New Business Models to Attract New Audiences

In "New Business Models In Emerging Markets", the authors focus on four aspects to building the new model; the customer value proposition, a profit formula, key processes, and key resources. While, these are key for emerging markets, they may be important for current markets to attract new business.

Arts audiences are literally dying. As the audience ages and fewer young people are brought into the theater, museum, symphony etc. organizations are finding it difficult to generate earned and contributed revenue. Trying to get young people invested in an organization or art form starts by having them experience the art. More and more organizations are offering deeper student or young adult discount or events that attract a younger audience. An avid lover of the theater may pay $60 for a seat, while the one right next to them is sold for $15 to a student. This customer value proposition is important to drawing in a new audience. Once they are hooked and they can afford it, patrons will value the product more and be willing to pay for it.

The new profit formula for arts organization can take on two aspects; earned and contributed revenue. We already talked about earned revenue with less expensive tickets. Contributed revenue is an entirely different issue. I received a letter in the mail asking me to donate $150 to my alma mater. When I break it down to about $12 a month, it's not that bad, so we don't go out to eat one time. However, being asked for $150 out of my bank account was not an option. For younger generations, organizations need to focus on installments billing. Paying 10 dollars a month over a year is great and can get the younger audience further invested in the work.

The key resources and processes hinder on the same variable: technology. Marketing and branding have always been an important part of running an arts organization, but they is completely changing for Generation Z. They spend over 10 hours a day with some sort of media and often several kinds at one time. Organizations need to invade these platforms rather than focusing on the traditional pathways to their audience. A systems group is currently working with the Carnegie Museum of Art to map out a social media plan and how to sustain it. This will be integral to attracting a new audience and insuring the museum's mission. This process has the chance to revamp their audience and bring new life into the organization.

Building new models for business does not have to focus on emerging markets. The for-profit sector may have this luxury, but many non-profit organizations do not. They must reconfigure their business model for their current state. Attracting a new audience to the arts will determine the survival of many organizations in the next twenty to thirty years.