Category Archives: research

New marketing mind set in performing arts

Here are three vital elements to performing arts marketing and by extension a thriving arts scene:

1. Arts and cultural research has confirmed time and again that the performing arts sector is not a zero-sum field. Rather, Canadians become ever more likely to attend based on prior attendance at cultural events and performances. These behaviours are strong predictors of attendance while basic demographic factors are much weaker. That means, competition in the performing arts is not other performing arts organizations but rather all the other ways people spent their leisure and entertainment funds. Community-wide, true partnerships should become the rule not the exception in the performing arts.

2. I have a growing body of work that recognizes that performing arts are not only a show on a stage, but that all surrounding aspects contribute to the audience experience either positively or negatively. It is about full experience design.

This graphic represents key elements of the audience’s arts experience that can and should be fully designed. All have the power to make or break the audience experience, put up barriers to it or enhance it.

It means applying end-to-end design thinking including all the ways in which audience members can amplify the arts organization’s message and reach among their own networks.

Pricing and packaging are aspects that are often taken for granted due to a persistent belief that the arts do not suffer from sticker shock; that if someone really wants to see a show they make it happen. Well, price elasticity is real in the arts, too. The higher the price the fewer people will consider attending. Therefore, considerations should be given to how to price shows that are not expected to sell out at a given price point or that are not selling out despite seemingly well-founded expectations of that. Each of these aspects merits full consideration in your planning and in your evaluations afterwards.

3. Another important idea is that marketing materials are designed for specific purposes to address where a member of the target audience is at in the purchase decision process. Arts marketers need to use the full array of tools in research and evaluation to see how their marketing programs are creating the desired response or not.

An arts marketer’s job is not merely to sell the workhorses of the performing arts – anything by Beethoven and Mozart, Nutcracker and Swan Lake, Shakespeare –  but indeed to lead larger and larger audiences to contemporary, current live professional performing arts experiences that they don’t already know.

To do this requires the integrated use of contemporary marketing strategies and tactics. It is about compelling storytelling, co-creating meaning, and making research on events and purchase of tickets easy and immediate. The increasing integration of services like Youtube, Facebook, Twitter with both desktops and mobile devices and within websites creates new dynamics between organizations and their audiences. this is a good thing.

Today, website pages can be shared with a push of a single button to a user’s social media universe and it can raise awareness, start conversations or solicit sales through their social networks. Similarly, organizations are cross-linking their web sites and social media presence to provide a seamless user experience, going where users are.

This mind-set approach makes clear that an organization’s brand is more than a logo applied consistently. It is how it behaves and interacts with current and potential customers. Or perhaps it reaches even further: it is an entire eco-system’s way of being and interacting in the world – and how the sector (and the communities it inhabits) thrives will depend on this concerted action.

 

Strategies to grow membership

At a recent board workshop we discussed different ways to look at the association’s membership in order to understand better how to grow it.

I proposed to look at the cumulative number of members over several years for a more complete evaluation. Typically, we look at the total number of members – or subscribers – as an annual figure and then we pay some attention to churn (non-renewing members). Growth occurs when this churn figure is lower than the number of new members acquired, i.e. more people join than drop out. Evaluating churn makes clear why the first task in an established organization is usually retention, keeping members/subscribers year after year. High rates of retention mean that growth can be achieved more readily (as long as you have not captured your entire market);  it also means that your marketing efforts should become more cost-effective as retention should cost less than acquisition.

When we look at a wider time span, for instance 5 years or 10 years, we gain a different understanding of the degree to which an organization has reached and engaged its market. Is the the cumulative 5-year figure very close to the annual figure or is it much larger?

If it is very close then you are basically stable. If you wish to grow in this scenario then you need to focus on acquisition strategies to accelerate growth.

If the 5-year cumulative figure is much larger, then you might need to think not only about acquisition but re-acquisition. Re-acquisition means re-engaging with people who have made up their mind already about the value you provide by rejecting it for some reason. Re-acquisition is quite a different task, requiring different strategies, tactics, messages and channels. Because these people are not a blank slate (they have developed firm beliefs about your organization and have perceptions founded in their personal experience) I think that re-acquisition is fundamentally more difficult than gaining a brand new member, subscriber, customer.

Strategically this dynamic has to be considering in light of your total market potential.

There are times when re-acquisition can be critical to ensure an organization’s sustainability in the long-run. Given the nature of re-acquisition, strategies designed to re-engage likely run their course over 3 to 4 years. The focus then has to shift to true acquisition because those you wish to re-engage either have done so or simply are not going to have their minds changed unless something important, and likely out of your control, changes for them.

In both scenarios, retention driven by creating value and a mutually beneficial and meaningful relationship with members remains paramount.

Igniting a SPARC in Haliburton

I was invited to speak at the SPARC Symposium in Haliburton, Ontario this spring. The organizers had a clear vision for this symposium: to bring people working in all parts of the rural arts eco-system together to explore opportunities and challenges, collaborate across communities and open new doors for exchange, resource sharing and a new kind of network focused on meeting the needs of broad rural arts communities.

With that I sought to create an opening keynote that would help establish the conversation using stories and, yes, conversation. My key messages revolved around the ideas of “where there is a will, there is a way”, and a vision of “building vibrant communities fueled by the performing arts and its community-engaged partnerships” and my proposal to consider “public engagement through the arts” where arts are a means to an ends, rather than the end in itself. I told some stories based on my recent work with a focus on small, rural and remote places across Canada to give substance to these ideas through examples. I shared some data from The Value of Presenting study that shows just how much arts presenting organizations in rural and remote communities are leading the way in community-engaged practices.

The conversation and contributions by participants throughout the talk helped set the stage for a fully engaged, working symposium. I loved the energy, the thinking, the sparks that were flying over these four days in Haliburton.

I was also thrilled to see representatives of several regional presenting networks that I have been working with over the last few years at SPARC; there is much space for collaboration, strengthening connections and learning.

SPARC organizers have turned this and all the other amazing working sessions into a unique interactive online magazine. (Sticks and Stones Productions) You can also access my keynote directly on Vimeo. (The other keynotes and videos from the conference are also available there or through the online magazine.)

Finally, my presentation slides are posted on the CAPACOA site for download .

Over the summer SPARC has turned its attention to developing a follow-up conference this fall with the aim to constitute a rural arts network. If you are interested in these ideas, check out their web presence (web, Facebook, Twitter) and get on the e-news list.

Imagine: creating a brand new genre of live music making today!

Yes, as if it was brand new. Where would you start? 

I would start with looking at my potential audiences and what they thrive on today. I would look at my community, its demographic make-up, its values, attitudes and beliefs and I would segment. I might identify those huge numbers of people who listen to music electronically, primarily using ear buds, irrespective of genre. I would examine deeply where they find their music, what they are listening to, how they listen to this music, when they listen to it, whether they share it with others and how, why they listen to their music, what music gives them, and what music gives them that nothing else in their lives does.

Then I would find out how they spend their days, how much time they spend being social and what they gain in their social interactions. I might see that there are grave pressures and stressors in people’s lives, and a wide range of worries and concerns that express themselves in various ways, including making people sick, feeling isolated and alone. I might think about how their current consumption of music via ear buds enhances these issues or alleviates them.

Then I might realize that the highest potential revenue is available in the 30 to 59 year age group – according to Statistics Canada data. I would use an existing geographic segmentation tool to understand demographics, values, attitudes and beliefs by postal codes, allowing me to see many dimensions of potential audiences.

I might determine that there are two different generations in this 30-year age span – Boomers and Gen Xers – who hold different generational values. I might decide that Gen Xers would be the sweet spot as they are less individualistic in orientation and I could foster and keep them as customers longer because they are younger. I would do this knowing that they tend to be more independent-minded even as they value communal spaces and social connections.

I would see that my target Gen Xers create, participate and engage in every dimension of life (socially, environmentally, politically, economically, artistically). I would see that they are sophisticated consumers who research, explore and sample online and by recommendation (both peer and paid recommenders). They are curious about new experiences and are excited to try out things they haven’t done before. I would see that they tend to look to be entertained in a friendly atmosphere rather than simply accepting others authority and doing as they are told without knowing why.

Then I would find out where this generation spends time and what their days, evenings and nights look like. Are they indoors in front of large screens or having family and social time, are they on the run using mobile devices as a primary interface while working hard, are they hanging out in coffee houses, bars and restaurants to get face-time, as they also chat and engage in social media to share with their wider community, are they in Yoga studios and fitness studios, spas and aesthetics shops where pampering is the order of the day and image is honed? Or do they work and worry about having enough money and resources to make ends meet? Different segments, micro-segments, would dominate in various activities and I might decide that I want to provide my solution – live orchestral classical music (ha!) – to all of them or some of them.

Then I might ask myself: how can I connect my brand new idea, never been seen before type of music making requiring perfect harmony among 40 to 100+ (!) musicians to these Gen Xers? How is my idea, that thrives on delicate sound (both in the highs and lows – qualities that are harder to appreciate and hear in compressed digital files), complex structure and intricate music making with a bewildering array of instruments, going to make these sophisticated, busy Gen Xers’ lives better, richer, more complete? What is the value Gen Xers would gain from such a formidable live experience? How is that value greater in comparison to other activities in their lives? How do I connect this live experience through online/mobile channels and make it irresistible? How will I secure true participation in the live music making?

Then I would decide what the business model is going to be, after all, getting that many musicians to play together will take considerable resources especially in the mid- to long-term. In essence, I would think about whether there can be economies of scale in my business model and what they are. For instance, I might realize that the live performance doesn’t scale well and I might search for ways to extend the live aspects to further monetize them. I might borrow from the playbook of other live events, whether its sports or pop and rock music.

I would look to other music experiences for inspiration, from the house concert to the stadium rock concerts. I would also look to the video game industry because it is highly participatory, the high-end spa experience because it does so well at pampering and getting me beyond my daily concerns, and the travel industry, both packaged and independent travel. And I’d think about styles of performance a lot.

This would eventually get me into the weeds of decision making: Would I put the musicians in a closed music making space, a concert hall, or would I put them outside or in community contexts? Would I have musicians be perfect technicians playing all the notes just so, or would I think about all that’s needed for an awesome performance experience for the audience? Would I ban the enthusiasm of my audience to the ends of long pieces, or would I encourage spontaneous outbursts of joy, delight, feedback? Would I dress musicians in black tails or would I allow their personalities to shine through with more than their hair styles? I would deeply consider the trade offs in each decision, talk to musicians and audiences and figure out how they would shape my brand.

Building such a bold idea from scratch would be awesomely exciting.

Finally, I would figure out how to build-in “creative destruction” mechanisms, so that the audience experience stays fresh and vibrant, rather than becoming narrowly defined by my initial magic formula. Everything tells me that there will be significant disruptive factors of all kinds, most of them outside my control, so that I might as well build in change and evolutionary leaps into the DNA.

Why LTE (4G) Networks are a major opportunity or threat in the performing arts

Or in plain language: what are 4G speeds on LTE networks which started to come online in Canada in 2012 going to enable for theatre goers and dance attendees as well as presenters and producing companies?

During the first year of conducting Value of Presenting workshops there was little appetite to consider anything but the utility of social media in selling tickets. A breakthrough happened at the CAPACOA conference in January 2013 and now it feels like more and more presenters are beginning to see that web-based mobile technologies are going to create leaps in value for audiences and perhaps artists, producers and presenters. We presented at the Creative City Summit in Ottawa in May 2013 what we found out from Canadians and presenters about their use and attitudes to digital technologies and how Canadians’ views of what “live” means to them might be evolving.

At APAP|NYC we presented on this topic (PDF) this month as well and just last week the 2014 CAPAOCA conference featured a successful workshop with presenters on the opportunities, the values of both streamed and live experiences, facilitated by Frederic Julien from CAPACOA.

Watch this Youtube video by Alcatel-Lucent which was created in 2009 (!) to demonstrate their technology vision and emerging capabilities. The final minute shows a vision of a performing arts experience, begging for a presenting business model!

What will the successful strategic move look like?