Michigan’s Hunting and Angling Customers

Natural Resource Commission Marketing, Partnership, Youth, Outreach Advisory Committee

R.A.M. Center, Roscommon, MI

March 19, 2015

Jody Simoes, MOD

1

Michigan Hunters and Anglers Unique Customers 2009 - 2014

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2009 2010 2011 2012 2013 2014

All Customers

Angling Customers

Hunting Customers

- 5.0%

- 6.6%

Nonresident Fish – 9.5%

2

- 6.4%

Nonresident Hunt – 17.1%

Hunting and Angling Customers

Understanding Customers: Example Data Resources

3

USFWS License Reports

MDNR Harvest Surveys and Technical Reports

Michigan Retail Sales System

Academic, Industry and Agency Research (e.g.) • Outdoor Industry Association • National Shooting Sports Foundation • American Sportfishing Association • National Marine Manufacturers Association

USFWS HIP and FHWAR Surveys

Data Resources

Michigan’s Total License Market Tags and Licenses Sold*

4

Fish (37%)

Deer (includes antlerless) (45%)

Small Game, Spring Turkey,Waterfowl (15%)

Bear, Elk, Furbearer, Fall Turkey(3%)

*5 yr. average 2009 -2014

Data Resources

Angler/Hunter Customer Markets* 2009 - 2013

5

FISH 43% HUNT

29%

Fish and Hunt (28%)

RESIDENTS Averaging 1.3M Customers Resident Anglers: 43% Resident Hunters: 29% Resident Anglers+ Hunters: 28%

Fish and Hunt (3%)

FISH 84%

HUNT 13%

NONRSESIDENTS Averaging 230K Customers Nonresident Anglers: 84% Nonresident Hunters: 13% Nonresident Anglers + Hunters: 3%

*approximate representation, part of a developing analysis of market share

Data Resources

Customer Data Collection: Developing a Targeted Marketing Approach

• The average camper/hunter/angler doesn’t exist

• User profile research implies a marketing perspective

• Market research used to develop targeted marketing mix

6 Data Applications: Targeted Marketing

Targeted Marketing Approach: Segmenting, Targeting & Positioning

7

Segmentation

Target Marketing

Positioning

Identify and understand characteristics of customers.

Select customers to serve and focus resources to serve them.

Tailor marketing efforts (e.g. timing, content, medium).

Data Applications: Targeted Marketing

Model of Consumer Behavior

8

Consumer Behavior Model (Hawkins Mothersbaugh 2010)

Data Applications: Targeted Marketing

So what happened? Examining License Purchasing Behavior

9

26

27

28

29

30

31

32

1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013

28 million 27.9 million

- 3%

Sales of U.S. Fishing Licenses 1980 - 2013

Year

Lice

nse

s So

ld (

mill

ion

s)

31.5 million - 11%

10 US Fishing License Sales

Sales of Michigan Fishing Licenses 1980 - 2014

11

0

0.5

1

1.5

2

2.5

1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013

- 41%

1.4 million

2 million

1.2million

Lice

nse

s So

ld (

mill

ion

s)

- 10%

Year

Michigan Fishing License Sales

Resident v. Nonresident Angler Demographic Comparisons

Description Esri Tapestry™ Profile Description

Resident Anglers

Nonresident Anglers

High Society affluent, well educated, professional employment,

highest income, travel, active 10% 19%

Upscale Avenues prosperous, well educated, above-average income 16% 19%

Metropolis city families, urban lifestyles, row houses, public

transportation, service related jobs 3% 2%

Solo Acts city life, single, young, well educated, professionals,

urban lifestyles 2% 4%

Senior Styles large group, retires, income f/ Soc. Sec. & pensions, 15% 12%

Scholars and Patriots young, lower incomes, college and military, low

home ownership 1% 1%

High Hopes young, mobile, college educated, couples, single

parents, and singles 2% 3%

Global Roots ethnically diverse, young, modest income, renters,

recent immigrants, mostly with children 1% 2%

Family Portrait fastest growing, young families, ethnically diverse,

single family homes 4% 7%

Traditional Living middle America, settled families, older,

neighborhoods, traditional media 11% 11%

Factories and Farms lower income, rural living, manufacturing and

agriculture employment 20% 13%

American Quilt small towns, rural areas, mobile homes, rural lifestyle 16% 7% 12

Fishing customers with an out-of-state address

13

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

2012 2013 2014

197,392 203,751

184,336

- 9.5%

Nonresident Fishing Customers

0

50,000

100,000

150,000

200,000

250,000

300,000

2004 2006 2008 2010 2012 2014

Nonresident Restricted

Nonresident All-Species (Annual) + 63%

Nonresident 24 and 72 hour

Total Nonresident License Sales

+ 27%

- 4%

Nonresident Licenses (Restricted and All-Species & 24 and 72 hour)

2004 - 2014

Year

Lice

nse

s S

old

*Introduction of 72 hour license

14 Nonresident Fishing License Sales

0

50,000

100,000

150,000

200,000

250,000

2004 2006 2008 2010 2012 2014

24 hour

Restricted

All Species (Annual)

-25,137 customers

+ 27,299 customers

Nonresident Customers (Restricted and All Species & 24 and 72 hour)

2004 - 2014

Year

Dis

tin

ct C

ust

om

ers

72 hour

Total Distinct Customers

- 9.5 %

15 Nonresident Fishing Customers

Nonresident Customer Behavior Purchasing Behavior / Churn Rate 2009 - 2014

2010 2011 2012 2013 2014

Repeat Customers (purchased in previous year)

percent 37% 26% 36% 27% 38%

New Customers (did not purchase in previous 5 years)

percent 53% 70% 59% 67% 58%

16 Nonresident Fishing Customers

2014 License Purchasing Behavior of Repeat Nonresident Customers

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Restricted All Species 24 Hour 72 Hour

72 Hour

24 Hour

Annual

Hunt/Fish

17 Nonresident Fishing Customers

License Purchasing Behavior of New Nonresident Customers

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2010 2011 2012 2013 2014

72 Hour

24 Hour

Restricted

Annual

Hunt/Fish

18 Nonresident Fishing Customers

Fishing Summary • Nationally:

– Long term declines since 1980’s, considerable volatility since 2008

• Michigan – Residents

• 5% decline in customers

• Lower churn rate

• Higher propensity to purchase annual licenses

• Repeat and New customer percentages stable

– Nonresidents • 9.5% decline in customers

• Higher churn rate

• Higher propensity to purchase 24 and 72 hour licenses

• Possible decline in New customers

• Narrow fishing focus, more catch and release

• Former Nonresident Restricted license in a longterm decline

19 Fishing Summary

Hunting

20

USFWS National Hunting License Report Total License, Tags, Permits & Stamps: State Totals

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

2009 2010 2011 2012 2013 2014

Illinois

Indiana

MI

Ohio

Wisconsin

- 3 %

- 3%

- 2%

+ 0.5%

21

- 3%

Regional Hunting License Sales

USFWS National Hunting License Report Total License, Tags, Permits & Stamps: Nonresidents

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

2009 2010 2011 2012 2013 2014

Illinois

Indiana

MI

Ohio

Wisconsin+ 8%

- 0.2%

+ 104%

22

- 5%

- 0.4%

Regional Nonresident Hunting License Sales

Michigan RSS Data Resident Hunting Customers

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

2009 2010 2011 2012 2013 2014

Resident License Customers

708,092

- 6.6%

23

• On average ~740,00 resident customers purchase ~1.9M hunting licenses • 6.6% decline between 2013 and 2014 • Loss of 46,548 resident customers

769,875 754,640

Resident Hunting Customers

Michigan RSS Data Nonresident Hunting Customers

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2009 2010 2011 2012 2013 2014

Nonresident LicenseCustomers

24,200

- 17%

24

• On average ~28,000 nonresident customers purchase ~35,000 hunting licenses • 17.1% decline between 2013 and 2014 • Loss of 5,007 nonresident customers

28,201 29,207

Nonresident Hunting Customers

2014 License Purchasing Behavior of Repeat Resident Customers

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Firearm Archery Firearm +Archery

Deer Combo

1 Deer

Deer Combo

Hunt/Fish

25 Resident Deer Hunting Customers

2014 License Purchasing Behavior of Repeat Nonresident Customers

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Firearm Archery Firearm +Archery

Deer Combo

1 Deer

Deer Combo

Hunt/Fish

26 Nonresident Deer Hunting Customers

2014 Purchasing Behavior: Resident and Nonresident Customers

27

0%

10%

20%

30%

40%

50%

60%

70%

1 Deer

Deer Combo

Hunt / Fish

• Distribution of 3 license groups. • “1 Deer” licenses purchased

relatively late in season.

Deer Summary • Nationally:

– Recent, modest sales gains swamped by longterm declines

– Regional nonresident sales mixed

• Michigan – Residents

• Single deer sales in longterm decline

• Combo sales relatively stable

• More likely to repeat

• Combo and multiple tag holders most likely to repeat

• Higher proportions of customers purchasing combo tag

• License purchases made earlier in season

– Nonresidents • Single deer sales fluctuating

• Combo sales increasing

• Combo and multiple tag holders somewhat more likely to repeat

• Higher proportion of customers purchasing Hunt/Fish license and single deer

• Purchases made later in season

28

What are we doing? Market Research and Target Marketing

• Understand characteristics of most volatile license groups (single deer, nonresident single deer, daily fishing)

• Discount on nonresident fishing

• Targeted marketing for nonresident fishing and hunting

• Timed communications to resident hunters and anglers

• Revised message to residents and nonresidents

29