COMPREHENSIVE MARKETING COUNSEL:
Alabama Symphony Orchestra (June 2008 – February 2010)
Situation: In June of 2008, the Alabama Symphony Orchestra’s administrative and artistic efforts were at polar opposites. Under Music Director Justin Brown, the Orchestra’s level of performance was on a meteoric rise, even garnering a stellar review by The New Yorker’s Alex Ross. Audiences and ticket revenue, however, were in sharp decline. Sales levels, a minimal investment in marketing, and the acumen of the staff were all of great concern to incoming Executive Director Curt Long. Acting swiftly, even in advance of his official arrival, he engaged CRStager marketing.
Objective: CRStager was charged to assess the Alabama Symphony’s marketing structure and capacity, to identify all obstacles to improving sales, and to deliver a written report illustrating the current position with specific, actionable recommendations to reverse the course.
Process: CRStager marketing conducted a thorough audit of the Alabama Symphony’s marketing function, including analysis of historical sales reports, review of marketing plans and creative materials, and interviews with management from all departments. The audit identified an untenable structure in which responsibilities for outcomes and the tools to deliver those outcomes were hopelessly mismatched. The report framed 08-09 sales expectations in the context of historical data, documented the key attributes of the local market, and suggested a list of action items on which the Orchestra should exclusively focus its energies.
As a result, the Orchestra abandoned its department structure. The relationship with CRStager marketing was extended to reorganize the whole of the marketing effort, and specifically to turn around the 2008-09 sales campaign.
Subscription offers were made more urgent and compelling. Creative materials were re-tooled with a sharper message, and mailed in greater frequency to a more targeted list. Telemarketing, an ineffective in-house effort, was outsourced to a proven arts vendor.
Single ticket marketing was transformed to focus the messaging on the season’s strongest artistic assets – the completion of Justin Brown’s Beethoven Symphony Cycle, as well as most promotable aspects of the other Classical and Pops concerts. A new media strategy for radio advertising saturated key stations with the requisite number of spots, supported by compelling audio production. Direct mail postcards bundled upcoming events for greater efficiency, mailing earlier to a list targeted to the most likely respondents. Weekly print advertising, now limited to Birmingham’s remaining daily, emphasized the next performance but simultaneously listed upcoming concerts deeper into the season as a tactic to build sales further in advance of the performance.
Results: The 2008-09 subscription campaign, running more than $100,000 behind budget throughout the summer, eventually surpassed the budget expectation by $43,000 (6.5%).
Single ticket sales were robust, with a 19% increase in Classical revenue (including two sold out weekends), record Messiah revenue, and the single best Pops outcome since the 04-05 season.
This turnaround was achieved with no significant increase in expense, but by re-allocating marketing dollars more effectively.
Follow Up: For the 2009-10 season, subscription revenue grew an addition 4%, as the number of subscription seats grew 6%.
COMPREHENSIVE COUNSEL:
American Symphony Orchestra (November 2000 – April 2005)
Situation: The American Symphony Orchestra, founded by Leopold Stokowski in 1962, performed six concerts each season at Avery Fisher Hall as part of the Great Performers at Lincoln Center series. The Orchestra's programming philosophy is to rescue and return unjustly neglected works to the repertoire. Previous marketing efforts had promoted a membership scheme in favor of a traditional subscription campaign. Consequently, the American Symphony Orchestra had no subscribers and a very small database of patrons. Ticket sales often amounted to less than 30% of the house.
Objective: CRStager marketing was retained to oversee the American Symphony's entire marketing effort. Key objectives were the establishment of a subscription audience, strengthening single ticket sales, enhancement of the data base, overall messaging, and development of the Orchestra's Sunday Matinee series at Columbia University.
Process: CRStager marketing analyzed single ticket sales for the past several seasons, ranking by gross and sorting by timing and day of week to aid the in season planning - scheduling programs with low single ticket potential on traditionally weak performance days, and avoiding whenever possible concerts in months that have historically experienced low sales. Pricing was analyzed as well, and discovered to be far below the market median. Prices were raised to a level comparable to the market, but still affordable, per the Orchestra's mission. Each concert was given its own identity to communicate its uniqueness and position it as an event, consistently communicated in print advertising, direct mail, radio spots and program notes sent in advance to patrons. To build credibility, Richard Dreyfuss was engaged as spokesperson for the Orchestra's radio advertising.
For the Orchestra's Sunday matinees at Columbia University, the sales campaign and message was refocused to attract mid-income residents in adjacent zip codes.
For the first time, a subscription strategy for the 2001-02 season was implemented to meet dual objectives: attract new subscribers and capture names for the evolving database through a response card.
Results: In 2000-01, four of the American Symphony Orchestra's six concerts were among the highest grossing of the past decade. The Columbia University series also experienced significant growth. Name capture initiatives have nearly tripled the Orchestra's patron base. Subscriptions sales have grown each year and are now a significant and growing portion of the Orchestra's Avery Fisher Hall constituency.
Follow Up: Employing proven core marketing strategies, sales for 2001-02 (both at Lincoln Center and Miller Theatre) were the highest of any recent season. These results were topped in the 2002-03 season, and again in 2003-04. Subscriptions for 2004-05 surpassed the 2003-04 final in the first 12 weeks of the campaign.
To consolidate the orchestra’s smaller, committed audience, the second and third tiers of Avery Fisher Hall were closed for American Symphony Orchestra reducing capacity from 2,800 to a more manageable 1,900. This concentrated distribution of the audience and created scarcity for the Orchestra's innovative programs.
PROJECT-BASED COUNSEL:
Boston Symphony / Boston Pops (February 2000 – December 2004)
Situation: The Boston Pops Esplanade receives both fees and a share of total revenue for its performances on tour. However, sales were inconsistent and unpredictable. Presenters with experience in ice shows, sporting events and rock tours were rarely prepared to attract and meet the expectations of a symphony audience.
Objective: Educate and lead presenters through the process of bringing a Boston Pops appearance to their market.
Process: CRStager marketing analyzed sales performance for the Boston Pops' last three national tours, ranking sales by attendance, market size and percentage of capacity sold. Recent historical sales performance could then be quickly indexed as a measure for future performance. Next, a comprehensive Marketing Handbook was created and distributed to presenters well in advance of their performance. The book provided background on the Pops, audience demographics, and specific marketing and PR strategies with timelines. We also developed relationships with each presenter agreeing on sales goals, following up with at least weekly updates by phone. Each presenter was required by contract to submit a detailed marketing plan. Variances between their plan and our recommended practices were reviewed with the presenter well in advance of the performance. Sales performance trends were captured to establish a likely Pops sales pattern.
Results: The presenters were given all the tools for success, with on-going personal contact with CRStager marketing. As a result, the frequency of successful presentations increased during the Spring 2001 tour. Troublesome sales were identified six weeks in advance of the performance by the predictive sales model we built. When sales lagged in some cities, we compared the presenter's marketing plan against our proven timeline. Recommendations were made to correct the sales effort, and were often heeded with positive results. When recommendations went unheeded, and sales continued to lag, the Boston Symphony was aware of the trend well in advance and was not surprised on the evening of performance.
Follow Up: The experience of each tour was incorporated into the Marketing Handbook, a fluid document that was continually updated. The experience of successful presentations was reflected in the revised timeline. The predictive sales model eventually included several years of experience as a measurement for future performances.
INTERMEDIATE COUNSEL:
Houston Grand Opera (March 2001 – October 2005)
Situation: By the spring of 2001, Houston Grand Opera had experienced three years of sharply declining subscription and single ticket sales. General Director David Gockley had just recently handed Joanne Labrecque-French, the company’s Director of Public Relations, the additional responsibility for marketing. Within days of assuming this responsibility, Jo called on CRStager marketing to help reverse the company’s sliding sales trend.
Objective: CRStager marketing was asked to audit Houston Grand Opera’s marketing efforts. We reviewed the past five seasons of sales and strategies, recommended improvements, and provided a marketing primer Jo could use in her new position.
Process: We delivered our report, which identified the primary causes of the sales decline. Though Houston Grand Opera enjoyed deep market penetration, we were surprised to find that past attendees were not actively being solicited for subscriptions. Instead, expensive prospecting had been directed at a broad, unqualified market – and had gained few new subscribers as a result. We also found the renewal campaign to be minimal; many subscribers were not retained simply because of an inadequate process to do so. In reviewing creative materials, brochures were attractive but did not make a compelling offer requiring the recipient’s urgent response. We made several recommendations to correct the course of sales:
- Improve the renewal rate with more frequent and informative mailings
- Focus new subscriptions on the full-series with a compelling offer and pressing deadline for response
- "Right-size" the performance schedule relative to each opera’s popularity to maximize capacity utilization
A review of national opera company pricing revealed that the Houston Grand Opera had the third highest ticket price in the country. At the same time, the collapse of Enron was beginning to deeply impact the Houston economy. Rather than slash prices, we developed an offer to keep the cost of subscriptions (often in excess of $1000 for a pair) manageable. Houston Grand Opera introduced flexible monthly payments, which allowed subscribers to spread the cost of their subscription over 9 to 12 months. Brochures trumpeted “Now you can subscribe for as little as $ 38 per month.” (Samples of that season’s campaign may be found on the creative materials page of the CRStager web site.) The company’s subscription discount strategy, the equivalent of one opera for free, was also leveraged. A compelling message was introduced: “Renee Fleming FREE when you subscribe. Finally, production schedules were established to assure optimal timing of marketing materials.
Results: The recommendations of the written plan were implemented upon submission, and sales for the 2001/2002 season swiftly increased. Subscriptions grew 18% in that first year and single ticket sales increased 41%. While the season included the sure-fire box office of Renee Fleming’s first “Traviata” anywhere it should also be noted that sales increased for all productions in that season.
Follow Up: Sales remained strong in subsequent seasons never returning to the low experienced in the 1999/2000 season. CRStager marketing continued to work with Houston Grand Opera through David Gockley’s final season. During that time we built predictive sales models to project likely sales outcomes and adjust activity as needed. The subscription campaign timeline developed for that record season became a mainstay of Houston Grand Opera in subsequent years, consistently delivering strong subscription sales when optimally timed and executed.
COMPREHENSIVE MARKETING COUNSEL:
Kansas City Symphony (July 2005 – June 2008)
Situation: With the inaugural season of Music Director Michael Stern about to begin, the Kansas City Symphony's Classical subscription sales were not growing as anticipated. The Pops series was also flagging, contributing to a growing negative variance in overall subscription revenue. The outlook for single ticket sales, based on five years of decline, was bleak.
Objective: In July of 2005, the Kansas City Symphony engaged CRStager marketing to review its marketing activities and work with the staff to improve the results for the 2005-06 season. Key objectives were to minimize the projected subscription revenue shortfall and maximize single ticket sales across all products. By September, however, two of the three key staff positions were vacated and CRStager's agreement was expanded to provide senior leadership for the department.
Process: CRStager marketing reviewed the Kansas City Symphony’s subscription campaign activities, including direct mail and telemarketing. Changes to direct mail creative were made, framing the existing subscription discount rate in a more compelling fashion and focusing attention on full series subscriptions.
(In markets the size of Kansas City, growing the subscriber base primarily through smaller and/or flexible packages is inefficient. Smaller packages renew poorly, and there is not the critical mass of qualified prospects to continually replenish the subscribers that are lost. The proven strategy is to increase the average number of concerts per subscriber by attractively presenting the longer, sustainable subscription series.)
CRStager marketing brought to light the general ineffectiveness and high cost of the Orchestra’s in-house telemarketing operation, overseeing a switch to an outside vendor for the 2006-07 campaign.
With the 2005-06 single ticket plan still in the formative stages, CRStager re-positioned the Kansas City Symphony in the market. A tendency to spend money equally across all programs was scrapped for a "return on investment" strategy, concentrating financial resources on programs that would yield the most revenue. Commercial radio was effectively employed, and print and direct mail messages touted the most promotable attributes of each program. The new artistic energy of Michael Stern was leveraged throughout all messaging.
Results: From the deficit position upon CRStager arrival, Michael Stern’s inaugural season experienced a turnaround of record single ticket sales, including the Orchestra's first-ever sold-out Classical concerts, along with several sold-out Pops concerts. Making up for the inherited shortfall in subscriptions, the Kansas City Symphony’s overall 2005-06 revenue goal was exceeded. Classical single ticket revenue grew by 50% over the previous season, with six of the 2005-06 programs among the all-time Top Ten performers. Paid Classical capacity grew from 45% to 70% in the course of a single season.
Follow Up: CRStager marketing planned and executed the 2006-07 subscription and single ticket campaigns which, exceeding the previous record season, produced a new record for revenue and paid attendance. Classical series attendance increased again by 31%. Pops subscriptions grew 160%, while the Family Series tripled its number of subscribers.
CRStager built on its initial success, delivering record sales in the 2007-08 season – the third straight year – including a 7% overall increase, 5% growth in Classical subscription revenue, and 14% growth in Pops revenue.
CRStager also planned and executed the beginning phases of the 08-09 subscription campaign that produced a fourth consecutive year of growth including a 12% increase in the Classical Series.
COMPREHENSIVE MARKETING COUNSEL:
Knoxville Symphony Orchestra (October 2006 - present)
Situation: In October of 2006, the Knoxville Symphony was without a Director of Marketing or an Executive Director, was carrying deepening cumulative debt, and had fallen substantially behind in its 2006-07 season revenue goals. Chairman of the Board, Mark Mamantov, engaged CRStager marketing to manage the Orchestra’s marketing effort.
Objective: CRStager was charged with improving the outlook for the current season and positioning the institution for revenue growth in future seasons. Key objectives were to minimize the projected subscription revenue shortfall and maximize single ticket sales across all products.
Process: Because CRStager marketing was engaged late in the season, we first reviewed impending sales goals to identify opportunities and challenges. (CRStager associate Chuck Kocal had served the Knoxville Symphony as Director of Marketing from 1999-2001.) Three significant opportunities were revealed:
- A Holiday Concert, which was budgeted for $70,000, but had regularly generated $90,000 - $100,000 in previous seasons.
- Performances of Carmina Burana were budgeted for $15,000, significantly less than what large-scale choral works had done in Knoxville in previous seasons and not reflective of the work's general popularity.
- Pops Series concerts featuring the popular Beatles tribute budgeted for $19,500 - the same as other, far less popular, programs in the same season.
CRStager crafted marketing plans to maximize the revenue potential for these opportunities. Marketing budgets originally earmarked for concerts with less potential were diverted to Holiday, Carmina, and The Beatles tribute. Additionally, direct mail and print efforts were adjusted to build strong advance sales for these three programs.
Results: The Holiday concert, Carmina Burana, and Beatles tribute all substantially exceeded their goals, and a $25,000 negative single ticket tracking variance in October emerged as a $30,000 positive variance by season's end. Holiday sales finished at $103,000 - a 78% increase over the previous year and the best outcome since 2002. Carmina Burana sales finished at $31,000 - the best outcome since the renovated Tennessee Theatre opened in 2004. The Beatles tribute finished at $40,000 - the highest Pops outcome of the season, nearly 70% higher than when this same program appeared in April of 2001.
Follow Up: CRStager, now working with new Executive Director, Rachel Ford, built on the momentum of the 2006-07 season and delivered results for 2007-08 that exceeded the budgeted goals by more than $100,000. Pops subscription units grew more than 20%, Classical single ticket revenue grew 10%, and Holiday sales achieved a new all-time high. The increase in ticket revenues contributed to the Knoxville Symphony’s complete retirement of its cumulative debt – and built a cash surplus.
Again under the leadership of CRStager, the Orchestra’s 2008-09 ticket revenue targets were met with a 12% increase in subscription sales.
In 2009-10, all budget targets were met, with the Pops series playing to 91% capacity and the Clayton Holiday Concert delivering record ticket revenue.
INTERMEDIATE COUNSEL:
Richard B. Fischer Center for the Performing Arts at Bard College (April 2003 to April 2006)
Situation: In the spring of 2003, the Richard B. Fischer Center for the Performing Arts, the nation's first Frank Gehry-designed concert hall, opened on the campus of Bard College. That fall, the American Symphony Orchestra would establish its residency there, performing three pairs of concerts. Obviously, the new 900 seat house had no subscription base. Marketing began at zero base.
Objective: To build a sustainable, renewable subscription base for the American Symphony Orchestra's concert series in its first season and for seasons to come at the lowest possible cost of sale.
Process: In close collaboration with Chris Schimpf, the American Symphony Orchestra's Director of Marketing, the immediate and surrounding market potential was researched. It was quickly ascertained that there was no significant history of performing arts in the region, thus no lists were available for trade. This presented two conflicting conclusions: 1) the region was ripe and ready for the quality of live performing arts that the American Symphony Orchestra's residency would provide, or 2) there was an overwhelming disinclination to attend or support the performing arts in the market. The region was profiled to identify the best pockets of affluence, education and home value. Direct mail lists would have to be based entirely on these demographic criteria. Lisa Carfagna of Direct Resource Group (DRG) recommended both purchased and lifestyle demographic leads for two mailings of a brochure during the summer. The brochure itself, designed by Karen Spencer (which can be viewed at crstager.com on the Creative Materials page), focused on the new hall's striking design. Secondary messages played to the series' accessible programming and its compelling discount offer: 3 concerts for the price of 2. 85,000 brochures were mailed to the lists recommended by DRG.
Results: Within three weeks of the initial mailing, the series had sold out completely on subscription. The American Symphony Orchestra's residency was the hall's consistently best selling event. Though planned, no second mailing of the brochure was needed, so the marketing effort was significantly under-budget with a cost of sale on this brand new subscription series of just $0.20 on the dollar. Response rate equaled 1%.
Follow Up: The second season renewal rate exceeded 80%, even with a significant price increase. Only a brief “clean-up” subscription campaign was needed to return the series to “sold out” status, achieved through a slightly modified version of the original brochure, supplemented by telemarketing to the previous season’s waiting list. For the 2005/2006 season, strong renewals left only a handful of seats available for new subscription sales, the third consecutive sold-out season.
COMPREHENSIVE MARKETING COUNSEL:
Toledo Symphony (September 2003 – March 2007)
Situation: The Toledo Symphony is deeply integrated into its community and can boast market penetration of over 6%. The primary venue, the Peristyle, located at the Toledo Museum of Art, offers a compact 1,700 seats. After years of erratic ticket sales and frequent turnover in the marketing department's leadership, Robert Bell contacted CRStager marketing to analyze and stabilize the situation.
Objective: CRStager marketing was asked to review past sales history marketing activities, and provide a set of recommendations to grow ticket sales and capitalize on the high market penetration.
Process: The in-depth audit process reviewed 13 years of subscription and single ticket sales experience and marketing practices. This led to a series of actionable priorities. We recommended that subscription renewal efforts be expanded with more mailings and greater frequency to increase the subscriber renewal rate. In so small a market the potential pool of subscribers is very limited and those that are lost are difficult to replace. Therefore, we recommended that the subscription campaign focus on the full ten concert series rather than harder-to-renew half series. To make it attractive, we delivered an urgent and compelling offer ("Itzhak Perlman FREE when you subscribe by May 31"). We proposed there be greater effort in re-energizing the interest of long, dormant patrons rather than simply relying on prospecting. We recommended an outside vendor for the telemarketing campaign to replace a weakening in-house effort. To improve single ticket sales, we proposed a media strategy that aligned print, direct mail and increased radio advertising with sharper messaging and coordinated timing.
Results: This strategy outlined above delivered dramatic growth in subscription sales, and, with deeper series commitment, renewal rates increased substantially. In our first two years with the Toledo Symphony, subscription seats grew by 25%. Changes to the media mix and improved messaging drove growth in single ticket sales, up 41% from our arrival.
Follow Up: In 2005-2006, our second full season with the Toledo Symphony, subscriptions continued to grow 5% above the previous season's record levels. Single tickets sales, too, remained strong. By the end of the 2005-2006 season, we had helped guide the orchestra to seven of its top ten best classical sellers.
Subscription trends for the 2006-2007 season continued to increase.
As a result of our work, CRStager was also engaged to provide counsel and planning for the Toledo Symphony's Annual Fund, which grew donors by 14%.
In the fall of 2005, CRStager was asked to help guide the orchestra's long-range financial plan for greater financial stability by the 2010-2011 season. This plan, delivered to key community constituents, was directly responsible for the restoration of a quarter-million dollar gift from a former funder.
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