Bringing Them Back for More: Audience Retention Strategies
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Transcript of Bringing Them Back for More: Audience Retention Strategies
SARA BILLMANNDI RECTOR OF MARKETING & COMMUNICATIONS
UNI VERSI TY MUSI CAL SOCI ETY (UMS)@SARAB I LL , @UMSNEWS
ANWAR NASIRAUD IENCE SERVI CES MANAGER
LOS ANGELES PHI LHARMONIC & HOLLYWOOD B OWL@SPELLANWAR, @LAPHI L
Bringing Them Back for More
#bringthemback
What Do You Want to Get Out of Today’s Session?
Some Definitions
Acquisition = finding new customers
Retention = how many of your customers come back (a.k.a. “loyalty”)
Churn/Attrition = the inverse of retention: how many of your customers do you “churn through” and lose?
#bringthemback
Where is Your Churn Coming From?
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Where is Your Churn Coming From?
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Where is Your Churn Coming From?
Source: Social Security Administration, via 538 blog
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Patron Process Map
Awareness Research Purchase Getting To The Venue
ParkingPre-Show
Action Ticket Activity
Finding The Seats
Showtime Intermission Departure The After-Show
Getting Home “Thank you for coming!”
#bringthemback
AwarenessResearc
h
Purchase
Getting To The Venue
Parking
Pre-Show Action
Ticket Activity
Finding The Seats
Showtime
Intermission
Departure
The After-Show
Getting Home
“Thank You For Coming”
Patron Process Map
#bringthemback
Acquisition vs. Retention
Dollars and “sense” – what does it cost?
Acquisition$$$$$
Retention$
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THREE SCARY CHARTS
Why Should We Care About Retention & Churn?
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Total Household Retention (past 4 seasons)
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Or, Another View
Year 1 Year 2 Year 3 Year 4 Year 50%
10%20%30%40%50%60%70%80%90%
100%
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The Impact of Churn
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ARE THERE ANY BENCHMARKS TO KEEP IN MIND?
MAYBE. BUT WE’LL GET TO THOSE A LITTLE LATER.
Measuring Retention
Measuring Retention: Where To Begin
Identify Your Buckets What specific programs are you interested tracking What portion of the audience are you looking to
retainIdentify Your Key Drivers/Motivators
Why should your audience come back What would retaining these groups mean to you and
themOrganize Your Reporting Structure
Group like programs
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Measuring Retention: What You Need to Know
How many households purchased tickets in a given amount of time
How many of those households are newTotal number of orders (if possible)Total number of tickets soldTotal dollar value of tickets soldWhat programs were purchased
#bringthemback
From that, you can calculate
Frequency: how many orders did each household place, on average (how often do they come)
Party size: how many tickets were purchased for each order (how many people come)
Income per household: Total income/number of households
Yield (revenue) per ticket: Total income/total number of tickets
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Mind Your Programming
Consider the Type of Programming
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Mind Your Programming
Compare “Apples to Apples”
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One-Year, Three-Year, Five-YearLook at how many ticketbuyers (or donors) in
a given year return the next year.Think about it in terms of school – e.g., the
class of 2013.
Measuring Retention
#bringthemback
It’s Math Time!
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What is your retention rate for Year 1 “Class” of ticketbuyers in Years 2, 3, and 4?
In Year 1: 16,000 ticketbuyer households.In Year 2:
5,500 of those households return Plus 12,000 new households.
In Year 3: 4,000 of the households from year 1 return
4,200 of the new households from year 2 return 13,000 new households
In Year 4, 3,500 of the households from year 1 return
3,300 of the households from year 2 return 4,300 of new households from year 3 return
#bringthemback
Answers
Class of Year 1 (Base = 16,000): In Year 2: 5,500 / 16,000 = 34.3% [one-year retention
rate]
In Year 3: 4,000/5,500 = 73% OR 4,000/16,000 = 25% of class retained for two
years
In Year 4: 3,500/4,000 = 87.5% OR 3,500/16,000 = 21.9% of original class retained
for three years
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Extra Credit
Class of Year 2: In Year 3: 4,200/12,000 = 35.0% [one-year retention
rate] In Year 4: 3,300/4,200 = 78.5% OR: 3,300/12,000 = 27.5% of original class retained
[two-year retention rate]
Class of Year 3: In Year 4: 4,300/13,000 = 33.1% [one-year retention
rate]
#bringthemback
Retention as Inverse of Churn
One-Year Retention: Class of Year 1: 34.3% (churn rate = 65.8%) Class of Year 2: 35.0% (churn rate = 65%) Class of Year 3: 33.1% (churn rate = 66.9%)
Two-Year Retention: Class of Year 1: 25% Class of Year 2: 27.5%
Three-Year Retention: Class of Year 1: 21.9%
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SORT OF.
So Are These Numbers Real?
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UMS: Students vs. Non-Students (baseline = Year 1)
Overa
ll rete
ntion
Non-St
uden
t rete
ntion
Stud
ent r
etent
ion0%
10%
20%
30%
40%
Year 2Year 3Year 4
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Retention by Genre (baseline = Year 1)
Thea
ter
Dance Jaz
z
Classic
al M
usic
"Oth
er"
Wor
ld M
usic
0%
10%
20%
30%
40%
50%
60%
Year 2Year 3Year 4
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Think of How to Slice and Dice: What are you Curious About?
First-Time Ticketbuyers
New Subscribers vs. Overall Subscription Retention
Number of Households Purchasing – but what about LEVEL of purchase/revenue increases & decreases?
A word about donors…#bringthemback
Strategies for Improving Retention
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Don’t Let Them Lapse
Clear plan from new acquisition with focus on retention
Think two steps ahead
Teach them how to behave
Engagement – Engagement – ENGAGEMENT
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Increase Frequency in Year 1
4.1% of ticketbuyers purchase 23.5% of the tickets.
64% of ticketbuyers purchase only 30.8% of the tickets.
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Re-Engage Lapsed Buyers
LYBUNT = Last Year, But Unfortunately Not This
SYBUNT = Some Year, But Unfortunately Not This
Decide when you consider someone “new”
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Identify At-Risk / Pain Points
New Subscribers, anyone?
What about new ticketbuyers?
Remember the Patron ProcessMap?
Surprise & Delight
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Ease The Path
Make the Next Transaction Easier
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Ease The Path
Auto Renew
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Develop Loyalty Programs
How are your current strategies
reinforcing good – or bad – behavior?
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Make Loyalty Visible and Beneficial
• Access to What Matters Most• Subscriber Lounge• Gifts On Seats• Public “Thank You”• Subscriber/Donor Valet Parking
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Make Loyalty Fun
#bringthemback
The Most Important Thing(s)
Start tracking
Benchmark how YOU are doing, and track for improvements each year.
It’s ok to throw out true outlier events from your analysis.
Internal data management is critically important to successful tracking.
You must get comfortable with doing the math.
#bringthemback
Questions ???
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Thank You
SARA BILLMANNDirector of Marketing & CommunicationsUniversity Musical Society (UMS)
[email protected]@sarabill, @umsnews
ANWAR NASIRAudience Services ManagerLos Angeles Philharmonic & Hollywood Bowl
[email protected]@spellanwar, @laphil
#bringthemback