Joanne Bernstein on Selling Season Tickets

Joanne Scheff Bernstein is the well known author of two arts marketing books, Arts Marketing Insights and Standing Room Only.  With so many of us in the midst of selling ticket packages for the 2009-2010 season I thought it would be a good time to get her perspective on how to handle sales in a down economy.  She was kind enough to answer a few questions on the topic:

Ticket - Is this the most difficult year for selling season subscriptions you’ve seen as a marketer?  

Bernstein - Most organizations are still selling their subscriptions for the 2009-2010 season, so it is hard to tell at this point how much the performing arts will be affected during the upcoming season by the difficult economic situation. Overall it is expected that subscriptions will be down. How much each organization is affected is dependent on three main factors: 1) the quality of their artistic product 2) the pricing structure of the organization, and 3) how responsive the organization is to customer needs and preferences. If subscribers have only been delighted by 2 or 3 out of 5 productions in their series in recent years, they are more likely to drop their subscriptions and select which programs to attend. When the quality is consistent and meets audience expectations, there will be far less erosion of subscription sales. An organization with highly priced tickets, such as a major opera company or symphony, is more likely to lose subscribers than an organization where the financial commitment is not significant given people's more frugal life styles in the current environment.

Subscription selling became challenging for performing arts organizations around the turn of the 21st century.  Over the past several years,  more people have clearly exhibited their preference to choose exactly which shows to attend and to be more spontaneous in their ticket purchases. Organizations that have adapted to these changes in consumer behavior by offering mini-series, choose your own series, and offering payment plans over time for package sales, among other strategies, are in a stronger position to retain subscribers and even attract new subscribers than those organizations who have not been tuned in to meeting customer needs. Those organizations  that have not been flexible and customer-centered in their marketing approaches are definitely facing difficult subscription campaigns this season.

Ticket - What are the questions you’re getting from your clients in regards to season subscriptions and what advice are you giving them?

Bernstein - My advice this season is no different than it has been in the past several seasons: the key to success is great art well marketed. If marketers keep doing the same things they have always done, no matter how much they improve it, they will only get what they had before. It is crucial that marketers put their customers first. This means that they must pay attention to what their customer are saying and doing and that they must be rigorous about customer satisfaction. This is the fundamental concept that is explained in detail from various approaches in "Arts Marketing Insights."

Ticket - What are some of the more innovative ideas you’ve seen organizations use to try to combat the economy this year?

Bernstein - One symphony I work with has gone from a season brochure that historically divided up concert descriptions by whether the programs were classical, pops, chamber, or choral. This year, based on the premise that people often like a variety of styles, the brochure listings are strictly chronological and people are encouraged to select which performances they want to attend. None of the programming is pre-packaged for them. Hopefully this new approach will encourage people to try programs they have never attended in the past and possibly even purchase more tickets than in previous years by selecting from among the variety of options.

Some organizations are starting to do something that I recommended in both my books: offering extended payment plans over several months to encourage subscriptions.

The most common strategy I've seen in recent years is the frequent use of deep discounts. There are pros and cons to this tactic. Generally the organizations sell more tickets than they would have otherwise, but I am concerned that people will become accustomed to "last-minute" price reductions and will not buy tickets without such discounts. Hopefully, as the economy improves, people will ease up on their expectations for discounts and will attend the shows they want to see. People need entertainment and appreciate asethetics as much as ever, if not more so, and arts attendance is a fine alternative to other more expensive pursuits, such as leisure travel.

Many organizations are appropriately cutting costs in areas that do not have a detrimental effect on the quality of the artistic product to help them through these difficult times. I am recommending that organizations conduct short-range strategic planning, reviewing budgets on a monthly basis and their strategies every three months, so they can be responsive to the rapid changes in the environment. When an expected foundation gift does not come through or the annual fund does not realize the anticipated revenue, organizations must adjust immediately.

Ticket - You released your last book in 2006.  Any plans for another?

Bernstein - Since my books cover fundamentals and strategies that apply over a wide variety of times and situations, I do not feel the need to update what I have written in the current environment. I do expect, however, that over the next couple of years I will compile some interesting case studies based on my consulting work that will have generalizable messages for arts managers.

You can learn more about Joanne Bernstein at her website Arts Marketing Insights.