Providing Assurances Can Do 80% Of The Heavy Lift In Marketing

by:

Joe Patti

Yesterday I saw a post on LinkedIn where Ruth Hartt was reinforcing the idea that people purchase the outcomes they desire rather than things.

In response, commenter Jay Gerhart wrote:

Reminds me of our first JTBD work with Bob Moesta when we simply showed a digital ad for virtual care with a person enjoying an event with their friends. We didn’t have to show them obtaining health care – we showed the result of it. 40% increase!

It happens that the night before, I started re-reading Peter Drucker’s Managing The Non-Profit Organization

On the second page of the first chapter, Drucker essentially says that nonprofit mission statements need to be focused on outcomes. He relates the story of helping an emergency room of a hospital create a mission statement for itself. He says it took them a long time to arrive at a mission statement and when they did, people felt it was ridiculously obvious – “to give assurance to the afflicted.”

And, much to the surprise of the physicians and nurses, it turned out that in a good emergency room, the function is to tell eight out of ten people there is nothing wrong that a good night’s sleep won’t take care of. You’ve been shaken up. Or the baby has the flu. All right, it’s got convulsions, but there is nothing seriously wrong with the child.’ The doctors and nurses give assurances.

…Yet translating that mission statement into action meant that everybody who comes in is now seen…in less than a minute….Some people are immediately rushed to intensive care, others get a lot of tests, and yet others are told ‘Go back home, go to sleep, take an aspirin, and don’t worry…But the first objective is to see everybody almost immediately–because that is the only way to give assurance.”

Framing an audience’s desired goals for an experience in terms of medical outcomes helped further develop my understanding of the concept Hartt has been espousing.  Given the choice, very few people would prefer to undergo a medical procedure vs. just going about daily life. While knowing you will enjoy competent care is important, what people really want to know as Jay Gerhart suggests, is that they will come out the other side with as minimal an impact on their daily enjoyment as possible.

Obviously the stakes aren’t as high when attending an arts and cultural experience (one hopes), but there can still be a related anxiety regarding whether the experience will be an enjoyable one. Focusing on how the experience will solve a problem like providing an escape from stress of the work week or providing an opportunity to spend time with family and friends.

I often cite this Lexus commercial as a good example. The parents continue to drive until the kids say they no longer have a cell signal and then the parents stop driving. The voice over says “…and feel what it is like to truly connect.” You aren’t buying a luxury vehicle, you are buying a method to reconnect with your family.

But it isn’t just enough to communicate that message. As Drucker says, it has to be operationalized in some way. But translating it into action isn’t necessarily complicated just as providing assurance in Drucker’s example meant a commitment to making an assessment in a short period of time.

 

Audiences Generally Cut Back On Drinks Before Admission Tickets

by:

Joe Patti

As always, Colleen Dilenschneider and the folks at IMPACTS provided some attention worthy data in July regarding perceptions of the value of paying for museum and performing arts tickets. Basically, are the tickets worth it?

One of the things they found is that people expect to pay less for exhibit based and performing arts experiences in 2024 than they did in 2019, There is a lot nuance to this result according the Dilenschneider on her colleagues. First of all, this response is based on what people remember paying for their experience in pre-pandemic 2019. As you might imagine, they note that memory is imprecise and so comparing what they expect to pay this year compared to what they remember paying five years ago isn’t going to provide the most accurate results. In fact, data about what was spent in the first two quarters of 2024 tends to be higher than what they said they planned to spend.

The other thing to know is that people aren’t planning to cut back on admission tickets, but rather the other activities surrounding the central event. What IMPACTS terms off-site spending:

As of Q2 2024, the top area where folks recall spending money in relation to their visit is admission. Still, we do not see that admission costs are a top barrier to attendance to cultural organizations. So, to continue our work as data detectives, we’ll want to observe where other changes have taken place.

[…]

Folks are spending more on parking, admission, and onsite retail, and they are spending less on the other aspects surrounding the cultural experience.

Nowadays, despite rising food costs and restaurant prices, cultural participants plan to spend less (and actually do) on food and beverage. In 2019, performing arts patrons were more likely to grab a dinner before the show and perhaps drinks afterwards. Now, however, the data suggest that patrons may be more likely to only do pre-theater drinks, or perhaps skip the fancy bottle of wine for a single glass or choose a more affordable fast casual option than a Michelin-starred meal. These choices reflect consumers’ decisions to “trade off” or “trade down” when it comes to making their cultural-related spending choices. Fortunately for many cultural organizations, these “trades” thus far seem to primarily affect offsite spending (and indicate less sensitivity to onsite consumer behaviors).

Of course, these results are associated with people who actually made the choice to participate in an experience. A fair part of the article is devoted to a conversation about the general pessimism people in the US especially feel about the economy. Ticket prices are fairly low on the list of cost related barriers to visitation compared to concerns about the economy, prices, inflation, investment, personal finances, etc.

Libraries Serve The Huddled Masses Yearning For Wifi Access

by:

Joe Patti

In another refutation of the argument that we should stop funding libraries because no one reads books, on Friday there was a public radio piece from Marketplace illustrating the increased role libraries play in communities.

In this particular story, they featured a library in Taylorsville, KY where not a lot of people have internet access due to the sparse population and difficult terrain. The director of the library noted that the use of the library computers has decreased over time, but the use of their wifi has increased significantly due to people using their own devices.

Director Debra Lawson said that while those computers are used less frequently lately —patrons typically bring in their own devices — the Wi-Fi usage is “through the roof.”

“We leave our Wi-Fi up 24/7,” Lawson said. “So sometimes … I come in the next morning, check on the camera, and there’ll be people outside in 35 degrees in sleeping bags using the internet.”

The main focus of the story is that federal infrastructure bills are providing better internet to places like Tayorsville as well as helping underwrite 70% of the $9000/year bill the library will have when they get fiber optic internet in the near future.

But the value of the internet service to the community can be measured in those people sitting outside the building in 35 degree weather using the service. During Covid, many libraries re-positioned their wifi equipment to provide a signal into their parking lots so that students who didn’t have internet at home could do their homework while building access was denied them. Even as the buildings re-opened, libraries have continued to offer that service for students and the unhoused population. When I go to my local library, there are signs on the exterior of the building with the wifi information so that people can log in.

Libraries provide a good example of a non-profit/government service that is constantly revising the way they offer their services to help meet the needs of the community. In many ways, they are much more responsive and nimble than many other cultural non-profits or government services.

Cultural Institution And Daycare Pension Partnership

by:

Joe Patti

A miscellaneous bit of interesting information – I recently saw a job posting for the executive director of the Cultural Institutions Retirement System (CIRS). I was totally unaware of the existence of an organization specifically dedicated to providing pension and other retirement benefits for cultural organizations. I assumed most cultural organizations arranged for retirement services independently of each other or that employees received these benefits through their union membership.

In fact, that may be largely the case outside of NYC where about 50 cultural institutions in the five boroughs of NYC, plus one in Newark, NJ participate in the retirement system. Most members are museums and gardens, but there are a few unions and organizations like American Parkinson Disease Assoc., Inc. and Animal Care & Control of NYC, Inc. who also participate.

More surprising however is that an additional 100 child care centers also offer their retirement benefits through CIRS.  The retirement system was started in 1962 by five museums, the child care centers started joining in 1964.

All in all, it seems like an interesting, though unexpected, alliance of organizational interests pooling their funds to provide retirement benefits to their members.