Nov 11, 2020
Leveraging Secondary Market Behavioral Data to Increase Primary Market Ticketing Revenue and Sell-Through Rates
With the evolution of big data across all industries, it is essential to capture and understand consumer buying behavior to price and manage ticket inventory across all platforms adequately.
Sufficiently utilizing data regarding; the volume of movement relative to time, customer demographics, average sales prices among current/historic markets, and purchase frequency among specific pack size or listing quantities will put your organization in a position to create long-term customer and sales growth.
Pace of Sale Recognition
How do you accurately set prices, adjust prices, or release inventory relative to demand? First, you must identify a consumer's buying behavior. Some types of consumers include a price shopper, a brand loyal consumer, a spontaneous buyer, a selective shopper, a premium seat purchaser, or an add-on buyer. Being able to sell inventory best suited for each type of consumer can result in a spike in revenue generation.
For most live events, based on inventory availability, the highest volume of movement typically occurs on the event date itself or the final days leading up to an event. Based on similar events in previous years and current inventory management, positioning yourself to benefit from this data can lead to higher average sales prices throughout the entirety of a sales cycle.
The below charts highlight the following takeaways:
- When the volume of movement or demand is at its highest, ASP's are generally at their lowest
- When the volume of movement or demand is at its lowest, ASP's are generally at their highest
- Demand is typically at its highest at the end of a sales cycle and its lowest at the beginning of a sales cycle.
This data can be utilized to more effectively market towards fans during historical peak times of movement across specific seating locations.
*The same CFB matchups were used across two different years. The first chart represents the pace of sale vs. average sales price for when the two teams played in 2018, and the second when they played in 2020.
Turning Secondary Market Consumers into Primary Market Ticket Holders
Knowing every individual that walks through the turnstile is undoubtedly very beneficial to a sales team. Historically, it could be challenging to identify the end-user of a ticket purchased on the secondary market or even given to a fan by a friend, family member, or business contact. How can you make sure you're capturing customer data to turn them into a season, mini, group, or single ticket buyer?
There are many types of delivery methods, depending on your ticketing provider or organization's policies. With the onset of COVID-19, the preferred method has moved rapidly towards mobile-only delivery. Contactless encounters aren't the only benefit of this trend. Regardless of what platform a consumer uses to buy a ticket to a game, if the delivery method is mobile-only, this will require the consumer to create an account through your ticketing provider (Paciolan). That customer's information will then reside in your organization's CRM system for future opportunities to drive revenue. The ability to dynamically remarket to your fans via email, phone, social, etc. will drive significant revenue for the ticket office and the respective foundation.
DPP has been a fantastic partner that has provided great value to our department. They have allowed us to increase sales on secondary market channels and bring over 5,000 new customers to our CRM database.
Kyle Vasey, Associate AD, Strategic Planning, University of Alabama
Historical Average Sales Price & Pricing Data
When forecasting revenue projections for an upcoming season, accessibility to historical and comparable market data can prove to be an essential tool. Analyzing previous years' average sales prices across specific areas within a venue will help determine what inventory sells more effectively at different periods. This research can also provide further insight into why certain areas are typically distressed or undesired throughout a venue.
Implementing specific primary market pricing changes requires a lot of time and supporting factors. Knowing and tracking what fans are willing to pay for a ticket regardless of the channel they purchase from can assist you when analyzing all aggregated data.
*The same CFB matchups were used across two different years. The first chart represents average sales price across several zones for different parts of the sales cycle when the two teams played in 2018, and the second when they played in 2020*
*Please note that the sample size of data for each year, and specifically each period of the sales cycle, varies depending on the amount of inventory sold*
What Ticket Packs Have the Highest Sell Through Rate?
Being able to accommodate every group size can be challenging to manage, especially if inventory for the desired event is scarce. Understanding which group sizes are most frequent can help ensure the correct amount of inventory blocks are prepped for every group regardless of size.
Typically, the number of tickets purchased together most frequently comprises two, four, and single tickets across most live events. Of course, specific sales data relative to the desired market may vary in terms of percentage breakdown.
With that said, understanding your markets' consumer tendencies can contribute to decisions regarding inventory allocation. In 2020, due to COVID-19, we've seen a significant increase in consumers purchasing pairs as they have avoided larger groups.
Please see below for a sample size of data (all power 5 NCAA Football teams) from the 2019 season:
Please see below for a sample size of data (all power 5 NCAA Football teams with fans) from the 2020 season:
Position Your Organization to Benefit
Dynamic Pricing Partners provides you with real-time access to secondary market data, which helps create financial budgets, produce future sales projections, or generate new sales pipelines. Proper analysis and implementation of relevant information will also create long term growth and parity among the primary and secondary markets.