Gene Carr's Patron Technology Blog

Back to the E-Future: What a Difference (Nearly) a Decade Makes!

We started Patron Technology exactly nine years ago this week, and as I thought about how to mark this anniversary, I was reminded of an article I wrote that was posted on our website in 2002.

Here’s how it started:

Arts marketers, mark this moment. We're witnessing the dawn of a new and astonishingly powerful age - the age of e-mail marketing. The promise of the web to transform our lives is only partially correct. It's e-mail marketing that will make the real difference.

The prevailing wisdom at the time was that most e-mail would never been seen as anything more than spam, and that nothing good could come by creating more of it. However, smart marketers got on board and began using professional approaches to editorial and design, and many arts patrons now find e-mail their preferred means of staying in touch with arts organizations.

Later in the article, I noted:

...a recent survey of 20 New York area arts organizations reveals that arts marketing hasn't really changed much in the last few decades. Marketing budgets are still a mix of print ads, flyers and brochures, direct mail, telemarketing and radio spots.

Well, we certainly can’t say the same for change in the last decade! There have been profound changes to the arts marketing landscape, and the rate of change is continuing today, if not increasing.

In these nine years, I’ve given hundreds of seminars around the country. I've recently noticed an undercurrent in the community of arts managers, which I felt mostly strongly at a meeting at the Houston Arts Alliance last Friday. The energy in the room was palpable; there now seems to be a real sense of urgency for innovation and improvement.

It’s time for new approaches to arts management, and these approaches will be supported by new technology. Nine years ago we put a stake in the ground and bet that the key factor in moving the field ahead would be e-mail marketing. Likewise, we’re now putting our money on Customer Relationship Management, the most important new technology for arts managers to come along in the last 50 years.

The Future Is CRM

We launched our newest product, PatronManager CRM just a few weeks ago. If you missed the article I wrote last month introducing it, you can read it here.

This time around we’ve taken a new approach to product development by partnering with a $1 billion Silicon Valley company, Salesforce.com, and its Salesforce Foundation. This partnership enables us to bring Fortune 500-grade technology that combines ticketing, subscriptions, day-to-day task, fundraising, and e-mail marketing in one web-based system. We designed it specifically to meet the needs and budgets of small and mid-sized arts organizations. Because most clients don't pay an annual fee, we’ve created quite a stir.

I was thrilled last week when Fox Business News picked up on what we’re doing. They invited me to come talk about CRM and why I think it will revolutionize the arts.

You can watch that interview here:

Rethinking Arts Marketing for the 21st Century

It has always been our philosophy that our role in the arts community is not only to bring innovative products to market but also to help introduce and educate arts managers about how new technology and techniques can dramatically improve audience development.

Toward that end, I’m pleased to announce our fourth annual full-day “E-marketing E-mersion E-vent,” taking place on September 16th in New York and subtitled "Rethinking Arts Marketing for the 21st Century."

This year we’ve assembled a stellar group of invited speakers to join our staff in presenting an overview of the most important trends in arts marketing and technology.

I’m going to start the conference by revealing the results of our most recent national arts patron survey. Each year we survey tens of thousands of arts patrons, to understand why they go online and what they expect from arts organizations on the web. I think you’ll find the results eye-opening.

You’ll also hear from Damian Bazadona, the president and founder of Situation Interactive, the marketing and advertising agency that was responsible for 2009’s “Next to Normal” Twitter performance. Damian’s company is on the forefront of using social media on Broadway, and what they are doing is inspirational.

Ken Davenport is one of the most innovative of the next generation of Broadway producers. His blog, “The Producer’s Perspective,”has become a must-read for me on a daily basis. He always has smart and thought- provoking posts. Ken runs interactive workshops for aspiring producers every year, which are a hot ticket. He’s going to recreate his magic for us.

If you follow my blog you know I believe the next big online media shift will be the proliferation of live streaming video. The implications of this for the arts are profound. The fact is, Europe is way ahead of us in this area, which is why I invited Chris Hunt, co-founder of Classical TV, to speak about what his company is doing. ClassicalTV.com is the largest destination for performing arts videos online. If you want a glimpse of the future, this is where you’ll find it.

Way back in December, I wrote an article about dynamic pricing which got a strong reaction. So, we’ll have a session by Rick Lester, of TRG fame, devoted to that subject. You'll learn the basic principles for using pricing to maximize revenues and create fuller-looking houses.

And, of course, the day wouldn't be complete without beginner and advanced sessions on social media, CRM, and e-mail marketing. The conference will end with a panel discussion, with our guest speakers looking at what lies ahead for the next decade.

I think this is our best conference line-up yet, and I hope you’ll find an excuse to spend a day with us in New York this September. We have a limit of 175 seats, and there are only 75 left. You can register for $99 here.

Even if you’re on the west coast, there are plenty of upcoming opportunities to connect with us . We’ll be doing our annual technology pre-conference day at the ArtsReach conference on October 21 in Los Angeles. And looking ahead to mid-November, I hope you’ll plan to come to the NAMP conference in San Jose, CA, where I’ll be leading a panel discussion about CRM, featuring some great speakers: Steven Roth, who co-authored three studies on CRM published by the Direct Marketing Association, Brian Sayre from the Cleveland Playhouse, and Ruth Davidson from Emerson University.

Looking Ahead

Our mission as a company has always been to bring innovative technology at an affordable price to the arts industry. Today we have over 1,750 PatronMail clients, and we’re soon to reach our first 100 PatronManager CRM clients.

I’m gratified that we’ve developed a fantastic and spirited staff that works hard every day to help us achieve our mission, and you to achieve yours. Thank you for your support, your ideas and your commitment to changing the arts.

We look forward to the next nine years!

Last Gasp Indeed!

This is a quick follow-up from my recent post about the "last" analog Olympics. I wrote last week that I was sure that the Twitterverse would be up in arms over the tape-delay nature of NBC's coverage. And, well, here's some evidence that I was right:

The People of Twitter Think NBC's Olympics Coverage Sucks

I don't know about you, but I'm failing at avoiding online spoilers during these Olympics. Several good competitions have already been ruined for me by Twitter, Google News and Facebook. (Even the official Olympics page on Facebook has taken to posting results before NBC airs them.) So I'm with the angry mob on this one.

Increasing Your E-mail Budget? Corporates Are, Big-time

If you like to look over the shoulder of the corporate market to get a sense of how to allocate scarce marketing dollars (as I do), today's E-marketer provides a pretty good window into what business executives are planning in the coming year.

Needless to say, I agree with it!

The Key to Lower Opt-out Rates

This week, my favorite site eMarketer seems to be doing nothing but delivering holiday gifts. The most recent one below says in a simple chart what we all know to be the truth about e-mail marketing: Relevance is king.

If you mail a message with content that's relevant to your recipient, they will open and read it, and some percentage will take action. But if you mail an irrelevant or boring message, you're doing damage to your e-mail list by wearing it out.

E-mail marketing turns out to be mostly a creative editorial endeavor. In the end, it's not about the date you send it, or the time of day, or how many images you include, or the font size. It's simply about what you say and to whom.

That's why my mantra for 2010 is going to be audience segmentation. If you "blast" out the same message to everyone and assume it will be relevant to all, your message is probably too generic.

(I'll repeat a comment I made in a blog post a few weeks ago. The Obama campaign e-mail list had over 300 segments based on all sort of things like state, city, and job titles.)

The chart tells the story better than words.

Old is the New Young - E-mail is for Seniors

We've been in the e-mail business for eight years now, and for eight years I've been saying that even the "very old" arts audience is indeed online, and actively so. "E-mail isn't just for younger audiences" is a mantra I wish more boards would pay attention to, and this study shows some definitive evidence of what seniors (65+) do online.

What do you think their #1 activity is?

On the Rhode (Island)

This weekend is the annual NAMP Conference, where hundreds arts marketers of all stripes will converge. This year we'll all be in Rhode Island, and I'll be moderating a session on e-mail marketing. I've invited two colleagues to present, Brad Louryk from Playwrights Horizons and Carol Fitzgerald from The Book Report Network, two of the smartest e-mail marketers I know.

I asked them both to prepare a presentation sharing specific case histories and learnings from their work, and having just reviewed their PowerPoints, I'll reveal an overall theme now: targeting & relevance is the key to their success.

Neither of these folks are blasting their patrons by clicking the "send to all" button. They are segmenting their lists, creating engaging and targeted content, and carefully sending messages that are timed and tuned to a particular audience. It's hard work, but their results are stunning.

If you're already signed up for NAMP, our session starts at 10:45 AM. If not, we'll be at the Westin Providence, and day-passes are still on sale. If you're there, please drop by our booth and say hello sometime during the weekend.

Open Rates - What Do They Really Tell You?

Open rates are the industry standard way to measure of how well an e-mail campaign did in attracting readers. (I happen to think they are actually a pretty crude measure, but I'll get to that in a minute.)

The good thing about open rates is that that they are monitored closely across the digital universe, and the graph above recently published by Epsilon is fascinating. For instance, the average open rate under "consumer publishing" of 15% is among the lowest here, which says a lot about the ability (or lack thereof) of traditional publishers to engage with readers online. 

The Epsilon report doesn't track arts industry e-mail open rates, but we do. We maintain an ongoing benchmark across all our 1,600+ clients, and the average open rate for the last six months is 20.1%. That's a lot better than the 17.5%  generic 'non-profit" benchmark.

That said, open rates only tell a tiny part of the story. A more significant measure is what percentage of your e-mail list opens your e-mails consistently, what percentage open sometimes, and how many don't open at all.  We've done some research into this and determined that approximately 2/3 of any list will open an e-mail at least once in a six month period. I've long been obsessed with this "cumulative average open rate" but it isn't a number that anyone else tracks.

The point of all this is that tracking your e-mail campaigns and targeting your e-mails based on the interest/engagement level of your recipients (behavioral targeting) is smart, and something that sophisticated e-mail marketers are doing, and you should be thinking about doing it too.  When you target your content based on interest level, you get better results - simple as that.

Is this the Future of Arts Broadcasting? I Don’t Think So.

A few months ago on my walk home I took this picture of a new PBS TV studio under construction as part of the renovation of the Juilliard School. It seems to borrow a page from some of the morning TV shows and sports broadcasts that have street-level studios dotted around the city.

Something bothered me about this, and it took until last month for it to really sink in. I was at a concert at Tanglewood, where the Boston Symphony has installed high definition TV screens in the back part of the 6,000 seat outdoor Shed where it performs. In the past, those seats were so far away that you could barely see the stage. Now, with these large and clear screens, the experience is entirely different. You hear the music live but can watch close-ups of the musicians as if you’re at home. The direction is terrific, and it’s done in a completely professional away. I thought it would be somehow a violation of some well-worn concert-going experience, but rather it was a completely new and enjoyable way to hear a concert.

But, I digress. The real point is that if the Boston Symphony has already invested in video cameras, directors, and staff to make these in-venue broadcasts possible, it’s not a stretch to imagine that they will eventually stream these live online. Let’s for a moment set aside all the obvious union issues that have to be surmounted. I think in time the BSO and others will recognize the same thing that major sports teams understand; that when you broadcast, you don’t cannibalize your audiences -- you entice them to come to see the live event. (That’s certainly what the live Met Opera radio broadcasts did for decades.)

But again, I digress. The overarching point is that the technology for any individual to broadcast a live video stream from his or her living room PC is about to be here. And if they can do it, that means that virtually every arts organization is a potential broadcaster. The BSO might just do it, and I'll bet any number of other orchestras with enlightened unions and leadership will too. And the Berlin Philharmonic is doing it right now.

It’s even easier in other genres: There's tons of non-union theater, and dance as well. And just imagine the potential for broadcasting student performances. My own alma mater, Oberlin Conservatory, tells me they are planning to broadcast every student recital and orchestra concert. And doesn't this sort of put high school musicals in a whole new light? If you think grandparents like getting pictures of their grandkids in e-mail, just imagine their delight in watching a live stream of Bye Bye Birdie from Baton Rouge High.

So, is that photo above the future of cultural broadcasting? I don’t think so. That flashy new studio still represents the old model, the narrow pipeline where PBS selects which events the masses get to see. The real future lies in the hands of individual arts organizations, who will find that creating their own broadcasts will be a new and powerful way to expand their audience and motivate folks to attend their live events.

Stay tuned!

What Can the Arts Learn from JetBlue?

I'm delving into the subject of the customer experience today. The customer experience Isn't marketing  –  it’s what happens after marketing. This been on my mind a lot recently, and I don’t think we think about it nearly enough.  If you go to pretty much any arts marketing conference these days, you'll hear all about churn. Everyone is recognizing that we spend a lot of money bringing new patrons to our theaters, and most of them don't come back.

I think one of the keys to licking this problem is fixing the overall customer experience. This includes (but is not limited to) what goes on on the stage itself.

I’m going to talk about this in a roundabout way by focusing on the airline industry. I've been traveling around the country going to conferences for last few weeks, so this is fresh in my mind.  If you've been reading this blog from the beginning, you’ll know that JetBlue is one of my favorite airlines.  I'll get to JetBlue in a moment, but first, let me tell you about last week, when I had to fly on American Airlines.

Everything about that experience was a downer. The planes looked haggard and the seats were frayed and dirty. The staff seemed unhappy and it was clear they were doing their jobs because they had to, not because they wanted to. I don't doubt American Airlines is going through tough times, as are all airlines. But the experience from the consumer perspective wasn’t doesn't make up for that. Truth is I didn't have any major complaints. The plane left and arrived on time. Everything was ultimately done in a competent manner. But if had to identify something great about American Airlines that would motivate me to travel with them again the next time I fly, it would be hard to do.

Let's contrast that to my experience last night on JetBlue. I was on my way out to Seattle to the Americans for the Arts Conference, and I was at the spacious, clean (and very quiet) JFK JetBlue terminal for about an hour.  Near the gate was a dining bar – a sort of eating and work station where I could plug in my computer. (At this dining bar, there was also a fixed computer screen in front of each customer where I could order a sandwich and a drink which would then get delivered to me.)

Sitting across from me in the terminal was a pilot. It turns out it was the was the pilot for my flight and he had already been in a conversation with a backpack-laden student who was sitting next to me, so I joined in on the conversation. It turns out he's been working for JetBlue for eight years and he immediately wanted to know what I thought of the airline. He apologized for the famous Valentine's Day fiasco some years ago, and was genuinely interested in my comments and thanked me several times for flying on JetBlue. "It's customers like you who keep us in business."

 At one point there was an announcement on the PA about the fact that our flight was delayed, and he got up to go find out what was going on.  To my surprise, a few minutes later, he came back to our to us to explain that the inbound plane had arrived late but that flying time to Seattle was going to be shorter than published, and that we would in fact arrive on time.

He didn't have to come back to tell us what was going on, but the fact that he did definitely made me feel special. Then when I got on the plane, he recognized and waved at me, and when the flight was over, I saw him at the front of the plane and he shook my hand and said, “Hey, only five minutes late.” I felt like I was talking to “my” pilot! 

Needless to say this isn't an experience that all customers have. But it's indicative of a mindset of the airline and it's employees. And, if you've flown on JetBlue you also know that once onboard it has the most legroom of any airline, leather seats and a ton of music offerings and DirectTV at every seat. The planes are new and the flight crew almost never interrupts with PA messages during the flight. And, before you take off, the pilot comes out from the cockpit stands in the front of the cabin with a microphone and addresses the passengers directly, talking about the flight to come.

Needless to say, there’s a direct analogy to our field. Ultimately these two airlines got me from point A to point B. Only in the JetBlue case, apparently everyone involved (up to and including the pilots) understands that the customer experience is the key difference. That experience is what is going to get me to rebook the next time, and go out of my way to fly JetBlue over another carrier, and to blog about it.

Notwithstanding the fact that a great performance can remain with you for a long time, I’ll bet that a big reason for so much churn in our business is that people aren’t treated specially in the theater or concert hall.  I don't think we focus on the small details (like the line in the rest room) or the smile on the face of the person handing out your program? 

And can someone please tell me why in an industry in which the average age of patrons is over 50 in most cases, the font size of the programs is tiny? What's the point of handing out a program with minuscule printing when you require 90% of the audience to fumble around looking for their glasses two minutes before the curtain goes up? (In fairness I have seen some venues offer large-type versions of their programs - printed out on xerox paper. Isn't that a bit backwards?

I think this is a big deal. Clearly JetBlue gets that it's in the hospitality business as much as it is in the travel business. And, if you believe that arts are (if only partially) part of that industry as well, I think the arts field needs a new mindset and commitment to focus on this aspect of the business a lot more if it truly wants to build audiences for the future.

Putting Things In Perspective - Digitally, That Is

Folks, sometimes facts are very friendly.

I happened upon a chart today from eMarketer.com, which I think contains all that you need to know about prioritizing your online marketing. The data looks at the behavior of folks who are already online. 

Looks like big and old media still rule the day. And "search engines" (which really means Google) get the top slot for digital involvement.

The most interesting thing to me is that the very next Web-based medium referenced is, ahem, e-mail newsletters. Yup, way ahead of social networking or even regular Web sites.

I've been saying this for, oh, about seven years now, and finally there's data to prove this in context. That's why we also say that sending out e-mail newsletters isn't merely about "doing" it, but about doing it well.

That means great strategy and flawless execution. You need to dig into the field, learn about what others are doing, adopt best practices, and get into the minutiae. That's what will make your efforts stand out, and that's why we offer so many webinars, seminars, and training sessions to our clients. Sending e-mail is easy -- and people pay attention to it (as you can see below.) That's why it's doubly important that you do it well.

My advice is to recalibrate the ratio of your digital budgets (both your time budget and your financial budget) according to what you see below.