Katy Raines (UK) presentasjon på Usus konferansen 11.mai

1. Katy RainesBuilding Customer Loyalty and Value Christiansand, May 2011

2. About me Music Graduate, Cambridge University Spent 15 years running Marketing departments in UK theatres Consultant since 2004, specialising in Customer Loyalty and data-driven marketing Clients include Royal Shakespeare Company, Opera North, The Lowry, Symphony Hall, Birmingham, Ulster Orchestra

3. Building Customer Loyalty and Value Why customer loyalty is important How building customer loyalty can help your organisation The 3 secrets of successful loyalty building Examples from successful UK Arts organisations NB – not about ‘new’ audiences

4. And introducing the three key concepts for building loyalty: Frequency Retention Customer Segmentation

5. What’s happened to UK Arts funding? Donations Donations Sponsorship Sponsorship Declining trends Public Subsidy Funding gaps Public Subsidy Earned income Earned income

6. A new model? + Donations Sponsorship Unlock hidden value in the customer base to increase donations and earned income? Public Subsidy + Earned income

7. A new model? Donations Retained customers Frequent customers Earned income = More profitable customers Increasing Customer Loyalty = Increasing Customer Value

8. The ‘Old’ Arts Marketing Rewarded for obtaining ‘new audiences’ UKGovernment (1997-2010) saw Arts as delivering on Social Exclusion agenda Concentration on existing audiences seen as elitist Arts Council / Public Subsidy targets skewed towards % of new attenders

9. The effect of this on UK Arts Organisations Research in England, 2005 40 Performing Arts Organisations using our Audience Loyalty HealthcheckTM (data analysis and interviews) 2005-2010

11. More than twice per year

13. Customer Value and Lifetime Customer Value = total ticket spend Per year x how many years?

14. Key Concept 2: Retention New audiences Retained customers Lost / lapsed customers

16. More than half?

18. My equation for Customer Value Customer Value = Income (total ticket spend) x Length of customer lifetime Increasing any ONE of these will increase customer value. Increasing both will maximise it!

19. The 3 secrets of successful loyalty building ?

20. An aside – how UK organisations collect customer data bookings Organisation’s own Box Office system Name & addresses (incl email) Event purchased for Amount paid Time/date of purchase Permission to contact again about similar events

21. An aside – how UK organisations use customer data: the ‘classic’ marketing approach Organisation’s own Box Office system Customer contact data based on previous attendance and permissions to contact Season brochure 3 times per year ‘Solus’ direct marketing Monitor responses and amend communications

22. The 3 secrets of building loyalty A Big Welcome Small steps not big ones A dialogue that reflects their needs

24. Welsh National Opera Large Scale Opera Company, based in Cardiff, Wales Tour extensively in UK and abroad as well as at their home at the Wales Millennium Centre Perform a mixture of popular and less well known operas each season

25. La Boheme Welsh National Opera Popular opera which attracted high levels of new customers on previous tour (average 57%) Typically low repeat attendance rates from these types of bookers Aim to encourage first time bookers to book early for another production If WNO made you cry last night…… Branded WNO tissues mailed the day of the performance so they landed the morning after

26. Cost less to produce than what was previously being sent on a season basis Tickets for both shows in all three theatres more than doubled in the four weeks following the campaign Generated word of mouth and media coverage Won two prestigious advertising industry awards 12% of first time customers re-booked

27. 2. Small Steps not big ones Frequency Frequent attender It is not going to be possible to move someone from the bottom of the ladder straight to the top – different tactics are needed for each ‘rung’ of the ladder Regular attender Irregular attender New attender Non attender

28. 2. Small Steps not big ones Frequency Reward top customers – lunches etc. Frequent attender Flexible subscription packages, reward schemes Regular attender Linked offerings / packages, loyalty schemes, small reward for Increase in commitment Irregular attender Welcome strategies, time limited promotions related to previous attendance New attender Data capture, interest types, promotions around accessible entry points, celebration packages Non attender

29. 3. A dialogue that reflects the needs of the audience These people have different needs From these people % of bookers by frequency band

31. Artform likes/attendance= Key Concept 3: Customer Segmentation Each segment receives DIFFERENT communications from the others according to their needs

32. The Lowry, Manchester Large Scale Regional Arts Centre, built in 2000 2 theatre spaces (1700 and 450 seats) Visual Art Galleries One of UK’s most successful venues Visits from companies such as Opera North, Royal Shakespeare Company, Birmingham Royal Ballet, National Theatre, London West End Musicals, etc.

34. No segmentation – simply mailed the past 3 years’ worth

35. Cost £50,000 each time

36. = £150,000 each year

38. Recency

39. Artform

40. Different communication methods tested and measured

41. Cost savings of £50,000

44. Target people with the communications most appropriate to them (this may be 100% digital in some cases)

45. Measure the results

46. Ditch what isn’t working and keep what is

47. Refine Refine Refine

49. In conclusion Get geared up to RETAIN customers once they come through the door Tried and tested methods exist for helping you maximise your chances of retaining audiences and developing their loyalty

50. In conclusion The keys to success are Good data capture Measuring the right things Sensible Segmentation Creative Communications appropriate to each segment Testing / Refining

51. Thank you! Katy Raines Partner, Indigo-Ltd www.indigo-ltd.com katy.raines@indigo-ltd.com twitter: @katyraines