The Lure of Star Power

I just finished reading Playbill.com's Top Theatre Stories of the Year. The leading story discusses how stars sell tickets, and in a year with a down economy, it seems that the only thing that sells tickets are the stars. From this little story it seems clear that if you don't have an A-list star in your show, don't even try a Broadway transfer.

Arena Stage in the past few seasons has been lucky enough to host a few stars, most notably Carrie Fisher in Wishful Drinking and Valerie Harper in Looped (and not surprisingly, both productions found their way to Broadway). From a marketing perspective, nothing makes my job easier than a star, particularly stars that are lovely to work with as both Carrie and Valerie were. But let's be honest, it doesn't take a marketing genius to sell tickets to star powered vehicles. And it isn't just New York that has a taste for the stars. The Shakespeare Theatre Company and the Kennedy Center just presented two star productions that sold out immediately: Phedre with Helen Mirren and A Streetcar Named Desire with Cate Blanchett. It used to be that New York and Los Angeles were the cities that needed stars to sell, but it looks like DC might be going that way as well. Or maybe the entire country.

But there are problems with stars as well:

1. Star productions are a gamble, especially for regional theaters. Most Broadway productions can guarantee stars, but regional theaters for the most part cannot. Regional theaters tend to announce productions and casts several months before a show opens in time to sell subscriptions and advanced single tickets. However, during the time between the announcement and the opening, a star can get a better offer from a Broadway production, television series or movie which will lead them to pull out of the regional production, leaving audiences with an expectation that theaters can no longer fill.

2. Most times even with a guaranteed star appearance, run lengths have to be shortened as the schedules of most stars won't allow them to appear for a run length of several weeks, meaning that these productions will more than likely be off subscription. To capitalize on the star production, many theaters use them to boost subscription sales by only allowing subscribers to purchase the very limited quantity of single tickets to the star show. However, often times, patrons will purchase the cheapest subscription package available only for the opportunity to purchase the star production, and then won't attend the rest of the subscription shows leaving theaters with half empty audiences throughout the season.

3. Are regional theaters building an appetite for something they cannot always feed? If theaters have a couple of successful years of bringing in stars for productions, what happens when they can't find a star production for a year or two? In essence, they have built an event based audience that they can't always feed. And in this case, these types of patrons aren't loyal to the company, they are loyal to productions that feature stars. They are the most fickle of any audience segment. The first time you don't deliver, they will move on to somebody that is.

4. Are regional theaters teaching hoards of future patrons that only star vehicles deserve their patronage by filling their programming with stars if and when they get them? Or even a larger concern for me, what about those companies that regularly program poorly conceived productions that showcase a star over a brilliantly produced production without a star? The Playbill article focuses on this issue, citing several poorly reviewed, star centric productions on Broadway that financially recouped along with numerous well reviewed productions that lacked stars which struggled from day one.

There is no doubt about it--a star production can be fun. Your audiences will love them, you will sell plenty of tickets, and they will bring national attention to your part of the world. However, like anything else, maybe some moderation is in order?

Merry Christmas!

From the entire team at MarketMatch...we wish you and your family a very Merry Christmas!

Bruce Clapp

Is your glass half-full or half-empty?

Since September of 2008, our industry has seen many changes. The concept of "too big to fail" was exposed as WAMU and Wachovia were forced to sell. Lehman Brothers shut their doors. Bear Sterns had to be rescued by JP Morgan, etc. etc.

Let's face it - the image of our industry has "really taken a hit." Every day you hear the term "main street vs wall street." The media portrays us as "fat cats." Like it or not, financial institutions will be blamed if the economy doesn't rebound quickly. The media will say that financial institutions aren't making the credit available necessary for the economy to rebound.

It would be so easy for all of us in the industry to get discouraged!

But as we all know, adversity creates opportunity!

For those of us that stay focused, work hard, stay positive, "think outside the box," etc. the opportunity it there.

2010 can be a great year for your organization!

Have a great Holiday Season!

Mike

Make sure you keep one foot in both courts

Sometimes at the conclusion of a speech that I am giving, I have someone from the crowd come up to me and thank me for all the great information, exclaiming that they are going to end their direct mail campaigns in order to shift resources to technology based viral marketing campaigns. At that moment, I usually cringe and apologize, for I definitely communicated something that I didn’t intend to. For those that read this blog, you know by now that I am a proponent of using technology to grow audiences, building communities and diversify revenue streams. That being said, most major arts organizations find themselves with a foot in two different courts—how to please the audiences of tomorrow, and still serve the audiences of today.

We sometimes forget that there are four generations in play in our audiences: the Silent Generation, the Baby-Boomers, Generation X and the Millenials. Many books have been written, white papers drafted and speeches given (including by yours truly) on how to effectively target Generation X and Millenials as they are the future for arts organizations. However in doing so, some rabid believers have advocated throwing the baby out with the bathwater. Allocating all of your resources at any one of these groups, unless you have programming that only speaks to a certain generation, is foolish, certainly as foolish as not diversifying your stock portfolio.

Let’s take a look at subscriptions. Most arts marketing professionals agree that the subscription model is dated, and is dying a slow death. That doesn’t necessarily mean that we should pull the plug on them today when they still probably have a good decade left in them. Several performing arts organizations still receive a major portion of their earned revenue via subscription sales, and although Danny Newman might have published his treatise decades ago, his point that subscriptions protect a company from poor reviews and the fickle buying habits of single ticket buyers is still spot on. At every performing arts organization that I have worked for, I noticed a declining subscription base, and within two years with strategic changes have stopped the decline and started increasing the number of subscribers. I don’t say this to seem like a miracle worker (for which I am not), but it does make me wonder how much marketing directors are directly responsible for declining subscribers.

I am starting to believe that the decline of subscriptions might be in part a self-fulfilling prophesy. If a marketing director fully believed that subscriptions were dying, and that nothing could be done to affect declining subscription numbers, then he might be inclined to focus his limited resources on addressing the needs of his “future audience,” thereby ensuring the decline he was forecasting.

We know from surveys that subscribers tend to be older, and more than likely are part of the Baby-Boomer or Silent Generation. We also know that these generations have been purchasing tickets in this manner for years, are usually more comfortable with transaction conducted over the phone or via mail, and therefore respond better to some classic direct marketing techniques such as direct mail or telemarketing. However if you are underfunding direct marketing in order to fund other priorities (such as online marketing), then the decline in your subscription base might be caused by poor strategic marketing decisions.

When creating a holistic marketing campaign, a wise marketing director should always keep in mind that we are serving multiple masters—each master having a different set of expectations and desires. The key for all marketing professionals is putting the right offer in front of the right people using a communications vehicle that gives the message the highest possibility of success.

Improve subscriber lifetime value as well as shorten the conversion process

If you’re having trouble bonding with your subscribers or notice they’re dropping off your file before they make a purchase, consider implementing a proven strategy that helps improve bonding, LTV (life time value) as well as reduces the average sales conversion cycle by about 50%...

…implement an introductory series of emails for your new subs.

These are targeted messages to your “new to files” written with bonding in mind. Its job is to help these new folks buy into your philosophy, get to know who you are and what you do, help them bond with you or your “gurus” and reinforce your credentials – all through the power of editorial.

These emails should be staggered and go over a course of a few weeks. These names should be suppressed from general population and they should preferably not get any promotions during this bonding process.

One caveat, you might want to offer a special “welcome aboard” offer at the end of the series, such as 20% off their first order.

But in addition to your editorial messages, you should help the subscriber develop that “warm, fuzzy feeling” and offer quality content and free bonus reports.

If your email service has the ability to track conversions down to the user level, set it up so that for every user that doesn’t convert in a timely manner (i.e. 30, 60, 90 days), another, targeted editorial message goes out to them automatically – sweetening the offer to convert to a paying customer.

This could plan be modified slightly for each publisher, but the ultimate goal is to let new subscriber develop a connection with the guru/publication before any hard sales offers.
Ultimately, it has been proved that LTV and conversions improved by more than 50% (when group of new subs/cohorts were tracked over a course of time). In addition, the subs that did become customers, converted quicker and stood on file longer than those not in the "intro series" emails.

Lead Generation Checklist - Part 1: Conversations, Not Campaigns

Lead generation tactis are changing rapidly. The previous transactional approach isn't working anymore, prospects dont want to be sold to but engaged in a conversation about their challenges and learn how a vendor can help solve problems. Think of lead generation as a series of conversations with your audience, not campaigns. Show your prospects that you understand their industry, and specific issues, and that you are interested in building a long term relationship.

As Brian Carroll in his excellent B2B Lead Generation Blog points out, this way you will become a trusted advisor rather than just another sales person. Brian has a series of great blogs on lead generation in the 21st century. I will feature them here over the next few days, starting today with "Lead Generation Checklist - Part 1: Conversations, not campaigns".

Would you like a checking account with that pizza?

Would you like a checking account with that pizza?

This month I am traveling meeting with potential clients, visiting family for the holidays and catching up with old friends. After driving over 700 miles in three days, I was getting ready to relax in my hotel and watch the Indianapolis Colts continue their pursuit of perfection.

As you probably know, a football game isn't complete without pizza and your favorite beverage!

Thirty minutes before game time, I called Domino's delivery.

When the pizza arrived, stapled to the pizza box was a flyer from National City Bank. "Open up a National City Checking Account and get up to $300 - How's that for a bank statement." The flyer had all the qualifications and required legal disclosures.

The flyer was branch generic but included the "call to action" i.e. come to your nearest location or call a 800#. It had an expiration date, etc.

I don't know how many Domino's pizzas get delivered in a months time in the city of Indianapolis but I'm sure the number is substantial. The cost of the flyer was minimal and I'm not sure if a fee was paid to Domino's but the all in cost (excluding the $300 offer) was probably very reasonable.

Someone at National City really got creative when trying to grow their checking base.

I know it is a cliche but don't be afraid to "think outside the box" as you tackle your institutions growth challenges!

Have a great holiday season!

Mike

Perspective

A local credit union is saturating broadcast and full-page newspaper ads with the fact that they are "Giving back more than $4,000,000 to their membership."

Pretty darn impressive, huh?

Well, of their 183,000 members, that comes out to less than $22 per person - or 4 days worth of Mocha Lattes.

I guess the point is that we need to view everything in perspective.

How much has your institution lent to businesses and consumers this year? Even if it doesn't sound like much to your "banking" ear - it likely sounds like a fortune to your community.

Just some food for thought.

Have a wonderful holiday season.

Take care,

Eric

How to Make Your White Paper a Success

Here is an excellent article from The Bloom Group on how to write truly compelling white papers that create excitement in the marketplace. Making white papers more compelling isn't a mystery, but it does require a methodical approach: http://www.bloomgroup.com/content/reengineering-white-paper

View from the top changes

Good morning everyone...

I have successfully returned from a fantastic trip to Kuala Lumpur, Malaysia!  I keynoted a forum on product development, management and innovation for a contingent of Asian bankers.  Great interaction and learning occurred along with the networking of bankers from across the Asian region.  I thoroughly enjoyed the forum and the experience.

When I was in Kuala Lumpur, I had to go to the Petronas Twin Towers...formerly the world's tallest buildings (now 3rd tallest) to take in the sights and the views.  Amazing!

I had two items imprinted on me during the trip.  The first simply reinforced that banking is widely similar across the world.  We all struggle with competition, managing rates is critical, and customer insight is mission critical to marketing success!

The 2nd has to do with the Petronas Towers and what they represent to me.  They represent mankind's focused efforts to be leaders and that the view DOES change from the top.  Translation?  When you focus on an outcome, get everyone on board, and have the insights necessary....you can overcome any obstacle, create great new innovations along the way, and have an amazing view from the top!

The translation to you this morning....sitting at your desk drinking some coffee...is quite simply....take on the tasks that seems daunting, but engage your entire organization for assistance and include your customer along the way.  They will paint the picture of success for you!

So, with December quickly fading and January 2010 quickly approaching, the time to think about new initiatives is now.  Think BIG, act BIG, and include your customers in a BIG way!

Cheers!

Bruce Clapp

Be Like A Running Store

One of the best things that we can do as financial marketers is to bring retail principles into our discipline.

Take my running store for example. I'm a loyal shopper of Up And Running not because they have the best price or widest selection ... I shop there because they are specialists. They are experts in a field that matters to me.

Unlike the large chain sporting goods stores, my running shop asks me questions about how I run and where I run. They don't shove a shoe in front of me based on price - but instead measure up my foot and how my arches react to the running motion, they focus on my gait and pronation then RECOMMEND the shoe that's best for ME.

Best of all, they care about me after I've bought the shoe. I go to the store regularly for running groups. They ADVISE me on how to train for marathons or how to avoid recurring stress fractures. This, most of all, is why I'm loyal and willing to pay a few bucks more for my gear.

With our current economy, consumers are looking now, more than ever, for an expert to help them with their financial issues. And let's face it, you open more mortgages and auto loans, and deal with personal finance more in one day than any of your customers will have to concern themselves with in their entire lives!

You are the expert that they crave.

So, how do you demonstrate that you are a specialist, just like my running shop?

• Know Their Run – Do your customers need a one-time “quick fix” like a home improvement loan or are they in it for the financial marathon? Ask questions and keep a customer log.

• Size ‘em Up – Like each shoe fits each runner differently, so does each financial product. Instead of analyzing their gait and feet, ask them basic questions about how they will use the product and their goals. What are they using now? What have they used in the past? What features did they love? What would they change? What do they ultimately want to achieve (lower payments, faster pay off, security, faster retirement)?

• Be Their Coach – You and your staff are the experts! Coach your customers and they will entrust more to you.

Take are,

Eric

Fixing the Crisis in Marketing

I ran across an interesting blog post "The Crisis in Marketing" by Erik Bower from MarketBright where he talks about current Marketing methodologies not keeping pace with the pressures in today’s business environments: volatile markets, pressure to prove marketing's impact on sales pipeline, reduced budgets and headcounts, new tactics such as social media, etc.

Bower takes a page from the shift in software development methodologies (agile development replacing waterfall model, etc over the last years) and applies it to marketing. This approach replaces the static, long timeframe planning approach common in most marketing departments today with an agile approach that emphasizes team collaboration over process, quick iterative adjustments to changes over plan adherence.

With agile marketing, quarterly plans shrink to six week sprints, daily reviews of program performance (similar to the daily build concept in software development) replace quarterly reviews, quick mid-course corrections based on testing and real-time market feedback are encouraged, and project plans allow for unforeseen issues and last minute additions.

This approach helps marketing not only remain relevant in today’s organizations but provide visibility into the value it provides to the company, aligning with the needs of the sales organization, and reducing the cost of marketing while increasing performance (http://bit.ly/5kVZzm). How are you managing marketing in your organization?

Technology Marketing Collateral Trends

Here is a recent survey report on B2B technology marketing collateral trends from Eccolo Media that you may find interesting: “Eccolo Media 2009 B2B Technology Collateral Survey Report”.

Key findings in the report:
• White papers – especially those that are long on expert content and light on sales jargon – continue to be the No. 1 form of collateral influencing technology purchasers. Product brochures and data sheets are the most frequently consumed, but white papers are considered the most influential type of content when making technology purchasing decisions
• People more than ever view collateral from their desktop – in fact, only 1 in 4 surveyed ever print an online marketing document – and most share them electronically with colleagues.
• Video is on the rise in terms of frequency of use by technology purchasers – especially video that features customers speaking about real experience using a product or service.

Looking for Social Media Policy Examples?

Do you hesitate to jump on the social media bandwagon with your company? Concerned about what happens when an employee shares insider information? Social media is inherently dynamic, even chaotic. Provide no guidance and you likely end up damaging your brand. Be too restrictive and your social media initiative will never take off, putting you at a competitive disadvantage. Clear policies help you better navigate this new communication channel and provide guidance to your audience as to what is ok to post and what isn't.

Here is a great collection of social media policies from 123 Social Media's web site to help you create a policy that works for your organization: http://bit.ly/2qYKjm

Does Your Institution Make Outbound Sales Calls?

Community Banks and Credit Unions are catching on to what their larger competitors have known for some time.

Customers and prospects really do respond to being called at home!

The word "telemarketing" has really taken on a bad connotation over the years. The reason being that the message that might be interrupting our dinner wasn't relevant. For example, have you ever received a call from a aluminum siding company even though you live in a brick house? A lot of telemarketers use random digit dialing meaning they randomly call your number. They know nothing about you, your lifestyle, your wants, your needs, etc. They are simply "pushing product."

This horrible experience with telemarketers is why your staff is so reluctant to make outbound calls!

But what we do is different!

We analyze our customers relationship. We know what products they have purchased from us, how long they have been a customer, what types of balances they maintain, etc. We know a lot about our customers and we take the time to craft a relevant message.

When we call, it is to act as our customers financial advisor. Our message is that we can help them save money, make money, etc. i.e. reach their financial goals.

When we focus on prospects, we typically use segmentation, propensity to purchase data, etc. so that we can craft the same relevant message.

If you are having difficulty getting your staff to make outbound calls, make sure they understand the difference between "telemarketing" and "consultative selling."

If outbound calling is new to your organization, "walk before you run." Provide the proper training and set achievable goals.

Once your staff has a couple of successful calls, momentum will build within your organization. Your balance sheet and income statement will quickly reflect their efforts. In addition, customer satisfaction scores will rise. In many cases, you will convert customers to advocates (or unpaid sales people) that will tell their family, friends, etc. about how well your instituion met their needs.

Have a great holiday season!

Enjoy family and friends, recharge yourself and get "fired up" to tackle the new year!

Mike

Groupons - A Cool Social Media Application

No clipping no searching - just saving.

Social media has taken the old school art of coupon clipping and turned it on it's ear with Groupons.

Groupons take advantage of the "customer collective" to drive dozens or even hundreds of new customers through your door. Essentially, you can offer a discount to Groupon.com members and if enough people sign up for your discount, it takes effect.

So let's say you offer a special CD "groupon" and want at least 50 people to take advantage. Groupon.com will send an email blast of your offer to their members in your city. Anyone interested in your CD offer, will forward the message onto their friends in the hopes that at least 50 people sign up and make the offer "valid." And their friends invite their friends and so on...

Groupon clients are seeing new customers come though their doors based on viral marketing and are guaranteed a minimum return or no discounts are given.

Groupons are now being offered in 45 cities.

Whether they are right for your strategic objectives or not - it's always cool to see new ways that social and viral marketing can impact our business. If you know of any cool new applications, please share it with the MarketMatch blog community by posting a reply to this blog.

Take care,

Eric