Well for that matter any percentage? Well the bigger the number, often the bigger the focus. We hear about people achieving 15% year on year growth, which is great, but for how many of us is that achievable in one year, or sustainable year on year?
In terms of income, of course, we can gain false positives if we look just at income levels. Having more shows on sale, more seats, more top price seats or a whole host of other factors, such as raising pricing in line with inflation. All of these may give us the belief our businesses are growing or performing better.
Let’s be clear, hosting more shows and selling more seats for er…. more IS success, and we should defiantly be striving for this. For now though let’s, look at this year’s income target or perhaps this year’s income to date.
Would you like it to be more? Of course you would. In the world we live in of limited resources, perhaps long term investment or being able to book 12 nights of lady Gaga – can we reasonably expect double digit growth? I don’t think so.
We could however look at setting ourselves small focused goals. Perhaps just in our own department or ways of working. We all know the danger of telling the board about our plans or targets, as they often hear these as guaranteed deliverables!
Using the 2% as an arbitrary, relatively small number what could we apply this to?
2% increase in online bookers? Going to be hard to quantify our actions on that one. The steady rise of online commerce means you’re probably going to see an increase anyhow.
2% increase in revenue. As mentioned above, with number and type of shows it will prove difficult to perhaps to correlate revenue and tasks undertaken.
2% in average order value? AOV has continued to grow as a metric I see ticketing operations using. Part of this can be effected by higher ticket prices, but it has some legs for our 2% project.
The two areas I think we have real opportunity as technologists and ‘ticketers’ are Conversion Rates (CR) and Extras in Basket (EIB)
Most of you will be familiar with conversion ratios. The number of people who achieved your desired outcome from a website visit. For most of US that will be buying a ticket. We must remember thought that not all people visiting the site will have THEIR desired outcome to buy a ticket. They may be simply wanting to find out ‘what’s on?’ or when is it?
At last year’s Ticket Professionals conference, which Booking Protect generously supported, we heard from Craig Sullivan ( https://twitter.com/OptimiseOrDie ) about making small incremental changes to our sites through subtle wording and colour variations. Through the use of tools like optimizely we can effectively run A/B tests to serve up different look and feel to customers on a 50:50 basis and measure which ones see the best ticket sales. Many ticketing companies have interfaces to optimisation tools, if you haven’t looked into it I suggest you do.
Extras in Basket
Away from the science of optimising your website for maximum conversion, I am a fan of extra items. Here I am talking about tubs of ice cream, programmes or refund protection.
What are we talking about income wise? £2.50 a tub, £5 a programme, £3 per ticket for a £35 face value?
So on the refund protection, that is 10% – but not everyone is going to update take are they? But if JUST 1 in 5 did – we would be hitting our personal target, with out a paper cut or sticky fingers!
Whatever we are selling, or offering as additions at basket level, they have a cost, either in materials or service.
So is that 50p per tub of Rum and Raisin we are making or just 25p? To a CERTAIN extent, we don’t care, it’s extra revenue we are realising. Let’s look at retailers like WH Smith – most of us will have been offered that giant bar of fruit and nut when buying a paper. Why? Well revenue is the answer, either as extra spend or to terminate stock. But it must work. So if they are doing it why aren’t you?
Where do I start?
The New Year is a great chance to explore new opportunities and put your revenue house in order. Get in touch with Booking Protect by visiting their website here https://bookingprotect.com/contact-us/