Relationship Marketing, Audience Retention and Performing Arts Organisation Viability

Marketing strategy in performing arts organisations has become particularly important in the increasingly competitive environment in which the arts operate. Since the late 1980s there has been a necessary shift in focus to audience development away from product development. This change in focus is being encouraged to ensure the long-term viability of performing arts organisations (PAOs) and micro-economic reform. While government reports have recommended strategies aimed at building audience-based recognition, this is an expensive approach for many PAOs and does not produce short-term returns. Little attention has been paid to building enduring relationships with existing audiences as a way of having a more dramatic impact on PAOs' long-term viability. This paper explores this theme through relationship marketing and the implication of retaining existing audiences. The paper identifies the changing cultural environment which has led to the importance of marketing. It then explains the concepts of relationship marketing and its pertinence to PAOs' viability by presenting a loyalty ladder. The structure is modelled as a dynamic conceptualisation of the relationships (audience and organisation) to assist arts managers to decide whether to focus their efforts on catching or keeping customers to maximise earned income. Copyright © 2002 Henry Stewart Publications