We all want to increase revenue, but unfortunately, money doesn't grow on trees and new income streams don't ever appear out of nowhere.
As such, it's critical to use every tool at your disposal to capture as much audience value as possible. You don't want to leave any stone unturned.
In this blog post, we drill down into three powerful strategies that you can use to increase revenue for your performing arts organization, athletics department or other types of live events.
1. Optimize subscriptions and packages
Subscriptions and packages are likely a key revenue driver for your organization. According to the TCG Theatre Facts, the average theater had over 5,000 subscribers in 2017.
We're not going to tell you to use subscriptions and packages. You already know that.
But we can offer tips to optimize your existing subscriptions to extract more value from your audiences.
Your subscriptions and packages should be intelligently catered to different audience groups. For example, if you host music events, create different packages for each genre. You can then send them to customers who have attended similar events in the past. Ditto if you're an athletics department and can create a package of games for fans who have attended that same sport in the past.
Packages can also be used as a stepping stone to upgrade customers to subscriptions. A single ticket buyer may not be ready to buy a full season packages right away. However, if you can convince them to buy a five-show flex pass, they are much more likely to become a full-season subscriber in the future.
Additionally, discounts on subscriptions can help convince customers to upgrade. According to a TRG Arts case study, the Chicago Symphony Orchestra was able to increase new subscription net revenue by 71% thanks largely to discounted upgrade offers.
Another useful tip is to set up auto-renewals for subscriptions. By allowing these to roll over, you eliminate the need for your staff to chase down subscribers to renew. This ultimately increases your renewal rates.
We also suggest allowing customers to pay for their subscriptions over time. It may be a lot for certain customers to pay for a full season up front. By allowing them to pay for the subscription on a monthly basis per se, you make the cost more digestible and open your subscriptions to a larger pool of customers.
Finally, you may also want to think about using subscriptions that appeal to younger age groups to bring in more customers in these demographics.
For example, Steppenwolf in Chicago offers their 'Red Card' membership for customers under 30. They appeal to this age group with special drinks discounts, networking events and use social media campaigns to engage with these customers.
2. Enable dynamic pricing
If you're not familiar, dynamic pricing is the concept of changing the price of your tickets based on demand - increasing price when demand is high and decreasing it when demand is low. This is a common practice across many industries, with airlines being a well-known example.
Of course, this is much easier to do if you can automate this process. On our AudienceView platform, we integrate with Digonex, and they handle everything for you. Digonex even allows you to set upper and lower price limits to ensure all prices remain in line with your overall pricing strategies. On OvationTix, you can easily adjust your pricing in real time, with just a click of your mouse.
There are a few things to consider when implementing dynamic pricing. We suggest starting with just one or two events, so you can collect feedback and ensure that things run smoothly for your organization.
Additionally, everyone on your staff should be involved in the conversation. There are many nuances to dynamic pricing and it can impact different facets of your venue in different ways. As such, you'll want to collect everyone's feedback during the process.
See what Aubrey Stork, Digital, CRM & Loyalty Manager at Mirvish Productions, has to say about his experience with dynamic pricing. You can also learn more about dynamic pricing in our "In Conversation" interview with Greg Loewen, CEO of Digonex.
3. Use cart abandonment strategies
According to salescycle.com, the average ecommerce cart abandonment rate is 76%. If you aren't doing anything about this, you're definitely leaving money on the table.
We suggest using cart abandonment emails to help convert these potential ticket buyers. These emails give your buyers a gentle reminder to come back to your website and complete their purchase.
This may be a good opportunity to use a discount or an urgency message (e.g. - "Only 50 tickets left!") to help convince people to buy.
In a similar vein, retargeting ads can help drive qualified traffic back to your site to help increase sales.
Retargeting ads work by serving up display ads across the web to people who have already visited your website.
Since these people have already shown interest in your website and content, they are more likely to click on your ads (and eventually buy). According to spiralytics.com, retargeting ads have 10x the click-through rate of regular display ads.
For example, you may want to set up a retargeting campaign for folks who have visited your show's page, with a specific call-to-action to buy tickets for that show.
To facilitate this, on our AudienceView platform, we partner with Cybba, who provides cart abandonment emails and retargeting ads.
Increasing revenue is never easy. It requires a lot of creativity and leveraging new avenues for growth. That's why, in this blog post, we decided to take a deep dive into a few more advanced tactics to help boost your revenues. For more tips on how to increase your revenue, check out our previous blog post here.
And, if you'd like to see specifically how OvationTix can help you increase your revenue, schedule a demo with us today!