrics cannot “stand-in” for KPIs because they are a sub-measurement of assessment criteria that lead to desired behaviors. For instance, on the surface, certain social media diagnostic metrics may look positive, but if they aren’t elevating your reputation (a key driver of visitation), then…well, a “like” is just a “like.” Diagnostic metrics are also helpful for listening to audiences and informing organizations of opportunities for improvement. Bad metaphor continued: Let’s say you are an Olympic runner again. Your diagnostic metrics might be your blood pressure, levels of B12, and heart rate. Heart rate contributes to your ability to run a good race time, but focusing on heart rate on its own isn’t the metric to focus on. (It’s your race time.)  You are measuring your heart rate (diagnostic metric), in this case, so that you can increase your race speeds (your KPI). Focusing on diagnostic metrics (like Facebook “likes” and retweets) without focusing on key performance indicators (like changes in reputation attendant to those likes) is a distraction and a waste of time getting a lot of retweets doesn’t necessarily mean that you are increasing your reputation. It is important to know which kinds of metrics are which. 

 

Discounts vs. promotions

Discounts are when an organization offers free or reduced admission to broad, undefined audiences for no clearly identifiable reason. Discounts do a lot of pretty terrible things for visitor-serving organizations. Simply, offering discounts devalues your brand. Offering discounts – especially via public social media channels – cultivates a “market addiction” that often has long-term, negative consequences on the health of organizations. In many ways, offering discounts creates a vicious cycle whereby a visitor-serving organization realizes an ever-diminishing return on the value visitation. When an organization provides discounts, it often results in five not-so-awesome outcomes that you can read about here.

Promotions offer a targeted benefit for certain audiences for an identifiable reason. The biggest difference between promotions and discounts may be how they are perceived by the market. Promotions celebrate your community. 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 an organization’s flailing attempts to hit specific attendance numbers at the expense of its brand and mission (and long-term ability to hit those numbers), and the other is more about your organization’s relationship with target audiences and communities.

 

Fads vs. trends

A fad is any form of behavior that is intensely followed by a population for a short period of time. The behavior will rise relatively quickly and fall relatively quickly once the perception of novelty is gone. Fads certainly have value and they can profoundly change organizations- consider the ALS Ice Bucket Challenge! Utilizing fads in marketing and programs can increase top-of-mind awareness, demonstrate the timeliness of your organization, and serve as a gateway for new audiences. This is all great and important stuff but – remember – fads don’t stick around.

A trend, on the other hand, gets stronger over time and does stick around. Trends have identifiable and explainable rises that are driven by audience needs. They help solve a problem for people. The increasing use of social networks is a trend (that connects us to one another). So is quitting smoking (which lengthens our lives), evidence-based medicine (that removes the guesswork in medical-related situations), and the use of mobile devices (that allow us to look up information in real time). These are things that have grown – and continue to grow – in market penetration. They solve problems. They represent new ways of life. Organizations ignore trends at their own risk. Ignoring trends means that they will either be forced to adapt later and will necessarily be behind, or the organization will fade away. When organizations write off things like web-based engagement or data-informed management (for instance) as fads instead of trends, evolution stops. However, treating fads like trends can lead organizations to become overwhelmed, give up on following along, and, again, stop evolution. (Here’s a tip on how to tell if something is a fad or a trend.)

 

Think the distinction between these terms and concepts sound obvious? GREAT. Let’s make sure to join the conversation and help organizations keep them straight so that they can survive and thrive. Let’s all help in communicating “the usual clarifications,” because if we don’t, our organizations risk healthy evolution.

 

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:

 

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Posted on by Colleen Dilenschneider in Community Engagement, Myth Busting, Sector Evolution, Trends Comments Off on Six Concepts that Visitor-Serving Organizations Confuse at Their Own Risk

Point of Reference Sensitivity in Visitors: How It Affects Your Cultural Organization And What To Do About It

Data suggest that it’s good to to be the first organization that someone visits… but what if yours is the second?

If you’re the best art museum, for instance, then a visitor to art museums should be able to tell, right? Wrong. As it turns out, it’s a bit more complicated. This week’s Know Your Own Bone – Fast Facts video is about firsts… and seconds. And what to do if your organization is second.

You probably remember your first kiss – and your first car, your first love, and a whole host of other firsts. As human beings, we tend to ascribe a premium to firsts – and visits to cultural organizations are no different. Data suggest that first-time visitors to a type of cultural organization – such as a science center – rate their visitor satisfaction higher than those who have visited any other science center before – 18.1% higher, to be exact.

That’s a huge bump! It’s great news for the first cultural organization of its kind that a visitor experiences. Woohoo! We’ll take it! While this value varies slightly based on cultural organization type (history museum vs. aquarium vs. symphony), they tend to hover around this average.

However, the sad side of this coin is that, for no fault of their own, the second (and third, forth…) like-organization that an attendee visits is likely to suffer from significantly lower satisfaction levels than the first. This is a big deal for many obvious reasons, but one of which is the fact that overall satisfaction is a major contributor to overall value perceptions of organizations. Lower satisfaction levels lead to less word of mouth and thus less support and visitation. Yikes!

First time visitors also rate their experiences 14.8% higher in terms of value for cost of admission. That’s another huge bump that’s great for organizations able to benefit from that “first time” magic. 

We call this phenomenon Point of Reference Sensitivity

pors-image-impacts

We noticed this trend at IMPACTS and we gave it a name. Point of Reference Sensitivity suggests that the market’s expectations are being constantly reframed by recent experiences. Essentially, as a person gains familiarity with an experience, it becomes increasingly harder to impress them. While Point of Reference Sensitivity may make logical sense, it’s still a bit of a bummer for the second cultural organization that hosts that visitor.

What is the solution? Be more unique.

Differentiate yourself as an individual organization rather than priding yourself on being like all other such organizations. That may sound overwhelming, but the good news is that we live in a connected world where differentiation may be easier – and more expected – than ever before. It’s a call to organizations to undertake smart experiments and creative programs, and to incorporate avenues for personalization and shared experiences. It’s a call to action to know who your organization is and what it stands for as well as why it is uniquely important. Achieving that “first time” satisfaction bump with every visit means smart integration of trends and awareness of market perceptions. Unsurprisingly, perhaps, it all comes back to doing well what you do well – and letting folks know about it!

Those organizations that are most susceptible to Point of Reference Sensitivity are those that believe themselves to be mostly a type of attraction rather than a unique organization. The key to overcoming Point of reference sensitivity is to be yourself. That is how the market determines which organization is “best.”

 

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

 

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

Posted on by Colleen Dilenschneider in Community Engagement, Fast Facts Video, Financial Solvency, IMPACTS Data, Nonprofit Marketing, Sector Evolution 1 Comment

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:

 

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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:

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

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

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

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

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

 

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

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

KYOB- Nonprofit recognition data

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

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

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

 

2) The market is sector agnostic

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

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

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

 

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

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

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

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

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

 

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

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

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

 

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

 

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

 

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

Posted on by Colleen Dilenschneider in Community Engagement, Fast Facts Video, Financial Solvency, Fundraising, Myth Busting, Nonprofit Marketing, Sector Evolution, Trends 1 Comment

Most Popular Posts of 2015 For Cultural Organizations

Most Popular Posts of 2015 for Cultural Organizations

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

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

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

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

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

 

How Free Admission Really Affects Museum Attendance

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

.

What Ultra Wealthy Donors Consider Before Supporting a Nonprofit

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

 

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

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

 

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

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

 

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

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

 

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

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

 

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

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

 

Why Millennials May Be The Most Valuable Generation for Cultural Nonprofits

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

 

Influencing Leadership: Three Findings to Effectively Communicate with Cultural Executives

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

 

Visitation to Increase If Organizations Evolve Engagement Models

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

 

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

 

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Posted on by Colleen Dilenschneider in Community Engagement, IMPACTS Data, Sector Evolution, Trends Comments Off on Most Popular Posts of 2015 For Cultural Organizations

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

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

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

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

IMPACTS data- Membership interest by age cohort 2015

 

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

 

IMPACTS generational membership interest multi-year

 

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

 

IMPACTS data- Primary benefits of membership

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

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

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

 

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Posted on by Colleen Dilenschneider in Community Engagement, Fast Facts Video, IMPACTS Data, Millennials, Myth Busting, Nonprofit Marketing, Sector Evolution, Trends Comments Off on The Membership Benefits That Millennials Want From Cultural Organizations (DATA)

A Cure For Point of Reference Sensitivity: Why Visitor Satisfaction For Your Nonprofit Is Lower Than It Could Be

opinion_of_our_productIMPACTS data indicate that visitors to zoos, aquariums and museums (and other visitor-serving organizations such as historical sites, theaters, symphonies, etc.) who have never previously visited any other like organization rate their experiences 18.1% higher in terms of overall satisfaction and 14.8% higher in terms of value for cost of admission than visitors who had previously visited any other zoo, aquarium, museum, etc. Further, as the number and frequency of one’s visits increases, a visitor’s level of satisfaction and perceived cost for value of admission tends to decrease.

This is just fine if your art museum (for instance) is the first art museum that your every guest has ever visited, but it has a host of potential repercussions on your organization’s bottom line (like tackling a social mission and achieving long-term financial sustainability) if you’re the second art museum someone visits. Or third, or fourth, or fifth….

This phenomenon is known as “Point of Reference Sensitivity” and suggests that the market’s expectations are being constantly reframed by recent experiences. In short, as the market gains familiarity with an experience, it becomes increasingly harder to “impress” the market.

So, what can be done to minimize the deleterious effects of Point of Reference Sensitivity? [I will henceforth refer to Point of Reference Sensitivity as “PoRS” because a) that’s just the kind of relationship that we’ve developed and b) it sounds a bit like a disease, which may be appropriate.] PoRS is an important consideration for visitor-serving organizations with regard to key performance indicators, and not even the very best visitor-serving organizations in the world are immune to its negative effects. The commonality of PoRS, however, does not mean that it is unimportant to your own organization’s reputational performance. Just because many other organizations suffer from PoRS doesn’t “even the playing field.” The market – not other organizations – are the ultimate arbiters of your organization’s success…and data suggest that despite your best efforts (great exhibits, well-trained staff, thoughtful access programs), you are still likely to experience a decline in satisfaction over time from a sizable portion of your audience simply because folks visited other organizations before they walked in your door.

The good news is that strategic prioritization and effective PR/communications practices may provide both prophylaxis and remedy against even the most stubborn case of PoRS.

What causes PoRS in visitors?

Qualitative research related to these findings suggest that PoRS may be due, in part, to a “been there, done that” mentality that tends to accompany repeat visitation to “like” organizations. The research suggests that this sentiment stems from a perceptual belief that “like” organizations (think of one zoo compared to another zoo, or one art museum compared to another art museum) share an elemental “sameness” that challenges the market’s ability to differentiate the unique attributes of individual organizations. Further exacerbating PoRS is the premium that we tend to psychologically ascribe to “firsts” – first love, first car, first baseball game, first kiss. When someone first visits a zoo, it may be the first time that they have ever seen live animals up close, but upon visiting a second zoo, there is a loss of “newness of experience.” There may be other factors that contribute to PoRS: Perhaps the first zoo visited is in an individual’s hometown and is a point of civic pride. Perhaps the newness of the experience is matched with a memory of sharing the experience with a favorite friend or family member, thus creating a unique, personal remembrance that is difficult to duplicate and impossible to top.

How is PoRS hurting your organization?

Reputation is a leading driver of visitation, and reviews from trusted resources (such as word of mouth recommendations from friends, peer review sites like Yelp or TripAdvisor, and even social media) are the strongest contributing factors to building your reputation (12.85x greater than any paid advertising channel). Aside from the more obvious impacts of lower guest satisfaction metrics and potential declines in the likelihood of repeat visitation, PoRS may also affect your organization’s word of mouth value. This may result in securing fewer visitors, fewer opportunities to cultivate donors with affinity for your organization, and fewer evangelists to amplify and promulgate your organization’s mission.

How can your organization overcome PoRS?

Data based on visitor feedback suggest that the solution may be very simple in theory: Be more unique. One way to do this is to utilize social media and other communication resources to underscore what differentiates your organization as a unique experience. Focusing more on your mission – as opposed to your existence as a “destination” – may help. An emphasis on mission-related content may allow your organization to increase its relevance beyond being a visitor-serving destination on real-time, online platforms by more actively defining the public perception of your museum. If your organization can cultivate a reputation as “more than just a visitor-serving organization” prior to a guest’s arrival, then your organization may also improve its satisfaction-related metrics.

It seems that our mothers were onto something – “You’re judged by the company that you keep.” PoRS is particularly insidious amongst the perceptual middle ranks of visitor-serving organizations – those places that are so “destination-focused” in their communications that they end up positioning themselves as “just another museum” (or zoo, or aquarium, or botanical garden, etc.) The overcome may be in elevating your organization from the sameness of a sector by differentiating not only your experience, but by the means by which you achieve your mission (the impacts that you have and the differences that you make).

As stakeholders for visitor-serving organizations, we tend to believe that the entities that we serve (or support, or visit) are unique and superlative.  Our challenge – and, indeed, our opportunity – is to similarly articulate these differences to our visitors so that they, too, consider us as more than a place. What makes your organization unique is probably not the artifacts that you house, the collections that you keep, or the building within which you keep them. What makes you unique is the outcomes that you achieve by fulfilling your mission… and communicating these outcomes is the best defense against a nasty case of PoRS.

 

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