Your customers are your greatest asset, so finding ways to add value to their experience and in turn maximise your revenue from each customer is really important. Our aggregate data report shows that 27% of customers who came twice or more in the space of a year were responsible for 49% of the total revenue. Yet only 90% of orders made through Spektrix only contain one event. So one question comes up a lot...
How do I increase basket size?
There are various ways you can encourage your customers to spend more money with you, and the focus here is often on increasing secondary spend and improving frequency of attendance. In other words, finding ways to increase the value of your customers’ baskets once they have already engaged with you. In Spektrix, you can do this using Supplementary Events, suggested merchandise or offers.
When it comes to driving your customers’ re-engagement with your organisation, one answer is to find a good way to cross-sell additional events using multibuy offers to encourage customers to buy for multiple events at once. These offers could link together similar events (in a series perhaps) or just be aimed at increasing reattendance across your season as a whole. As an example, the Belgrade Theatre in Coventry run a multibuy offer that applies across their season, and publishes a list of all eligible events so that customers can see up front which events they can get a discount on.
Not only does this increase revenue by encouraging customers to buy more tickets there and then, but a proactive multibuy offer can also change long-time booking habits by turning irregular bookers into regulars who build frequent trips into their calendars. As the performing arts continues to compete more and more with other ways for busy people to spend their free time and income, gradually shaping your audience’s behaviour is increasingly important.
If you’re going to increase your customers’ spend, you need to have a think about how to get the best out of your offers. First of all, what is each offer trying to do? Generally speaking there are two key objectives for an offer; to encourage customers either to spend more, or to attend more frequently. Depending on what you want each offer to do, how can you measure its success? What metrics are you going to use to track your offers - are you looking at the number of tickets sold using the offer, or the total number of repeat attenders? Make sure you’re measuring these metrics before you introduce your offers, or start using the multibuy cross-selling page, so that you can see what impact your offers are having. You can look at comparing the behaviour of customers who do book for multiple shows via an offer when compared to the same customers in a season without offers.
Lastly, think about measuring the cost of your offers against the benefit they bring. What is the cost of your offers’ discounts in terms of lost revenue, compared against the increase in overall revenue from additional customer visits?
Use the right tool
Offers are a great way of getting customers to spend more by buying tickets to multiple events, but how do you let customers who are booking online know when there’s an offer they could be using? Ideally you want to give your customers as much information as possible about offers that they could be using, as early in their journey as possible. In Spektrix, you can use the Multibuy Cross-Selling tool to prompt customers during the booking process before they even get to the basket.
A good way of thinking about this is to look at how non-arts online retailers do this sort of thing. Think about online retailers like Amazon or Ocado, who have really simple ways of letting customers know when there’s something they could be taking advantage of.
If you can get your website to tell a customer buying tickets for one event that they could get a discount if they buy tickets for another event, it’s the online equivalent of one of your box office staff having that conversation with a customer at the counter. Think of your website as a tool to increase basket size; if a customer leaves having only booked what they originally intended to, then it’ hasn’t done its job properly.
Make it beautiful
You want the online customer experience to be as enjoyable as possible, so there’s one crucial thing to remember: get your web agency involved! It’s absolutely worth investing in a good web developer to make sure everything looks great and ties in nicely with the rest of your website. If it doesn’t look great, you’re not giving your customers a good experience - if they’re not having a great experience, something isn’t right!
Here’s how the New Wolsey make this page look:
If you’re a Spektrix client, you can find an article on our Support Centre to help you get the multibuy cross-selling page looking great. You’ll also want to make sure that your Spektrix system has all of the right links to your event pages on your site so that you’re giving your customers the right information.
Once you’ve got yourself set up with a nice Multibuy Cross-Selling page, it might be worth thinking about what else you can do to increase your customers’ secondary spend. Have a look at this blog post for a few more possibilities, and feel free to share any great ideas.