Increasing Attendance Through Small Groups: A Potential New Market
by Christopher Caltagirone, AMS' "Insights" newsletter
March 2007 issue
Group sales are an important part of most performing arts organizations' earned revenue stream. Many large organizations have group sales managers who work diligently to sell group packages to corporations, seniors, schools and civic organizations. Beyond filling the house, group sales can enhance the experience by offering a chance for attendees to socialize in a comfortable group setting. While group sales can benefit attendees (reduced ticket prices) and the organization (filling seats, generating positive word-of-mouth), many organizations overlook a significant segment of the population for whom small group interactions of four to eight people are a much more common occurrence.
Most performing arts organizations offer group discounts ranging from 10% to 50% off regular ticket prices. A quick glance at several regional theater and performing arts center websites shows that the minimum group size required for a ticket discount falls between 10 and 20 people. Recent research conducted by AMS suggests that arts organizations may be missing out on an opportunity to accommodate smaller groups that fall below the high thresholds of most group sales minimums. In a series of individual depth interviews conducted for a regional theatre company, respondents were asked if they attend performing arts events in groups. Many of the respondents indicated that they do attend performances in groups, and when asked the size of the group, most indicated that it consisted of four to eight people. In addition, a recently completed audience survey in a major metropolitan area showed that nearly a quarter of all respondents attended arts and cultural events in groups of four to nine people, while only 6% attended in groups of 10 or more. This number is significantly lower than the 15 to 20 required by many performing arts organizations to obtain a group sales discount.
In many cases, community organizations and schools are the primary recipients of group discounts. These types of groups are often coordinated well in advance of a performance date, and in many cases are targeted to specific shows or special performances (student matinees). Consider the inevitable scheduling conflicts that arise for most live performing arts attendees, whose schedules are already overbooked. Our surveys continue to affirm that individuals for whom the arts play a major role are more socially active, from the high number of live performances attended during a 12-month period to dining out, attending or participating in sports activities, or going out to the movies. The data indicates that individuals who have high rates of performing arts attendance lead more active lives, making scheduling of multiple activities an ongoing challenge.
In addition to a more active lifestyle, there is evidence to suggest that high frequency arts and cultural attendees are more likely to be subscribers. Our research indicates that more than two-thirds of subscribers to performing arts organizations are married. A significant number of married couples are attending performances by themselves or in a small group with another couple. The probability that they will forgo their subscription and attend through a group discount program is small, as they already receive a sizable discount in ticket price. It is not unreasonable to assume that these couples often coordinate their subscription series with other subscribers as part of their annual purchase. Interviews with subscribers support the fact that they often use their subscription as a planning tool, coordinating other activities around their chosen night of attendance.
Working from the assumption that we are already catering to a portion of small group attendees through subscription series, there remains a potential target for small group incentives or ticket discounts. Single ticket buyers have a tendency to be bargain hunters, seeking out last minute discounts such as half-price or rush tickets, and like subscribers, attend in small groups as part of a social activity. As explained in our last issue of Insights, single ticket buyers, who on average attend less frequently than subscribers, identified shorter buying timeframes and the ability to pick and choose individual events as key components in their purchase decision. Organizations may choose to offer small group incentives or discounts for advance purchases as a way to increase the attendance frequency of single ticket buyers.
In our next issue we'll talk about ways of identifying and cultivating potential group organizers. Until then, we invite you to share your thoughts by e-mailing us at info@ams-online.com.
March 2007 issue
Group sales are an important part of most performing arts organizations' earned revenue stream. Many large organizations have group sales managers who work diligently to sell group packages to corporations, seniors, schools and civic organizations. Beyond filling the house, group sales can enhance the experience by offering a chance for attendees to socialize in a comfortable group setting. While group sales can benefit attendees (reduced ticket prices) and the organization (filling seats, generating positive word-of-mouth), many organizations overlook a significant segment of the population for whom small group interactions of four to eight people are a much more common occurrence.
Most performing arts organizations offer group discounts ranging from 10% to 50% off regular ticket prices. A quick glance at several regional theater and performing arts center websites shows that the minimum group size required for a ticket discount falls between 10 and 20 people. Recent research conducted by AMS suggests that arts organizations may be missing out on an opportunity to accommodate smaller groups that fall below the high thresholds of most group sales minimums. In a series of individual depth interviews conducted for a regional theatre company, respondents were asked if they attend performing arts events in groups. Many of the respondents indicated that they do attend performances in groups, and when asked the size of the group, most indicated that it consisted of four to eight people. In addition, a recently completed audience survey in a major metropolitan area showed that nearly a quarter of all respondents attended arts and cultural events in groups of four to nine people, while only 6% attended in groups of 10 or more. This number is significantly lower than the 15 to 20 required by many performing arts organizations to obtain a group sales discount.
In many cases, community organizations and schools are the primary recipients of group discounts. These types of groups are often coordinated well in advance of a performance date, and in many cases are targeted to specific shows or special performances (student matinees). Consider the inevitable scheduling conflicts that arise for most live performing arts attendees, whose schedules are already overbooked. Our surveys continue to affirm that individuals for whom the arts play a major role are more socially active, from the high number of live performances attended during a 12-month period to dining out, attending or participating in sports activities, or going out to the movies. The data indicates that individuals who have high rates of performing arts attendance lead more active lives, making scheduling of multiple activities an ongoing challenge.
In addition to a more active lifestyle, there is evidence to suggest that high frequency arts and cultural attendees are more likely to be subscribers. Our research indicates that more than two-thirds of subscribers to performing arts organizations are married. A significant number of married couples are attending performances by themselves or in a small group with another couple. The probability that they will forgo their subscription and attend through a group discount program is small, as they already receive a sizable discount in ticket price. It is not unreasonable to assume that these couples often coordinate their subscription series with other subscribers as part of their annual purchase. Interviews with subscribers support the fact that they often use their subscription as a planning tool, coordinating other activities around their chosen night of attendance.
Working from the assumption that we are already catering to a portion of small group attendees through subscription series, there remains a potential target for small group incentives or ticket discounts. Single ticket buyers have a tendency to be bargain hunters, seeking out last minute discounts such as half-price or rush tickets, and like subscribers, attend in small groups as part of a social activity. As explained in our last issue of Insights, single ticket buyers, who on average attend less frequently than subscribers, identified shorter buying timeframes and the ability to pick and choose individual events as key components in their purchase decision. Organizations may choose to offer small group incentives or discounts for advance purchases as a way to increase the attendance frequency of single ticket buyers.
In our next issue we'll talk about ways of identifying and cultivating potential group organizers. Until then, we invite you to share your thoughts by e-mailing us at info@ams-online.com.
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