Most cultural organisations have at least three objectives. Unusually at this time, the first and foremost objective is the financial survival of the organisation – which will ensure that other objectives can be delivered. Usually foremost are artistic objectives, relating to the type and quality of work presented. For many organisations, social objectives, related to the makeup of the audience, are also extremely important.
And this is where we can help – making the most of your commercial potential in order to support artistic and social objectives.
We bring together analysis and research techniques developed over more than fifteen years, with practical advice on strategy to offer solutions tailor made to each client’s needs.
Pricing and membership reviews
We believe an understanding of the rich data available from transaction records is fundamental to any cultural business. We offer insight in the areas of business performance, price demand and customer behaviour, membership and donor analysis.
Where appropriate we use clustering techniques to inform sophisticated behavioural segmentations and multi-variate analysis to help sales forecasting. These analytical methods are supplemented with specialist primary research techniques to understand price sensitivity and demand.
The gold standard: Triple A Review
Growing earned income depends above all on developing a strategy that addresses your unique situation. A bespoke strategy that will meet your objectives needs to be both evidence-based and agile, allowing you to continually learn and adjust strategy over time to create a virtuous circle of improvement going forwards.
Strategy also needs to deliver to the bottom line, not just increase turnover, and that means understanding the relationship between all sources of revenue in order to maximise retained income.
The greatest results come from an integrated approach across:
- Admissions (tickets)
- Affiliation (membership, donations and subscriptions)
- Ancillary (retail, food & beverage etc)
A Triple A review encompasses all of these areas, bringing together data from multiple systems into one analysis.
Every organisation is unique – we don’t adopt a one-size-fits-all solution. Typically our analysis will lead to recommendations including:
- Altering prices and price differentiation
- Introducing alternative price structures, value fences and propositions
- Market/competitor comparisons and context
- Considering new pricing tactics and strategies
- Using behavioural economics and consumer psychology to maximum effect
- Bundling, price differentiation and strategic discounting to support social objectives
- Deploying or restructuring subscription and loyalty schemes to increase attendance from your most loyal customers
- Managing the cost of membership benefits to maximise retained income
What will I get?
A consultant will work with you through your project, providing continuity and depth of understanding.
As a minimum, we will undertake:
- A discovery workshop with your team
- Delivery of an extensive interim report presented (online or where possible in person) to your team, based on detailed analysis of your data – you know your organisation best, and this stage enables us to test our findings
- Final report and recommendations, created by members of the Baker Richards consulting team with decades of experience in maximising retained income.
Following the initial project, we recommend an evaluation which checks the performance of the changes against our forecasts, making recommendations for fine tuning where necessary.