Dynamic Pricing: Making It Work?

The debate over dynamic pricing continues. Back in March, Gene Carr from Patron Technology wrote a great overview of dynamic pricing and voiced his support for the practice. Last week, Trisha Mead at 2am Theatre challenged the naysayers with a post about her own successful dynamic pricing experiment. And The Mission Paradox responded by cautioning readers about dynamic pricing’s potential to tarnish a non-profit’s image. While there has been plenty of discussion about audience impact, what I haven’t heard much about is the technology behind dynamic pricing. Many ticketing systems are not designed to handle fluctuating ticket prices. Work-arounds can be frustrating and confusing for the ticket seller. Particularly in outlet situations, where ticket sellers handle the sales for many different groups and venues, the seller’s level of comfort with your ticketing setup and policies can make a huge difference in the customer’s experience.

In addition, as Carr notes, there is no “magic computer program” determining the best prices for your tickets at any given time. Organizations and consultants may have their own formulas or schedules, yet for the most part such changes are not programmed to occur automatically. A dynamic pricing strategy may have an effect on an organization’s bottom line, but it will likely have some impact on your staff’s time as well. How to implement dynamic pricing may be as important a discussion as whether to implement it at all.

What is your experience with setting up dynamic pricing? Do you know of a ticketing system that makes dynamic pricing simple?

Know who you are, be who you are, and have fun figuring out what works: NAMP reflection

I apologize for my delay in getting this up. In the spirit of the subject of this post, I'll be honest: I just wasn't satisfied with it. Repeatedly I tried to write about authenticity, and it was schlock. So I give you the intended post (happily abbreviated), plus an offshoot (bonus!) thought.

The final reflection on the NAMP Conference, I would like to call attention to the importance of conducting your organization's online presence with authenticity, and of taking a deep breath and just experimenting to see what works for you.

We can all access information at the touch of a button. Our phones are smarter than we, the internet is pervasive (and invasive?), and finding out the truth is easier than it's ever been. If you are being disingenuous, you can bet that your audience will know.

Web 2.0 means audiences may instantly learn about organization, the people who make it work, and the reasons behind its existence. Audiences are afforded the opportunity to connect with you in new ways that seem to be personal because they defy "conventional" marketing practice. This means that your organization must speak with a unified voice, with clarity of intention, and with honesty. Web 2.0 transcends the boundary of cover-ups and spin doctoring. Be honest, be real, and your audience will appreciate you all the more. Quick and dirty tip from the NAMP session "Command the Cultural Marketplace": Know who you are, BE who you are, and make others know and understand who you are.

Audiences will sense this authenticity, and will appreciate the additional things that you do to make your organization accessible (though, of course, they may not understand how very time-consuming it may be!).

In this vein, the very last NAMP take-away was one that Rich Mintz introduced in his plenary address, and which became a bit of a rallying cry: “Throw spaghetti at the wall and see if it sticks.” Translation? Just try stuff. If it doesn’t work, toss it, but at least give it a shot. You will probably discover things that DO work for your organization, and how exciting is that? I was reminded how important this is when I attended a round-table discussion the other day that was attended by many different individuals from many different types of arts organizations. The purpose of the meeting was, in fact, to reflect on much of what we had learned at NAMP. As we discussed various sessions and reflections, a few of the attendees were visibly alarmed by the daunting prospect of tackling some of the social media and technologies that we were discussing, including developing the sort of e-mail marketing plan that I discussed here, or establishing a YouTube channel or blog. It can be overwhelming, so choose one or two areas you want to work on. E-mail and Facebook, perhaps? But really give it a shot.

As NAMP presenters Chris Elam, Rich Mintz, Jeffrey Inscho, Gene Carr, and Chad Bauman will tell you—not everything works. But don’t let the fear of failure keep you from trying. If you are being authentic your audience will identify with you and appreciate your efforts. Nobody is going to fault you your failures (sometimes those leave as much of an impression as your successes—look at all the conversation that the Seattle Opera's attempt generated).

So take a deep breath. Get your staff together and be sure you're on the same page with your online presence. What could you do more of? What social media tools are your friends, staff, audience using that your organization isn't? How do you want your staff voice to be heard--from individual accounts or one overarching organizational account? Will there be different user names? Are you doing things that are working? Are you doing things that aren't? Can you quantify the success or failure? (If not, get analytic tools NOW--Google Analytics is free.) Are you or is someone on staff particularly interested in trying out a particular tool, like building a Flickr account, and willing to work on that and see how it can benefit your organization? Ask these and more questions, and build a plan. Remember--it doesn't have to be a runaway success from the start. But know what it is you want and try things to get that result.

Now go have some fun.

Content is King (but a compelling subject line is crucial): Effective E-mail Marketing

The Crown of the Moon by gilderic Organizations too often overlook the hidden powers of e-mail marketing, a relatively inexpensive powertool if used correctly.  As Gene Carr of Patron Technologies will tell you, a strong e-mail marketing plan is a critical component of your online presence.  "Why?  Because the average arts consumer doesn’t. . . go to an arts website to browse around to see what’s happening next Tuesday.  [Now,] when they get an e-mail in their inbox, they say 'OH! That’s happening next Tuesday!' and they forward it to their boyfriend and they send it on.  So I say, get your e-mail marketing program great, you’ll solve half your problems."

How do you do this?

I was fortunate to attend a great session at NAMP called "Beyond the Blast: E-Mail Marketing Well-Done" featuring a panel of Playwright Horizons' Bradford Louryk and The Book Report Network's Carol Fitzgerald, and moderated by Carr, who chatted with me for the blog.  Following his "Three B's" I offer you some take-aways.

• BUILD YOUR LIST

You must have a strong list to have an effective e-mail marketing campaign. Building a list can be challenging, and is often seen as secondary to other elements of the e-mail or newsletter (design, content, etc.)--but Carr argues that building the list should take 75% of your time.  To collect e-mail addresses and learn what these individuals want to receive takes time and finesse, and involves regular (about thrice-yearly) follow-up surveys to define their interests and ensure that your messages are hitting their appropriate mark.  If you are sending out one blanket e-mail to everyone on your list, you are blasting, and are likely seeing a low return on such messages.  It also may decrease your revenue: "You won’t advertise a $5 ticket lottery to a full-season subscriber.  You really have to think about who is getting what messages," reminds Louryk.

• BE PROFESSIONAL

Exercise professionalism when managing your e-mail campaigns: "[p]lan a schedule in advance, get (the e-mail) proofread, get great graphics, send it to outside readers (to look it over before you send it to your lists). All the things that professional publishers do," explains Carr.  "It doesn’t mean that your newsletter can’t be in a personal voice;" you should cultivate a specific tone and feel to make your organization accessible and relatable.  Set the sender's name to appear as a person in the organization rather than the company's name.  "But there better not be any typos in there and it better come on Tuesday if you say it’s going to come on Tuesday."

And don't underestimate the power of timing: your communication should be timed to coincide with reviews, published profiles, podcasts, etc.  Driving traffic to other locations where your organization receives publicity demonstrates that you are connected and aware of how your organization is being represented and perceived.

• BE INTERESTING

Once you have determined who your segmented audiences are and established how your campaign will be structured (once monthly newsletters? event-specific?), remember that every recipient will read the subject line of your e-mail. 100% of them.  Their decision to open the e-mail is based on what they get from that subject line.  So be engaging, intriguing, exciting--but exercise caution.  A "tantalizing" subject may get filtered as spam.

Within the message, Louryk stresses the importance of representing your organization's mission, expressing its urgency and importance.  Integrate your logo but vary the colors, designs, header graphics to reflect the particular content of each message.  Remind your audience who you are and why they support you.

Everyone wants to feel like an insider. People want to catch a behind-the-scenes glimpse of the inner workings of an arts organization.  This may take the form of staff blog entries, artist personal stories, backstage video tours, or any number of personal touches that will give your audience a taste of the other side.  Fitzgerald regularly shares personal stories with organizational information, authors of featured books write newsletters, and readers keep reading.  Newsletters are not just about the sale, but about making connections.  The more your audience feels a vested interest in what your organization is doing, the more they are to come around in real life. Give them the opportunity to receive special discounts, participate in lotteries, and get additional details beyond the website--and acknowledge those who open every e-mail with personalized thank-yous.

• FINALLY

Don't despair if  your organization already has established an e-mail marketing program that is less-than-effective, Carr is confident that that is not a death knell if you are prepared to put in a little work, figure out what makes you unique, and what your recipients want to read.

"We have an e-mail newsletter that goes out to seven- or 8000 arts managers every month.  We’ve been doing this for eight years.  And about a year ago we started sending an interview, first it was an interview format, then we switched it to a video format.   And we were spending a lot of time taping the person and then editing it, and the open rates were abysmal.  Terrible, really terrible.  And we were, depressed, we spend all this time, and (each interviewed person) was really excited, and nobody was opening it. So we threw out the interviews, rethought the content, and started writing about things we knew people were interested in: Facebook and Twitter, started putting contests in and quoting from clients and just totally reinvented the content.  And the open rates jumped."  The lesson?  "Basically the reason people are tuning out is because YOU’RE BORING.  The content that you send is what you’re about.  It’s almost like you’re a magazine publisher and you don’t really pay attention to what is in the magazine.  People are not getting your magazine because they like a bound thing showing up in their mailbox.  People are tuning out because you’re not interesting."

National Arts Marketing Project - Day One

If you haven't been, check out #nampc09 on Twitter. The day was chock-full, and I am happy to say that I feel I attended some of the best sessions. I had a chance to chat with Gene Carr and Jerry Yoshitomi on-the-record (which I will have up as a forthcoming podcast), as well as Rich Minz (the latter more informally), about many things tech/arts related. I am still processing and digesting, so for the moment I will leave you with some images of my long, but good, day in Providence at the NAMP Conference.

Portion of Pittsburgh contingent represents in front of WaterFire - Haeben (CAMT), Justin (CMU's MAM Program), Corwin (CAMT and MAM), Lauren (Pgh Cultural Trust)