Introduction
Customer relationship management (CRM) systems are integral to any arts organization. They allow for the organization to collect data on their patrons in order to create better relationships with them. Happy donors and other stakeholders most often lead to donations in the form of time or money, and utilizing CRM data can create a personalized experience for all of those people. However, the current pandemic has shown some areas for improvement, specifically in terms of current technology’s relevance. One such area is the intersection of CRM systems and digital giving.
With some operations on pause, arts organizations may now have the chance to improve their approach, focusing on better ease of access for donors and other stakeholders, updates to CRM systems, and an evaluation of the optimal donor base. These topics have affected the arts fundraising landscape and need to be considered, discussed, and implemented while the time is available.
Importance of Digital Giving
The intersection between CRM systems and digital giving has created a heightened need for ease of access, specifically in the context of the coronavirus pandemic. Ease of access in fundraising comes in many different forms. To begin with, it is important to realize that meeting audience members where they are is the best way to get them to consider and follow through with donating to arts organizations.
Many performing arts organizations who are still operating have turned to streaming services to reach their patrons. This is noteworthy for many reasons, but is largely important because artists are now able to reach a wide variety of people. With streaming available, location and physical ability are no longer determining factors for who attends, and streaming can keep arts organizations in the public eye. According to the Los Angeles Times, "Digital theater has become a necessity for companies that would otherwise vanish from public consciousness." Streaming has also provided new fundraising opportunities: for example, links to donation sites can be on the screen alongside the arts experience. Some programs, such as Streamyard, have the ability to display "banners" and "comments" that can include donation links or other calls to action.
Updating technology is the key to accessibility for donors. According to the 2020 Nonprofit Tech for Good study, 92% of donors in the United States and Canada say that nonprofit organizations "must invest financial resources in digital communications in order to stay relevant." This idea is important because, as the pandemic has shown, being up-to-date on technology is the best way to stay connected and maintain donors and other patrons. Some ideas that might become common in the future are mentioned in the Nonprofit Tech for Good study, including "a mobile app that allows two-tap giving that earns badges and redeemable points;" "facial recognition giving through a smartphone;" "point-and-tap giving through an internet-connected TV;” "swipe-giving through a digital billboard on public transport;" and "voice-command giving through a smart speaker or radio."
Popularity of Fundraising Concepts
Another form of digital giving is text-to-give. Text-to-give is used by many nonprofit organizations, but it is not widely used by arts organizations. A reason for this is that in the early days of text-to-give software, only large nonprofit organizations had the funds to utilize the software. However, that is not the case anymore, and it is a viable way to gain donations. Mobile traffic via text message to nonprofit organizations' websites is twice as high as traffic via email, according to M + R Benchmarks. It's even easier now that well-known CRM systems such as Tessitura and Blackbaud have integrated text-to-give software such as Donate2 and Snowball.
In the midst of change, however, it is important to remember that the arts patrons are the most important users of any new technology. Arts organizations have to keep them in mind when making decisions on updates. There should be no difficulties when someone tries to give money, so it is important for arts organizations to utilize the programs from both sides to ensure that they are intuitive for the user.
Figure 2: Text-to-give infographic. Source: Author.
CRM Considerations
In order to stay relevant, arts organizations need to make sure their CRM systems have the most updated technology. By staying updated, CRM systems will have the ability to track more donor data, creating a space to attract more patrons. A great element of a CRM system, according to an article from the Daily Maverick, is its ability to show the organization's data that gives "insights into the best way to secure and allocate donations."
With the addition of social media to the fundraising landscape, it can be difficult for older CRM systems to properly track their donors. Gifts have grown through social media platforms such as Facebook and Instagram, with over 88% of people who used these methods saying they would again. When looking at updated CRM systems, the ability to integrate other software is a must, especially since social media cannot only help keep donors, but expand the organization's data on their patrons. There is a great breakdown in this report from AMT Lab contributor Megan Ma that goes in depth on how social media integration works for CRM systems.
Another element that CRM systems need, mentioned by the Daily Maverick, is the ability to "accept numerous payment methods." Arts organizations already accept major credit cards (they have to, considering 63% of donors in the U.S. and Canada prefer to give that way). Now, they must also be equipped to accept text-to-give payments.
Donor Demographics
It is no surprise that many interesting data points have come out of this pandemic time. However, a change in donor demographics was not one many would have initially predicted. Now that many reports are in, the newfound data has raised questions regarding the optimal target donor demographic for arts organizations.
Before the pandemic, it was common for arts organizations to focus on the Baby Boomer generation for donations since they make up more than half of all donors. After the coronavirus hit and people were stuck at home, however, the Millennial generation doubled their ticket purchases while there was a decrease from both the Silent Generation and the Baby Boomers.
TRG Arts did a study with Southern Methodist University on the changes the arts landscape has experienced in the pandemic, both for ticket subscriptions and for donations.
Figure 3: Charts showing subscriber and donor demographics before and after Covid. Source: TRG Arts.
As shown by these graphs, those in the Baby Boomer generation are still dominate patrons of the arts. However, with the growth of younger generations, it is important to not count them out. According to Purple Seven Chief Executive Stuart Nicolle, “The opportunity for arts and culture organisations is to acknowledge this shift in buying trends and to consider how the product, messaging, and pricing along with the whole purchase experience and customer service meet the needs and expectations of this younger and evolving audience.”
“The opportunity for arts and culture organisations is to acknowledge this shift in buying trends and to consider how the product, messaging, and pricing along with the whole purchase experience and customer service meet the needs and expectations of this younger and evolving audience.”
Conclusion
Resources should go toward trying to gain these young generations as future donors. Even if they can only give $5 now, that can easily turn into $5,000 in future years. Creating the relationship with these patrons early on will have a ripple effect that will allow for future stability for the organizations. The best way to do this is to fully utilize an updated CRM system in order to better connect with these younger patrons. Staying technologically relevant is a great way to ensure that these tech-savvy generations consider giving to arts organizations, especially since almost 20% of donors in the U.S. and Canada prefer to give via social media.
The arts funding landscape has been greatly impacted by the pandemic and has highlighted the need for effective CRM system and digital giving integration. With the need for greater ease of access in donation processes, updates to old CRM systems, and ways to target different donor demographics, the landscape has the potential to change for the better. Technology is fundamental for reaching audiences in younger generations. Up-to-date and easy-to-use technology can put an organization ahead, but it is going to take a dedicated strategy to ensure progress.
Resources
Killoran, John. “7 Mobile Trends to Boost Nonprofit Fundraising in 2020.” GiveCentral (blog), June 25, 2020. https://blog.givecentral.org/7-mobile-trends-to-boost-nonprofit-fundraising-in-2020/.
M+R Benchmarks Study 2020. “2020 Nonprofit Benchmarks.” Accessed December 18, 2020. https://mrbenchmarks.com/.
Ma, Megan. “It Isn’t So Hard to Connect Social Media Data with Your CRM System.” Accessed December 18, 2020. https://amt-lab.org/blog/2019/4/integrating-data-from-social-media-into-crm-system.
McNulty, Charles. “Digital Theater Is All the Rage, but Could It Destroy the Live Stage?” Los Angeles Times, May 13, 2020. https://www.latimes.com/entertainment-arts/story/2020-05-13/coronavirus-theater-digital-streaming-risks.
Nonprofits Source. “2018 Online Giving Statistics, Trends & Data: The Ultimate List of Giving Stats.” Accessed December 18, 2020. https://nonprofitssource.com/online-giving-statistics/.
Nonprofit Tech for Good. 2020 Global Trends in Giving Report. 2020. https://assets-global.website-files.com/5da60733afec9db1fb998273/5f5f8fedbd440fd3e98de74c_2020-Giving-Report-English.pdf.
Nonprofit Tech for Good. “The Top 10 Nonprofit Marketing Trends for 2021.” Accessed December 17, 2020. https://www.business2community.com/non-profit-marketing/the-top-10-nonprofit-marketing-trends-for-2021-02356884.
Sage. “How NPOs Can Use Tech to Attract Donors and Make a Bigger Impact.” Daily Maverick, September 28, 2020. https://www.dailymaverick.co.za/article/2020-09-28-how-npos-can-use-tech-to-attract-donors-and-make-a-bigger-impact/.
“StreamYard | Browser-Based Live Studio for Professionals.” Accessed December 17, 2020. https://streamyard.com.
TheTicketingBusiness. “Demographics for Performing Arts Ticket Buyers Change Post-Pandemic - Study,” September 1, 2020. https://www.theticketingbusiness.com/2020/09/01/demographics-performing-arts-ticket-buyers-change-post-pandemic-study/.
TRG Arts. “COVID-19 Sector Benchmark: Insight Report August 2020.” TRG Arts. Accessed December 18, 2020. https://trgarts.com/blog/insights-report-aug-2020.html.