For Savvy Art Galleries,
Membership Has Its Privileges
By Erika Rasmusson Janes

When it comes to membership programs, it's no surprise to find them in place at health clubs, video stores and even museums. But at retail art galleries? That's a different story. Still, savvy galleries across the country are using membership programs to drive sales and consumer interest - and to set themselves apart from their competition.

   At Eclectic Art & Objects Gallery in Pittsburgh, director Robert Keller has been operating a Collectors Circle membership program since his gallery's inception in 1986. Collectors Circle members - who number more than 1000 - receive several benefits. A discount program gives them 5 percent off for each $500 spent, up to 20 percent. Complimentary hanging services are available to members who purchase original art. A lay-away policy lets members hold and pay for artwork over a 90-day period. And an innovative trade-in program allows members to trade in any painting, sculpture or limited-edition print to the gallery at any time for credit against the purchase of another piece. Other benefits include a quarterly newsletter and invitations to gallery shows and artist events. Customers who spend $500 or more (most of Eclectic's artwork retails for $2000 to $3000) at either of the gallery's two locations or online are automatically enrolled in the program; there is no additional membership fee.

   The Collectors Circle "is a pretty major part of our business," said Keller, who won't share a specific dollar amount but admitted that the program contributes up to 50 percent of the gallery's sales. "It provides us with the selling edge that induces people to make the purchasing decision," he said. "When someone is interested in a piece of art, we will discuss the Collectors Circle benefits, because there are people who are shy about spending more than a couple of hundred dollars on a piece of art."

   According to Keller, having a membership program in place - especially with the trade-in policy - gives customers a feeling of security about their purchases. The program also helps drive online sales, which Keller said account for 50 percent of Eclectic's business. "It's really about credibility," he said. "We give [customers] the assurance that their purchase is protected. That goes a long way to providing a comfort level when dealing with the gallery online."

The Collectors Circle also keeps customers coming back to the gallery, which, of course, is the entire point of such programs. "We've found that by providing a loyalty program, we [motivate] our collectors and corporate clients, through a series of benefits, to stay with us."

Customer loyalty is also the aim of the four-year-old membership program created by International Visions - The Gallery, according to Tim Davis, director of the Washington D.C. -based fine art gallery. Annual fees, which range from $25 for an individual membership to $150 for a corporate membership, give members a range of benefits. They include a 5 - to 10 - percent discount on art (which can range in price from $250 to $15,000), a free newsletter, invitations to artist talks and meet-and-greets, special events such as book signings and poetry readings, exhibition previews and discounts on group trips that the gallery arranges. This summer, for example, the gallery is offering an art-based tour of Australia to learn about Aboriginal artists.

   Another perk is the annual "Members Night" - a party for members, which is held around the holidays. For the past three Members Night parties, Davis has taken art from the gallery and set up a show in a member's home and then hosted a silent auction. "It's fun because members get to bid on their favorite pieces," he said. "We have music, lots of catered food and drink. It's a big event as far as giving back to our members for their support.

Davis started his membership program, in part, to help customers save money and "really to get the repeat customers coming back, coming to openings and telling others," he said. For International Visions, however, the membership program is not a major revenue source. The program is smaller than Eclectic's; it currently includes about 150 members. "It's not really revenue building - we benefit because it gets people into the gallery." Still, Davis said the fees allow him to give small honorariums to visiting guest speakers.

   Bill Dorsey, an artist who has two shows at International Visions, has also been a gallery member since 2000. He hasn't participated in any members-only artist talks from a professional standpoint, but said he enjoys the sense of community the membership program provides and the oppurtunity it offers to connect with other art enthusiasts. "We visit each others' homes and see each others' collections," he said. He's also enjoyed the discount on the numerous occasions he and his wife have made purchases.

   For galleries trying to replicate these programs, Keller has some advice: Don't try to create carbon-copy, one-size-fits-all programs. "Look at your total strategy," he said. "You don't just decide to create a membership program. Look at it against your profit structure - can you afford to give up to 20 percent off? Another issue is, you can't provide a return policy or trade-in policy on artwork if the primary inventory in your gallery is on consignment. We own the artwork in our gallery, so we can make that promise."

   Keller said that gallery owners should create loyalty programs that are realistic and beneficial to both the gallery and its client base. "Understand your clients' needs, and base your membership program on those requirements," he said. "Make it easier for them to do business with your gallery than the gallery down the street."