Generate extra income from philanthropic giving and create opportunities to delight audiences with our guide to creating a membership scheme.
When memberships are well designed and effectively managed, you can find yourself generating extra income from philanthropic giving and welcoming a lot of happy customers more often – in short, everyone wins!
But to achieve this, you first need to take a step back and do your homework. This means understanding exactly why your organisation has (or wants to have) a membership programme in the first place, researching your customers and having a clear marketing and fundraising strategy for the short and long term.
Use this how-to guide to develop a successful membership scheme for the first time, or to check that your current programme is up to scratch.
1. Align on your objectives
First, you need to understand why your organisation wants a membership scheme. Knowing what your objectives are will help determine what type of programme to develop:
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To increase attendance and secondary spend, choose a commercial membership plan. This type of plan offers a financial incentive to join, rewarding customers who book the most and encouraging them to book more, and is usually managed by the marketing team.
- To generate philanthropic giving and get donors on the first rung of the giving ladder, develop a philanthropic programme. There are few financial benefits to this membership scheme, but people who want to make a charitable gift or get access to non-financial benefits will be motivated to join. Usually, philanthropic membership programmes are looked after by the fundraising team.
If your goal is to do a little of both, you need a scheme that combines a membership fee with a philanthropic gift. By working collaboratively between marketing and fundraising teams, and with the benefits of a connected marketing, ticketing and fundraising system, you can offer financial incentives at the same time as increasing philanthropic giving.
2. Choose the right benefits to offer
When you’re thinking about what benefits to offer, there are two golden rules:
- Make sure your membership brings in more money than it costs to run. This might sound obvious, but there are plenty of examples of memberships that don’t do this.
- Beware offering a single membership with just one benefit level. It’s much better to offer multiple entry points by developing tiered memberships that offer benefits at different levels. Performing Arts Houston created membership tiers ranging from $25 right through to $10,000, giving customers a clear pipeline to grow loyalty and increase their giving year on year.
Benefits that cost you money
There are some great benefits you can offer that will cost you a small amount of money, but will be an effective incentive to join your membership scheme. These financial benefits make memberships easy to sell, generating income and more bookings.
In Spektrix, members can access any of the following benefits automatically when they log in. There's no need for discount codes or manual processes by your team.
- Waived booking fees
- Percentage discounts on some or all tickets
- Top price seats at a discounted price
- Discounts on your catering or merchandise
- Free events, such as members' receptions or season launches
Benefits that don’t cost anything
You can offer members valuable benefits that don’t cost you anything. These are great if you want to set up a philanthropic membership programme:
- Priority booking periods
- Priority mailings
- Thank you messaging in event programmes or on your website
- Exclusive access to chargeable benefits, like the ones listed below
Benefits you can charge members for
Finally there are benefits that do cost something to your organisation, but can also carry a small additional cost to members. They require a small amount of administrative time, but are great options for any kind of membership scheme as they both generate revenue and increased engagement:
- Pre and post-event talks
- Building and backstage tours
- Dress rehearsals
- Artist meet and greets
3. Tailor your membership scheme around customers' interests
You might know what you want to get out of a membership programme, but to make it successful you'll also need to give your customers what they want. Delve into audience behaviours by looking over their booking and donation history, understanding their interests, building segmentation models and mapping them to customers' motivations and incentives.
The following examples explain how to analyse customer behaviours in Spektrix. If you're using a different CRM system, reach out to your Support team for guidance. They should be happy to spend time helping you make your membership schemes a success.
- Priority booking. Use drag-and-drop segmentation tools to build Customer Lists, where you can easily identify those customers who book early and choose your most popular events. If they're drawn to programming that regularly sells out, or if they love to pick their favourite seats every time, then the offer of priority booking may be a great incentive for them to join your membership programme. Priority booking is easy to set up, doesn't cost you anything, and generates income through membership fees. It's a great option if you're just getting started with memberships and exploring which options have the greatest impact.
- Waiving transaction fees. The Ticket Sales Analysis report gives a breakdown of sales by channel, price band and more. This will tell you the proportion of customers in your chosen segment who purchase tickets over the phone or at the counter. Waiving booking fees for online purchases not only provides a great incentive for customers to join, but also frees up time for your box office team by nudging patrons to make their purchases through your website.
- Philanthropic giving. The Donations Analysis report breaks down the proportion of customers making a donation when they purchase tickets. If you identify a segment of customers who already have a high propensity to give, a philanthropic membership scheme would encourage them to take the next step on the donation ladder.
- Membership pricing. Understand customers' spending patterns using the Customer Analysis report to explore average spend per order and per ticket. Use this data to indicate how much people might be willing to pay for a membership. For example, if the average spend per order is £30, a £20 membership represents a big increase on the cart value. If the average spend per order is £100, that same £20 membership might prove to be an easier upsell.
4. Do some due diligence
Make sure that you’re asking the right questions about your membership scheme and how it fits in with your wider offer. Talk to other departments, understand their strategic plans, and think collaboratively about how to build the most successful membership campaign.
- Does your membership programme offer a better deal to customers than any current offers (e.g. flexi-series, season tickets, preview nights)? Your membership needs to be easy to understand, so avoid conflicting messages and make sure your members get the best deal.
- Does your membership scheme undermine your other fundraising efforts? If you have targets for individual giving, make sure you’re not confusing people by encouraging them to become members while also asking them to sign up to regular donations.
- How many members do you need for the programme to be profitable? Don’t forget to take into account any staff time required. Once you’ve worked this out, is it still feasible?
- Who'll be responsible for managing the scheme? A CRM with good, integrated fundraising and membership tools should make it easy to set up and sell memberships, and help members access their benefits. But even the best software relies on your team finding the time to monitor sales figures, track targets and continually improve the promotion of your memberships.
5. Promote your membership scheme
Even with great incentives on offer, you’ll still need to market your programme to customers. Here are a few ideas to get your membership invitation in front of the customers who are most likely to show an interest.
- Target potential members. Segment your database to find customers based on their past behaviours. For a commercial membership plan, look for people who spent over a certain amount on tickets in the past year, and might have saved money as members. For a philanthropic membership plan, focus on audience members who regularly donate at the point of sale.
- Flag potential members to upsell. Once you've identified your most likely prospective members, tag them in your CRM system. That way, box office and front of house teams can quickly see who they are when they call, collect or scan their tickets, giving them an opportunity to upsell your membership programme at the point of sale.
- Create a simple purchase pathway. Make it easy for customers to purchase memberships online, as part of another transaction or as a standalone item. In Spektrix you can mix and match targeted upsells at checkout with one-click Memberships prompts on the website, making it smooth and simple process for visitors to join your program, no matter their starting point.
6. Keep your members engaged
So you’ve developed a solid membership scheme and you’ve got a growing list of members. Great job! Now you need to keep them on board. Here’s how:
- Set memberships to renew automatically. Memberships set to auto-renew see a 60% increase in renewal rates. Using Continuous Payment Authority, customers can purchase renewable memberships online with just one added checkbox, increasing your long-term revenue while maintaining a smooth booking journey.
- Remind members to enjoy their benefits. Once your programme's up and running, make sure members are making the most of any benefits you offer and are engaged with your organisation. Set automations to flag any patrons who haven't accessed key benefits and contact them individually, or build email automation programs to remind them not to miss out.
- Remind your whole team to say thank you. Tag members in your CRM system so they're highlighted to box office and front of house teams, every time they visit. Keep team members informed about member benefits and current philanthropic activity so they can thank members for their support and remind them what more they could enjoy.
Above all - don't forget to listen. Give members the opportunity to tell you what they think, ask them what other benefits they'd like to receive, and reach out to them if they don't renew. Even if you can't persuade them back, it's important to know what made them leave. Be sure not to promise you'll fulfil every individual request, but record feedback, look for patterns, and use feedback to drive sustained success.
7. Keep experimenting
Once you’ve developed a membership scheme that fits your objectives and the needs of your patrons, don’t stop there. Too many membership programmes fall flat because they are never reviewed. Undertake regular data analysis and review members' feedback to check if the scheme is working as you intended or if there's room to achieve even more.
If lapsed members tell you the price is too high, consider a lower cost, entry level tier. If a good proportion of people choose your highest tier, consider creating an even higher value option. If very few people are attending post-event talks, try replacing that benefit with something that excites them more. The makeup of your audience changes year on year, so make sure you're not doing things one way just because that's how it's always been - mix and match incentives to meet the needs of your longstanding audiences, and to build loyalty among the loyal audiences of tomorrow.