Creative Trust Briefing Trust Presentation by Alan B… · Creative Trust – Constituent Briefing Ticket Buyer Model: Input Variables • Core values (13 inner-directed, 9 outer-directed)

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Creative Trust – Constituent Briefing

Creative Trust: Constituent Briefing

February 9, 2009 at 2:30 p.m.

Toronto

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Agenda: 3:00 - 5:30 p.m.

• Emerging Practices in Arts Consumer Segmentation• Discussion

• Peer-to-Peer Marketing In Practice• Discussion

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Emerging Practices in Arts Consumer Segmentation

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http://eq.canada.travel/?sc_cid=eq1

http://eq.canada.travel/?sc_cid=eq1

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How do you think about your audience? What attributes distinguish them from each other?

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Segmentation Models: Performing Arts Ticket Buyers: Major University Presenters (2007)

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Online Survey Methodology

• Protocol builds on qualitative data from 195 interviews• 51,541 invitations sent to 14 email lists• 7,645 responses received (~15% response)• Lengthy survey (about 15 minutes to complete)• Aggressive use of incentives• Survey data matched to purchase data through email

address• Acknowledge bias from self-selection and bias from online

administration

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Ticket Buyer Model: Input Variables

• Core values (13 inner-directed, 9 outer-directed)- e.g. “Rejecting authority and making your own rules”

• Cultural attitudes (e.g, interest in specific cultures)• Preference levels for 27 types of performances• Appetite for educational content• Price sensitivity• Social context of attendance• Political and religious beliefs• Innate intelligences (Howard Gardner’s model)

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Analysis Approach: Cluster Analysis

• Different combinations of variables were tried• Segments are designed to be as different as possible• Data on Gardiner’s intelligences are intuitive and useful• Very multi-dimensional model• Driven by core values, cultural attitudes, preferences and

tastes- NOT driven by demographics or purchase behaviors

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Purchase behaviors paint an incomplete picture of preferences

UFPA UMD UMS % of all respondents who bought modern dance 9% 13% 16% % of respondents who reported high interest 35% 25% 27% in modern dance (6 or 7 on scale of 1-7), but who did not purchase modern dance in the past 2 years % who reported moderate to low interest in 56% 62% 57% modern dance 100% 100% 100%

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Overview of the Ticket Buyer Model: Ordered by Risk Tolerance

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1. Mavericks

• Fearless, values-driven consumers• Core value is challenging authority• Thought leaders with existential intelligence• Primary attraction is to linguistic art forms

- Fantasy-seeking theatre-goers

• About six in ten are students, many are artists • Quintessentially adventurous

- Risk for risk’s sake

• Very price sensitive• Most attend with friends, but also not afraid to attend alone

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2. Experientials

• Trust the presenter• Want to be taken on the full ride• High tolerance for risk

- Most likely to seek out adventure, discovery, surprise

• More intellectually driven than emotionally-driven- Attracted to politically-charged content

• Preference for contemporary dance and theatre• Advance planners, working full-time• Multi-buyers, most likely to subscribe

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3. Remixers

• Urban arts omnivores- Love that art can be digitized, remixed and sampled

• Culturally-directed- Strong sense of their own cultural roots- High interest in specific cultures

• Preference for contemporary art forms, not classical- Healthy appetite for new work by living artists- Multiple intelligences

• Socially-driven, most likely to be Initiators• Embrace technology• Younger, but not students

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4. Diversity Seekers

• Most outer-directed of all segments- Driven by a need to understand the world and their place in it- Sense of duty to mankind, commitment to social justice

• Most emotionally reflective of all segments- Need and ability to empathize with others

• High preference for world/folk music and dance• Naturalistic intelligence• Not into urban culture• 80% female, strong nurturing instinct• Likely to attend with children

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10. Serenity Seekers

• Take comfort in the familiar, do not want to be challenged- 90% prefer ‘a sure choice’

• Desire a peaceful, calming experience- Not looking for emotional intensity

• High preference for symphonic music, chamber music- Little appetite for new works

• Attracted to authenticity and historical accuracy• Tend to be males, retired, age 65+• Attend with spouse• Conservative political views

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Segmentation Models: Performing Arts Donors: Major University Presenters (2007)

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Five Segment Donor Model, Based on Motivations for Giving

PERFORMING ARTS DONOR SEGMENTATION MODEL (N=1,738)

Intrinsics 22%

Networkers23%

Co-Creators11%

Marquee Donors23%

Youth-Focused21%

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Institution-Specific Attitudinal Customer Models: Steppenwolf

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Steppenwolf Customer Model

• Motivated by a desire to more deeply engage single-ticket buyers

- Research supported by Wallace Foundation

• Survey probes knowledge and background in theatre, attitudes about risk, etc.

• A major focus on how people engage with the art form- Before shows, after shows

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Five-Segment STC Customer Model

STEPPENWOLF CUSTOMER MODEL (Does not reflect frequency of attendance, but rather the overall proportion)

High Impact

Loyalists

Ensemble Followers

22%

Progressive Theatre Geeks

19%

Topic-Driven

Socializers

Selective Story-Seekers

15%

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Key Indicators of Risk Tolerance

SEGMENTS, BY KEY INDICATORS OF RISK

1

2

3

4

5

6

7

High ImpactLoyalists

EnsembleFollowers

ProgressiveTheatreGeeks

Topic-Driven

Socializers

SelectiveStory-Seekers

(1=

Disa

gree

, 7=

Agr

ee)

I avoid plays with vulgarlanguage, violence, or explicitsexual contentI enjoy being taken beyondmy comfort zone with apiece of theatreI don't like radical re-interpretations of classicworksI avoid plays that addresssensitive issues or problemssuch as domestic violenceI enjoy plays without a clearnarrative (i.e., abstract ornon-linear form)

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Five Underlying Dimensions of Engagement

Q# ItemTQ12B Read a review of a production you are going to see 0.81 0.18 TQ10A Read critical reviews of theatre productions 0.74 0.20 0.17 0.13TQ14D Read a review of the play 0.66 0.28 0.16 TQ12F Read program notes before curtain 0.44 -0.15 0.34

TQ10C Read plays on your own for enjoyment 0.84 0.14 TQ12A Read the play in advance of attending 0.15 0.73 0.15TQ10D Write, perform in or work on plays or musicals -0.11 0.71 0.20 0.16 TQ10E Travel to other cities for the purpose of seeing theatre 0.17 0.34 0.21 0.12

TQ14E React to the play in an online blog or forum 0.76 0.16TQ10B Read blogs about theatre or comment on blogs 0.10 0.17 0.73 TQ12C Seek out information about the play online 0.28 0.58 -0.11TQ14F Find out more about the cast, director, or production team 0.22 0.23 0.55 0.22 0.12

TQ14A Talk about the play on the way home or over drinks or dinner 0.72 TQ14C Discuss the play with others over the ensuing days and weeks 0.11 0.19 0.18 0.70 0.16TQ12G Discuss an upcoming play with friends who've already seen it 0.30 0.14 0.15 0.58

TQ14B Stay afterwards for post-performance discussions 0.16 0.82TQ12D Attend pre-performance talks 0.16 0.25 0.17 0.70TQ12E Read Steppenwolfs Backstage magazine 0.37 -0.18 -0.11 0.39

Five FactorsFactor Analysis of Engagement Variables (Principal

Components Analysis) Readers (1)

Actors (2)

Bloggers (3)

Talkers (4)

Listeners (5)

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Institution-Specific Attitudinal Customer Models: The Philadelphia Orchestra

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Philadelphia Orchestra Ticket Buyer Model: Input Variables

• Musical tastes: eclectic vs. classical-focused• Knowledge level about classical music• Appetite for new works by living composers• Preferences for different concert formats• Motivations for attending• Influence of purchase decision factors

• Demographics and purchase behaviors were used only as descriptive variables, not segmentation variables

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Four-Segment Customer Model

PHILADELPHIA ORCHESTRA CUSTOMER SEGMENTATION MODEL (N=1,075)

Old School Connoisseurs

24%

Warhorses23%

Casual Followers28%

Adventurous Intellectuals

25%

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Three out of four segments prefer a format with brief introductions from the stage.

PREFERRED CONCERT FORMAT, BY SEGEMNT

5%

66%

10% 5%

21%

74%

34%

70%

67%

62%

20% 19%28%

17%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

War

hors

es

Old

Sch

ool

Con

noiss

eurs

Adv

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Inte

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uals

Cas

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Follo

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s

TOTA

LA

UD

IEN

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Interpretation-richeducational format

Format with briefintroductions

Traditional format(no talking)

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Three out of four segments prefer a format with brief introductions from the stage.

DESIRED FREQUENCY OF HEARING NEW PIECES ON POA PROGRAMS, BY SEGEMNT

5%13% 10% 7%5%

15%

43%

24%22%

44%

44%

61%

51%

53%61%

18%19%

5%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%W

arho

rses

Old

Sch

ool

Con

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eurs

Adv

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Inte

llect

uals

Cas

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Follo

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TOTA

LA

UD

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Never or Almost NeverEvery 3rd or 4th ProgramEvery Other ProgramEvery Program

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Tactical Implementation: “Scaling Up the Model”

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Next Phase: Commitment to Tactical Implementation (POA, MUP)

• Revise the segmentation protocol• Add other, actionable data elements• Design a new marketing data warehouse (already

prototyped, in partnership with TRG Arts)• Survey the entire database• Survey new buyers continuously• Use the data on a daily basis for targeting offers and

information

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Discussion: What is the future of this work?

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Peer-to-Peer Marketing

Creative Trust Constituent Briefing

February 8, 2009

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Discussion Outline

• P2P basis in research and practice• Definitions and key concepts• P2P implementation approaches• P2P marketing practices and enabling tools

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P2P – Basis in Research and Practice

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An Industry In Search of a New Marketing Model

• Subscribe Now! is 30 years old- Subscription is a great product but not a long-term strategy solution to

audience growth

• Irreversible trend towards late buying• Lots of grasping for new tactics

- Tinkering with packaging instead of looking at sales channels

• Fear of change; new practices are slow to emerge- No resources for R&D or diffusion of new practices

• Everyone is asking who is doing exemplary work

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Historical Focus on Consumers Who Influence Others• Opinion Leaders, Change Agents, Early Adopters

- Rogers, Diffusion of Innovations, 1962

• Mavens, Connectors and Salesmen- Gladwell, The Tipping Point, 2000

• The Influentials (“The spiral of influence”)- Keller and Berry, 2003

• Initiators and Responders- Knight Foundation/Audience Insight, 2003

• Arts Ambassadors - Arts Council England, 2003

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Initiators and Responders

PLANNING MODE: INITIATORS AND RESPONDERS

56%

18%

29%

25%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Responders

Initiators

% OF CULTURALLY ACTIVE ADULTS

Agree a lot Agree a little Disagree a little Disagree a lot

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Initiators are Attractive Cultural Consumers

• Three times more likely to be “extremely interested” in arts activities

• Attend at twice the frequency of non-Initiators• Constantly scanning the media for things to do• Very interested in the educational aspect of attending• Six years younger, on average, and 50% more likely to be

single• Two to three times more ethnically diverse• In sum, they are NOT subscribers.

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“The Cellular Church”

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Film Clubs

• “The latest form of communal entertainment”• Film club for mothers and daughters who gather to talk

about important issues• Film clubs for film buffs who read screenplays in advance• Husbands who band together defiantly

- They go see movies that their wives won’t see

• The Mnookin’s hosted potluck film club in Cambridge, Massachusetts

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Clevedon Film Club

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“A product that connects people to one another doesn’t have to do much else.”

- Rob Walker, New York Times

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The Long Lineage of Personal (Direct) Selling…• Tupperware (Find a “Tupperware consultant” in your area)• Amway (“Amway business owners”)• Mary Kay Cosmetics (“independent beauty consultants”)• AtHome America (“HomeStyle specialists”)• PartyLite (“consultants” sell candles and décor items)• Pampered Chef (“kitchen consultants”)• Red Bull (“student brand managers”)

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… And it’s Growing Significantly

• Significant expansion over past 10 years• According to the U.S. Direct Selling Association, the

number of people involved in this form of selling doubled to 13.3 million from 6.3 million between 1994 and 2003.

• Why is direct selling on the rise in the age of online retailing?

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P2P – Definitions and Key Concepts

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What is P2P Marketing?

• P2P marketing is a sales channel that leverages social context within peer networks to stimulate arts attendance in small social groups.

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Key P2P Concepts

• The objective of P2P marketing is to recruit, motivate and satisfy a network of resellers

• Resellers might be called “Activators” or “Initiators” or “Ambassadors”

- “Activators” are content experts, such as artists- “Initiators” fit a gregarious psycho-social profile

• They must be motivated, but not necessarily paid• They can become powerful advocates for your organization

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Key P2P Concepts

• P2P is values-based, not product based- What belief systems and common interests can serve as a foundation for

bringing people together for arts activities?

• P2P transcends pre-existing interests and creates relevance when there is none

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Key Concepts: P2P Marketing Creates Relevance When There is None

1. Relevance of the specific work(s) of art “I saw Swan Lake when I was nine years old.”

2. Relevance of the artist or company“I’ve never heard of Matthew Bourne.”

3. Relevance of the genre, idiom, medium or discipline“I don’t know anything about modern dance.”

4. Relevance of the institution presenting the art5. Relevance of the activity category

“I don’t identify with people who dress up and go to theaters.”

6. Social relevance “My friends don’t usually do that sort of thing.”

7. Cultural relevance“I’m not interested in a play that was written 500 years ago.”

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Key P2P Concepts

• The communications strategy that supports P2P is “structured Word of Mouth”

- Builds up over the weeks and days before a show- Validates late buying behavior

• Allows for “brand hijack” – affiliation through customization – a different kind of loyalty

• Eventually takes on a life of its own

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P2P – Implementation Ideas and Practices

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Implementation Models

• Arts Ambassadors case studies• Play Groups pilot program

- “It's like a book club but with plays.”

• Arts In Motion, Philadelphia- Attracting audiences that do not respond to traditional media

• Activator networks, Urban Voices Series- Counter-branding

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Recruitment Methods

• Various methods used to reach out to Initiators- Letter to high volume STBs, program stuffers, flyer distribution in

gathering places, e-blasts, web postings

• Drove them to theatre website for pre-recruitment via online survey

- Designed to identify and measure positive indicators of “initiating” behavior

• Personal interviews with those who express interest in the program and who qualify

- Generates a detailed profile- Solicited input on the program design and functionality

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Case Study: Building a New Audience Through P2P

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Implementation Process

• Assess the product line to identify programs that might benefit from a P2P approach

• Articulate the values that underlie these programs• Identify target groups that share these values• Set timeline, design incentive system, tools• Recruit, induct and orient Activators within each target

group• Provide values-based language, and WOM enabling tools• Ongoing support, validation, assessment

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Value Associations for Urban Voices Series

• “I reject traditional views of how I should fit in.”• “I challenge authority and question what I’m told to

believe.”• “I don’t need any one else to validate my way of life.”• “Hip Hop is a legitimate culture.”• “You never know what’s going to happen when art forms

smash together.”• “Good art is unpredictable, like me.”• “New technologies are an important part of my life.”• “I’m a progressive thinker.”

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“Social Spheres” for Urban Voices Series

• Student “arts activists” - accessed though existing student committee

• Socially ambitious, young professionals who want to be on the bleeding edge

• Hip Hop Youth- accessed through student orgs.

• Black Youth - accessed through community centers and churches

• Urban Creatives- accessed through theatre department faculty, local businesses, individual

artists and artist networks

• Art film community - multi-media nature should be appealing; accessed through film groups

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P2P Enabling Tools

• Pass-along emails• Print-to-Web redemption tactics• Automated reminder services• Online invitation tools• Instant feedback loops• Blogging• Online social networking: adapt existing tools

- www.meetup.com- www.ning.com

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The Vision: In Five Years…

• You have a “Lead Activator” on staff• You have a self-motivated network of Ambassadors,

Initiators and Activators• In your database, they are categorized by values, interest

area, target group• On your website, anyone can sign up to join a group hosted

by one of your Activators• Your audience is composed of hundreds of small social

cells, each of which has a customized experience

Documents

Creative Trust Briefing Trust Presentation by Alan B… · Creative Trust – Constituent Briefing Ticket Buyer Model: Input Variables • Core values (13 inner-directed, 9 outer-directed)