TRG blog: Teaching Patrons to Buy Late
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Teaching Patrons to Buy Late

Rick Lester | September 1, 2011 10:55 AM
Ken Davenport’s insightful August 30th post spotlights the reason why advance ticket buying seems like a thing of the past.  Too many presenters, producers and arts organizations are providing incentives to buy late in the sales cycle.

As readers of this blog know, our patron behavior studies challenge the accepted conventional wisdom in the field that patrons are buying later and later.  Conventional wisdom is no substitute for fact. In a study of late-buying trends of 1.5 million arts patrons in Los Angeles, we found that buying later it is not an inevitable fact of consumer behavior. We summarized these findings earlier in the year on this blog.

In our consulting practice we do see late-buying trends, but more often than not, we’ve found that late-buying is a direct result of late-selling—not making the offer to the market early enough.  This is typically a strategy based on the assumption that all patrons want to buy late. An empty house a week out then spurs a slew of panicked late-minute discounting, or worse yet: comping. When this happens often enough, as Ken Davenport also pointed out, patrons are trained to wait for this “management panic” fire sale. The bottom line is that giving up on advance ticketing only perpetuates the cycle of late buying—and leads to less per-ticket revenue (as well as total revenue!) on an ongoing basis.

TRG client Arts Club Theatre Company (ACTC), like many, operated under the assumption that buyers were shifting later in the sales cycle.  The staff began to feel like they were dependent on good reviews or even good weather for improved sales results. Once they began accelerating their marketing and sales activities earlier, they became less dependent upon last-minute discounting or circumstances beyond their control. Selling early worked especially well for blockbusters.
Arts Club Theatre Company's White Christmas

As seen in the above sales tracker chart from ACTC’s production of White Christmas, advance ticket sales and selling earlier resulted in a sell out by the first performance. The red line represents the previous pattern of selling late, where 25-40% of revenue was generated during the run. The blue line shows the pattern once ACTC started marketing early. This tactic, combined with other solutions like pricing changes, reducing comp tickets, and restructuring subscription options, led to ACTC increasing overall revenue by $3 million over two years. You can read more about their success story here or hear about it on our latest webinar here.

The data is unambiguous.  If the patron wants “it” badly enough, they will always buy well in advance of the performance date.  Just check out the available inventory of tickets for Wicked, The Lion King or The Book of Mormon. You’ll also find advance sales when the box office opens early for blockbuster programs staged by orchestras, opera and dance companies, and non-profit theatres, like ACTC.  Given a compelling reason to buy early, patrons will respond.

Which factors do you think affect patrons buying earlier or later? Leave a comment and let us know.


Related Articles
Case Study: Arts Club Theatre Company
Per-Capita Ticket Revenue: The Canary in the Coal Mine
Pricing dynamics for commercial and nonprofit entertainment
The Myth of Last Minute Buyers
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Case Study: Lyric Theatre of Oklahoma

Annual operating budget up 32% in 5 seasons

Lyric Theatre of Oklahoma 
 Photo: Joseph Mills

After a poor year for earned revenue in 2012, Lyric Theatre of Oklahoma (LTO) had rebounded and was experiencing a growth spurt. In 2013, Director of Marketing Danyel Siler had turned her attention to single tickets.

Her hard work had paid off, but season tickets were still a challenge. “Season tickets were steadily declining,” she said. “The season ticket campaign had been done the same way for years, maybe even decades. And we blamed the fall on the trend that subs were declining everywhere. Our executive director, artistic director, and I all knew something needed to change, but we didn’t know what.”

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