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Presentation from the "No Size Fits All: Measuring Success in New Ways" session at the 2014 National Arts Marketing Project Conference in Atlanta, GA.
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www.smu.edu/artsresearch
Zannie Voss
2014 NAMP CONFERENCE
NO SIZE FITS ALL: MEASURING SUCCESS IN NEW WAYS
SMU National Center for Arts Research (NCAR) Advancing the arts through evidence-based knowledge
To act as a catalyst for the transformation and sustainability of the national arts and cultural community
Vision Statement
Mission Statement To be the leading provider of evidence-based insights that enable arts and cultural leaders to overcome challenges and increase impact
Scope of the Center
Insight
Analysis
Data gathering
Enablement
Implementation Practical tools & resources Deeper dive & dissemination
Primary data collecting
Hands-on application
Focus
Out of scope
Ad hoc, as required
Data aggregation & basic findings
Partners
Strategy
Data
Indices & Dashboard Creation
Modeling the Arts & Culture Ecosystem
Public Arts Funding NEA, IMLS CDP, NASAA
Community Census Bureau, CDP
A & C Organizations CDP, TCG NCCS
Building a Spatial Model: Arts & Cultural Organizations & a Sense of Place
Example – XYZ Theatre Company in New Orleans
5 km radius, weight=80%
3 km radius, weight=89%
1 km radius, weight=97%
XYZ Theatre
SMU National Center for Arts Research (NCAR) Advancing the arts through evidence-based knowledge
Mission Statement
What are the Important Questions to Ask?
Contributed revenue
Earned revenue
Expenses
Marketing Impact Bottom
Line Balance Sheet Community
Engagement Program Activity
What outcomes should we examine in order to answer the questions?
Staffing
SMU National Center for Arts Research (NCAR) Advancing the arts through evidence-based knowledge
Example: Question: “What is program revenue per attendee?”
Index: Program revenue/Total in-person attendance
What drives high
performance? KIPIs
What drives performance? Driving Forces
What was performance?
Averages
What was performance?
Averages
$37.36 $24.86
$6.62 $36.25
$9.45 $53.02
$34.03 $37.67
$27.90 $13.78
$17.53
$0.00 $20.00 $40.00 $60.00
Arts Education
Art Museums
Community
Dance
Music
Opera
Performing Arts Centers
Symphony Orchestras
Theater
Other Museums
General Performing Arts
Ave. TotalMarketingExpenses/Ave.In-personAttendance
Ave. ProgramRevenue/Ave.In-personAttendance
What are marketing expenses per attendee and program revenue per attendee?
Taken together, we see very different levels of net program revenue per attendee by sector.
$20.47
$40.09
$13.06
$11.98 $8.68
$3.79 $4.64
$3.51 $4.10
$5.17 $4.34
$3.75 $6.35
$3.92
$0.00 $5.00 $10.00 $15.00
Arts Education
Art Museums
Community
Dance
Music
Opera
Performing Arts Centers
Symphony Orchestras
Theater
Other Museums
General Performing Arts
Ave.ProgramRevenue/Ave.TotalMarketingExpenses
What is return on marketing investment?
There appears to be a ceiling on the program revenue each dollar of marketing yields for performing arts organizations.
$1,532,000 $344,447
$526,305 $110,457
$875,898 $229,051
What is the return on fundraising investment?
There appears to be a ceiling on the return each dollar of fundraising yields.
$7.27 $8.68
$9.68 $7.12
$6.67 $7.39
$7.05 $6.90 $6.99
$8.63 $8.37
$- $5.00 $10.00
Arts Education
Art Museums
Community
Dance
Music
Opera
Performing Arts Centers
Symphony Orchestras
Theater
Other Museums
General Performing Arts
TotalContributedRevenue(unrestricted,temporarily &permanentlyrestricted)/FundraisingExpenses(including staff)
$565,867 $78,950
$886,862 $126,529
$2,997,046 $424,976
SMU National Center for Arts Research (NCAR) Advancing the arts through evidence-based knowledge
What was performance?
Averages
Example: Question: “What is program revenue per attendee?”
Index: Program revenue/Total in-person attendance
What drives high
performance? KIPIs
What drives performance? Driving Forces
What was performance?
Averages
What Drives Performance? The Concept of Explained Variation
Atte
ndan
ce
Arts & Cultural Sector
Expected Performance
Sector, size, age, square footage, …; community characteristics, availability of public arts funding
The Concept of Explained Variation A
ttend
ance
The Concept of Explained Variation A
ttend
ance
The Concept of Unexplained Variation
What drives high performance?
Key Intangible Performance Indicator
(KIPI)
What Drives Performance?
What Drives Performance? E.g., Operating Revenue
31%
6% 59%
4%
% Variation Explained byOrganization-level Drivers
% Variation Explained byMarketplace Drivers
% Total VariationAttributable to KIPI
% Total VariationAttributable to RandomError
Tee box adjustment
31%
6% 59%
4% % Variation Explained byOrganization-level Drivers
% Variation Explained byMarketplace Drivers
% Total Variation Attributableto KIPI
% Total Variation Attributableto Random Error
What Drives Performance? E.g., Operating Revenue
31%
6%
59%
4%
Size, age, sector, square footage + Receives NEA/IMLS funds +
Local premieres + Targets young adults +
Targets Asian-Americans –
A&C Organization Characteristics
High % kids + Socioeconomic
level + Total population +
Median age –
Community Characteristics Market A&C $ activity +
# of arts providers + Leisure complements +
Public radio/TV+
31%
6% 59%
4% % Variation Explained byOrganization-level Drivers
% Variation Explained byMarketplace Drivers
% Total Variation Attributableto KIPI
% Total Variation Attributableto Random Error
What Drives Performance? E.g., Operating Revenue
31%
6%
59%
4%
"The [X theatre] has realized how to leverage its brand to create more consistent revenue streams."
“We surveyed audiences and ‘quality’ was the number one reason they come. It’s the same reason we can hire the artists we want."
“It’s about getting your mojo working.”
KIPI Scores: ABC Presenter Which index scores would you like to see?
Earned revenue
Expenses
Bottom line
Balance sheet
Staffing Program activity
Community engagement
Contributed revenue
Marketing impact
KIPI Scores: ABC Presenter Which index scores would you like to see?
Contributed revenue
Earned revenue
Expenses
Marketing impact
Bottom line
Balance sheet
Community engagement
Program activity
Staffing
Return on Fundraising Unrestricted Contributions
Trustee Contributions Individual Contributions
Response to Marketing Efforts
Return on Marketing Efforts Operating Bottom Line (before depreciation)
Available Cash
Working Capital
Unrestricted Surplus
Operating Bottom Line (after depreciation)
Total Engagement
In-person Engagement
Revenue-per-Offering People-per-Offering
Visitor-to-Staff
Corporate Contributions Foundation Support Government Support
Earned Revenue Attendee-Expense
Relational Revenue Investment in Program
Investment in Program Personnel
Response to Direct Marketing Spend
Return on Direct Marketing Spend
= Subscription & Membership Revenue
Total Expenses
= Program Revenue Marketing Expenses
= In-person Attendance Marketing Expenses
Revenue per Attendee
KIPI Scores: ABC Presenter Has your Relational Revenue KIPI increased or
decreased over time? (Total Subscription & Membership Revenue/Total Expenses)
Relational Revenue Index
2011 0 50 100
2012 Relational Revenue Index
2013 Relational Revenue Index
Click here to see changes in the KIPI of the component parts of this Index over time.
KIPI Scores: ABC Presenter Has your Return on Marketing KIPI increased or
decreased over time? (Total Program Revenue/Total Marketing Expenses)
Return on Marketing Efforts Index
2011 0 50 100
2012 Return on Marketing Efforts Index
2013 Return on Marketing Efforts Index
Click here to see changes in the KIPI of the component parts of this Index over time.
KIPI Scores: ABC Presenter Is the change in your Return on Marketing Efforts KIPI driven
by an increase/decrease in your Total Program Revenue KIPI?
2012 Response to Marketing Efforts Index
Return on Marketing Efforts Index
2011
2013 Response to Marketing Efforts Index
Program Revenue 2011
Program Revenue 2012
Program Revenue 2013
0 50 100
Click here to see changes in the KIPI of the component parts of this Index over time.
KIPI Scores: ABC Presenter Is the change in your Return on Marketing Efforts KIPI driven
by an increase/decrease in your Total Marketing Expenses KIPI?
2012 Return on Marketing Efforts Index
Return on Marketing Efforts Index
2011
2013 Return on Marketing Efforts Index
Marketing Expenses 2011
Marketing Expenses 2012
Marketing Expenses 2013
0 50 100
Click here to see changes in the KIPI of the component parts of this Index over time.
Return on Marketing Efforts Index
2011
KIPI Scores: ABC Presenter Has your Response to Marketing Efforts KIPI
increased or decreased over time? (Total In-person Attendance/Total Marketing Expenses)
Response to Marketing Efforts Index
2011 0 50 100
2012 Response to Marketing Efforts Index
2013 Response to Marketing Efforts Index
Click here to see changes in the KIPI of the component parts of this Index over time.
KIPI Scores: ABC Presenter Is the change in your Response to Marketing Efforts KIPI driven by an increase/decrease in your Total In-Person
Attendance KIPI?
2012 Response to Marketing Efforts Index
Response to Marketing Efforts Index
2011
2013 Response to Marketing Efforts Index
Total Attendance 2011
Total Attendance 2012
Total Attendance 2013
0 50 100
Click here to see changes in the KIPI of the component parts of this Index over time.
KIPI Scores: ABC Presenter Is the change in your Response to Marketing Efforts KIPI driven by an increase/decrease in your Total Marketing
Expenses KIPI?
2012 Response to Marketing Efforts Index
Response to Marketing Efforts Index
2011
2013 Response to Marketing Efforts Index
Marketing Expenses 2011
Marketing Expenses 2012
Marketing Expenses 2013
0 50 100
Click here to see changes in the KIPI of the component parts of this Index over time.
Marketing Efforts Index
2011
ACTIONABLE DATA TO THRIVE ON 2014 NAMP Conference
Jill Robinson, President & CEO TRG Arts
Copyright © 2014 TRG Arts All Rights Reserved
People Your Patrons
DATA
#measuresuccess
Patron Relationships
#measuresuccess
Revenue from Patron Relationships
#measuresuccess
( )
% of patron revenue How important patrons are Source: your budget Timespan: most recent season/year
revenue from: ticket sales + memberships/subs + individual gifts + classes/events/galas
TOTAL revenue (including foundation, corporate, government)
1
#measuresuccess
% of patron revenue Recent examples 92%
81% 72%
71%
63%
60%
48%
33%
What does this look like at your organization?
#measuresuccess
# of Active Patrons Your most important patrons Source: your database or ticketing system Timespan: 2 most recent seasons or years
Count of households that had any interaction this year and last year
2 #measuresuccess
EXPENSES
ROI
What’s an upgrade?
Action Next Step Buy a ticket for
the first time
Buy a ticket twice in the
same season
Renew subscription/ membership
Come back again
Buy a subscription/ membership
Add on donation or events
#measuresuccess
CASE STUDY You have 10 minutes to plan what Kathy should do next. In your answer, include:
- an outline of 2-3 specific things that the marketing department should do to cultivate incoming new and existing patrons in the face of upcoming blockbuster events. - how Kathy should re-allocate her subscription and single ticket budget. You should take into account the 10% ($18,000) cut and include any reallocations for individual productions.
#measuresuccess
NO SIZE FITS ALL: Choose the Right Data
November 9, 2014
Arin Sullivan Director of Programs & Client Services
Agenda
Alignment
Position vs. Interest
Group work
#nampc #measuresuccess
Current Reality
Alignment
Ideal Future Reality
#nampc #measuresuccess
Current Reality
Alignment
Ideal Future Reality
#nampc #measuresuccess
Position vs. Interest
Independence
Freedom to spend time with friends
“I want a car…”
Need
Interest
Position
#nampc #measuresuccess
Current Reality
Alignment
Ideal Future Reality
#nampc #measuresuccess
Current Reality
Alignment
Ideal Future Reality
#nampc #measuresuccess
Current Reality
Alignment & Interest
Ideal Future Reality
#nampc #measuresuccess
Avoid the Data Swarm
“Over 50 percent of our marketing budget is spent on printing materials…”
Limit yourself to 1 to 3 data points
Select data points that:
• Align with your plan
• Align with your colleague’s interests
• Are succinct, memorable, and digestible
#nampc #measuresuccess
Workshop
1. Focus on one colleague
• Review their interests
2. Choose the right data
• Choose 1 strategy
• 10 minutes of group work
3. Report out
• Share your strategy and the data points that you chose for your colleague
#nampc #measuresuccess
Thank you
Arin Sullivan, Director of Programs & Client Services e: [email protected] w: culturaldata.org
#nampc #measuresuccess