The Lukens Company's American Alliance of Museums Presentation - May 2013

AAM / Membership Trends & Strategies

Membership Trends & Strategies to Optimize Acquisition, Renewal &

Pricing


Cultural Attraction Attendance, 2003-2012

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0% 6.8%

3.0%

0.3%1.7%

3.5%

-1.7%

2.8%

-1.2%

0.1%

5.5%

General Admission Attendance Membership


Reasons to Join

All37%

Value39%

Mission24%


Membership as a Percentage of General Admission Attendance

4

0.0%0.5%1.0%1.5%2.0%2.5%3.0%3.5%4.0%4.5%5.0%

3.8%

3.1% 3.1%

3.6%

2.7%

4.0%

2.9%

4.5% 4.6%


5

-

5,000

10,000

15,000

20,000

25,000

30,000

14,318 13,720

18,973

14,069

4,917 9,086

10,826

25,451

7,120

14,714

13,273

20,493

15,146

4,868

9,203 11,036

26,485

6,812

2011 2012

Membership by Segment


Membership Prices by Segment

6

$-

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00

$52.73 $55.73 $60.55

$47.86 $53.33

$48.54 $53.79 $51.28 $52.80

$77.66 $80.88

$96.10

$65.00

$81.00

$69.38 $70.91 $73.14

$84.89 $93.67 $90.43

$122.87

$76.56

$103.91

$84.33 $95.07 $88.39

$91.30

Individual Dual Family


Membership Prices by Segment

7

-

1.0

2.0

3.0

4.0

5.0

6.0

4.0

4.6

2.9

4.7 5.0

4.0 3.6 4.0

4.2

3.0 3.4

2.3

3.2

3.8

2.9

2.4

2.9 3.3

2.1 2.4

1.7

2.4 2.5 2.2 1.8 2.0 2.3

Individual Dual Family


0%

20%

40%

60%

80%

100%

56%63%

48%

66%

43%

62%

47%

59%

50%

Membership Renewal Rate by Segment


Ideal Membership Size

Top 40 Next 40 Next 40 Next 40 Bottom0.0%2.0%4.0%6.0%8.0%

10.0%12.0%14.0%16.0%18.0%20.0%

14.9%

5.7%3.9%

2.7%1.2%

Membership as a Percentage of Attendance



Top 40 Next 40 Next 40 Next 40 Bottom -

100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000

449,582

670,402 611,279

325,696

563,009

23,490 25,006 14,417 5,998 5,248

Actual Membership Size

Attendance Membership



Top 40 Next 40 Next 40 Next 40 Bottom $-

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00 $52.48 $54.70 $52.07 $50.39 $50.54

4.6 4.2 4.4 4.9 4.7

Individual Membership Cost/Ratio to Admission

Cost Ratio




$10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00 $90.00

$73.78 $76.79 $74.00 $75.07 $84.24

3.4 2.8 2.6 2.4 2.7

Dual Member Cost/Ratio to Admission

Cost Ratio




$10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00 $90.00

$100.00 $93.08 $94.91 $93.05 $92.76 $94.71

3.5 2.3 2.2 2.3 2.7

Family Member Cost/Ratio to Admission

Cost Ratio




$10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00 $90.00

$100.00 $93.08 $94.91 $93.05 $92.76 $94.71

3.5 2.3 2.2 2.3 2.7

Family Member Cost/Ratio to Admission

Cost Ratio




$2,000,000 $4,000,000 $6,000,000 $8,000,000

$10,000,000 $12,000,000 $14,000,000 $16,000,000

$998,038 $1,237,119 $624,359 $253,204 $230,310

$7,831,892

$14,041,431 $12,475,736

$6,807,469

$9,726,325

Revenue Generated

Gross Member Gross Admission




$5.00

$10.00

$15.00

$20.00

$25.00

$19.64

$22.79 $21.43 $21.68

$17.68

Revenue Generated Per Visitor



• We wanted to know how to increase our membership

• There are several ways in which to increase membership:

– Acquisition from visitor base

– Acquisition from lapsed

– Acquisition from the market

– Renewal


We conducted market research to determine if and how to increase our membership in these areas.

1. Visitor Survey: Acquisition from visitors

2. Lapsed Member Survey: Acquisition from lapsed

3. Local Market Survey: Acquisition from the market

4. Member Survey: Renewal


Conditions

– $7 general admission

– $50 Individual Membership – 7.1 times the cost of admission

– $65 Dual Membership – 9.2 times the cost of admission


What were the results?




24




Most of those who would renew would do so on their next visit.


What did we learn?


• We had a high renewal rate

• A high % of members joined for free admission, but the value of membership was low compared to the cost of general admission

• The actual cost of admission was significantly less that the anticipated price

• There were a high % of lapsed members who would renew … but not until another visit

• Exhibitions had a major influence on visitation


What did we do?


Ticket Type2002-2011 2012 2013

Member Free Free FreeAdult (19+) 7.00$ 10.00$ 13.00$

Senior (65+) 3.50$ 5.00$ 8.00$ Student (19+) 3.50$ 5.00$ 6.00$

Youth (6-18) 3.50$ 5.00$ 6.00$ Child (5 + under) Free Free Free

Military N/A 5.00$ 6.00$

Membership Level2005-2011 2012 2013

Student $40 NO CHANGE $45Individual $50 NO CHANGE $60

Dual $65 NO CHANGE $80Family $85 NO CHANGE $95Patron $150 NO CHANGE $185

Supporting $275 NO CHANGE $330Sponsor $500 NO CHANGE $750

Benefactor $1,200 NO CHANGE $1,500

Adjusted Rates


Focus on visits



• SFMOMA will close the doors of its current building on June 2, 2013 as part of our extensive expansion, reopening in 2016 as one of the largest modern and contemporary art museums in the world.

• During the 30-month interim period, SFMOMA will be On the Go and offer several interim programming strands:

1. Exhibitions with Museum Partners2. Outdoor Installations & Site-Specific Commissions3. California Tour of Photography Exhibitions4. Education Programs & Live Projects

Background



• Unlimited free admission and discounts at Bay Area partner museums during joint exhibitions

• Exclusive preview days and receptions at partner museums

• Free or reduced admission to select film screenings and lectures

• 10% off at the MuseumStore (online and at SFO, and at the new SFMOMA MuseumStore on Yerba Buena Lane opening late summer 2013) – 20% off on members-only sale days

• Free subscription to the quarterly members’ magazine

Membership On the Go: An Enriched Experience


CORE MEMBERS (retention) –

loyal, institutional supporters,45- 65

EXHIBITION-BASED MEMBERS (retention) – casual, regular

visitors that were inspired to join by a particular show, 25-44

MEMBERS SOUGHT (acquisition) - traditional market + geographic

(East & South Bays) and ethnically diverse audiences,

25- 44

Loyal fans and members – disappointed and concerned that we’re closing, and that they will

be missing out, 35-64

Traditional Museumgoers – casual, regular visitors from San Francisco and the East Bay

residents primarily, 35-64

Cultural Tourists – unaware of our closure, they will find out on our web site or when they

try to stop by on a trip, 35-64

Non-traditional Potentials – San Francisco, East Bay, and Peninsula residents. Educated, affluent individuals interested in visual media

and the arts, 25-44

Target Audiences


1. Honor our members, retain, energize and strengthen the member community.

2. Acquire new members by generating excitement and awareness about our Interim programs and the new SFMOMA, 2016.

3. Communicate clearly that SFMOMA membership benefits, and the museum are moving around for 30 months, not closing.

Strategic Objectives


REASSURANCE –keep institutional

memory and spirit alive

EXCITEMENT –opportunity to have a unique membership

experience

LOYALTY – recognition and thanks

for member involvement

INFORMATION – detailed updates about interim programming and the extraordinary

new SFMOMA

Membership Message Criteria


Moving beyond our walls with enthusiasm!

1. Member Forums

2. Member Focus Groups

3. Month-long Member Appreciation Celebration

4. Charter Membership

5. More Member Benefits Than Ever

Membership Tactics


Additional Interim Benefits

• CUESA (Center for Urban Education about Sustainable Agriculture)• ODC Dance• San Francisco Bicycle Coalition• San Francisco Symphony• Zipcar San Francisco

• Free Artist Talks at Live Projects • Special Member Gatherings at Site-Specific Installations• Fisher Collection at Gap Headquarters & Pier 24 Photography access

Additional Member Partners

Membership On the Go: An Enriched Experience




www.sfmoma.org/membership


Lifetime Value Sample


NEW MEMBER RETENTION 2007-20122007 2008 2009 2010 2011 2012

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

Newly Acquired Members 12,153

# Renewed 4,983 4,136 3,350 2,881 2,535 % Renewed 41% 83% 81% 86% 88%

Average Amount $107 $111 $115 $120 $122 $127

REVENUEMembership, Donations and Ticket Revenue Cumulative Revenue

Membership $1,300,371 $553,083 $475,602 $401,987 $351,470 $321,970 $3,404,483Other Revenue (tickets and donations) $6,077 $2,491 $2,068 $1,675 $1,440 $1,268 $15,019

Traditional Revenue Subtotal $1,306,448 $555,574 $477,669 $403,662 $352,911 $323,238 $3,419,501Per Cap Revenue

Store $109,377 $44,845 $37,221 $30,149 $25,928 $22,817 $270,336Restaurant $60,765 $24,914 $20,678 $16,749 $14,405 $12,676 $150,187

Per Cap Revenue Subtotal $170,142 $69,758 $57,899 $46,898 $40,333 $35,493 $420,523TOTAL REVENUE $1,476,590 $625,333 $535,569 $450,560 $393,244 $358,730 $3,840,025

COSTSCosts per member Cumulative Cost

Membership Salaries $50,638 $20,761 $17,232 $13,958 $12,004 $10,563 $125,156Guest Services $21,546 $12,863 $9,823 $7,745 $6,158 $4,545 $62,680

Marketing $58,912 $27,751 $21,517 $17,523 $15,123 $12,687 $153,513Magazine $31,629 $12,469 $10,278 $7,546 $2,943 $5,254 $70,119

Events $7,890 $982 $624 $478 $413 $398 $10,785Camps, Classes $6,423 $791 $562 $412 $394 $267 $8,849

Acquisition Direct Mail Cost (all costs) $122,569 $122,569TOTAL COSTS $299,607 $75,617 $60,036 $47,662 $37,035 $33,714 $553,671

YEARLY PROFIT $1,176,983 $549,715 $475,533 $402,898 $356,209 $325,016 $3,286,354

LIFETIME VALUE $97 $142 $181 $214 $244 $270


Lifetime Value Made Easy





# Renewed 4,983 4,136 3,350 2,881 2,535 % Renewed 41% 83% 81% 86% 88%

Average Amount $107 $111 $115 $120 $122 $127REVENUE

Membership, Donations and Ticket Revenue Cumulative RevenueMembership $1,300,371 $553,083 $475,602 $401,987 $351,470 $321,970 $3,404,483

Other Revenue (tickets and donations) $6,077 $2,491 $2,068 $1,675 $1,440 $1,268 $15,019Traditional Revenue Subtotal $1,306,448 $555,574 $477,669 $403,662 $352,911 $323,238 $3,419,501

Per Cap RevenueStore $109,377 $44,845 $37,221 $30,149 $25,928 $22,817 $270,336

Restaurant $60,765 $24,914 $20,678 $16,749 $14,405 $12,676 $150,187Per Cap Revenue Subtotal $170,142 $69,758 $57,899 $46,898 $40,333 $35,493 $420,523

TOTAL REVENUE $1,476,590 $625,333 $535,569 $450,560 $393,244 $358,730 $3,840,025


So what about costs?





# Renewed 4,983 4,136 3,350 2,881 2,535 % Renewed 41% 83% 81% 86% 88%

Average Amount $107 $111 $115 $120 $122 $127REVENUE

Membership, Donations and Ticket Revenue Cumulative RevenueMembership $1,300,371 $553,083 $475,602 $401,987 $351,470 $321,970 $3,404,483

Other Revenue (tickets and donations) $6,077 $2,491 $2,068 $1,675 $1,440 $1,268 $15,019Traditional Revenue Subtotal $1,306,448 $555,574 $477,669 $403,662 $352,911 $323,238 $3,419,501

Per Cap RevenueStore $109,377 $44,845 $37,221 $30,149 $25,928 $22,817 $270,336

Restaurant $60,765 $24,914 $20,678 $16,749 $14,405 $12,676 $150,187Per Cap Revenue Subtotal $170,142 $69,758 $57,899 $46,898 $40,333 $35,493 $420,523

TOTAL REVENUE $1,476,590 $625,333 $535,569 $450,560 $393,244 $358,730 $3,840,025COSTS

Costs per member Cumulative CostMembership Salaries $50,638 $20,761 $17,232 $13,958 $12,004 $10,563 $125,156

Guest Services $21,546 $12,863 $9,823 $7,745 $6,158 $4,545 $62,680Marketing $58,912 $27,751 $21,517 $17,523 $15,123 $12,687 $153,513Magazine $31,629 $12,469 $10,278 $7,546 $2,943 $5,254 $70,119

Events $7,890 $982 $624 $478 $413 $398 $10,785Camps, Classes $6,423 $791 $562 $412 $394 $267 $8,849

Acquisition Direct Mail Cost (all costs) $122,569 $122,569TOTAL COSTS $299,607 $75,617 $60,036 $47,662 $37,035 $33,714 $553,671

YEARLY PROFIT $1,176,983 $549,715 $475,533 $402,898 $356,209 $325,016 $3,286,354

LIFETIME VALUE $97 $142 $181 $214 $244 $270


Questions?

Anthony [email protected]

John [email protected]

Nancy [email protected] Jennifer Garza

[email protected]

mailto:[email protected]




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The Lukens Company's American Alliance of Museums Presentation - May 2013