Audience Retention Presented by Chad M. Bauman, Director of Communications Arena Stage or the grass isn’t always greener, so love the one you’re with

Oliver Wyman Study Oliver Wyman collaborated with 9 of the most prominent US orchestras to grow their audience and reduce churn  The Senior Marketing Professionals of 9 prominent US Orchestras asked Oliver Wyman to assist in understanding the barriers to and motivators of repeat visitation, identify ways to stimulate repurchase, increase frequency, and reduce churn  Oliver Wyman undertook this effort on a pro bono basis given its fit with their institutional DNA of customer-led, fact- based growth strategy

Oliver Wyman Study Findings Orchestras do a great job at bringing new people into the halls but have difficulty retaining them. In 2006, orchestras reported tickets purchased by 21,218 unique households. The next year, they reported tickets purchased by 21,703 unique households. However, 55% of unique households from 2006 didn’t return, and the orchestras attracted 57% additional new unique households in 2007 to make up for the loss. A 2005 study conducted by Katy Raines of DixonRaines Ltd. showed that on average, performing arts organizations in the United Kingdom lose on average 60% of their audiences each year (about 5% more than the Oliver Wyman Study results). Frequency and tenure are the two most important factors in churn. 86% of audiences who went to a single concert didn’t come back. If they went to 2-4 concerts, the churn rate reduced to 50%. 85% of audiences who have attended the orchestra for a single year didn’t come back. If they attended for two years, the churn rate reduced to 53%.

Churn: 63% Churn: 36% Churn: 35% Churn: 90% Churn: 72% Un- converted trialists Special occasions Non- committed Snackers High potentials Churn: 10% Core audience Frequency Unconverted trialists: 1 st timers who attend one concert and don’t come back Special occasions: Customers who attend only one concert per year, but might attend for multiple years Non-committed: People who attend a couple of concerts per year but still churn at high rates Snackers: A subscriber who consistently attends smaller concert packages and is very loyal in attending concerts for many years High potentials: Will attend a lot of concerts and are likely to purchase a subscription but not yet long term converts Core audience: Almost all are subscribers, will attend numerous concerts every year for many years Oliver Wyman Study Findings

Long Term Value Oliver Wyman Study Donations 1 Ticket sales Average of 4 orchestras 5Y Revenue 5y value for one average household, by cluster $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $148 $51 $199 Unconverted trialists $305 $577 $262 $268 $845 $566 Special occasions Non- committed $1,100 $1,517 $1,041 $962 $2,480 $2,141 SnackersHigh potentials $2,366 $2,530 $4,896 Core audience Katy Raines Study

The Entire Experience Product Core Products Enrichment Activities Place Auditorium Parking Restaurant Bathrooms Customer Service Box Office House Management Public Transportation/Safety Directions Bar/Concessions Information/Education Ushers Parking Attendants HVAC It starts when customers purchase a ticket and concludes only when they get home after a performance.

First Time Attendees Welcome KitsCome Back Offers Barriers to Attendance Welcome Note from Artistic Director Complimentary Drink Coupon Autographed Poster Remember to date a little before you get married Goal: increase attendance by giving an offer that gets new attendees to come a second time A/B Test Offer Messages A/B Test Delivery Methods: Direct Mail, , Robo-Calls Pre-Attendance s & Information to include: Information on the Performance/Artists Directions Parking Restaurants Public Transportation Frequently Asked Questions

Increasing Customer Loyalty CRM: Viewing the Complete Customer Loyalty Programs Subscriber Recognition Gifts Invites to Special Events

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