Sensible Segmentation KATY RAINES PARTNER, INDIGO-LTD

“ ” Segmentation is saying something to somebody instead of nothing to everybody J AY C ONRAD L EVINSON, G UERILLA M ARKETING

Segmentation – What is it? Splitting audiences or potential audiences into groups likely to share a similar level/type of interest in what you do  WHY? To communicate them in a different way – more relevant and meaningful to their needs  WHY? To persuade more of them to engage with you + to save money!

Population vs Audience segmentation Population Segmentation = whole population Audience Segmentation = only your customers

Your Audience Development priorities Existing New Existing New Audiences Type of work

Your Audience Development Priorities Growing audiences Diversifying Increasing Loyalty Deepening Engagement Existing New Existing New Audiences Type of work Time / Cost

Your Audience Development Priorities Growing audiences Diversifying Increasing Loyalty Deepening Engagement Existing New Existing New Audiences Type of work Time / Cost Costs x 5 Low success

The Audience Development Challenge Increasing Loyalty Deepening Engagement Existing New Existing New Audiences Type of work Low success HIGH

Audience Segmentation – Why bother? 3 Reasons:

2% 4% 26% 68% 8+ times per year 5-7 times per year 2-4 times per year Once per year 35% % of bookers in 1 year % of income in 1 year 1. Customers are not equally valuable

2. Customers have different needs 2% 4% 26% 68% These people have different needs From these people % of bookers by frequency band

Ulster Orchestra, Belfast  ‘Old’ model  Were sending all their bookers the same thing – a large 32-page season brochure, costing £1 per issue  Return on investment 1.6:1  ‘New model’  Sent different bookers different things  For 90% of the bookers this meant sending them LESS information, but more RELEVANT  Return on Investment increased to 21:1

3. Customer expectations  Expectation of content matched to needs and preferences

Tailored to match my previous purchases General message to everyone

Some examples from UK Arts Organisations  The Lowry, Manchester  Symphony Hall, Birmingham

The Lowry, Manchester

Segmented and targeted  Season brochure  Segmented by frequency  Followed up with highly personalised  segmented by type of work  Costs reduced by 1.3m kr per year  Return on investment doubled

Targeted 11% 20% 19% Targeted content works % response Un-targeted Mainstream4% Contemporary4% Classical4% The same content to different segments Highly personalised content to different segments

Symphony Hall, Birmingham  600 events per year  Mostly ‘one night’ shows  2200 seats  over ½ million audiences each year

Classical Rock/Pop/Ente rtainment Jazz, Folk, World, Roots Family  Costs reduced by 23% in 1 year  Return on investment doubled

Total Audience TM Model Classic MainstreamContemporary Model used with over ½ million UK audiences ‘Strands of work’, rather than artform genre People attending the main strands have key differences from each other

Total Audience TM Model Classic MainstreamContemporary Classic – eg. Classic Drama, Classical Music, Opera, Ballet, Fine Art Contemporary – eg. Dance, New Writing, Physical Theatre Mainstream – eg. Rock and Pop, Panto, Comedy, Musicals

Total Audience TM Model Classic MainstreamContemporary Typically 80-90% of the audience sticks to one strand.

The Evolution of an Arts Attender Rock and Pop Contemporary Dance

ClassicContemporaryMainstream

Total Audience TM strand Frequency / Recency / Value / Communication activity Motivation and experience of the event Cultural and media consumption Target them with the right programme Find the people most likely to respond Use the right language Find more people ‘like them’

Good audience segmentation?  Audience Development priorities  Simple to understand  Easy to implement  Segments the total audience  Can be measured  Can be refined as you learn

“ ” Segmentation is saying something to somebody instead of nothing to everybody J AY C ONRAD L EVINSON, G UERILLA M ARKETING

Thanks! Katy Raines Partner, Indigo-Ltd