Donor Cultivation In The Digital Age

by:

Joe Patti

Last year the Wyncote Foundation released a report about how cultural institutions were using digital technology, Link, Like Share: How Cultural Institutions Are Embracing Digital Technology. The report goes into some best practices for putting digital resources and personnel at the center of your organization’s focus. This includes having the digital department drive some of the decision making.

I was pretty interested to read their section on focusing on capabilities, not projects. They noted cultural organizations need to be looking at long term capabilities and only focus on “fast-fail” experimental projects to help them achieve the long term goal of developing capabilities. This section spoke of the need for grant making to shift to supporting capabilities rather than short term projects.

What really caught my eye was their discussion of the implications that a digital orientation had on development efforts.

“Meanwhile, the legacy cultural sector in the U.S. still relies on what one of our study organizations called “the tyranny of the purchase funnel.” By that he means that the dominant logic of the sector is based on the user’s progression from awareness to sampling, then on to occasional and eventual loyal user, committed contributor and finally to the legacy bequest. This patron development pipeline is in the mind of nearly everyone at a legacy institution because it has been a proven route to revenue.

But digital is the new frontier, the Wild West. Legacy enterprises area vulnerable to new entrants who are digitally nimble, lean and responsive. It’s an unruly and unpredictable environment where major players, new and old lose major money. So why invest? And why not invest cautiously? Why risk effort that could be put toward the known and use it for the unknown?

My feeling is that while we have been talking about how arts and cultural organizations need to be innovative and nimble in the way they interact and communicate with their communities, how fund raising may need to change hasn’t been part of that conversation.

Think about how much you may have been focusing on the former while operating under the assumption that development would still be a gradual process.

The need to revise the approach to the development process has been implicit in the conversation, but never explicitly stated beyond providing ways for people to donate online and possibly needing to use services like Kickstarter as a fund raising source.

There is a lot of earned revenue oriented discussion about what changes people expect from their attendance experience, but not as much about how there may be an evolution in the method of cultivating and persuading toward greater investment in the organization.

The long arc of relationship building may no longer be viable. As cynical as it may sound, getting someone to donate as much as you can in the moment via their phone may emerge as the most successful strategy.

On the optimistic side, we are told the millennial generation wants to be involved with something they feel makes a difference so the challenge may be in finding ways to involve and engage them even more than your organization has in the past.

The issue that may emerge might be that the definition of what is meaningful may be strongly influenced by a person’s social network and shift accordingly.

For example- How many people are doing the ice bucket challenge or making donations now? How many people have become involved with supporting ALS related organizations?

I actually don’t know the answers to either of these questions. But if support has fallen off, is it due to the failure of ALS organizations to engage people or because the cause has slipped out of vogue?

The vast majority of arts and cultural organizations will likely experience fewer extremes in community involvement during the evolving digital age. But at this point, it may be difficult to know whether the fluctuations in personal investment are something wholly in your control or if it will be subject to the vagaries of popular taste.

You Bet Your Art!

by:

Joe Patti

In recent years, after every Super Bowl, the city whose team lost not only loses a great deal of pride, but an art object of great value. When you think about it, some of the most expensive bets on the Super Bowl are made by directors of art museums. They both wager a work of art and the museum that loses the bet lends the work to the museum that won.

This year it was the Seattle Art Museum and New England’s Clark Art Institute. Last year it was the Seattle Art Museum and the Denver Art Museum. In 2011 it was The Milwaukee Art Museum and the Carnegie Museum of Art.

I am not sure when this practice started, but I have been hearing about these wagers for a number of years. My first recollection was the 2010 bet between Indianapolis Museum of Art and the New Orleans Museum of Art.

It occurs to me (and I am embarrassed to admit it has taken so long) that such bets are a good way to raise the profile of arts organizations in a community and shouldn’t just be limited to the Super Bowl.

What better way for an arts organization to show they have the same investment and pride as everyone else in a local team, be it high school, college, Triple AAA baseball team, or big league team, than to enter into a bet with colleagues at an arts organization in the opposing community?

If much ado is made in both communities when the performers or art work leaves/arrives in order to pay off the bet, both organizations can benefit from the increased attention. There might be a fund raising opportunity available to enable an organization to support the trip to the other location.

Because you know, those guys are gonna make you suffer and gloat about their team’s victory all through the performance, so we need your support!

Of course, the reality is, if the visitors are received with grace at a big picnic/dinner with lots of pictures taken to post online, bonds can be formed between organizations and communities that are potentially constructive in the future.

It Is About Time, All The Time

by:

Joe Patti

You have probably been hearing or reading a lot about the recent National Endowment for the Arts survey results, particularly about why people they don’t participate in arts activities.

I was recently looking at some old articles I had bookmarked and the statistics from a study on creativity caught my eye. Curiosity sent me scurrying back to the NEA report to see if my suspicions were true.

In 2012, StrategyOne surveyed 1000 people each in the U.S. UK, Germany, France and Japan about their relationship with creativity. It is graphic heavy and very interesting to read.

A couple years ago, Jeffrey Davis summarized the StrategyOne results for the U.S. on Creativity Post.

When Americans were asked what their biggest challenge to being able to create were:

For the Americans surveyed, self-doubt (27%), other personal obligations (29%), other work obligations (22%), and one’s age (13%) ranked fairly low.

That leaves two self-perceived blocks: Time and Money.

54% of surveyed Americans claimed they didn’t have the financial resources to let them create. 52% perceived that lack of time kept them from being able to create.

But when you unpack this question, its potential answers, and the actual responses, much if not all of it comes back to time.

Our perception of time is tied to how we view our obligations. If we think we don’t have enough money to create, this means in part that we think we don’t have enough money to be freed up from other obligations to afford us the solitude and “off-time” necessary to be “on” creatively.

If you look at the NEA study results about barriers to attendance 47% said time, 38% said cost, 37% said access.

I suspect there is a stronger relationship between time and money being the top answers in both surveys than I can imagine. One of my initial thoughts was that creativity is seen as a frivolous pursuit.

With so many other activities that are perceived to be more important, creativity gets lowest priority and so of course there is no time left to pursue it as an attendee, participant or self-directed creator.

As much as I would like to damn society for giving people this message and encourage everyone to free their minds like me, if I am honest I have to confess to feeling the same pressure.

This past Christmas when things were quiet, I felt guilty about catching up on professional reading when I should be doing something constructive like writing press releases. What I was reading were materials provided by our state arts council and still I felt like I was avoiding my real responsibilities.

That is a pretty insidious mindset, eh?

Fortunately, I was able to make up for it and flex my artistic tendencies by blasting music and singing at the top of my lungs since there was no one else on my floor.

Something to think about though. The challenge may not be as simple as getting people to make time to see shows, it may be about getting them to make time for the more fundamental task of being creative.

I suspect if you succeed at the second battle, you will have already made great headway on the first. But that second one is a real doozy to try to accomplish.

Pick-up Trucks Singing Karaoke

by:

Joe Patti

Howard Sherman tweeted an article today by Jake Orr about theatre being intellectually inaccessible. I mention this only as a reference point for a comment on the article. I will probably circle back to write about this issue on another date.

What I wanted to address today is the conflict arts organizations often feel between appearing accessible to all potential audiences while simultaneous attempting to project an image that justifies high priced tickets and retains long time donors and subscribers.

One of the commenters on Orr’s post, Mark Shenton related his thoughts about London’s Royal Opera House possessing an ambiance that is intimidating even to veteran arts attendees.

…So often we all feel ‘excluded’ from the club, whether it be a theatre, or a sports event (I’m sure I’d feel the same as your partner if I was taken to a football match….) But the trouble is when the VENUE welcomes the exclusivity and sense of its own (self) importance.

I once had a conversation with the head of PR at the Royal Opera House, and said to him that, as a (relatively!) sophisticated theatregoer (well, it is my job and I do around 5-6 times a week!), I feel intimidated still by going to the ROH. His answer? “I can’t deal with your psychological problems!”

So, it was MY fault that the Opera House feels intimidating! A couple of years ago, I was at the ROH — for the Olivier Awards, as it happens — and seated next to the Reece Shearsmith. And he looked around and marvelled at how beautiful it was, and said to me, “I’ve never been here before!” Now Reece, too, is a sophisticated theatregoer — and a cultural figure in his own right — and for him to have never been here struck me as very revealing.

I reckon that the venue is a club, and a lot of us feel VERY disconnected from it.

This isn’t a new idea. There have been a number of studies and surveys that have emphasized the importance of physical environment to an attendance experience. Ten years ago, I wrote about an Urban Institute study that found not liking the venue along with not having an enjoyable social experience as the factors that would keep people from attending again.

But as I mentioned, there is also a need to create an environment that speaks to the quality of the performance product to long time donors and subscribers that value this type of experience.

Now before anyone starts sputtering about how this perpetuates an exclusionary ideal that alienates people, I would like to suggest that it is actually a matter of almost elementary consumer psychology.

To wit I give you the karaoke singing pick up truck.

Engines in trucks and high performance vehicles are so efficient now that their natural noise profile is much quieter than in the past. In response, car and truck manufacturers are using sound enhancing tail pipes or digital sound effects to replicate a throaty engine noise.

Fake engine noise has become one of the auto industry’s dirty little secrets, with automakers from BMW to Volkswagen turning to a sound-boosting bag of tricks. Without them, today’s more fuel-efficient engines would sound far quieter and, automakers worry, seemingly less powerful, potentially pushing buyers away.

Softer-sounding engines are actually a positive symbol of just how far engines and gas economy have progressed. But automakers say they resort to artifice because they understand a key car-buyer paradox: Drivers want all the force and fuel savings of a newer, better engine — but the classic sound of an old gas-guzzler.

I think it is easy to brand arts lovers as being snobby and elitist for wanting to maintain a traditional experience. If we are honest in the context of this article, the reality is that they are manifesting the same attitude toward the arts attendance experience as people who value the traditional images experience of driving F-150s and Mustangs. Neither is really that distant from the other in the continuum of basic human psychology.

For arts and cultural organizations, I think the last sentence in the quote above provides a key concept: People want advanced features, but the illusion of a traditional experience. I started this blog on the premise that technology was creating evolving expectations of their experience, but that there were still traditional elements that they still valued.

Learning what that ever-shifting balance is, is the challenge arts organizations face. What is important to remember is that not all elements of traditional experience need to be discarded in the name of expanding accessibility.

The article on sound enhancements for vehicles has sums up that conflicting issues arts organizations face pretty well.

“Karl Brauer, a senior analyst with Kelley Blue Book, says automakers should stop the lies and get real with drivers.

“If you’re going to do that stuff, do that stuff. Own it. Tell customers: If you want a V-8 rumble, you’ve gotta buy a V-8 that costs more, gets worse gas mileage and hurts the Earth,” Brauer said. “You’re fabricating the car’s sexiness. You’re fabricating performance elements of the car that don’t actually exist. That just feels deceptive to me.”

Since the arts often involve the creation of illusion, I am not sure they need to worry about coming clean with audiences about fabricating the sexiness of an experience. But both organizations and customers that value traditional experiences need to be aware there is a trade off in trying to maintain them exactly.

It is possible to provide a high quality experience. Technology enables some of this at increasingly lower costs every day. But there comes a time where one has to settle for an acceptable illusion or pay the higher price for the real thing.