 |
|
|
|
|
|
|
|
|
 |
 |
|
||||||
 |
 |
 |
 |
 |
 |
 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
Turning Data to Dollars
Create lasting and lucrative relationships with
patrons through strategic data mining, database management and marketing
While nothing could seem less conducive to a relationship
than words like data mining and database, it’s not necessarily the case.
It’s true that database creation and maintenance can seem overwhelming
and tedious. However, theatres and software companies are learning to simplify
the process of data mining and database management – and to use the data
to develop better relationships with patrons and donors.
Unlike other types of entertainment such as sports, concerts or cinema, theatre
is in the unique position of attracting real supporters. Art lovers make donations
to live theatre and love to be recognized as patrons of the art. While this
romantic notion of patronage may seem eons away from the database world, many
theatres and software companies are successfully marrying the two.
The evolution of databases and data mining
The old adage “Knowledge is Power” is evermore true in a world functioning
on computers and the Internet. But even if a theatre can capture patrons’
names, contact information, the shows they attended and even the seats they
sat in – how can you turn that data into quality communications that
result in increased sales?
Most theatre companies have some type of database or customer management system,
although some have separate databases for each department. Arthur Middleton
Hughes, author of “Strategic Database Marketing,” holds that some
of the older and more focused systems are great for storing data and extracting
some types of information. However, these systems can also be missing out
on components that focus on improving relationships and communication.
“People donate to live theatre and like to be noted as art patrons,”
Hughes said. “Many theatres have successfully tapped into this arts appreciation
community in their neighborhood to create healthy and profitable enterprises.
Every year, however, many others struggle and fall by the wayside.”
As part of a move to get better data about their patrons, discussions about
integrating database systems are becoming evermore commonplace. The good news
is that database software seems to be becoming increasingly easy to use, and
often come with built-in or plug-in reporting, marketing, communication and
online capabilities.
Charlie Frankel, president of Easy-Ware Corp. in Chicago, Ill., said their
software “Total Info” is designed to handle just that. “It’s
not ticket-this or donor-that,” Frankel said. “Theatres have such
unique data needs, and we try to address them all.”
For that reason, Frankel said Easy-Ware has an all-encompassing approach that
enables people to be grouped in family units and can track a couple’s
sales and donations, as well as their children’s attendance to workshops,
camps and children’s productions.
“We try to capture the whole family dimension,” Frankel said. “A
problem with some systems is that they focus simply on the person that called.
You never know the complete picture unless you relate people together. It’s
about expanding and maintaining a relationship. Knowing where people are in
their lives can really inform marketing decisions.”
Tod Wilson, marketing and sales manager for “Theatre Manager” software,
said that the key to database management is this effective data mining. Over
time, he said, as the theatre interacts with the patron, more and more information
is gathered. This can give crucial cues on how best to market to that person
or family – and how to choose each season’s program.
“The question is: what is a patron?” Wilson asked. “It might
actually be a volunteer, a donor, a board member, an artist. Now, you have
the ability to categorize and target each according to their involvement and
interests. If you want your organization to grow, you have to develop relationships
with your patrons. And as your audience grows, the data will tell you if your
audience is changing, and you can change your program accordingly.”
The softer side of data
Creating and nurturing these relationships can be done with a little strategic
marketing. It also helps to have software that is designed to do some or all
of the work for you. One such company, Vendini, began as an Internet-based
ticketing system and has since expanded into data mining and marketing –
simply because point of sale is a perfect data mining opportunity.
“One of the things we see with our companies is that they are trying
to build a relationship with each patron over time,” said Mark Tacchi,
one of the original programmers and owners of Vendini. “The stronger
the relationship, the more the patron wants to be invested.”
A step beyond the databases of the past, web-based systems like Vendini keeps
both sides of the transaction interface in mind – the theatre marketing
side and the customer side. Patrons can login to a personalized online account,
where they can purchase tickets, as well as view their total spent, donations
or both, and gives them a one-to-five star ranking.
Tacchi said this simple but powerful interaction with the customer, albeit
virtual, helps remind customers and donors that they are true patrons of the
arts. The 4 and 5 star patrons are sent emails with special VIP discounts
and specials, which also serve as a reminder of the current show. The easy-to-use
interface also is used as a way to subtly mine data.
“We capture data incrementally during each sale,” Tacchi said. “Every
time they interact with the system, you have an opportunity to gather info.”
Jack Rubin, president of Tessitura Network, Inc., said that the rise of the
Internet has affected the way databases function in almost every way. “Four
years ago, theatres were happy to get 10 percent of their sales online. Now,
that would be a disappointment. Certainly the sales channels have changed.
The ability of web sites to be interactive is also increasing dramatically.”
Hughes, who is also vice-president of the Database Marketing Institute in
Ft. Lauderdale, Fla.,, agrees that the essence of the data mining and database
marketing needs to be creating personal connections.
“Any personal communication with the customer will improve sales,”
Hughes says. “A simple device like using people’s names on mailers
and Internet login pages can be quite effective. Some managers will say that
people don’t like that – but it’s simply not true. A big mistake
in marketing is when people go by anecdotes instead of statistics.”
What is an email address worth?
Getting a theatre-goer’s name and address has been a staple of theatre
marketing for decades. But the email address is slowly becoming the gold standard
of the data mining world, simply for its low cost and flexibility. Any other
information that can be mined from each patron can then be used to inform
the use of both email and snail-mail correspondences.
One example of successful use of database marketing through email can be found
at the Pioneer Theatre Company in Salt Lake City, Utah. Kirsten Park, director
of marketing at PMT, said that the theatre has just started to take the data
mining long-used for development and donations and are applying it directly
to marketing.
“All the research says that email is still second to direct mail, but
it’s so much cheaper that you can afford to segment your message,”
said Park.. By segmenting the message, Park is able to send different versions
of an email to groups that are extracted from the database and divided based
on their level of involvement and donations.
PMT has had recent success in using mined email data to send out an email
blast mid-week, linking to the show’s opening reviews. “After the
reviews were in, we were able to send out an email to 30,000 members of our
database linking to the rave review. We had an immediate response within 48
hours,” Park noted.
Park said that the stigma associated with sharing an email address and other
data seems to be decreasing – particularly with a company or organization
the customer is interested in or wants to support. As more and more industries
are using email as a way of developing relationships with valued customers,
the right email sent with the right info to the right patron can become more
of a value-add than an annoyance.
Use mined data to engage your customers
Last spring, the Taproot Theatre Company in Seattle, integrated all their
donor and development databases with their existing ticketing “Theatre
Manager” software. Aubrey Bean, development coordinator at the Taproot,
said the reward of combining the databases was immediate.
“We needed to be a little more sophisticated,” said Bean. “We
needed our donor software to talk to our ticketing software. Immediately,
we were able to engage with our patrons more, and talk to them in a different
way.”
Bean said they were able to prioritize their big donors, as well as send targeted
emails based on theatre involvement, donations and ticket purchases. Bean
added that the biggest change is that the marketing and development efforts
were no longer competing with each other. The result is that the patron receives
more quality, targeted correspondences—instead of random contacts from
several departments.
Rubin said more and more of Tessitura’s customers are requesting interactive
web sites that use mined data to customize each patron’s login page,
showing them content, discussion groups and offers that is chosen specifically
for them.
“A good database system can feed the info to a well-designed web site,
which can show each patron specialized content according to their interests,”
Rubin said. “The attention span of people is microseconds, so we need
to not waste their times.”
In addition to online efforts, Hughes said there are a number of different
ways in which theatres are using database information both online and off
to increase sales and improve patron relations. These include, but are not
limited to: automatic renewal reminders, last-chance offers, segmented marketing,
surveys and more. Hughes said that theatres have also found great success
with sending personalized newsletters, having patrons listed in the program
or on the web site and even giving out membership cards.
“Anything you can give people—a magnet, a card, to remind them that
the theatre is there and they should go to it is a good thing,” Hughes
said.
Hughes stresses that simply communicating is not enough. Hughes wants to see
theatres communicate better with their patrons through smart data mining and
strategic communication – which can all be improved with the power of
the database.
To discuss databases and other box office topics, visit our forum at www.dramabiz.com/forum.
