The Rotterdam Arts & Culture Segmentation Model

An effective approach to cultural marketing in the greater Rotterdam area

Subjects

• Who and what is EMC Cultuuronderzoeken?

• In search of an audience…..

• From data to insight

• From insight to action (your bit)

• Questions & comments

Willem Wijgers

• General director of EMC Cultuuronderzoeken

before:

• Senior project manager Bureau Promotie Podiumkunsten

• Managing director Vereniging Nederlandse Muziek Ensembles

• Marketing & product manager Vanguard Classics/BMG Classics

EMC Cultuuronderzoeken

• Research & consultancy in the cultural sector – Segmentation

– Customer data analysis

– Qualitative and quantitative research

• Support for implementation and evaluation – Validation of customer databases

– Creating customer segmentation models

– Facilitating marketing communication

Most people:

• Have everything they need

• Have limited spare time

• Have enough budget

• Have 1001 ways to spend it

• Are in search of meaningful experiences

So:

We have to offer them a relevant proposition

What has this got to do with you?

• The importance of relevance: – Competition on a generic level (time & money)

– Competition in terms of attention (clutter)

• The quality of the proposition: – Claim time & money for a unique experience

– Combine trust with adventure

• The technical support to deliver it: – Fix and connect your systems

– Organize the disorganized

Is there one audience?

I’m afraid not…

What is segmentation?

• Philip Kotler:

– ‘To divide the market in groups of customers with the same preferences in terms of satisfying their needs

• Segmentation can take place according to:

– Demographics

– Socio-economics

– Life style

– Buying behavior / use of (online) media

When to apply segmentation?

• Market and competition lead to it

• Fits in with marketing concept & policy

• Market segments are distinct

• Market segments can be reached

• Affordable to address each of them

Why apply segmentation?

• To make an efficient use of resources by: – Targeting campaigns to promising target groups

– Looking for the appropriate sponsors/funders

– Catering to needs of specific target groups

• To take accountability seriously – Choosing what not to do (Porter)

• To improve results – Creating more own income

How (not) to apply segmentation?

• Involve everyone (even your boss)

• Invest in generic & flexible ticketing software

• Don’t throw away ‘old’ data

• Collect and regularly validate your data

• Use your own data to start with

• Make it SMART and use a business case

What data tell about attendance

• Comparison of five seasons of data

What data tell about behaviour

• Cross-over behaviour during 1 theatre season

Possible segments

• Heavy users: Culture is self explanatory

• Light users: Cultural activities are an option

• Occasional visitors: Culture by coincidence

• Look-alikes & absentees: prospects & churn

• Stakeholders & shareholders: community at large

Typical customer pyramid

Heavy users

(50 %)

Light users

(35 %)

Occasional

visitors

(15%)

15 %

35 %

50 %

absentees, potential visitors and non-visitors

Programming, marketing, attention

mar

keti

ng

A segmentation method

• 12.000 characteristics

• Groups & types

• Based on clustering

• demographic

• socio-economic

• life style

• urban / rural region

• Homogeneous within clusters

• Heterogeneous between clusters

2 1 3

A

Kadaster

Dataland

RDC

Jonge Gezinnen

M&R Developments

Kamer van Koophandel

Postnl

KPN Telecom

Experian NOM

GfK Panel Services (TOF)

TNS Nipo

Cherridata

Trendbox

Centraal Bureau voor de

Statistiek

Falkplan Andes

Navteq

Geodan

Registratie data Onderzoeks-

en lifestyle data

Registration

data Market

research

GIS

data

Data sources Experian uses for Mosaic

Mosaic household segmentation 10 groups, 44 types

Dutch society has changed

1. More single households

2. Traditional way of life disappears

3. More cultural diversity

4. The rich get richer, the poor stay poor

5. Aging of society increases

6. Baby-boomers become pensionados

7. Digital and online are a must

8. Countryside population decreases

9. Lowest social layers disappear

10. Double income has become a necessity

Mosaic Household 2012 W

elst

and

Leeftijd

Mosaic Household

• Each of the 7,3 million Dutch households belongs to one of the 14 groups and 50 household types

Zipcodes and house numbers

• 12 provinces

• 400 municipalities

• 461.000 zip codes

• from 1000 AA to 9999 ZZ

• separate 6 p zip code per street

• Together with number unique

• 7.3 million households

Process of segmentation

Dump from minimum 1.000 over & under ticketing records needed representation in system catchment area

Zipcodes + house numbers From database

Mosaic database Segmentation:50 Mosaic types

Who lives here?

Zip code 2661RA Waghenaerdreef 42 - Bergschenhoek

€200k-

€360k

Property value

Property

(26x)

Rent

(1x)

2x average (25x)

>2x average (2x)

<45 (23x)

45+ (4x) Children

(15x)

No children

(12x)

Households

Secondary

(24x)

Higher

(3x)

Education

(3x) (24x)

Sales in last

10 years (10x)

At least 1 car

(27x)

Age

Example of a Mosaic type

Zipcodes & house numbers Cultural inst.

Mosaic database

Segmentation: 50 Mosaic types

9 target groups for arts & culture

Municipal Survey 2011

Clustering of segmentation & responses

Target groups for arts & culture in Greater Rotterdam area

Some data on the segmentation

• Catchment area: city of

Rotterdam + 15 kilometres

• 672.614 households in area

• 50 venues supplied data

• Data on 152.000 households

• 12 genres were distinguished

• Results municipal leisure survey 2011 added

• 9 segments clustered + residual category (7 types)

Segments in catchment area

The segmentation model

Presence in catchment area - 1

Presence in catchment area - 2

Presence in catchment area - 3

Presence in catchment area - 4

Culture is self-explanatory (22%)

Urban Omnivores

• 40.104 households (6%)

• 18-60 years old, highly educated, starting or having a prosperous carreer

• Living single or as couples in the city centre

• Prospects for all cultural genres: museum, theatre, cabaret, pop music, dance, films, debates & cultural festivals, archives

• Like to go out for drinks, pub

• Use cultural agendas, posters, brochures, websites to inform about cultural events

High End Culture Vultures

• 45.428 households (7%)

• Age 45-65+, well to do families

• Living in attractive suburbs, spending time & money on dining and holidays

• Prospects for most cultural genres: museum, theatre, cabaret, classical music, dance, films & serious festivals

• Use most of the media for cultural information but especially radio & WOM

• Practice a lot of amateur art forms

Out Together

• 60.376 households (9%)

• Age 18-40 and 55-65+

• (Started) working, living together with no children (anymore). They like daytrips and going out with other people

• Prospects for pop concerts, cabaret, shows and musicals

• Don’t have a very strong preference for internet for cultural information

Culture as an option (24%)

Active families

• 60.068 households (9%)

• Age 25-55, families with children 0-12 years old, living in new housing development areas and quieter suburbs

• Prospects for any art form aiming at children, including children amateur events and performances

• Also visit a lot of sports events and amusement parks

• Use the Internet, especially at work (!)

• Favour Rotterdam as a place to go for cultural outings

Suburban convenience seekers

• 70.456 households (11%)

• Age 25-65, families with older children, who need space and freedom

• Living in the suburbs, working fulltime, enjoying to be outdoors & liking shopping

• Like to visit musicals and cabaret but stay away from classical music and museums.

• They go to amusement parks occasionally

• Average use of online and offline media

• They visit community centres for cultural events

Classical Art Lovers

• 24.048 households (4%)

• Age 50 and older, highly educated, living in comfortable houses or city-centre apartments

• Still working but also enjoying more and more leisure time they spend on gardening, cycling and going out for a drink.

• They go to classical concerts, opera and museums and don’t favour any other art form

• They favour print media over all other media

Culture by coincidence (54%)

Screen Addicts

• 64.858 households (10%)

• Age 18-50, but mostly young (students) and people on their first jobs.

• Spending a lot of time on internet for entertainment (gaming, downloading music) and on social networks

• They only are interested in going to (arthouse) films and like to explore the Rotterdam night life

• They use alternative websites and social media for information on cultural outings

Colorful Strugglers

• 134.726 households (20%)

• Age 18-50, often with a non-European background, living alone or as a family with young children, and poorly off, renting a modest apartment, with no money for luxury

• They frequently go to the library or the cinema and use the Rotterdam pass a lot

• For cultural information they watch TV or read free daily newspapers (Metro)

• Would like to see more amusement

Art Evaders

• 160.844 households (24%)

• Age 50 and older, lower educated singles and couples living in simple houses, early retired with little money and (too) much leisure time

• They potter, do their daily shopping, reading, watch TV, enjoy grandchildren and visit community centres but don’t go out a lot – no prospects for arts & culture

• They don’t use internet a lot

Effect of using this model

• It shows you the results of your current policy – Artistic choices, marketing (incl. sponsoring & education),

quality of the location

– Relation with external funding conditions

• It helps you to start CRM/customer retention

• It offers insights in market potential – Market penetration & development

– Product development or diversification

How to involve the Active Families

• Develop a campaign to increase their participation – Form teams (multinational)

– Read the case description

– Draw a plan to meet the the needs of this segment

– Describe possible chances, challenges, limitations

– Prepare a short presentation

• Schedule – Preparation : 10 minutes

– Discussion : 15 minutes

– Draw plan : 10 minutes

– Short presentation : 10 minutes

First and next steps

• Create and validate database

• Apply segmentation method

• Create customer pyramid (RFM-analysis)

• Connect segmentation/pyramid to database

• Define customer lifetime value

• Develop SMART actions and evaluate

• Think in terms of investment not budget

• Give it some time (years/seasons)

Questions & comments

• EMC Cultuuronderzoeken in cooperation with Rotterdam Festivals

• www.cultuuronderzoeken.nl (in Dutch)

• willem@cultuuronderzoeken.nl

• @willemwijgers