Al Stilo
Sometimes I feel like a Zombie because everything I read says the one thing that I believe most in — is dead. You see, I am a subscription guy, I LOVE subscriptions. But the obituary is clear, as eloquently stated in Terry Teachout’s 2013 WSJ article, Theater’s Expiring Subscription Model. (The statistics are plain to see in TCG’s 2012 Theatre Facts. Theatre subscription revenue is down by 13.7% from 2008-2012. Is trying to breathe life into subscriptions like “The Walking Dead?” Have my brains been consumed?
I don’t think so. I always have and never stopped believing in membership. Subscriptions give patrons the best value. Plus, they give organizations the ability to take artistic risks that can result in brilliance (or failure) without worrying about the commercial viability of every individual endeavor. Believing is one thing, but I have also looked for new and innovative ways to sell subscriptions.
As subscriptions sales were waning, organizations tried to attract patrons with “Flex” options, Seattle’s ACT being one of the most noteworthy. For many, the downward trend continued. Most organizations do not have the amount of programing to sustain a model like ACT. Theatres were giving patrons what they thought they wanted and not what was actually needed. Since the recession, technology has revolutionized the way people organize their lives and communicate. Companies now operate with fewer employees. Those with jobs have a perceived tighter schedule and less disposable income. With smartphone technology, the line between work time and play time is blurred. For me, anything that is important goes on my calendar. Going to the theatre needs to be on my patrons’ calendars. It needs to go in their smart phones. It needs to be important. Isn’t that really what subscriptions are, important dates people schedule for events they enjoy?
The old model fits our new world quite nicely
Aside from real estate and finance, one of the biggest losers in the recession was the newspaper industry. Uh-oh! For many of us in the non-profit arts sector, newspaper coverage was a great way to remind patrons between visits how important we, as arts organizations, are and what an exciting and relevant enrichment we add to their lives. How can folks decide what to attend when they have limited time to research all the available options? Newspapers gave context and served to tell patrons how worthwhile an arts experience will be. With fewer chances to reach a wide audience, we have to maximize our limited opportunities. Selling a season rather than a show is making the most of the opportunities we are given.
People now look closely at value. Subscription packages usually offer a financial incentive; people understand a bargain. The giant box of corn flakes at Costco is a better value than smaller box at the grocery store. With the popularity of strategies like variable pricing and especially dynamic pricing, we can demonstrate an even bigger financial benefit to those customers who are loyal enough to purchase a package. Patrons thank us for getting them out of the house and off of Candy Crush. At Aurora Theatre, we avidly look for ways to find more benefits we can offer the subscriber. This has helped grow our subscription base. Now being a subscriber is popular and that popularity has become a great sales engine. The harder it is to get a seat or a perceived choice seat to any given event, the more value the subscription package embodies. Dig deep at your organization and find additional benefits that will help you increase the value of your subscription. For example, when Theatre Aquarius added their holiday show to a season ticket package, 94% of their subscribers moved to the FULL series subscription. Read more about their success in the TRG Arts case study.
Make your Box Office a Sales Team
I’ll be honest, my path to Arts Administration is not one of ivy-covered brick buildings at an institution of higher learning. I was a hustling young actor, passionate about live performance. I never fit into the restaurant as a “day job” mold. I fell into the world of hardcore commission sales. Like a restaurant job, sales jobs were plentiful, a dime a dozen. Good salesmen (and women) made quick cashleaving more time for other pursuits. I was good. I found that like a good waiter, a really knowledgeable salesperson is a rare treat that benefits the consumer. Sometimes we know exactly what we want, but many times, there are added benefits or another product that we are unaware exists. A savvy, helpful sales person can create a happy, loyal customer. With so much commerce available online, human contact with a customer is important. Order takers do not create advocates. Great sales people do. In fact, no staff member has the impact on your bottom line like a great salesperson. I challenge you to change the way you think about the ticket purchasing process. How does an organization survive the Zombie Subscription Apocalypse? Change the method, not the model and watch your earned income rise.
The Arts Marketing Blog Salon is generously sponsored by Patron Technology.
