Unprecedented empirical study shows continuing consumer interest and ways to enhance subscriber relationships

A study from Oliver Wyman, “Reimagining the Orchestra Subscription Model,” commissioned by the League of American Orchestras, argues that American orchestras can meet their challenge to retain subscribers and meet revenue needs by exploring methods used in other industries (e.g., retail, grocery, fitness), that build “stickier” relationships with customers.

This Smart News Release features multimedia. View the full release here: http://www.businesswire.com/news/home/20151117005968/en/

There has been a shift away from subscriptions and toward single purchasing. Subscriptions are a key source of revenue, so the shift presents orchestras with difficult choices. Some larger orchestras have offset declines by increasing prices, but that strategy is unsustainable and the tradeoff may be reaching a break point that could trigger a far sharper drop in revenues. The report recommends that the current subscription model must be revitalized and it identifies strategies that orchestras of all sizes can use to increase customer loyalty and participation.

The data-rich study – the first of its kind for American orchestras - draws on ten years of data from four million customers across 45 orchestras of varying sizes and a profile and preferences survey of 4,000 people who attended an orchestra concert in the last five years. The final recommendations are informed by a dynamic market simulation that tested the willingness-to-pay of 1,000 people making 10,000 purchasing decisions in order to reveal the relative attractiveness of various package features.

Some interesting facts uncovered by the study:

  • Satisfaction remains high: Consumers do remain broadly satisfied with the orchestral concert experience – 90% of each patron type is satisfied with their orchestra-going experience and subscribers are the happiest with 77% reporting they are “very satisfied.”
  • Consumers are not abandoning the orchestra for other art forms or entertainment options; but they are disenchanted with traditional subscription models.
  • Millennials are not as price sensitive as many have assumed. To attract them, orchestras should consider expanding their use of social media, apps, and “bring-a-friend” programs that rely on the high level of interconnectedness of those young consumers.
  • It’s about the relationships: Orchestras should explore methods used in other industries (e.g., retail, grocery, fitness), that build “stickier” relationships with customers.

“We are grateful to Oliver Wyman for their contribution to our understanding of subscription dynamics. The study provides a fact-based platform to support the experimentation and innovation taking place at orchestras today,” notes League of American Orchestras President and CEO Jesse Rosen.

Partha Bose, Partner at Oliver Wyman, sees the report as further evidence of Oliver Wyman’s deep commitment to the communities in which the firm works. “The recommendations contained in this report combine deep analytical rigor and sensitivity to the unique challenges of the entire range of America’s orchestras, large and small. They are cultural mainstays of the cities and towns in which they are located, and we hope the report helps them to flourish and to continue to enrich all of our lives.”

The report is available from the League of American Orchestras here and from Oliver Wyman here. A version is also available on the iTunes App Store here.

About the League of American Orchestras

The League of American Orchestras leads, supports, and champions America’s orchestras and the vitality of the music they perform. Its diverse membership of approximately 800 orchestras across North America runs the gamut from world-renowned symphonies to community groups, from summer festivals to student and youth ensembles. The only national organization dedicated solely to the orchestral experience, the League is a nexus of knowledge and innovation, advocacy, and leadership advancement for managers, musicians, volunteers, and boards. Its conferences and events, award-winning Symphony magazine, website, and other publications inform music lovers around the world about orchestral activity and developments. Founded in 1942 and chartered by Congress in 1962, the League links a national network of thousands of instrumentalists, conductors, managers and administrators, board members, volunteers, and business partners. Visit americanorchestras.org.

About Oliver Wyman

With offices in 50+ cities across 26 countries, Oliver Wyman is a global leader in management consulting that combines deep industry knowledge with specialized expertise in strategy, operations, risk management, and organization transformation. Oliver Wyman is a wholly owned subsidiary of Marsh & McLennan Companies [NYSE:MMC]. For more information on Oliver Wyman visit www.oliverwyman.com. Follow Oliver Wyman on Twitter @OliverWyman.

League of American OrchestrasRachelle Schlosser, 646-822-4027rschlosser@americanorchestras.orgorOliver WymanElisabeth Egan, 617-424-3721elisabeth.egan@oliverwyman.com

Marsh and McLennan Compa... (NYSE:MMC)
Historical Stock Chart
From Mar 2024 to Apr 2024 Click Here for more Marsh and McLennan Compa... Charts.
Marsh and McLennan Compa... (NYSE:MMC)
Historical Stock Chart
From Apr 2023 to Apr 2024 Click Here for more Marsh and McLennan Compa... Charts.