Are Subscriptions Still Alive?
“The reports of my death have been greatly exaggerated.”
Mark Twain
Mark Twain’s famous quote comes to mind when discussing the current state of subscription sales. The reports of the death of subscriptions have been going on for the past few decades, and the closures and disruptions of the pandemic took a bigger hit on subscriptions than anyone could’ve imagined. If you want to believe the doomsayers, the arts are always on the verge of extinction.
With seasons starting to launch all over the country, we took a minute to analyze DCM’s 2023-24 subscription telemarketing campaigns. And there is a lot of good news to report.
Subscription phone sales are rebounding from recent seasons, aligning with the improvements seen across other marketing channels.
Several of our campaigns have already exceeded last year's subscription revenue figures, and have achieved this with significantly fewer hours spent on calls. This indicates a positive boost in our campaign efficiency. Further, many of these campaigns still have ample time left to run, which leads us to anticipate significantly greater sales revenue by the end of the campaign period. For example, one orchestra has already generated 4% more revenue than last year in just half the time, with several months still remaining in the campaign.
What’s behind these results? We’re happy to report that renewing subscribers are returning at prepandemic rates. During the pandemic and through last season, current subscribers were renewing at historically low levels with close rates* that were on par with that of non-subscribers. Now, current subscribers are buying at rates observed before the pandemic.
It's important to acknowledge that many factors are influencing the current state of subscription efforts, and the volume of subscribers is still lower than before the pandemic. A recent report by JCA Arts Consulting discusses the decline in subscription sales while also pointing out that increasing single-ticket sales are not offsetting this decline.**
Charlie Wade, former VP of Marketing at the Philadelphia Orchestra, Seattle Symphony, and Atlanta Symphony Orchestra, notes that this is the time to dig into acquisition:
“Ticket sales were down and we know why - the pandemic. But people are returning to live performances, and in some instances in large numbers. There are now more single-ticket buyers, presenting an increased opportunity for rebuilding subscriber bases. Subscribers will remain the lifeblood of many organizations for the foreseeable future; not just as ticket buyers but also as donors. Which is why it’s imperative to invest in rebuilding this critical base of support.”
DCM is happy to report that for the past decade, including the turbulent period of the pandemic, outbound telemarketing efforts have continued to maintain an average close rate for new sales that hovers around 4%. The key now is to get back to basics: convert single-ticket buyers and lapsed subscribers into subscribers. Subscriptions are still alive, and it’s up to us to make them well.
Definitions and Notes:
*Close Rates: This refers to the amount of people we contact who purchase a subscription or make a gift over the phone. # of Households Contacted / # of Gifts or Sales = Close Rate.
**JCA Arts Marketing’s recent “Trends in Audience Behavior” reports that subscriptions have declined and now represent less than 30% of the audience for each performance. Single ticket sales are not making up for lost subscribers, indicating that we need to grow new audiences and loyalty programs.