9 tips to building a profitable event business for your venue - How can your venue increase revenue?
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How can your venue increase revenue? 9 tips to building a profitable event business for your venue
1 Know your customers.
You can learn a great deal about what your venue’s
customers want by opening up the doors of communication.
TALK TO THEM SURVEY THEM ASK THEM LISTEN TO THEM
Find out: Once you have this information, capture it safely in your customer
• Who your event customers are relationship management system so you can report on it and access
• Who their audience is it in the future.
• What your customers are trying to achieve
• When they typically hold events The better you know your venue’s target audience, the more likely you
• How much money they have to spend are to deliver on the value they are seeking, book them now and in the
• What they expect from you before, during, and after their events future, and benefit from the word-of-mouth advertising that will occur
• What other venues they have used in the past or are considering once they experience your stellar service. Knowing your customers
for the future can help your venue increase revenue. SOURCE
You can’t grow what you don’t know!
2 Establish your venue’s brand.
Is it a coincidence that the word “revenue” has “venue” in it?
Origin of the word revenue
• From Middle French revenue (early 15th century), “income from
property or possessions”
• In Old French (10th century), “a return,” noun use of fem. past
participle of revenir “come back”
• From Latin revenire “return, come back,” from re- “back” + venire “come”
SOURCE
The term “revenue” is rooted in the concept of returning. Ironically,
the best way for venues to increase revenue is to get clients and
audiences to return. Getting clients and audiences to return to your
venue (or recommend your venue to others) requires loyalty on the part
of the client or audience member. Loyalty comes from a sense of
connection to a brand. A sense that a brand anticipates needs and
consistently delivering on quality. SOURCE
If you are consistently delivering on your venue’s brand promise, you can increase
loyalty with clients and audiences, get audiences to return, and increase revenue.
3 Enable an experiential environment.
Your venue is a place where people gather to be inspired. Does it feel inspiring?
Can your four walls – and everything within them – be transformed to suit the vision of your customers and their guests?
Amenities | Lighting | Audio | Technology | Signage | Food
Take it from retailers: the sights, sounds, smells, and various touchable things are all strategically oriented to inspire sales. Your venue can also
leverage this psychology by evaluating each element of the environment you offer and creating a one-of-a-kind experience that inspires people to
want to stay or come back to your venue. SOURCE
People spend more money when their senses are strategically activated.
4 Emphasize the “second experience.”
The second experience is the continuous flow
of entertainment and experiences at your venue.
The first experience is whatever the attendee is coming for: a holiday luncheon, a performance, the main meeting at a conference, and so on. The
second experience branding philosophy, taught by Brad Mayne at the International Association of Venue Managers (IAVM) Venue Management School
at Oglebay, is everything else that positively (or negatively) affects the first experience.
If you manage a convention or exhibition center, the second
experience includes interactive signage boards that draw attendees’
attention. It’s the comfortable computer kiosks where guests can check
email. It’s the accessibility and attentiveness of your concierge. It’s about
doing all of these things in a way that sets your venue apart. It’s about
meeting those “unexpressed wishes.” These are the things that reinforce
your venue’s brand and help develop an emotional connection that turns
current guests into future customers. SOURCE
Impress audiences by meeting “unexpressed wishes” to increase venue revenue.
5 Create an online space for your venue.
Just because your venue is a physical location doesn’t mean
you can’t benefit tremendously from having a virtual one as well.
Social media:
Have an effective social media component to your marketing mix. For
instance, before the event offer booking discounts to customers if they
“like” your venue’s Facebook page. After the event, hold a promotion that
enters past customers into a drawing each time they get a friend of
theirs to “like” your Facebook page.
Websites:
Nearly all consumers (97 percent) now use online media when researching
products or services in their local area. With so many people now looking
online first to gather information about their options, you need to ensure
your convention or exhibition center has a powerful website that is built
with both an intelligent front and back end. SOURCE
Get smart about using digital marketing to drive venue revenue.6 Look for unique new revenue opportunities.
Is it time to think outside the box
(otherwise known as your venue walls)?
Unique partnerships Talk to other venues Offer value-add solutions
Consider a co-op with other local vendors. Do you know what other venues are doing Event organizers have so many details
Jewelers or florists when you want to attract to increase revenue? Wouldn’t it be nice to and vendors to keep straight, that they will
wedding receptions. Popular local cover bands know? Get involved in industry discussions. surely see the value in using your venue as
when you want to attract business holiday Join a venue association like IAVM. Go their resource for event apps, websites,
parties. Develop third-party champions or to conferences. Network. Learn! merchandising and so on. SOURCE
brand advocates.
Take the time to brainstorm a creative approach to uncovering new revenue.7 Attract non-traditional event customers.
Over the past 5 years there has been a
42% increase in space utilization from “other” events.
That’s according to insight provided by PricewaterhouseCoopers at the 2013 International Convention Center Conference (ICCC). While the definition of
“other” or non-traditional events varies from one venue to another, there are still similarities in the approach convention and exhibition centers can take in
order to seek out and market to non-traditional event planners.
• Research where these events are typically
being held so you know what you need to
do to compete
• Find out what events are “underserved” in
your community “Sports and entertainment facilities can’t
rely on die-hard fans for additional revenue
“Today’s venues have a desire to provide • Ensure you have a pricing structure that streams because they’re already spending
multifunctional spaces within the venue, aligns with the needs of the customers their discretionary dollars at the venue. Smart
promoting its use 365 days of the year, rather organizations think about how they could
than just the 25 days of a sporting season.” • Know what your limitations are (space, etc.) bring the non-consumer into the fold.”
so as to not damage your brand
– Nick Lang, SKM Magazine – Jason Williams,
SOURCE
Director of the Rawlings Sports Business Management
Program at Maryville University
Find ways to fill your venue on otherwise “dark” days.8 Align the right people to the right jobs.
When it comes to sales roles, many venues assign a specific employee or group
of employees the responsibility of attracting business from specialized market segments.
Considering the limitless variety of events that may surface, this
approach makes sense.
However, venues could also consider having someone who primarily
focuses on marketing to “other” event clients to ensure that someone
is prepared in advance to manage the very unique requests that can
be made by people planning weddings, banquets, holiday events, etc.
Simply having someone in the right frame of mind to anticipate and react
to uncommon requests can go a long way in pleasing non-traditional
event customers and realizing new revenues. SOURCE
Your venue sales experts should be strategically
aligned to market segments to maximize sales.9 Put powerful tools in place.
Are you are using the right software to manage your venue?
Make sure nothing slips
through the cracks
The events industry is built on relationships
Avoid revenue leaks and personal connections. So your system
In this industry, the most powerful sources should allow you to do more than manage your
that can erode profits are revenue leaks. The calendar; it needs to help you manage your
two most common revenue leaks for both relationships. Your system should track all
business venues and event venues are money communications and automate follow up
left on the table and lost opportunities. When activities so you are nurturing relationships.
venues have the right systems and processes Your system should expand your peripheral
in place, they capture otherwise lost data vision so you can track equipment, services,
and realize more income from the tasks they One in three venues are planning to and other event details in one place. What
are already doing. SOURCE invest in salesforce automation or CRM are these customers telling you, or more
tools over the next three years. importantly, what are they not telling you?
Your reporting should empower you to
– Venue Data Source/ anticipate customer needs. SOURCE
IAVM 2013 Technology Report
Use technology made just for event venues to save money and increase revenue.Go forth, venue manager.
It’s time for you to make expenses fall, revenues rise, and experiences happen.
Want to learn more about technology that can help your venue increase event revenue? Call +1 636-300-5606.
Want to know more about the people behind this page? Visit our website at ungerboeck.com.
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