Terms and Ideas

Colleen Dilenschneider made some really important points about misunderstood concepts that lead non-profit organizations to make poor decisions and policies. The “Six Concepts that Visitor-Serving Organizations Confuse at Their Own Risk,” she discusses have subtle distinctions that can be difficult to clarify.

It is somewhat akin to the differences between PR, Marketing and Advertising. Even if you have taken the 101 course in any of these subjects, others around you may use the terms so interchangeably that you may find yourself having to stop and say, “No, that is advertising, not marketing.”

Among the concepts she mentions are Fads vs. Trends, which I had cited her on before; Market research vs. audience research; High-propensity visitors vs. historical visitors and key performance indicators vs. diagnostic metrics.

Personally, I don’t frequently get into regular discussions about visitor propensity or indicators vs. metrics, but they are worth reading about because you may think about issues related to those general terms and she makes some great observations.

What will cause me to keep this post bookmarked for future reference were her observations about Admission Pricing vs. Affordable Access and Discounts vs. Promotions.  The points she makes are great for getting pricing conversations in board and staff meetings re-oriented and properly focused.

In terms of Admission Pricing vs. Affordable Access, she says:

Admission pricing is the cost of admission for folks who visit your organization. It is an intelligently determined price point that contemplates what high-propensity visitors (people who are interested in visiting cultural organizations) are willing to pay in order to take part in your experience…. Admission price is an economically-sound business imperative for many organizations and admission pricing is not an affordable access program if your organization relies on paid admission in some capacity.

Affordable access (that is effective) is generally rather expensive for cultural organizations and it takes real investment that is usually made at least partially possible by gate revenues…When organizations lower their optimal price point in hopes of “being more affordable” or “reaching underserved audiences” they aren’t truly doing either of those things…Successful affordable access programs are targeted so that they truly reach folks who are unable to attend – not people who would generally pay full price but are just looking for a deal. Admission pricing and affordable access are two completely different means of access that play completely different roles in the sustainability of visitor-serving organizations.

Her thoughts on Discounts vs. Promotions run along the same lines:

Discounts are when an organization offers free or reduced admission to broad, undefined audiences for no clearly identifiable reason. Discounts do a lot of pretty terrible things for visitor-serving organizations. Simply, offering discounts devalues your brand….When an organization provides discounts, it often results in five not-so-awesome outcomes that you can read about here.

Promotions offer a targeted benefit for certain audiences for an identifiable reason. The biggest difference between promotions and discounts may be how they are perceived by the market. Promotions celebrate your community. Promotions demonstrate why an organization is offering free or reduced pricing in the communication of the promotion…In the end, one approach is more about an organization’s flailing attempts to hit specific attendance numbers at the expense of its brand and mission (and long-term ability to hit those numbers), and the other is more about your organization’s relationship with target audiences and communities.

As I suggest, the issues covered by these four concepts often come up in organization discussions and the lack of clarity between them often yields ineffective results.

Dilenschneider’s post started me thinking about what other concepts and practices might be confused and in need of clarification. A couple of ideas have come to mind, but I haven’t fully developed them yet.

If anyone has any suggestions or has thought about similarly confusing concepts they have already created distinct definitions for, I would love to hear them.