Five Ways Theaters Can Boost Revenue
Musical theater can be a challenging industry to navigate, especially when it comes to increasing event revenue. However, there are a few key strategies that theaters can implement to boost their bottom line. Here are five ways that theaters who focus on musicals can increase event revenue:
Diversify your offerings:
In addition to traditional musicals, theaters can consider offering other types of performances such as plays, concerts, comedy shows, and spoken word events. This allows the theater to target a wider range of audiences and increase revenue potential. In addition, it helps to attract new audiences who may not have previously been interested in musicals. For example, a theater could host a comedy night featuring local comedians or a concert series featuring local musicians. These events can be marketed separately and attract different demographics than traditional musicals.
A study by the Pew Research Center found that more than half of American adults attend a live music, theater, or dance performance in a year. Offering a range of performances can attract these potential customers.
Develop a strong marketing strategy:
A strong marketing strategy is essential for attracting new audiences and increasing revenue. This includes developing a comprehensive social media presence, creating engaging content on websites like Facebook that resonates with your target audience, and using data and analytics to track the effectiveness of your marketing efforts. This can be achieved by creating a marketing budget that includes a mix of traditional and digital marketing tactics, such as print and online ads, email campaigns, and influencer partnerships. It is also important to regularly analyze and adjust your marketing strategy based on the results.
Offer VIP experiences:
Offering VIP experiences is a great way to increase revenue by providing audiences with exclusive and unique experiences. This can include backstage tours, meet-and-greets with performers, and exclusive seating options. These experiences can be sold at a premium and can help to generate additional revenue for your theater. For example, a theater could offer a VIP package that includes a meet-and-greet with the performers, a backstage tour, and premium seating.
In fact, a study by Harris Group found that 72% of millennials prefer to spend their money on experiences rather than on material things, and 55% of them say they’re willing to pay more for a better experience. Offering unique and exclusive experiences can tap into this trend and attract more customers willing to pay a premium.
Utilize technology to enhance the audience experience:
Technology can be used to enhance the audience experience and increase revenue potential. For example, theaters can use virtual and augmented reality to create immersive experiences for audiences, or use mobile apps to help audiences navigate the theater and purchase tickets. This can be achieved by investing in new technologies such as virtual reality headsets, augmented reality apps, or mobile ticketing platforms. Here at TicketPeak we offer the ability for box offices to check into events with the use of our own check in app. We also have the capability to produce virtual and in person events.
Partner with other organizations:
Partnering with other organizations can be a great way to increase event revenue. This might include working with local businesses or other cultural organizations to co-produce events, or teaming up with sponsorship partners to help offset the costs of your performances. This can help to increase visibility and attract new audiences to the theater. For example, a theater could partner with a local hotel to offer a package that includes a night’s stay and tickets to a show.
Research shown by the Center for Social Impact Communication found that partnerships can help organizations increase their reach and impact, as well as enhance their reputation and credibility.
In conclusion, increasing event revenue for musical theaters can be challenging, but by diversifying your offerings, developing a strong marketing strategy, offering VIP experiences, utilizing technology to enhance the audience experience, and partnering with other organizations, you can create a sustainable revenue stream that will allow you to continue producing high-quality performances for years to come.