When Customer Relationship Management is Pull Rather Than Push

Monday night I went to the library to return a couple books. I had finished the second book in a series and wanted to read the third, but I had checked and knew the library didn’t have the third book. I went to the reference desk to see if I could request the book from another one in the state.

I was told the system to check if another library in the state had the book was down, but if I wanted, I could request that the library buy it. That way, I could have the book for a month rather than 2 weeks via interlibrary loan. Since I read quickly and didn’t want the library to buy a new book on my account, I said I would request the book via interlibrary loan during another visit.

This is where things got interesting.

The librarian decided to check if they had already ordered the book given that they had the first two volumes. She discovered that not only had they ordered the book in the last week, but my name had been flagged as a person to inform when the book came in based on my borrowing habits.

I left the library muttering under my breath that I really needed to start looking seriously at customer relationship management (CRM) systems. Here was a library serving a rural county of 78,000 whose services I use for free that had bought a book for me based on tracking my use of their services. (Yes, I suppose other people may have read the series too, but they ordered it right after I took out the second book so as far as I am concerned, they bought it for me.)

The way I see it, if they invest so much effort into serving a person who uses their services for free, how much disservice am I doing to my patrons who are paying me $30-$50 to see shows if I am not closely tracking their preferences and trying to figure out how to serve them better?

The way I see it, that last sentence there is a crucial one. There is a difference between the way Amazon uses software to track my activities in the interest of trying to sell me a book and the way the library tracks my activities in interest of buying a book for me.

While I would certainly use the software to suggest shows a person might be interested in seeing based on past history, I would also want to think about ways I could use data we collect to shape our programming to serve their interests.

[N.B. Well, I wrote this post on Monday evening knowing I wouldn’t have time to do so on Tuesday because we had a show. I just happened to see one of the librarians after the show and asked her what CRM system they used. She tapped her head.

Turns out, she had noticed what books I was taking out and order the third book in the series. I had specifically asked on Monday night if it were she that had ordered the book and was given an answer that made me think it was all tracked by software. This just goes to show that the best customer relationship software is caring employees paying attention and making notes.]

Price and Value

Seth Godin recently made a post that provides a good summary of how value influences the way consumers view price.

“It’s too expensive,” almost never means, “there isn’t enough money if I think it’s worth it.”

Social entrepreneurs are often chagrined to discover that low-income communities around the world that said their innovation was, “too expensive” figured out how to find the money to buy a cell phone instead. Even at the bottom of the pyramid, many people find a way to pay for the things they value.

[…]

Often, it actually means, “it’s not worth it.” This is a totally different analysis, of course. Lots of things aren’t worth it, at least to you, right now. I think it’s safe to assume that when you hear a potential customer say, “it’s too expensive,” what you’re really hearing is something quite specific.

There is a sentiment commonly expressed around arts organizations, especially ones that are trying to attract college age attendees, that college students who say a ticket is too expensive will generally spend twice as much on beer on the same Saturday night. While a performance and a beer are transitory experiences, everyone knows beer is more transitory of the two. (The old saying, you don’t buy it, you rent it.) But, of course, it is the social environment that accompanies the beer that people value.

More from Godin:

Culturally, we create boundaries for what something is worth. A pomegranate juice on the streets of Istanbul costs a dollar, and it’s delicious. The same juice in New York would be seen as a bargain for five times as much money. Clearly, we’re not discussing the ability to pay nor are we considering the absolute value of a glass of juice. No, it’s about our expectation of what people like us pay for something like that.

Start with a tribe or community that in fact does value what you do. And then do an ever better job of explaining and storytelling, increasing the perceived value instead of lowering the price. (Even better, actually increase the value delivered). When you don’t need everyone to buy what you sell, “it’s too expensive” from some is actually a useful reminder that you’ve priced this appropriately for the rest of your audience.

Over time, as influencers within a tribe embrace the higher value (and higher price) then the culture starts to change. When people like us start to pay more for something like that, it becomes natural (and even urgent) for us to pay for it too.

That bit I bolded caught my eye. In theory the arts already deal with a tribe or community that does value what it does. That tribe tends to be affluent and influential, but we all know the common refrain is that these people are dying off. Whatever influence they have, it isn’t continuing to motivate too many others.

I am not sure the answer is just better storytelling and waiting for influencers to help shift the culture. I think there has to be a corresponding shift in product features to something consumers value as well.

This isn’t just about the arts. In the cell phone example Godin uses, the phone’s value in the developing world goes beyond just being able to talk to other people. It allows people to gather information about crop prices and choose which market to travel to and acts as a medium for currency exchange.

Without these benefits, I don’t imagine as many people in the developing world would own phones as do today. They are buying Nokia phones with long battery life rather than iPhones because electricity sources are so scarce.

In terms of the arts, I have no doubt that it is entirely possible to avoid compromising on price. I likewise believe that there are many groups out there offering what people want, but who suffer from lack of good storytelling.

Yet just as phone companies know they will sell more Nokia phones in Kenya than Apple and Samsung phones, even though those two companies are duking it out for domination in the rest of the world, very few arts organizations are going to be exempt from aligning their “product features” to suit local conditions.

Aid and Expectations

There was a TED Radio segment that aired back in October that hit so many of the conversation points in the arts today: recognizing failure, serving communities and funder priorities.

The topic was aid work in Africa. Italian aid worker Ernesto Sirolli reveals that pretty much every aid effort in Africa has failed. Some failures are attributable to arrogance of thinking you know what the solution is, but are equally attributable to the fact that no one will admit their failures, leaving others to replicate them.

SIROLLI: Every single project that we set up in Africa failed, and I was distraught. I thought, age 21, that we Italians were good people and we were doing good work in Africa. Instead, everything we touched we killed.

RAZ: How did every single project fail?

SIROLLI: And they still do. See, the first reaction was, let’s not tell anybody we made a mistake. Let’s not tell anybody about this project. I really thought that it was one bad project that will never be repeated, which, I think, is what the Americans in the Peace Corps are thinking right now. That they are in a bad project, but it’s unique. So what they do, they don’t tell anybody what they’ve done because there must be lots and lots of lot good projects out there.

But if they had the chance to go and find out what their colleagues are doing around Africa, they will discover that, in fact, the norm is failure.

What caught my eye was the assumption by each group that their failure was unique based on the assumption everyone else was succeeding. Not surprising since everyone was reporting successes.

Sirolli says that everyone sent back reports to the home office talking about how great things were going when everything was actually going to hell. While the rosy reports were submitted to one office, another letter was sent to him begging him to come help the distressed aid workers.

I think the arts world faces a similar problem, it is just that our budgets are a bit smaller. The failures get a lot more publicity though, if you take a look at all the orchestra negotiations that have broken down and the failure of companies like City Opera in NYC.

Actually, that is not really accurate. We only know the very end results in each of these cases. We don’t know enough about the failures that lead to these situations to learn from them. There isn’t much to be learned from “Don’t Run Out of Money.” A little more transparency and frank discussion may be helpful.

When Sirolli talks about the Enterprise Facilitation system he invented, I felt like his approach was both a lesson to arts organizations and funders.

SIROLLI: … And I invented the system called Enterprise Facilitation where you never initiate anything, you never motivate anybody, but you become a servant of the local passion. The servant of local people who have a dream to become a better person. So what you do, you shut up, you never arrive in a community with any ideas and you sit with the local people. We don’t work from offices. We meet at the cafe. We meet at the pub. We have zero infrastructure. And what we do, we become friends, and we find out what that person wants to do…

…The passion that that man has for his own personal growth is the most important thing. And then we help them to go and find the knowledge because nobody in the world can succeed alone. The person with the idea may not have the knowledge, but the knowledge is available. So years and years ago, I had this idea – why don’t we, for once, instead of arriving in a community to tell people what to do, why don’t, for once, listen to them? But not in community meetings. What we do, we work one-on-one, and to work one-on-one you have to create a social infrastructure that doesn’t exist.

Art organizations can probably take a cue from him about learning about the community by hanging out in cafes and talking to people rather than holding community meetings. Both funders of arts organizations and the arts organizations themselves might find value in simply helping people to connect their passions with the knowledge they need to realize their passion.

Any entity with resources to offer will probably find it difficult to just step back and not try to motivate people or impose their ideas on the people they hope to help. I am sure Sirolli and his people had that problem when they started. It is extremely difficult to surrender your ego and expectations, especially when you are bringing money to the table.

But the thing is, that is exactly what the best actors are able to do. They set aside their expectations about the way a scene should go and open themselves to the infinite possibilities that might occur. That way if a line is flubbed or delivered differently than it has been in the past, they can respond appropriately to the situation.

Bad actors chug on heedless of unexpected change or are caught short by it. In either case, they call attention to the problem.

This isn’t the best analogy because Sirolli’s people don’t react in order to serve their motivations the way actors do. Still, his people need to strive toward the same goal of suspending judgment in the same manner as actors do.

Why Educate Your Palate If All They Serve You Is Hamburgers

Playwright Mike Lew criticizes the logic behind blaming a lack of arts education for a decreasing attendance at arts events.

Take the basic argument of “We need more theater in schools so more people will go see theater later in life” and substitute comparable forms of entertainment where young people are already dropping boatloads of money. The very logic of the construction collapses.

Consider the following assertions:
-No one likes cooking anymore because we stopped teaching Home Ec in the schools.
-We need more video game training in classrooms to ensure the next generation of Xbox users.
-If we don’t teach kids how to listen to standup comedy, Louis CK will go bankrupt.
-Kids who never played live music in school just plain won’t pay for a Jay-Z concert.

Now consider the converse, swapping out theater for things that we do teach in schools:
-Good thing we taught kids biology, because zoo attendance is up 50%.
-Colonial Williamsburg is popping thanks to US History classes.
-Now that we have English in schools, bookstores are saved!
-My classroom had a PC, therefore this ipad is nonsense.

Some of his examples are a little flawed. Whether it is due to the lack of home ec classes or not, people actually aren’t cooking.

Much like cooking, arts attendance and participation is influenced by the example provided by parents and educational environment. I would argue with both the arts and cooking, the more you know, the more you will be willing to experiment with unfamiliar fare.

But as Lew points out, interest doesn’t depend on you being introduced to the arts in school. People will make the decision to attend if the opportunity appears interesting enough.

While his contentions that the problem is based in inflexible timing of performances, dearth of social opportunities, programming choices that don’t resonate with the lives of young people and general lack of hospitality are not new arguments, it doesn’t mean he is wrong.

As I was reading some of his examples, I thought that it wasn’t logical to draw a direct line from biology to zoo attendance and English classes and bookstores because there are plenty of other positive outcomes that can result from these classes. The same can be true of the arts. English, sociology and anthropology can as easily lead to the arts as directly arts education when you think about the stories people tell and the way they express themselves.

Give his post a read, he makes many interesting points in his contribution to this ongoing discussion.