Lower Rates For Loyal Customers? How Novel!

by:

Joe Patti

A couple days ago, Sam Reich, CEO of Dropout TV announced an $1/month increase in the subscription rate for the service. However, he made it very clear that this increase was for new and returning subscribers.

“Charging more for existing subscribers? Who do you think we are? Netflix, Apple, Disney, Amazon, Peacock?”

He basically goes right to the heart of a big pet peeve of mine. Even though he cites current streaming sites, the practice of offering lower introductory rates to new subscribers goes back decades. All through my youth I would hear pitches from long distance phone services, cell phone carries, cable companies, cable channels like HBO, Showtime, etc., which would offer discounted rates to new users while maintaining higher rates for loyal long term users. The message was clearly that your loyalty wasn’t valued.

In the two minute video, Reich spends over half emphatically reinforcing the fact that they haven’t raised the price in three years and that this increased price only applies to new and returning subscribers. Since the new rates don’t go into effect until May, interested folks have a month to become classified as an existing subscriber. Meanwhile, he reminds viewers that the cost of their Netflix subscription has jumped twice in the time it took to watch the video.

The rest of the video he discusses that Dropout has increased their spending sixfold in the last three years to create more product, that the increase will help pay the staff a fair wage, and that as the CEO he does not own a boat.

While I first assumed he was implying he did not receive an exorbitant salary I later realized he might want to buy a boat. (Given that Dropout is comedy content the intended message may be both.)

So in this spirit, I will close by suggesting folks might want to consider using the analytics function of their ticketing system to identify people who have regularly attended over the last 3-5 years and send them a coupon code for a discount or some other benefit to thank them for their loyalty.

To Thine Own Tactics Be True

by:

Joe Patti

Seth Godin recently made a post warning people against adopting the tactics of those you view as successful as your own.

The problem is simple. You don’t have a tactics problem. You have a strategy problem.

Borrowing tactics from someone with a useful strategy isn’t going to help because it’s their strategy that’s better, not their tactics.

And using tactics from someone who got lucky isn’t going to help either. Someone needs to get lucky, and it was them. It’s not their tactics that made it happen. Going to the same bank as Charlize Theron isn’t going to make you a movie star.

When in doubt, focus on your strategy. The tactics will follow.

This reminded me of a quote from Joseph Campbell about the Knights of the Round Table embarking on the Grail quest

“‘They thought it would be a disgrace to go forth in a group. Each entered the forest at the point that he himself had chosen, where it was darkest, and there was no way or path.’

“No way or path! Because where there is a way or path, it is someone else’s path.”

Apparently this quote has stuck with me for awhile. In searching for the 2007 post I originally used this quote in I found at least two more instances I used this quote, including in conjunction with another of Godin’s posts.

Perhaps I have used it so much because this is sentiment comes up often in relation to things like copying bylaws from other non-profits or using the same marketing and advertising techniques.

Every organization and community is different with different relationship dynamics. At one point in our lives I am sure we all realized that we couldn’t have the same close relationship with a friend that they seemed to have with another person in their social circle. On paper there may be no difference between you and that third person, but for some intangible reason your friend and they seem to share a significant affinity for one another.

The same is true to a greater or lesser degree on a community scale except some individuals may feel a stronger affinity than others. As Godin says, in relation toa collective you are targeting your tactics need to emerge and be informed by your strategy rather than borrowed. Otherwise the disconnect between the two will feel inorganic and inhibit the relationships you seek to develop.

Oregon Arts Commission Making Grants Easy For All

by:

Joe Patti

A professional grant writer had a piece on the Oregon ArtsWatch website where she expressed her disbelief at the Oregon Arts Commission’s (OAC) new grant guidelines.

But it was all in a good way. Claire Willett writes that not only did they make the process simpler, they also made the use of the money flexible and unrestricted. For years now there have been calls for funders to support operational and administrative expenses rather than excluding them as permitted areas. Oregon Arts Commission is allowing funds to be used for that or pretty much anything else.

OAC also simplified the process significantly. Willett said she would typically write 7-10 pages of narrative for her clients. This year OAC’s goal is to make the application process simple and accessible for organizations who don’t have the capacity to hire a grant writer.

Apparently they made great progress in this direction:

….the week the new system went online, a friend texted me, “Um, I just logged in to look at the new OAC streamlined process and instead I just filled it out and submitted it in less than ten minutes???” 

They also eliminated grant review panels. The grant staff at OAC Willett spoke to said that they instructed panelists to focus on the quality of work being done rather than the quality of writing, but they were concerned an unconscious bias toward those who could afford a professional grant writer might exist.

They also eliminated the long narrative sections from the application. (Personally, I was excited to learn they had allowed 5000 characters given most applications ask for a comprehensive review and allow 500 characters. But on the other hand, not having to write a comprehensive review in the first place is awesome.)

Three narrative blocks of five thousand characters each is an intimidating hurdle for applicants facing barriers of education, language, literacy, or simply lack of experience in this specific form of writing, which could mean that really exciting artistic work wasn’t getting taken seriously. The shift, then, was twofold: simplifying the form itself to something anybody can do without professional assistance, and moving the decision-making process in-house to focus on strengthening relationships between the OAC and the organizations they fund. 

The OAC sees many of the changes they have made as moving toward the goal of developing and strengthening trust with groups throughout the state. They have even removed the requirement to operate two years as a non-profit from the eligibility criteria for a smaller grant program in recognition of how lengthy the IRS non-profit application process can be.

Patience For Ticket Purchase Experience Is Wearing Thin

by:

Joe Patti

Yesterday I received an email letting me know that Colleen Dilenschneider and her colleagues at IMPACTS Experience had released a new post titled Ticket Purchasing Frustrations Are On the Rise. (subscription required) I knew this would be a topic I wanted to write on.

An hour later, I get an email from someone who knows I have a subscription asking if I had read the piece. In turn, people had emailed him knowing of his interest in the topic asking if he read it.

Clearly I needed to address this post sooner than later, but I had a lot of meetings and wasn’t able to digest the piece. I don’t usually post on Thursdays, so here is a bonus post for you all.

The second paragraph of the piece reads:

Think twice before assuming that this article merely points out areas for independent ticketing systems to improve! These hassles may in fact be the fault of cultural organizations themselves.

That is pretty much what the research has found. Some of the issues are due to the design of the ticketing system, but a lot of the problems originate with organizational policies and procedures.

As usual, the data is broken down between exhibit based and performance based arts and cultural organizations. While the frustration is rising for both groups, the negative attitudes have increased most for exhibit based organizations – especially those with timed entry tickets.

According to the data Dilenschneider and IMPACTS present, reported barriers related to the ticket purchasing experience between 2015 and 2018 were pretty low and stable. Once the pandemic hit, ticket purchasing moved toward the forefront as an issue.

The barrier value of “Hard to purchase/transact” skyrocketed…That’s an increase of 146%! In this span of years, we experienced many more potential visitors saying that it was just too hard, complicated, confusing, or inconvenient to purchase a ticket to make it worth the effort.

[…]

But you’ll notice another alarming jump in “difficult to purchase or transact” as a driving barrier just last year! Today, this barrier is approaching the 100 index value threshold wherein the sector risks losing attendance and people are choosing to do something else because of ticketing-related issues…

Timed entry is an additional frustrating factor for visitors to exhibit based entities. Attendees would rather enter when they are ready rather than during a specific window. There is also a concern about committing and then having kids get sick, scheduling conflicts pop up, being delayed by other factors.

Obviously, these are concerns people have when attending performing arts events too, but it seems that since the requirement to show up at a specific date and time has long been part of the process, it isn’t as big a barrier. Though it does still present a barrier as people are increasingly able to have the experience they want on their schedule.

While being difficult to purchase or transact certainly remains a modest barrier to attendance, it’s not a prohibitive barrier for many performing arts organizations. At the end of the day, performing arts programs have long been date and time specific. As a result, guests are habituated to selecting a timed and dated ticket.

Also, as performing arts leaders know well, some programs and performances secure more patrons than others. Attendance to performing arts organizations is especially dependent on how interested folks are in the specific programming. Therefore, it may come as no surprise that far greater barriers to attendance for performing arts institutions are simply preferring an alternative leisure activity.

One thing that plagues both exhibit based and performing arts entities roughly equally is the data entry burden. People don’t like to have to enter all their information in a number of boxes. If they have to hit next to go to a new page rather than fill everyone out on one screen that adds to the frustration.

If they have to fill out a marketing questionnaire as part of the process that can present a deterrent. (my emphasis)

As explained above for exhibit-based organizations, it’s not uncommon for some institutions to “throw in another question to collect data, while we’re at it!” From additional questions ranging from how someone heard about the organization, to their length of stay in the city, to asking if they’d like at attend or qualify for an additional event, to any number of additional queries requiring a response or even a “next” click, organizations benefit by contemplating the potential negative impact of holding up the transaction. It may seem quick and easy to add on an additional question or two (with internal benefit, no doubt) from the view of a staff member, but these are a rapidly growing annoyance for potential patrons.

The takeaway isn’t to avoid collecting helpful information from patrons, but to consider how doing so may impact the transaction experience.

They point out that many consumers are used to doing a one click purchase on Amazon which allows them to skip entering information into different fields…and leaves the customer feedback survey until after the transaction is complete.

As I always write in connection with these posts based on data IMPACTS has crunched I am only summarizing part of the whole. They also cover factors like pricing confusion that can be associated with packages, discount eligibility, and dynamic pricing; availability of payment types; digital ticketing; and purchasing interface on desktop vs mobile.