We're here...wait, where is here?

It has been a grueling month, and many apologies to those of you who read regularly, however Arena Stage has now officially relocated to its temporary offices in Arlington, VA and the groundbreaking for the Mead Center for American Theater is being held this Wednesday. I think I am finally starting to get a little comfortable, and am ready to start writing again. Thank God I finally figured out how to use our new phone system.

Many of you are probably wondering how our PURL (personalized URL) campaign went. I will go into more details in a later post, but the PURLs worked out great. Each of our subscribers were given a personalized website that they logged into which provided them step-by-step directions from their house to the new theatre, restaurant discounts, interactive seating map showing them the location of their new seats, and other important information. Our subscribers really loved it. However, I do have one word of caution: it seems the rather new technology doesn't seem to play well with Macintosh computers. I am happy to report that we have had less than 1/2 of 1 percent of our subscribers ask for a refund, and that the last two weeks have had the highest grossing sales so far in our fiscal year.

The real story of today's post comes from my friends at the Repertory Theatre of St. Louis (specifically Lory Bowman, Director of Marketing and Brad Graham, Public Relations Manager). I have known Lory for several years, and recently had the pleasure of meeting Brad Graham when I spoke at an event for the St. Louis Regional Arts Commission. Every now and then I take a look at their website to see what they are up to, and this last time I found something really interesting. We all know that word of mouth marketing gets exponentially better if you provide your advocates the right tools to spread the word. Well at the Rep, they have a page that allows you to spread the word about a particular production via Facebook, MySpace, Yahoo!, Google, and email all with just the simple click of your mouse. Check it out here: http://www.repstl.org/season/share/765/.

I promptly emailed Lory and told her that I thought the idea was genius, and asked if I could copy it. Here is our version: http://www.arenastage.org/about/news/ella-friend.shtml.

Thank you to Lory, Brad and the Rep for establishing the page. I am very grateful for the wonderful relationships that I have developed as I have traveled around, and this instance has reminded me of one of my favorite quotes:

"If I have seen a little further it is by standing on the shoulders of Giants." -- Isaac Newton, 1676

Notes from NAMP #3

At the Table: Making Marketing’s Voice Count in Organizational Leadership
Speakers: Jerry Yoshitomi, MeaningMatters, Port Hueneme, CA; Brian Jose and Susie Farr, Clarice Smith Performing Arts Center at the University of Maryland, College Park, MD

1. At the Clarice Smith Performing Arts Center, they implemented several organizational changes after their staff turnover got to be really high. First they learned that a director’s loyalty needs to shift to the success of the organization and the leadership team, rather than being with their individual departments. This meant that each director needed to become more expert in other department activities. The director of artistic initiatives and the director of marketing shifted to become joined at the hip. Decisions were made together by those two and the executive director, and the offices of those two staff members were moved to be right next to each other.

2. Always challenge the prevailing organizational wisdom and make improvements because the world is changing quickly and you must adapt. Try to draw attention to issues without drawing attention to specific individuals. Gather the people in the organization who can influence change.

3. As a strong team member, you can’t just be an expert in your discipline—you must now know about other departments. If the finance director wants to know why you aren’t hitting the ticket sales goal, then work with him to develop an understanding of the problem so he/she better understands marketing. Overall knowledge about all departments by the leadership team will promote better understanding and therefore better decision-making. This understanding has to be a two-way street—invite questions. Questioning is liberating and genuine, constructive conflict can be very good. “Artificial Harmony” can destroy an organization.

4. Strive for complete clarity and transparency in the organization.

5. People who get defensive about questioning can inhibit growth and can support a stagnant environment. The idea of running your department as an entity by itself is detrimental—be open about your process, invite questions, work with your peers. They all have different strengths.

6. Maybe some questions we should be asking: What are we doing that is ground-breaking? Are we setting an example for the rest of the country? Are our processes outdated? Are the practices of the American regional theatre outdated? Where are we stagnant? Where are we dynamic?

7. Two to One ratio – you have two ears and one mouth so listen twice as much as you speak.

8. Suggested reading: “Five Dysfunction of Team” and “Death by Meetings” by Patrick Lencioni and “Leading with Limited Authority”

Notes from NAMP #2

Direct mail in the New Frontier: Here to Stay or Only a Click Away
Speakers: Catherine Carter, Broward Center for the Performing Arts, Ft. Lauderdale, FL; Shelly Felder and Howard Levine, 92nd Street Y, New York City; Rick Lester, Target Resource Group, Woodland Park, CO; Laura Sullivan, Penn State’s Center for the Performing Arts, University Park, PA

In 2006, direct marketers mailed 116 billion pieces of direct mail. Quantity increased by 15% over the previous year, primarily because there is no spam filter to get through or “Do Not Call” list to deal with. Plus many people seem to prefer a tangible, paper offer. Direct mail expenditures in 2006 were $59 billion.

• National response rate for all offers was 2.15%
• On a national average, one year lapsed subscribers had a response rate of 3.3%, traded names 0.14%, rented names 0.05%, and current single ticket buyers 2.6%. It was suggested that it is too expensive to mail to rented names.
• New rule is in place: always step on your offer. Usually you will mail first, then you should follow up with an e-mail solicitation. Houston Ballet sent out a postcard and had a 3% response rate. Then they sent out a postcard and followed up with an e-mail and got a 4.5% response rate.
• Even though people are not responding by mailing in an order form, Target Resource Group has found that people refer to the order panel before they go online. When they removed the order panel, they got a lower response rate.
• A/B test everything. What offers work best, which list segments work, sequence of mailing
• Increase the frequency of your message in front of the target groups which regularly over produce on mailings.
• Nationally 96% of all subscribers come from contacts already in an organization’s database and only 3.5% come from trades, while 0.4% come from rented names. It should be noted that of the 96% of all subscribers within an organization’s database, on average 6% of all subscribers are on the organization’s “do not contact” list.
• We should build a predictive model of people who are likely to respond and then target lists with this predictive model.
• The 92nd Street Y covers events around the country on their website and then they tie it back into their programming. Often other blogs pick up their articles and link back to their website or blog.
• YouTube has now launched a non-profit channel. The 92nd Street Y video was featured as the non-profit video of the week, and had over 100,000 views. YouTube now gives non-profits their own landing page which can be tailored with your graphic identity.
• They also started making restaurant reservations on behalf of their ticket buyers through http://www.opentable.com/.

Notes from NAMP #1

Well I got back from the NAMP conference almost two weeks ago, and I was planning on blogging about all the exciting things I learned. Then I realized I had to move into the house that I closed on three days before the conference. I don't know what I was thinking when I decided to switch jobs and buy a new house all at the same time!

Things are starting to get back to normal so I wanted to share some of the notes I took at the 2007 National Arts Marketing Project Conference in Miami. Below are my notes from the Keynote Speech from J. Walker Smith:

Keynote Address: J. Walker Smith
President, Yankelovich, Inc.
Chapel Hill, NC

• Check out http://www.gethuman.com/
• Marketing is now shifting to the intangibles—you can’t market the product, you have to market the experience. Loews theatres has a program for moms and children to see a movie in a movie theatre. They lower the volume and keep the lights on because its not about the movie, it is about the mother/child experience.
• ¾ of Americans say that they are time starved and the average consumer says their time is worth $1.25 per minute. If you keep them on hold, they will get upset and expect to be compensated. If you keep them on hold, then give them something worth a $1.25 per minute. Try to make all interactions “zero time interactions” with instant gratification. Telemarketing calls better be worth their time otherwise just the act of hanging up the phone on the caller will be deemed as 60 cents worth of wasted time.
• We live in a world where everyone is different. Being different is “cool” because there is no longer anything to conform to. By 2030, 40% of our population will either be Asian, African-American or Hispanic. White people are going away because their birth rates are lower than their death rates. Everyone will be different.
• The control has now shifted to the consumer. If you try to force them into something they don’t like, they will just fix it and then post the solution on the internet. A great example is 20 year old George Hott who figured out how to modify the iPhone to work on platforms other than AT&T, all because his family had a T-mobile family plan and didn’t want to spend more money. He then posted his solution on several websites.
• In 1960, ¾ of people by age 30 had left home, finished school, married, had children and were financially independent. By 2000, only 30% of the population had done these things by age 30. Difference is the only common value today. People want to be treated like individuals and differently. People want intangibles (the experience) to be tailored to them in the marketing and execution. People now expect to be treated as differently as they are.
  Put your consumers in the loop—in 2006, 56% of consumers spent more than 2 hours researching purchases over $100. They want to know all the behind the scenes information.
• One of the reasons that traditional print newspapers are declining is that you can’t get a customized newspaper tailored only to you. But with RSS feeds, you can set up interests and only get information you want and it is sent to you. Put your consumers in total control (chad’s note—is this why subscriptions are failing?). The car manufacturer Scion now manufactures cars that are built to individual and unique specs that consumers send to them via the internet. They will build you a car like none other. Their tagline—“we relinquish all power to you.”
• Meyer Gas sends their consumers a text message to their phones alerting them when gas prices are going to go up so that they can drive down to the station and purchase before the prices increase.

The Power of Print Media (or lack thereof)

TCG is holding a monthly teleconference for marketing directors from their member theatres. It seems that everyone is talking about how major daily newspapers are losing power with their declining number of subscribers. Lately, I have been noticing something similar in the Washington, D.C. area. The major daily paper is The Washington Post, and according to our sales reps, it is the fifth largest newspaper in the world when looking at circulation. So, you would think that a strongly positive or negative review could potentially determine the success of a production (much like how New York City waits for Ben Brantley to send his word from on high).

To be honest, I have seen the exact opposite since I have been at Arena Stage. Arena Stage opened its season with Moises Kaufman's world premiere 33 Variations. The show got a lackluster review from the Post critic but was an immediate hit with our audiences. The second show of the season was Lisa Kron's Well which got an amazing review from the Post critic, but didn't seem to have the word-of-mouth that 33 Variations did. From a financial point of view, even with a not-so-positive review, 33 Variations performed very well. In years past, I have heard that if a show didn't get a positive review from the Post, it was very unlikely to succeed at the box office. However, that isn't the case today. So if potential audiences are no longer being influenced by reviewers from the major dailies, who are they listening to?

30% of 0ur audience when asked states that their decision to purchase a ticket was influenced by word-of-mouth from a friend. That is way above any other factor. So I have started to concentrate on how word-of-mouth travels, especially as it relates to new technology. New technology allows discussions to happen instantly. Audience members can text their friends from intermission, giving either a thumbs up or thumbs down. These are the people who have the real power -- the audience members themselves. And that is how it should be. Empower your audiences to be your advocates and sales will increase.

I would also pay attention to a relatively new website called Yelp. Yelp.com allows the average person to experience an event and then review it online (much like a travel website). However the Yelp community is growing very rapidly. Recently I invited several "yelpers" to attend a performance of a show and asked them to honestly review the production. We treated them exactly like a member of the press. I would encourage you to do the same. The power now resides in the hands of "citizen reviewers" instead of the reviewers from the major dailies.

Virginia is for lovers...

First off, my apologies again. I have been on sabbatical from my blog for a little over a month. Soon after coming on board as the Director of Marketing & Communications at Arena Stage, we announced our groundbreaking on the Mead Center for American Theater. The company is in an amazing place in its history, and has raised over $100 million towards its $125 million goal for the new complex. But with growth comes growing pains. With that said, when we announced that Arena Stage would be breaking ground on the Mead Center in January, we also announced that the company would cease to operate in southwest DC for 2 and a half years while the building was being built. Instead, we would transfer our main headquarters to Crystal City (a section of Arlington, VA) and perform at a newly renovated, underground theater and at a separate DC location called the Lincoln Theater. And all of this would happen in a matter of months in the middle of our 2007-08 season. So how do we move a quarter of a million people annually to a separate location, across the river in another state from a place where people have been going for fifty years?

Over the next two months, I will be blogging about what we at Arena affectionately refer to as the "transition." For an arts administrator and arts marketer, the "transition" is incredibly complex, and therefore very interesting. I love taking on projects which I know will push me. So far I have become much more adept in city zoning and sign regulations than I ever thought I would be.

One of the goals of our transition communications strategy is to make the move as easy as possible on our long time subscribers and supporters. The new location is only three miles away from our permanent home, however in DC, the Potomac River serves as a physical barrier. In my eyes, we have one shot at getting our subscribers from Maryland and DC over to Virginia. If their first experience is difficult and aggravating, they won't return. So we have developed a reasonably extensive campaign to alleviate the stress on these folks.

Part of this campaign involves using PURL technology. I first learned about PURL technology when I was working as the Director of Marketing and Communications at Americans for the Arts. PURL stands for personalized URL. A direct mail piece is created for each individual with their own personalized website landing page. When they visit the landing page, they find information specifically tailored to them. A personalized website might have an address like this: http://www.chadbauman.arenastage.org/. We are sending all of our subscribers and ticket buyers a personal note from our Artistic Director with a PURL listed in it. Recipients will then go online, type in their personal website address, and will find the following: step by step directions from their house to the new theatre, a seating diagram showing them the location of their new seats, promotional offers from local restaurants, and an opportunity to sign up for our e-newsletter. I at first was a little concerned that some of our long-time subscribers wouldn't be on the internet, however Arena Stage conducts annual market research that shows that a huge percentage (over 95%) of our total audience is on the internet.

Hopefully the PURL campaign will be one tool that eases the transition to our temporary location.

The Marketing Silo

First off--apologies for not writing much lately. As you know, I am in the middle of transitioning jobs which put me in a place where I was working two jobs at the same time for a period of three weeks. Needless to say, that didn't give me much free time (or sleep). Now that I am settling in to my new position at Arena Stage, I am happy to say that I would like to concentrate a little more on writing.

Today's topic: the Marketing Silo. I find it interesting the more I work with large organizations, mostly from a consultant stand point, the more I find marketing departments which are functioning almost as a separate entity from the rest of the organization. For some organizations, the marketing department is somewhat of a mystery for people who don't have an external relations function in their job.

For most arts organizations, marketing is a critical function. Due to tight cash flow situations, marketing departments are expected to consistently hit their goals while reducing expenditures. To accomplish this, marketing must be looked upon as a central decision-maker for almost all operational decisions, not just the ones that obviously affect external affairs. For example, a shift in valet parking companies might cause longer waiting times resulting in unhappy customers and subscriber attrition. Although valet parking might not be viewed as a marketing function, it definitely affects the customer. I would encourage marketing directors to become involved in all decisions that affect or touch the customer.

With that said, marketing directors need to become ambassadors, especially at large organizations. Go out of your way to meet everyone, and encourage everyone to give you feedback on the activities of the marketing department. Yes I know, you might get that person who is incredibly nit picky and will visit you every week trying to convince you that if you increase the point size of the text in your ads one point that you will bring in exponentially more income. However, I have been incredibly lucky to work with brilliant people who came up with amazing ideas whose job function has nothing to do with marketing.

Marketing departments are being taxed with becoming more creative as budgets are cut and sales goals increase. If you work at an arts organization, you have a wealth of creative people just outside your door--reach out to them. Share your marketing plans. Invite feedback. Give thanks and recognize all contributions.

In just my very short time at Arena Stage, I have been visited by our Producing Artistic Associate, Master Sound Engineer, Director of Audience Development, and several others who have floated some absolutely fantastic marketing ideas my way. So if you by chance are working in an environment where marketing is consider an island to itself, break down those walls and eliminate the silos, and I guarantee you will be happy with the results.