INTIX Mentor Program
2019 Spring Webinar Series Part 1 – Ticketing Today, Tomorrow and In The Future
Presented By: The INTIX Mentor Program Committee Content Provided By: INTIX Mentors, Committee Members & Webinar Sponsors Welcome & Logistics
Duncan Moss
Ravinia / Co-Chair of INTIX Mentor Program Committee PART 1 – Ticketing Today, Tomorrow and In The Future Wednesday, May 15, 2019 @ 2 – 3:30 pm eastern
Host / Moderator: Duncan Moss Ravinia Festival / Co-Chair
Q&A Facilitator / Moderator: Ami Johnson TicketForce / Vice-Chair
Data / Analytics: Katie Mullins Etix / Sponsor & Industry Expert
Pricing Strategy Case Studies: Kelly Brennan FutureTix / Co-Chair & Mentor PART 1 – Ticketing Today, Tomorrow and In The Future
Intro – Welcome & Logistics
Data & Analytics AGENDA 20 Minute Presentation 15 Minute Q&A
Pricing Strategies: Case Studies 20 Minute Presentation 15 Minute Q&A
Closing Thoughts Q&A Facilitator / Moderator
Ami Johnson
TicketForce / Vice Chair of INTIX Mentor Program Purpose of This Webinar
A survey was sent to ALL INTIX Mentees We had overwhelming feedback!! The purpose was to gain an understanding of what topics Mentees would like to learn more about Committee members then coordinated a two-part webinar series consisting of the top 4 topics requested All information has been provided by those that support the INTIX Mentor Program, including your Mentors, Committee Members and Sponsors At the end of this webinar, you should leave with a handful of new best practices, industry trends and case studies that you can try at your organization regarding: Data & analytics Pricing Strategies Webinar Logistics
We want this to be interactive!! If you’re not already, place yourself on mute while others are speaking. Use the CHAT feature to ask a question or share your thoughts. During the Q&A / Open Forum, Ami will read the questions aloud, one at a time to the presenter. The presenter will do their best to answer. However, if you have a different answer or thoughts to share, feel free to add that into the comment area. Feel free to ask questions along the way. Depending on the question, Ami will interrupt the speaker to ask the question or choose to wait until the Q&A / Open Forum. A BIG INTIX WELCOME
Maureen Andersen
President & CEO of INTIX Data & Analytics
Katie Mullins, Etix
Sponsor & Industry Expert Your Customer Data & What to Do With It
Katie Mullins, Digital Marketing Specialist Rockhouse Partners / Etix YOUR DATA: EMAIL ADDRESSES
MARKETING EMAIL STRATEGY GROW YOUR DATABASE WHAT’S NEXT? YOUR DATA: ZIP CODES
MAKING DIGITAL DECISIONS YOUR DATA: REPEAT PURCHASERS
IDENTIFY YOUR SUPERFANS YOUR DATA: PIXELS
BUILD AN AUDIENCE REMARKET TRACK CONVERSIONS YOUR DATA: SHARING DATA
PROTECT YOUR CUSTOMERS QUESTIONS?
Katie Mullins, Digital Marketing Specialist [email protected] Data & Analytics
Katie Mullins, Etix
Sponsor & Industry Expert
Q&A / OPEN FORUM Questions? Comments? Thoughts? Pricing Strategy Case Studies
Kelly Brennan, FutureTix
Co-Chair & Mentor Outline
Quick Overview Definitions Best Practices Trends
Mentor Case Studies San Francisco Giants Los Angeles Philharmonic Pricing Terms Dynamic Pricing The practice of periodically adjusting ticket & Strategies prices based on market conditions
Variable Pricing Predetermined pricing that may vary by performance for like events
Fixed Pricing Pre-established static price scaling
FIXED PRICING
• Predetermined pricing
• Each section is a different price
• Price remains the same for all events
*Note: This is an example only – LA Phil uses more sophisticated pricing VARIABLE PRIING
• Still predetermined w/ each section a different price
• Price for each section or price type changes by event
• Changes can be based on day of the week, opposing team, etc. DYNAMIC PRIING
• Still predetermined w/ each section a different price
• Price for each section or price type changes by event (based on day of week, line-up, etc.)
• Additional changes made as needed based on demand (e.g. total sales to date, weather, current events, etc.) ENCOURAGE BENEFITS OF VARIABLE • Wanted consumer behaviors & DYNAMIC PRICING • Customer satisfaction • Additional revenue • Website traffic (encourage patrons to visit website often) Crescendo Effect – • Advanced sales prices on the rise…
Reward or disincentivize DISCOURAGE consumer behavior • Behaviors that may put too much Dress the house stress on staff • Actions that take up lots of resources Provide perk for subscribers, donors and/or • Long lines & wait times members • Distressed or unsold inventory • Last minute sales / walk up Step 1: What’s Your End Goal?
Increase Revenue? Increase Ticket Sales? Customer Satisfaction? Obtain More Members / Subscribers? Make Promoters Happy? Other Reasons? Step 2: Determine Strategies To Reach Those Goals
Examples: Increase Ticket Sales Lower Ticket Prices
Increase Membership / Subscribers Lower Initial Ticket Prices Provide Discount to Members Increase Ticket Prices as Event Gets Closer
Reduce Stress On Box Office Increase Ticket Prices For Tickets Bought on Day of Event Pricing In Other Verticals
Airlines & Hotels • BMC & Marriott
• Built in algorithms (capacity / time till event) • Overselling • Main goal isn’t always short-term revenue 100 seats • Lifetime Customer Value $50,000 3. Use the Right Resources
• Ticketing Platforms (some inherent functionality like Pricemaster)
• Third Party Providers (Qcue, Digonex, DTI Management, Consultants)
• Multi-Channel Distribution
• Secondary Market (the ticket afterlife) o A good barometer o Your patrons are paying these prices o A few seats are not always indicative
Challenge Case Study 1
SF Giants Solution
Results Challenge
Overview Had the problem we all hope for!! Sold out for years Had no new inventory to sell Wanted to keep sellout streak alive Challenge
Generate more revenue End Goal Create a better patron experience Customer retention Generate new customers Dress the house Provide additional perks for season ticket holders, subscribers, member and/or donors Buy early and save campaign – Provide affordable games and start initial prices lower (condition / incentivize patrons to buy early) Keep sell out streak alive Variable Pricing Strategies
SOLUTIONS Triggers that cause pricing to be different Date / Time of event 'Hotness' of talent or act Seat location Package or Plan Date / Time of Purchase Promotions Opposing Team Dynamic Pricing Strategies
What was your main motivation for SOLUTIONS implementing these pricing strategies? To generate additional revenue but also to make softer games more affordable by responding to the market. Prior to dynamic pricing we were locked into prices we set in September of the previous year. % of Tickets Sold or Unsold Number of days until event occurs Overall Team Record Opposing Team Record Starting Pitcher & Other Players Weather Current Events & More… More Details
SOLUTIONS Providers • Working with Barry Kahn & Qcue for 10 years • Utilize FutureTix to help us reach our overall ticketing goals • Qcue software provides recommendations for all games and all categories
Frequency • Look at pricing every day • Each game played can affect future prices • Four or Five wins in a row really helps and we adjust accordingly • Meet as a group 3 days a week to discuss pricing and strategy
Results
Biggest Challenges Early on it was an education process for fans They understood airline/hotel model but it didn’t mean they liked it. As more products were dynamically priced the acceptance was easier (e.g. sports, Uber, parking lots, etc.)
Biggest Rewards Helped increase/maintain attendance It allowed us to find the balance to sell out 530 consecutive games
Best Practices & Landmines
Best Practices Establishing the right variable pricing strategies set us up for successfully dynamically pricing
Landmines At the initial presale on-sale we watch for opportunities. If you don’t watch closely you might miss an event where you are underpriced. We had a Bobblehead day get away from, us one time. We blinked and 2,000 tickets sold because we undervalued. Challenge Case Study
Los Angeles Philharmonic Solution
Results Challenge
Overview • Easily sell best seats and cheap seats
• But can have difficultly selling middle
• Altered our basic pricing zones over the years to align with emerging trends
• And currently dynamically price based on changing demand Challenge
End Goal • Rewarded wanted customer behaviors (subscribers) • Deter unwanted customer behaviors • Generate more revenue • Increase ticket sales for less desirable events & ‘middle’ tickets • Generate new customers (only if presented as a special price of entry) • Dress the house Variable Pricing Strategies
Triggers that cause pricing to be different SOLUTION Date / Time of event 'Hotness' of talent or act Seat location Package or Plan Date / Time of Purchase Membership Level Dynamic Pricing Strategies
What was your main motivation for SOLUTIONS implementing these pricing strategies? With multiple dates of single concerts, we often will raise prices on the more popular date to help move sales to the lesser selling date. This is generally successful for us, but not always.
% of Tickets Sold or Unsold Talent / Conductor Weather Current Events & More… More Details
SOLUTIONS Providers • We work with a pricing consultant, Anil Malhotra of AnalytixLive • Utilize Digonex, a pricing tool that integrates directly with our ticketing system
Frequency Weekly Though sometimes more frequently for hot sellers
Results
Biggest Challenges Artist Management Firms Subscriber Promises
Biggest Rewards When a season has struggled for units, we have been able to maximize revenue on hot sellers, enabling us to lower prices on lower sellers, to boost overall unit sales, and ultimately make our revenue goals, and surpass, meet or get closer to our unit goals.
Results
Results We have successfully met our revenue goals for all but one season in the last 8 years. We have not always met our unit goals, so we are altering some of our pricing to encourage overall unit sales, rather than just revenue goals.
Best Practices None of us price events 100% accurately up front. Recognizing that and modifying only helps maximize sales overall – units and revenue. We started off too conservative in our pricing and became much bolder after utilizing outside tools that could more easily track trends. We also are now more open to lowering prices and adding pricing messages to goose sales for lower trending events.
Recap
1.Determine your end goals 2.Brainstorm strategies that will help you meet those goals 3.Establish the right resources for you to move forward 4.And learn from your mistakes, adjust and readjust
**And remember, establishing well designed fixed and variable pricing first, can lead to successful dynamic pricing procedures Pricing Strategy Case Studies
Kelly Brennan, FutureTix
Co-Chair & Mentor
Q&A / OPEN FORUM Questions? Comments? Thoughts? SPECIAL THANKS
Etix for sponsoring INTIX Mentor Program Committee Members INTIX Mentors All Mentees Survey Participants Maureen, Tiffany & Amy Today’s Presenters All attendees INTIX MENTOR PROGRAM
Always looking for new Mentors and Mentees! Reach out via email to join or sign up on the INTIX website
Program year ends in June, so please make sure to sign up for the new year!
We have “on call Mentors” as well to help with quick questions/requests
CONTACT US!
Katie Mullins: [email protected]
Kelly Brennan: [email protected]
PART 2 – Creating the Best Atmosphere for Your Patrons & Staff
Wednesday, June 5, 2019 @ 2 – 3:30 pm eastern
Topics: Industry Overview Dan DeMato, FutureTix / Mentor
Management Skills Look for follow up email Linda Forlini, Ticket Philadelphia / after this webinar ends to Mentor register for part 2.