What would your organisation do with an extra £2000 of revenue per month?
Seriously, as we enter the New Year we all make resolutions to be more efficient, to maximise revenues and to achieve higher targets or reduce deficits.
Unfortunately, you may find your season already programmed or your prices set by a promoter meaning you don’t have the ability for revenue management or to squeezing that’ extra great show that has been offered to your venue.
So where is this £2000 going to come from?
So where is the money to be made? The last few years has seen a rise in the adoption of micro-donations for online transactions as well as continued discussions around the use of the transaction fees, their presentation and whether they are a “turnoff” to consumers.
A number of technology platforms offer additional revenue sources through tools to advertise products or services throughout the purchase flow online. I have always viewed this as a short-term and risky strategy. Either that you need to invest time and effort in selling that advertising or perhaps you outsource to an agency.
Given the relatively low web traffic the majority of venues have, few agencies are likely to be that interested. We have also seen other providers look, through partnership agreements, to monetize other parts of the process such as advertising on print at home tickets. Again, this is a numbers game and advertisers will be looking at the ability to convert into sales.
So where is this £2000 going to come from? Simple. The customers. But how?
I’m not advocating having the box office shakedown businesses adjacent to your venue
Protection. No, I’m not advocating having the box office shakedown businesses adjacent to your venue but simply offer booking protection schemes as part of the booking process.
I spent a day this week with the folks from Booking Protect talking through their offering, some of their success stories and of course the challenges that suppliers to the industry face.
Those of you who know me know that I am rarely lost for words, but examining true real-time data showing conversion ratios and revenues being generated for Booking Protect clients was a sight to behold.
Just like Bono clicking his fingers back in the day I watched as £1.25, 75p, £1.30, £1.05 amassed in commission for the client in question. (Full disclosure for data protection reasons I could not see the name of the client)
Of course, with all schemes that look to offer a great return you have to ask where is the catch?
What are the overheads? In terms of staff time, technical or ongoing administration?
All of these MUST to be offset against any potential revenues. Looking through both the technical integration, through a seamless API link Direct into the web checkout flow greatly reduces any technical spend.
….direct integrations available ……… Audienceview and PatronBase
In fact, with direct integrations available as part of the call products offered by Audienceview and PatronBase – users of these two systems see virtually no technical effort required.
The claim and compliance elements of the process are all fully handled by the provider and not the venue, again, reducing the venues human or administrative overhead to virtually nothing.
in reaction to many venues no refunds no exchanges policy
Do people actually want this booking protection? The data that I saw seems to answer that question with a resounding yes. I’m not sure whether this is in reaction to many venues no refunds no exchanges policy, but whatever the reasons that customers want to protect the purchase and be able to gain a refund should illness, travel disruption (Southern Rail anyone?) or other issues mean they cannot attend an event it seems that this is a service that customers want, that is available from an established provider and that the venues can directly benefit from in the form of significant monthly revenues.
Still, which of us would not like that extra £2000 a month?
The big question is, as the title of this blog suggested, on what would you spend the money? An extra marketing officer, bigger digital spend, a rebrand or something as boring at some new thermal ticket printers? Without meaning to be a killjoy, it may just be absorbed into the profit and loss of the venue. Still, which of us would not like that extra £2000 a month?
Okay okay: where did I get this figure of £2000? Simple, I used some figures that I know from a number of small to mid-sized venues in the UK. Using these figures along with a measured conversion ratio and a standard commission agreement that are in place now we ran several scenarios through a pricing calculator.
As you know, we love to help connect organisations with solutions and are even partial to a cheeky giveaway.
If you would like an indicative estimation of the revenue your venue could potentially generate with such a partnership, simply fill in the few pieces of information below and Booking Protect will provide some basic outline information for you to consider. To help with the New Year financial squeeze we have six £25 vouchers from Amazon which will be awarded to six venues who find out just how much they could earn. Go on! Keep up that New Year’s resolution to make more for your venue and give customers the choices they want!
By the way Booking Protect is avaialble in North Ameria too – so US / Canada types, it’s open to you too.