AMS Planning & Research Corp.

Our Changing Audience

Together with others in the Industry, we have for some time assumed one key difference between subscribers and single ticket buyers was the degree to which they valued 'flexibility.' The widely held belief was that by foregoing the option of reserving seats for a number of events in advance, single ticket buyers valued flexibility over the discount and preferred seating often accompanying subscription sales. Conversely, we interpreted the purchase of subscriptions as the choice of buyers willing to sacrifice flexibility in return for other subscription benefits.

Recent research we've conducted for several regional theatres and performing arts centers suggests both subscribers and single ticket buyers cite flexibility as a key component of their decision-making process. However, flexibility is defined in very different terms by these two groups of buyers.

Evidence for this view came from several sets of individual 'Depth Interviews' and surveys conducted for our clients. An alternative to traditional focus groups, these one-on-one interviews provide an opportunity to gain detailed insight into buyer perceptions, motivations and behaviors. Throughout the course of our interviews with client ticket buyers, we probed the reasons and motivations of subscriber and single ticket buyer behavior.

As expected, single ticket buyers noted their preference for remaining 'flexible' as long as possible in their selection from among competing activity offerings. This desire for flexibility, they said, affects both their purchase (single event rather than a series) and the timing of that purchase (closer to the event date). Our firm has closely followed purchase timing, and we have observed the 'planning horizon' (time between the ticket purchase and the event) for single ticket purchases growing shorter for some time, now often only a week to ten days before a scheduled event.

As we anticipated, subscribers we interviewed noted some motivations which differed from those of single ticket buyers – subscription benefits such as packaged tickets and preferred seating among them. Of particular interest was the way in which some use their subscription as a planning tool: For instance, many subscribers said they view a subscription as a mechanism to make performing arts attendance an ongoing part of their social calendar. However, many of these same subscribers noted that by the time an event actually occurs – often some months after their ticket purchase – their schedules have changed. For this reason, they cite 'flexibility' as a key motivation in their purchase decision – specifically the often-provided subscriber benefit of ticket exchange. The ability to exchange their tickets, they told us, allows them to address these schedule changes by either exchanging their tickets for an alternate performance or occasionally – as many organizations now provide – returning them to the box office for a tax deduction.

 

Thus our interviews seemed to indicate that 'flexibility' plays a key role in the purchase decisions of both single ticket and subscription buyers – two outwardly distinct groups of customers – but in different ways, and from different perspectives. Single ticket buyers we interviewed preferred a high level of flexibility – in terms of both what they bought and when they bought it. But subscribers also sought flexibility – to better incorporate performance events into their busy and unpredictable schedules while still availing themselves of the benefits of a subscription.

Does this difference echo the changing preferences and expectations we see in the larger economy, where increasing numbers of consumers expect a high degree of control in the purchase process? How do the arts and entertainment fields respond to this growing ability – and expectation – of consumers to design what they want and decide when they want it? Other industries are recognizing and responding to this consumer trend with their marketing and sales efforts – consider custom-designed online computer sales, on-demand movies, custom fit clothing, etc. We believe these consumer experiences will be a growing influence on the preferences and expectations of arts audiences as well. As a result, sales strategy, packaging and distribution are all being affected, resulting in more sophisticated marketing efforts across the economy.

It's clear to us that successful marketing efforts will increasingly require an in-depth understanding of our customers' buying habits and preferences, and that "one size fits all" promotion efforts will not suffice in this changing landscape. Traditional subscription brochures, for example, may not be the best strategy for marketing to single ticket buyers, if – in return for flexibility – these buyers are willing to sacrifice seating preference, cost and/or convenience. In such cases, organizations may want to consider alternative marketing efforts or ticketing incentives that specifically appeal to these buyers' desire for greater overall flexibility. Even within the group of 'single ticket buyers' we believe there are numerous 'sub-groups' representing diverse motivations and expectations, potentially requiring multiple marketing approaches. Diverse marketing strategies – based upon distinct audience segments and supported by ongoing market and customer research – may prove the most useful approach in this changing marketplace.

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