League of American Orchestras Conference 2014 18 Brilliant Avenue, - - PowerPoint PPT Presentation

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Looking Forward - Acting Now

League of American Orchestras Conference 2014

18 Brilliant Avenue, Suite 200 l Pittsburgh PA 15215 l prescottassociates.com

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Session Agenda Subscription, ticket buying, and donation trends Panel Guests:

Anne DeMesa Director of Major & Planned Gifts, New Jersey Symphony Orchestra Sherri Prentiss Vice President of Marketing, Cincinnati Symphony and Pops Orchestra Delta David Gier Music Director, South Dakota Symphony Orchestra

Open discussion

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Data Source Patron Growth Initiative

• Database of all classical concert purchases and donations for 10 large
• rchestras from FY05-FY11 (N = 772,000 HHs)

Current Analysis:

• orchestras offering Fixed and CYO subscriptions in all years from FY06-FY11

(ATL, BSO, CSO, CIN, HOU, NYP, POA, PSO)

• total buyer households (N=625,912 HHs)
• generational analysis from survey data (N=16,000 HHs)

Note: Projected household trend lines in reported in this document are based solely on the average constant rate of change observed between FY06 and FY11 for the above orchestras. These are provided as a very rough estimate of what the distribution of buyer households might look like in 2020. Orchestras are encouraged to develop their own projections based on their data.

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Generational Cohort Aging Trends Age in: 2010 2015 2020 2025 Early Silents 75-84 80-89 85-94 90+ Late Silents 65-74 70-79 75-84 80-89 Baby Boomers 45-64 50-69 55-74 60-79 Generation X 30-44 35-49 40-54 45-59 Millennials 15-29 20-34 25-39 30-44

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“Sustaining an audience is hard. It demands a consistency of thought, of purpose, and of action

• ver a long period of time.”

Bruce Springsteen

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Total Buyer Households

151,254 156,688 153,166 150,467 146,073 139,113

60,000 120,000 180,000

FY06 FY07 FY08 FY09 FY10 FY11

Fixed and CYO Subscriptions Data (ASO, BSO, CIN, CSO, HS, NYP, POS, PSO) Total HHs +7% with NYP excluded

Total audience is growing - buyer households are up 13% since FY06.

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Total Buyer Households by Buyer Type

95,798 103,017 7,670 9,931 10,757 13,109 12,859 13,080 53,137 51,767 49,607 46,757 42,597 40,591 93,300 90,103 84,375 78,306

60,000 120,000 180,000

FY06 FY07 FY08 FY09 FY10 FY11 Fixed HHs CYO HHs STB HHs

Fixed and CYO Subscriptions Data (ASO, BSO, CIN, CSO, HS, NYP, POS, PSO)

∆ 06-11 +13%

• 24%

+70% +32% 139,113 146,073 150,467 153,166 151,254 156,688

• NYP accounted for 66% of CYOs in FY06; CYO +190% with NYP excluded
• NYP STBs +55%; STBs +22% with NYP excluded

Fixed Subs are on rapid decline; CYO and STB HHs are up.

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Distribution of Total Buyer HHs

56% 58% 60% 61% 66% 6% 7% 7% 9% 9% 8% 35% 33% 30% 28% 26% 63% 38%

0% 20% 40% 60% 80% 100%

FY06 FY07 FY08 FY09 FY10 FY11

Fixed HHs CYO HHs STB HHs

Fixed and CYO Subscriptions Data (ASO, BSO, CIN, CSO, HS, NYP, POS, PSO)

Fixed Subs are 26% of all Buyer HHs, down from 38% in just five years.

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Status Quo Projection of Buyer HHs

56% 58% 60% 61% 66% 68% 70% 72% 74% 84% 6% 7% 7% 9% 9% 8% 8% 9% 9% 10% 12% 35% 33% 30% 28% 26% 24% 21% 19% 16% 63% 4% 38%

0% 20% 40% 60% 80% 100%

FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY20

Fixed HHs CYO HHs STB HHs

Fixed and CYO Subscriptions Data (ASO, BSO, CIN, CSO, HS, NYP, POS, PSO)

At FY06-11 rate of change, Fixed Subs could represent 4% of all buyer households by 2020.

• - - - - - - - - - - - - Actual - - - - - - - - - - - - - - - - - - - - - Projected - - - - - - - - -

Based on avg. constant rate of change per year

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Total Ticket Revenue Sourced by Buyer Type

19% 21% 22% 22% 23% 27% 6% 8% 9% 11% 11% 12% 71% 69% 68% 67% 61% 75%

0% 20% 40% 60% 80% 100%

FY06 FY07 FY08 FY09 FY10 FY11

Fixed CYO STBs

Fixed and CYO Subscriptions Data (ASO, BSO, CSO, CIN, HS, NYP, POS, PSO)

Fixed Subs continue to account for the bulk of ticket revenue, but down 19% by FY11.

66% of HHs 26% of HHs

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# of Concerts Purchased and Average Spent/Yr

Fixed Subscribers

1% 4% 2% 2% 2% 2% 12% 13% 12% 12% 13% 14% 66% 68% 68% 66% 63% 17% 17% 18% 18% 19% 21% 70%

$752 $759 $780 $809 $805 $826

0% 20% 40% 60% 80% 100%

FY06 FY07 FY08 FY09 FY10 FY11

$0 $250 $500 $750 $1,000 10+ 5-9 3-4 < 3

• Avg. Ticket

Sales

Fixed and CYO Subscriptions Data (ASO, BSO, CIN, CSO, HS, NYP, POS, PSO)

Average #: 7.7 7.6 7.8 7.8 7.9 8.0

Core Fixed Subs maintaining high concert purchases and spending more for tickets.

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# of Concerts Purchased and Average Spent/Yr

CYO Subscribers

10% 11% 10% 11% 17% 13% 58% 55% 54% 51% 45% 43% 31% 33% 35% 34% 39% 3% 3% 3% 3% 3% 5% 29%

$420 $433 $440 $455 $439 $498

0% 20% 40% 60% 80% 100%

FY06 FY07 FY08 FY09 FY10 FY11

$- $250 $500 $750 $1,000 10+ 5-9 3-4 < 3

• Avg. Ticket

Sales

Fixed and CYO Subscriptions Data (ASO, BSO, CIN, CSO, HS, NYP, POS, PSO)

Average #: 4.6 4.7 4.8 4.8 4.7 5.1

Average # of concerts and spending much lower for CYOs but ticking up.

32% 44%

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# of Concerts Purchased and Average Spent/Yr

Single Ticket Buyers

84% 84% 83% 83% 80% 83% 10% 10% 10% 10% 11% 10% 4% 5% 5% 6% 5% 2% 2% 2% 2% 3% 2% 4%

$134 $138 $140 $132 $143 $146

0% 20% 40% 60% 80% 100%

FY06 FY07 FY08 FY09 FY10 FY11

$- $250 $500 $750 $1,000 5+ 3-4 2 1

• Avg. Ticket

Sales

Fixed and CYO Subscriptions Data (ASO, BSO, CIN, CSO, HS, NYP, POS, PSO)

Average: 1.4 1.4 1.4 1.4 1.4 1.4

Vast majority of STBs purchase one concert with very low average ticket sales. Flat through FY11.

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Fixed Subscriber Migration Pattern

FY06 Fixed Subscribers

37% 41% 2% 2% 2% 3% 3% 1% 2% 4% 4% 4% 100% 83% 73% 64% 56% 52% 30% 23% 14% 0% 25% 50% 75% 100%

FY06 FY07 FY08 FY09 FY10 FY11

Fixed CYO STB Lapsed

Fixed and CYO Subscriptions Data (ASO, BSO, CIN, CSO, HS, NYP, POS, PSO)

N=53,137 HHs

Fixed Subs more likely to lapse than purchase CYOs or single tickets. Strong cumulative effect.

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Distribution of Total Buyer HHs

Generational Cohorts

11% 11% 9% 8% 8% 8% 26% 22% 22% 20% 21% 21% 44% 44% 42% 40% 42% 42% 9% 10% 10% 10% 10% 10% 10% 14% 17% 23% 18% 20%

0% 20% 40% 60% 80% 100%

FY06 FY07 FY08 FY09 FY10 FY11

Millennials Gen X Boomers Late Silents Early Silents

Fixed and CYO Subscriptions Data (ASO, BSO, CIN, CSO, HS, NYP, POS, PSO)

∆ 06-11 +100% +11%

• 4%
• 19
• 27%

Boomers account for greatest share of HHs, Millennials showing growth. Average age declining.

Mean Age: 57.5 55.4 54.0 51.5 54.0 53.4

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Status Quo Projection of Buyer HHs

Generational Cohorts

11% 11% 9% 8% 8% 8% 7% 7% 6% 6% 2% 26% 22% 22% 20% 21% 21% 19% 18% 17% 16% 10% 44% 44% 42% 40% 42% 42% 41% 41% 40% 40% 38% 10% 10% 10% 10% 10% 10% 10% 10% 10% 11% 10% 14% 17% 23% 18% 20% 22% 24% 26% 28% 38% 9%

0% 20% 40% 60% 80% 100%

FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY20

Millennials Gen X Boomers Late Silents Early Silents

• - - - - - - - - - - - Actual - - - - - - - - - - - - - - - - - - - - Projected - - - - - - - - -

Based on avg. constant rate of change per year

By FY2020 Millennials could make up almost one-third of buyer HHs and Early Silents just 2%.

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Average Ticket Sales

Generational Cohort Buyers

$537 $578 $531 $543 $516 $500 $509 $500 $374 $377 $364 $363 $372 $389 $247 $206 $197 $221 $255 $265 $125 $118 $122 $113 $137 $144 $592 $604 $597 $636

$0 $250 $500 $750

FY06 FY07 FY08 FY09 FY10 FY11

Early Silents Late Silents Boomers Gen X Millennials

Fixed and CYO Subscriptions Data (ASO, BSO, CIN, CSO, HS, NYP, POS, PSO); PGI Survey Data

Silents spend at much higher rates than younger generations. Little indication of significant increases as Gen Xers/Millennials age.

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Donation Trends

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Donation Revenue Sourced by Buyer Type

7% 13% 12% 7% 17% 13% 2% 3% 2% 3% 5% 5% 84% 86% 90% 77% 82% 91%

0% 20% 40% 60% 80% 100%

FY06 FY07 FY08 FY09 FY10 FY11

Fixed CYO STBs

Fixed and CYO Subscriptions Data (ASO, BSO, CSO, CIN, HS, NYP, POS, PSO)

Despite erosion, donation revenue among buyer households comes largely from Fixed Subs.

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Donations by Buyer Type

% Donating and Average Donation Amounts

45% 47% 21% 21% 21% 21% 27% 6% 6% 5% 5% 4% 5% 44% 47% 46% 44% 24%

0% 20% 40% 60% 80% 100%

FY06 FY07 FY08 FY09 FY10 FY11

Fixed CYO STB

Fixed and CYO Subscriptions Data (ASO, BSO, CIN, CSO, HS, NYP, POS, PSO); Average Donation based on 5% trimmed mean

• Avg. Donation

Fixed $442 $484 $499 $487 $513 $535 CYO $216 $243 $233 $224 $242 $249 STB $179 $227 $226 $204 $223 $241

Donation rates and donation amounts are significantly lower among CYOs and STBs.

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Fixed Subscriber Migration and Donation Patterns FY10-FY11

Fixed and CYO Subscriptions Data (ASO, BSO, CSO, CIN, HSO, NYP, POS, PSO)

Fixed Subscribers FY10 (N=42,597) Fixed Subscribers 81% 50% CYO Subscribers 3% 35% Single Ticket Buyers

2%

23% Lapsed 14% 11%

FY11 Buyers FY11 Donors

Donation rates decline as Fixed Subs migrate from their fixed subscription.

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Total Donation Revenue

By Generational Cohort

29% 26% 16% 20% 18% 19% 34% 49% 41% 43% 29% 35% 36% 23% 40% 32% 50% 39% 1% 1% 2% 3% 2% 3% 1% 1% 1% 2% 1% 4%

0% 20% 40% 60% 80% 100%

FY06 FY07 FY08 FY09 FY10 FY11

Millennials Gen X Boomers Late Silents Early Silents

Fixed and CYO Subscriptions Data (ASO, BSO, CIN, CSO, HS, NYP, POS, PSO); PGI Survey Data

Silents still represent largest share of donation revenue. (fluctuation due to major gifts)

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Donations by Generational Cohort FY06-11

Percent Donating

36% 38% 19% 21% 23% 24% 29% 10% 11% 12% 14% 15% 18% 4% 4% 5% 8% 9% 10% 1% 1% 2% 3% 3% 5% 33% 33% 32% 32% 26% 0% 25% 50% 75%

FY06 FY07 FY08 FY09 FY10 FY11

Early Silents Late Silents Boomers Gen X Millennials

Fixed and CYO Subscriptions Data (ASO, BSO, CIN, CSO, HS, NYP, POS, PSO); PGI Survey Data Total Donors

Donation rates lower with each generation.

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Average Donations

By Generational Cohort

$369 $397 $331 $371 $328 $312 $304 $318 $245 $262 $268 $219 $237 $234 $140 $164 $208 $162 $174 $196 $102 $151 $141 $117 $132 $142 $392 $426 $422 $364

$0 $100 $200 $300 $400 $500

FY06 FY07 FY08 FY09 FY10 FY11

Early Silents Late Silents Boomers Gen X Millennials

Fixed and CYO Subscriptions Data (ASO, BSO, CIN, CSO, HS, NYP, POS, PSO); PGI Survey Data 5% trimmed mean

Donation amounts lower with each generation.

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Reported 2010 Donations

By Generational Cohort

Fixed and CYO Subscriptions Orchestras (ASO, BSO, CIN, CSO, HS, NYP, POS, PSO); PGI Survey Data

39% 54% 68% 50% 63% 17% 28% 3% 10% 26% 32% 53% 3% 9% 15% 29% 15% 25% 32% 13% 19% 30% 14% 22% 29% 39% 27% 11% 6% 3% 22% 41% 28% 57% 41% 48% 46% 50% 44% 46%

0% 25% 50% 75%

Millennials Generation X Baby Boomers Silent Generation Arts institutions (other than orchestra) Educational institutions Public radio Public TV Health/human services Orchestra Medical research Political organizations Environmental organizations None of these

Younger generations have far less propensity to give. Within each generation competition is significant.

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Reported 2010 Donations

By Generational Cohort

Fixed and CYO Subscriptions Orchestras (ASO, BSO, CIN, CSO, HS, NYP, POS, PSO); PGI Survey Data

39% 54% 67% 70% 50% 61% 67% 17% 28% 59% 3% 10% 26% 56% 32% 52% 54% 3% 9% 15% 26% 36% 15% 25% 32% 49% 13% 19% 30% 48% 14% 22% 29% 40% 39% 27% 11% 6% 3% 2% 22% 41% 28% 56% 41% 45% 46% 50% 42% 45%

0% 25% 50% 75%

Millennials Generation X Baby Boomers Late Silent Generation Early Silent Generation Arts institutions (other than orchestra) Educational institutions Public radio Public TV Health/human services Orchestra Medical research Political organizations Environmental organizations None of these

Giving rates of Early Silents starting to plateau.

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Effect of Age and Buyer Type on Donation Likelihood

% Donating in FY11

0% 20% 40% 60% 80% 100% Fixed Sub CYO Sub STB Non-Buyer Millennials Gen X Boomers Late Silents Early Silents 31%

Fixed and CYO Subscriptions Data (ASO, BSO, CIN, CSO, HS, NYP, POS, PSO); PGI Survey Data

13% 4% 4% 31% 17% 9% 8% 47% 32% 10% 13% 57% 40% 14% 22% 25% 20% 53% 65%

Likelihood of donating strongly correlates with subscriptions across generations.

A young fixed sub is more likely to donate than an

• lder single ticket buyer

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Strong relationships are at the core of commitment

75% 81% 92% 45% 42% 47% 55% 53% 63% 79% 16% 16% 22% 28% 37% 47% 61% 23% 21% 27% 28% 26% 32% 57% 10% 14% 16% 16% 22% 28% 43% 64% 60% 66% 74% 0% 20% 40% 60% 80% 100%

One-time Buyers Lapsed Subscribers One-time Donors New Subs/ Multi-buyers Loyal Donors Loyal Subscribers Extreme Patrons Would miss them terribly if went away Always recommend them to friends Feel strongly connected to Think about them often Feel like a part of the family

Patron Growth Initiative

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The Golden Circle and Purposeful Brands

People don’t buy what you do, they buy why you do it. Simon Sinek, Ted Talk

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The Golden Circle and Purposeful Brands

Why you exist, why should anyone care How you do it What you do Most organizations talk about what they do and how they do it.

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The Golden Circle and Purposeful Brands

Great organizations and leaders think, act, and communicate in the same way - starting with the why. Why you exist, why should anyone care How you do it What you do

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The Golden Circle and Purposeful Brands

If we can internally articulate the real why, what we do and how we do it might change. If we communicate the why, we’ll give more people reason to believe. Why you exist, why should anyone care How you do it What you do

Development Plan – Looking Ahead

• Raise more planned gifts now
• Stewardship and cultivation with a very high touch
• Feasibility study indicated our audience is ready

The Centennial Legacy Challenge

• Planned Giving demystified
• Our hybrid approach to major & planned gifts
• Re-focus on endowment growth
• Customizing each ask to the donor’s situation
• Integrating the message into all efforts

How it works

The Weston Challenge

Results to Date/Conclusion

$8 million* documented planned gifts for the endowment $680,000* annual fund gifts from the match *final number for FY 14 t.b.d.

Senior Residences/Bus Project

• Anonymous donor has generously funded a bus program to bring people

from senior residences all over the state to our matinees

• Stewardship has grown with this group- expanding our outreach through

existing contacts

Marketing/External Communications

• Framing events around concerts
• Giving single ticket buyers a reason to get more engaged and to

return (#OrchestraYou, Heroes Night, From Sochi to Strauss, Beatles sing along, pre-concert dancing, ask a musician)

• Key to future audience development

Thank you!

Deepening Engagement

Sherri Prentiss, VP of Marketing

So marketing and development got together…

• More focus on intermittent rewards
• Surprise & delight: involves entire organization, including

musicians

• Subscriber thank you cards on seats from musicians
• Musicians call donors to thank them
• Benefits Task Force
• Integrated benefit structure across the spectrum of engagement
• Joint events: Expose subscribers to donor benefits

So marketing and development got together…

• Joint planning on migration strategies
• Identified sub-segment ripe for cultivation

How is it working? In last 5 seasons…

• CSO average attendance up 27%
• Pops average attendance up 21%
• CSO subscription households up 8%
• Pops subscription households up 9%
• Donor households increased by 1,742 (80%)
• Subscriber-donor households increased 10%

And yet…

Some of our biggest successes have little to do with with subscriber-donor relations

One City, One Symphony involves over 40 community partners

• Born out of cross-departmental Patron Experience Committee
• Modeled after “One Book” programs in many cities
• Community-wide initiative to convene conversations and engage

people in music

• 2013 focused on theme of fate and redemption

Listening parties

19 free listening parties in coffee shops, community centers and gathering places across Greater Cincinnati

• 830 total attendees (nearly double from prior year)

Hosted by musicians, guest conductors and staff; some parties featured live music by CSO musicians Parties explored themes of fate and redemption

CSO violinist Sylvia Samis at Hebrew Union College CSO violist Joanne Wotjowicz and bassist Boris Astafiev at the Carnegie Performing Arts Center in Covington CSO Principal Timpanist Pat Schleker at Miami University

Post-it note project

One City, One Symphony impact

Over 1.3 million reached through concerts, listening parties, broadcasts, live web streams, video and social media 22% of new-to-system buyers returned to something else 64% felt connected to others in the audience 81% agreed that they would be “talking about this experience for some time to come”

Classical Roots also developing new audiences

• Program celebrates African-American composers and music
• 150 choir members representing over 50 churches
• New-to-system:
• 1st year: 58%; 4th year: 33%
• 26% of new-to-system returned for something else

Harnessing the power of art to inspire and transform communities

Felt pride in the city Felt pride in Orchestra Want to return to OTR Will be talking about LUMENOCITY Felt safe walking around Gave reason to come downtown Appreciation for the arts increased Felt connected to others in audience 98% 98% 98% 97% 95% 93% 89% 85%

Old mission statement

Present the highest quality performance of great music, bringing national and international distinction to the orchestra and the community; Delight and educate diverse audiences of all ages, and enhance the cultural vitality and quality of life in the region; Operate in a financially sound manner

New mission statement

To seek and share inspiration

Old vision (2009)

CSO builds a passion and commitment among its patrons that sets the standard among

• rchestras

CSO creates powerful and deeply engaging relationships with the broader community CSO drives the reputation of the Cincinnati region as one of the world's leading cultural centers CSO ranks as one of world’s elite orchestral institutions with a clear artistic identity CSO develops the new organizational model for healthy, sustainable orchestras Unparalleled concert experiences Deep community engagement Ambassador to the world Artistic excellence Organizational strength Key elements

• f the vision

Prerequisites for success Five key themes Aspiration

New vision

We will engage audiences and community better than any other orchestra in the world

Our theory of change is evolving

• We believe our new vision will…
• Increase relevancy to more people
• Deliver more impact to our community
• Increase base of audiences and supporters
• Inspire philanthropy
• Determine metrics to deliver on vision
• How can the orchestra have an impact on broader community goals?
• Potential to identify bold sector goal