Due to COVID-19, many museums and cultural organizations are facing significant disruptions to revenue with the absence of gate attendance and on-site purchases. From membership extensions, halted acquisition campaigns, canceled events, to public funding cuts, many other traditional revenue streams have also been interrupted. Even as organizations prepare to reopen and welcome members back, traditional events and other common revenue sources may be diminished or even off the table entirely for quite some time.

Despite the challenges, by rethinking the membership business model, initiating virtual events, and seeking out new revenue opportunities, membership departments and cultural institutions have the potential to bounce back, and membership can continue to be a primary revenue stream.

Over 2,000 guests joined Dan Sullivan (Head of Growth and Partnerships @ Cuseum), Claire Byfield (Membership Manager: Engagement @ British Museum), Tom Knowles (Membership Events Manager @ British Museum) & Rosie Siemer (Founder & CEO @ FIVESEED Membership Consulting) as they discussed how membership, revenue, and events can be reimagined to bolster museums and ensure their financial health going into the future.

View the video recording here.

Read the top takeaways below!

Develop New Strategy and Language Around Acquisition and Renewals

As museums look to increase their revenue streams, developing positive and sensitive messaging around acquisitions and renewals is a top priority.

While many are eager to begin their acquisition efforts again, taking a soft approach in your first communications through email and digital and gauging how your members are responding may be the best path forward. As Rosie explained, once you start to understand how members are reacting to your first outreach efforts, then you can prepare for a bigger investment in terms of direct mail acquisition efforts.

“A lot of the more mission-oriented members are doing their part to stay involved with the organization and they understand that they're an important revenue source for the organization, so they want to keep contributing.”
– Rosie Siemer

To date, renewal efforts have been very successful for many organizations, as members are eager to continue to support the organizations they care about. Claire noted that the British Museum has seen only a 6% decrease in retention rates. She attributes some of this success to auto-renewals but also stressed that her organization has honed in on softer wording in their messaging. Using this type of lighter touch to communicate with members about renewals has also led to more donations from members looking to contribute during these difficult times.

Consider Membership Extensions and Special Offers

Due to long closures, some organizations are offering membership extensions. Some organizations are giving these extensions to all their members, while others like the British Museum are not offering blanket-wide extensions, but instead opting to give extensions on a per-request basis. The British Museum determined that not everyone may want an extension, but they have been careful to craft their messaging to communicate that there are options and solutions for those experiencing financial hardship.

The British Museum has also been thinking up creative alternatives to membership extensions and discounts.

“One way that we're thinking of doing that is through events, rather than giving discounts or anything like that, putting on lots of free events and activity to help reanimate the space, to reintroduce the members back to the collection, which will be relatively cost-effective as well, rather than the major impact that discounts would have.”
– Tom Knowles

Since it’s difficult to determine how long the closures may last in the UK, as well as the financial implications that may result from issuing everyone extensions, the British Museum is focusing on creating events that will help re-engage their audience.

In the United States, some museums are exploring new, affordable ways to attract and retain members by offering monthly payment plans. As noted by Rosie, the San Antonio Zoo is now offering a monthly payment plan starting at $3 a month. She cautioned against museums offering too many discounts to members at this time and instead offering value to members through virtual experiences or special access to events once your institution is able to re-open.

Rethink Events (And Get Creative!)

With social distancing guidelines in place, events will look much different upon reopening. In the United States, many institutions are facing 25% capacity rules for the foreseeable future. To deal with these restrictions, some institutions are doing “soft openings” for members and offering exclusive hours to older members. All panelists agreed that timed ticketing will help with social distancing guidelines by eliminating lines. Claire expressed that the British Museum may use the more empty galleries to their advantage, offering exclusive tours to small groups.

Because some members may still be hesitant to return, including digital offerings alongside physical programming can help ensure that all members are able to participate in scheduled events. As Rosie noted, the creativity and innovation displayed by museums during this time has been truly amazing. She sees these new digital offerings as an opportunity to reach wider audiences who may not be able to physically attend, and she likewise encouraged museums to test and try new things involving digital experiences.

“It's opened the doors for a lot of new audiences to have their first experience and first touch with the organization. They may have never walked through the doors before.”
– Rosie Siemer

The foundations have been laid to provide quality digital content to members, now institutions are looking at how they can create a new revenue stream through their online material.

Create New Revenue Streams

In offering digital content, many museums are having success by providing the option for members to donate online while viewing their content. Institutions like the Cincinnati Zoo are encouraging donations by offering downloadable Zoom backgrounds. Botanic gardens like Denver Botanic Garden have likewise been doing plant sales where members can drive up and pick plants up curbside. As workshops and lectures move online, there is also an opportunity to ask for donations or charge a fee to be able to attend the online event.

“We've got to somehow fit this into our new normal. We're not just going to go back to normal lectures. Lectures are going to be forevermore live lectures, which are then available as an archive, and it's totally going to change the expectations of our members.”
– Claire Byfield

As Claire pointed out, the older demographic is also becoming much more in tune with digital tools than they were before the COVID-19 pandemic. She sees this as an opportunity to create a digital membership option that can offer access to members who may no longer make it to the museum.

Although it is difficult to recreate large scale physical events such as galas and bigger fundraising events, institutions are having success with smaller, more casual digital events. Rosie suggested hosting more participation-based experiences like wine tastings to create a more social feel to virtual fundraising efforts.

The future of membership and events has been greatly altered by the coronavirus pandemic. It will be sometime before institutions are able to welcome back a full-scale audience. Through this all, there is comfort in knowing that there are many opportunities to generate revenue both on-site and virtually!

Looking for more information? Check out our coronavirus resources page.

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