The Situation
The Toronto Symphony Orchestra* faced two alarming trends:
- Customer retention had dropped from 80 percent to 69 percent in the previous four years, significantly underperforming peer cultural institutions.
- Revenue trends were disheartening. In the previous three years, subscription revenues had remained flat while costs rose 10%. Other revenues were projected to decline by 10 percent, and government funding (over 25 percent of revenue) was expected to decrease in coming years.
Bain was asked to devise a turnaround strategy that would:
- Increase the size and profitability of the subscriber base
- Determine the economic value of strategic alternatives
Our Approach
Bain used a three-pronged analytical approach to develop an initial fact base.
![](/contentassets/6f625f94ed8742cda6dcff8485460cc1/id_7_2.gif)
Our Recommendations
Based on key findings, Bain recommended targeting controllable factors to boost retention and revenues.
![](/contentassets/6f625f94ed8742cda6dcff8485460cc1/id_7_3.gif)
The Results
Bain recommended five initiatives to support the key findings. The Toronto Symphony Orchestra implemented several of these initiatives, resulting in a significant increase in customer retention.
![](/contentassets/6f625f94ed8742cda6dcff8485460cc1/id_7_4.gif)
* We take our clients' confidentiality seriously. While we've changed their names, the results are real.