Catégories
Management

CRM in cultural institutions

What is the purpose of CRM?

CRM as a strategic approach for better understanding customer preferences

In a previous article, we defined CRM as a strategic approach for better understanding customer preferences, habits, desires, motivations, practices and needs, even though these elements can shift rapidly in response to changes in environment, lifestyle or spending habits. The purpose of this knowledge is to improve the customer experience, personalize relationships with visitors and build loyalty.

As its name implies, CRM involves three components:

  1. The customer. Good customers generate higher profits from fewer resources. Information technology can be used to distinguish good customers from poor ones and better manage the former to keep their business.
  2. The relationship. This involves short- or long-term ongoing two-way communication and interaction.
  3. Management. With effective management, a company’s culture and business processes can constantly evolve and adapt to its customers’ needs.

CRM benefits and limitations

CRM must provide a competitive edge. For example, a business that better understands its customers can be more effective and reduce its advertising costs by targeting a very specific clientele that is receptive to the message. However, it is imperative to protect the confidentiality of customer data. Clients consider CRM information very personal, even private. To limit the intrusiveness of this approach, it is key to keep certain basic rules in mind:

  • Inform customers of the fact that personal information is being gathered to be used for specific purposes.
  • Give them a chance to opt out of this type of monitoring. 
  • Allow them to access and modify the information about them. 
  • Protect their data against all unauthorized uses.

Some tools and techniques

  • Online, mobile and digitalSuch tools enable companies to maintain an interactive relationship with visitors (information requests, special offers, loyalty programs, etc.) through multiple communication channels (mailings, SMS, emails, etc.). They facilitate online queries, which can lead to the creation of things like adapted programming.
  • Relationship marketing. The goal of relationship marketing is to develop preferred customer relationships by making personalized offers. 
  • Database creation and exploitation. Data related to Web traffic (number of visits, pages visited, length of visit, etc.), the use of interactive screens or electronic tablets, information requests (on-site, by phone, via Web form, by email) and user profiles (socio-demographic data, cultural practices, likings expressed, purchase history, preferences, etc.) must be accessed quickly and easily to provide a personalized response to the needs of every customer.
  • Data mining. This technique uses automated or semi-automated methods to quickly extract specific useful information about a target group from large quantities of data. In other words, it makes the data « speak. »
  • Yield management. Derived from computer reservation systems, yield management is used to adjust prices in real time so as to optimize revenues. In the case of cultural institutions, it means better managing the flow of visitor traffic by, for example, encouraging certain people to take advantage of a better price during specific operating hours.

The example of the Dallas Museum of Arts 

The Dallas Museum of Arts (DMA) loyalty program, DMA Friends, uses a digital tracking system to better understand its visitors’ needs and interests. The program encourages visitors to sign up as a DMA friend at an iPad kiosk located in the lobby. When they sign up, new friends receive cards that enable them to track their interaction with the museum, both inside its walls and online. After each visit or cultural or educational activity, friends earn points that can be redeemed for free admissions, shopping discounts, behind-the-scenes tours or invitations to special events. This project was designed to encourage long-term visitor engagement with and active participation in the life of the museum.

CN_GRC_sites_culturels_image1

Source: Club Innovation & Culture France

The DMA received a $450,000 grant from the Institute of Museum and Library Services (IMLS) to fund program research and expansion throughout the United States. The first institution to take advantage of this will be the Grace, the 10th largest museum in Texas. The Los Angeles County Museum of Art and the Minneapolis Institute of Arts are next in line to adopt the platform, thus expanding the collection of data on American museum visitors.

CRM must constantly focus on fully using data to better communicate and promote products and thus effectively meet customer needs and build loyalty.

 

Analysis written within a partnership with Tourisme Montréal on cultural tourism.

Catégories
Products and activities

Culture: The key to urban tourism

In the new millennium, Montréal’s leaders and opinion-makers have continually emphasized that the future of their metropolis is tied to culture. But it isn’t the only city to have recognized the value of culture. Toronto has decided to invest heavily in its cultural infrastructure, while New York City has opted to directly support creative endeavours in order to consolidate its reputation as a city of cultural excellence. More than ever before, culture is the beating heart of a city.

Economic advantages of culture

In a world where cities rather than countries are the real players in a competitive global economy, culture is now widely recognized as a vehicle of economic and urban development. By virtue of its ability to generate a creative environment that attracts the investors and talents of the new knowledge- and innovation-based economy, culture is destined to become increasingly ingrained in the urban fabric.

So it’s no coincidence that urban tourism is associated naturally with cultural tourism. A recent study by the European Travel Commission suggested that a mere 20% of tourists who visit a European city mention culture, in the broad sense of the term, as the main reason for their visit. Yet even if a large number of urban tourists do not view themselves as cultural tourists, the majority of urban vacations include at least one cultural activity.

While urban cultural tourism continues to be dominated by the great capitals of culture such as Paris and London, the current trend of improving the cultural offering means even cities previously lacking cultural interest can emerge as new tourist destinations.

Development through construction


Faced with the daunting challenges of urban renewal, many cities choose to develop major cultural infrastructures as a way of tangibly communicating the transition towards a new economic era. Among the oft-cited examples is Bilbao in Spain, which signalled its march to the future by commissioning world-renowned architect Frank Gehry to design the breathtaking Guggenheim Museum. In addition to transforming Bilbao?s image, the museum drew more than 1.3 million visitors in its inaugural year, 1997. Significantly, 79% of the visitors said they chose Bilbao as a destination with the express purpose of seeing the museum.

Bilbao’s success has inspired numerous European and American cities to revamp their images and breathe new life into tourism by constructing major architectural works.

In Scotland, the city of Glasgow, proud possessor of a substantial industrial heritage, is investing in the creation of a spectacular new Museum of Transport, scheduled to open in 2009.

Toronto, too, has launched several major projects, including the overhaul of the Royal Ontario Museum ($200 million), construction of the Opera House ($181 million), Gehry’s redesign of the Art Gallery of Ontario ($180 million) and the renovation of the Gardiner Museum of Ceramic Art ($15 million).

Rethinking the urban space

Other cities have opted instead for urban renewal projects aimed at enhancing and improving access to the culture. Some of these projects are meant to re-energize a heritage district and others to change the vocation of an old quarter, as in the case of the revitalization of Québec City’s Petit Champlain and Saint-Roch districts. The latter, site of workshops and stores since the founding of New France, is today a thriving mix of historic homes, restaurants, businesses and theatres. Saint-Roch, meanwhile, owes its new lease on life to one of the largest urban construction projects in the provincial capital. The city invested $5.2 million in the landscaping of Jardin Saint-Roch, a veritable oasis of greenery amidst the greyness of the then-neglected neighbourhood. Today the neighbourhood is a hot new destination in the heart of the city, boasting trendy restaurants, fashionable watering holes, lovely avant-garde boutiques and more than 100 artists’ studios.

Redevelopment can also help structure the urban cultural offering. In Montréal, municipal leaders have been working in partnership with local tourism and cultural sectors since 2003 on development of an arts and entertainment district to be called the « Quartier des spectacles. » A similar initiative was recently launched by Vancouver, which this past April (in collaboration with British Columbia’s Ministry of Tourism, Sports and Arts) announced a $10-million investment to support creation of a cultural precinct in the heart of downtown.

Vienna, meanwhile, saw fit to think big, combining the concept of a cultural district with new cultural buildings to create a kind of « complex of culture » – the Vienna Museum Quarter. At 60,000 square metres, the vast cultural-tourism-recreational site features more than 40 cultural institutions showcasing art in all its forms. In its first year, the complex welcomed more than two million visitors.

Urban vitality and local culture

Other cities are tackling the issue of cultural development with an approach that’s less about architecture and urbanism, and more about trying to promote and support the creativity of artists and artisans as well as the characteristics of the local populace. In this vein, the mayor of New York recently declared that development of the city’s cultural vitality depends on the energy of its cultural endeavours, and that a special office would therefore be created to directly support creative artists and actively defend New York’s title as North America’s arts and culture capital.

In Washington, DC, in an effort to ensure that cultural development benefits all, the organization Cultural Tourism DC has developed self-guided walking tours through historic neighbourhoods located outside the traditional city centre. The objectives were to promote Washington’s different neighbourhoods, get local communities involved, develop cultural products and foster success by ensuring products were truly ready to receive visitors. This approach recognizes culture as an engine for tourism development, and that participation of the local population is necessary for sustained cultural development.

Meanwhile, the popularity of many festivals among locals and tourists alike is another interesting illustration of how culture can act as a promoter of local development. French sociologist Gilles Arnaud says the success of festivals arises out of a number of trends, such as:

  • the quest for pleasure, shared feelings, and spontaneity, rather than over-intellectualized pursuits,
  • an attraction to the transitory, as opposed to the traditional idea of culture as something durable, permanent and intangible down through the ages.

Authenticity comes first

It appears each city must adopt an approach to cultural development tailored to its specific circumstances, history and means. Urban and cultural tourism, for its part, is simply what flows from the existing and constantly evolving dynamics between the inhabitants of urban spaces and those who visit them. City planning, sociology, tourism and ultimately the economy itself appear to be but variables in the same equation: that of living well together.

In collaboration with Matthieu Clair Saillant

Sources:
Brault, Simon. « Montréal, métropole culturelle inachevée, » Le Devoir, April 27, 2006.
City of Vancouver. « Province and City Plan New Vancouver Cultural Precinct, » Press release, April 5, 2006.
Cloutier, Mario. « Montréal n’a rien à envier à Toronto comme métropole culturelle, » La Presse, May 10 , 2006.
Commission Européenne du Tourisme. « Une étude de l’OMT et de la CET analyse les futurs enjeux du tourisme urbain et de la culture en Europe, » Press release, November 8, 2004.
Joyal, Serge. « Montréal a-t-elle perdu son statut de Capitale culturelle du Canada? » La Presse, August 15, 2005. Plaza, Beatriz. « Evaluating the Influence of a Large-scale Cultural Artefact in the Attraction of Tourism – The Guggenheim Museum Bilbao Case, » Urban Affair Review, Vol. 36, No. 2, November 2000.
Rioux Soucy, Louise-Maude. « Tourisme culturel: New York sort les griffes, » Le Devoir, April 6, 2006.