Customer Intelligence Meets The Cultural InstitutionCustomer Intelligence Meets The Cultural Institution

Streamlining Operations

The zoo now uses Cognos-based reporting and historical analysis to better predict future attendance. It's a simple matter to see attendance by day of the week, month and holiday, but the data warehouse has also been enhanced with historical weather data. Thus, the zoo can now predict attendance based on weather forecasts.

"We're adding labor-spend data to give our managers a picture of what to expect [in terms of labor requirements] if it's going to be 85 degrees and partly cloudy on the second Saturday in June," Lucas explains.

Labor is one of the biggest cost variables for cultural institutions, and the savings can be significant if staffing levels are better in tune with actual need.

Weather analysis also improves inventory and supply chain planning. For example, hot weather demands extra supplies of bottled water and beverages, but if it's over, say, 90 degrees and sunny, attendance actually drops off, and with it demand for food and beverages.

The bulk of the zoo's business is on weekends, so Lucas uses weekly Tuesday staff meetings to set each week's operational plans. The meeting now incorporates a review of historical reports on revenue, labor and retail activity based on the week, month and predicted weather.

Inside Watson, IBM's Jeopardy Computer

Lucas used to spend hours each Monday morning compiling data into Excel spreadsheets to share with managers and the board of directors. The IBM Cognos software now sends much more detailed reports automatically. What's more, more than a dozen key finance, marketing and operational managers have direct access to Cognos can drill down to explore more detailed data.

Maximizing Revenue

The bottom-line result of Cincinnati Zoo's analytics implementation is increased revenue and reduced operational expense. The data warehouse and deep analyses weren't available until well into last year's peak season, yet the implementation is credited with driving a $350,000 increase in revenue in 2010.

With the coming launch of the new loyalty program, Lucas says he's expecting even better results in 2011. The zoo expects to be able to boost attendance by 50,000 visits per year by building a wider base of known customers and then driving more targeted and cost-effective marketing campaigns.