Developing an effective venue marketing strategy is essential for any entertainment event venue looking to stand out from competitors. One significant aspect of that plan is devising a program that not only gets customers to keep coming back, but also transforms them into champions of a venue. That’s where a venue loyalty program comes into play. It’s a critical component of venue marketing that enhances the long-term success of any entertainment venue.
In the events and entertainment industry, return customers are the backbone of a thriving brand community. Loyalty programs offer a powerful means to reward these patrons and cultivate a loyal fan base. By understanding your target audience and by creating a plan to connect with and motivate them venue operators and event organizers can leverage loyalty programs to boost engagement and revenue.
Statistics show that returning customers spend 67% more than new ones, presenting a significant opportunity for increased ticket sales and other revenue streams. However, this strategy isn’t confined to large venues; smaller venues can also benefit by implementing loyalty programs to enhance brand engagement. This article delves into the advantages of loyalty programs for venue operators and provides strategies to ensure their successful implementation.
How Are Loyalty Programs Effective as a Venue Marketing Tactic?
Loyalty programs serve as a marketing tool by improving the venue’s brand visibility and promoting customer advocacy. Customers are incentivized to perform actions that align with the venue’s business goals. When attendees share their positive experiences and rewards with their social networks, it creates organic venue marketing opportunities.
Additionally, loyalty programs should be promoted through various venue marketing channels such as social media, email newsletters, and in-venue advertising, further expanding their reach and impact. How else is your audience going to know if it’s available? The loyalty program promotion itself is an opportunity for a venue manager or entertainment brand to utilize all relevant marketing channels. Loyalty programs and their members naturally yield marketing content. By promoting the benefits the program offers and loyalty members posts about it, venues can attract new members. It becomes a very effective organic marketing strategy.
What are Loyalty Programs for Entertainment Venues?
A loyalty program is a series of activities designed to attract, understand, retain, and engage customers. In the context of organizing events, the goal is to reward attendees by offering them both tangible and intangible benefits. Venue managers can leverage a loyalty program to increase their understanding of their audience, encourage participation, and foster a positive reputation. Additionally, loyalty programs can drive higher spending, as members are often motivated to earn rewards and take advantage of exclusive perks. This not only boosts ticket sales but also increases revenue from merchandise, concessions, and premium services.
Entertainment venues have an advantage over many other types of businesses when it comes to loyalty. That’s because the music they offer has an emotional component to it. Live music drives emotion like nothing else. After all, according to a 2023 Live Nation Custom Loyalty Study, 67% of global fans say one of the most memorable moments of their lives was at a live music event. Moreover, our recent study on live music’s ability to drive loyalty found that live music attendees are more engaged with loyalty programs than the general population. Emotion plus engagement is a compelling recipe for loyalty amplification.
Types of Loyalty Programs for Entertainment Venue Marketing
The four primary types of loyalty programs are point-based, value-based, tiered, and subscription-based systems. The software for managing these programs varies by provider, offering features such as integrating digital loyalty cards into Apple or Google Wallets, directly implementing SaaS solutions into existing apps, and distributing timely messages based on customer behavior.
- Point-based systems reward customers for a variety of actions, typically awarding points based on the amount spent. This structure is especially common in the fast-food industry, with major corporations like Chick-fil-A and Chipotle using it to increase customer loyalty. However, this strategy is not limited to large corporations. Venue owners and operators can implement point-based systems to incentivize more than just ticket purchases, such as concessions, engagement activities, and interactions with sponsorship initiatives. Customers can then redeem points for discounted merchandise, early access features, and a variety of other perks.
- Value-based systems operate similarly to point-based ones but offer points for actions that contribute to expanding the brand community. Rather than focusing solely on spending, these systems reward customers for activities like social media posts, positive reviews, and app downloads. The LEGO Insiders Program exemplifies this approach by leveraging its existing customer base to share experiences, thereby boosting word-of-mouth and organic marketing.
- Tiered Systems separate customers into different tiers based on their level of engagement or spending. Tier systems offer clear and attainable goals for customers to work towards. Higher tiers receive more exclusive benefits, such as early access to tickets, special seating, or meet-and-greet opportunities. This system is very effective for coveted offerings. Sporting organizations often implement this strategy to reward their most loyal fans. For example, The Minnesota Gophers Football Club utilizes an experience-based tier system. The more you financially support the famous Minnesota team, the higher rank in the loyalty program you get. Each tier has access to different rewards. The benefits start with simple souvenirs like the Gopher sports calendar, but you can also get stadium tours, upgraded seats, or photos with the players.
- Subscription-based systems involve customers paying a recurring fee for exclusive benefits within the organization. These systems create a steady revenue stream while providing consistent value to customers. For event organizers, subscription-based loyalty programs can enhance attendee engagement, improve retention, and offer predictable income. This strategy is particularly effective for well-established brands, which can justify higher subscription costs more easily than less familiar brands, which must work harder to demonstrate the value of their subscriptions.
For example, the U.S. Soccer Insiders program offers a three-tier loyalty system. The free Standard membership includes presale tickets, voting for the player of the month, a newsletter, and access to Insider Rewards. The $45/year Premium Insider membership adds benefits like invitations to exclusive events, free shipping on U.S. Soccer store purchases, and lounge passes. The $185/year VIP Insider membership provides even more exclusive ticket offers, a matchday concierge texting service, and other VIP benefits unavailable to lower tiers.
Entertainment Venue Marketing Means Loyalty Program Benefits For Music Fans
Beyond the emotions, in the Live Nation study, the vast majority of live music goers agree that offering live music perks, such as presale access, exclusive VIP experiences and artist meet-and-greets, shows a brand is more aligned with their values (93%), is more relevant (93%) and cares more about its community (92%). This is a brand they’re more likely to purchase from in the future (89%).
Entertainment Venue Potential Loyalty Offerings
- Early Ticket Access: Priority access to tickets before the general public, ensuring loyal customers get the best seats.
- Exclusive Discounts: Discounts on tickets, merchandise, and concessions.
- Seat Upgrades: Access to better seating for shows.
- VIP Experiences: Access to VIP lounges, backstage tours, or meet-and-greets with performers.
- Special Seating: Reserved premium seating for loyalty members.
- Concessions Discounts: Drink promotions or discounts on menu items.
- Free Merchandise: Complimentary branded items like t-shirts, posters, or accessories.
- Birthday Rewards: Special offers or gifts on members’ birthdays.
- Exclusive Content: Access to exclusive content such as behind-the-scenes videos, early release of new songs or albums, or special interviews.
- Invitation to Special Events: Invitations to exclusive events, such as private concerts, album release parties, or Q&A sessions with artists.
- Priority Check-In: Faster entry lines or priority check-in at events.
- Access to Pre-Sale Merchandise: Ability to purchase merchandise before it is available to the general public.
- Discounted or Free Parking: Reduced rates or complimentary parking at the venue.
- Loyalty Card Integration: Digital loyalty cards are integrated into mobile wallets for easy access and tracking.
- Referral Bonuses: Rewards for referring friends and family to join the loyalty program.
- Season Passes or Subscriptions: Special pricing on season passes or event subscriptions.
- Experiential Rewards: Unique experiences like attending soundchecks, being a roadie for a day, or personalized video messages from artists.
How do Loyalty Programs Benefit Venues and Event Organizers?
Understanding your fanbase
Understanding your fanbaseLoyalty programs offer entertainment venue owners and operators valuable insights into attendee preferences and behaviors. By tracking customers’ activities and purchases, organizers can gather data to tailor future events better. This data-driven approach enhances the attendee experience and enables more targeted and effective venue marketing strategies, guiding decisions on event themes, performers, and merchandise offerings.
Fan Engagement & Participation
Loyalty programs foster a deeper sense of community by incentivizing repeat attendance and active participation. Rewarding customers for attending multiple events, engaging on social media, or participating in surveys builds a loyal fan base that feels valued and connected to the brand. This sense of belonging boosts word-of-mouth venue marketing as satisfied customers share positive experiences with friends and family. Essentially loyalty programs help build venue champions and organic marketing.
Financial Incentives
Loyalty programs lead to higher spending among attendees. Loyal customers are more likely to return to future events and tend to spend more on upgrades, merchandise, and on-site services. This increased spending is driven by the desire to earn rewards and access exclusive benefits. Additionally, loyalty programs create upselling opportunities, encouraging attendees to purchase higher-tier tickets or exclusive merchandise to earn more points and rewards.
Steps to a Implementing a Successful Entertainment Venue Loyalty Program
Steps to a Implementing a Successful Entertainment Venue Loyalty ProgramAssess brand awareness & community engagement
Before launching your loyalty program, it’s important to understand your audience’s perception of your brand and their level of interaction with your events. With audience insights you can better tailor the program to meet their needs and expectations. This target audience assessment can be conducted through surveys, social media analytics, and feedback from previous attendees. An engaged community is the foundation for a successful loyalty program.
Identify goals & objectives
Your objectives should align with your broader business goals and address specific challenges, such as increasing ticket sales, boosting engagement, organic marketing, or improving alternative revenue streams. Establishing measurable objectives allows you to track the program’s success and make adjustments when needed. For instance, a point-based system or a subscription program is more effective if the primary objective is to strengthen alternative revenue streams.
Choose the right program for you
Point-based, value-based, subscription-based, and tiered systems each have unique advantages and can be tailored to different types of events and audiences. For example, point-based systems work well for frequent, low-cost events where attendees can accumulate points quickly, while tiered systems are ideal for premium events with higher engagement levels. Value-based systems are ideal for emerging venue brands that wish to establish a community. Additionally, subscription-based programs can provide steady revenue streams and are best suited for established brands with a loyal following. Evaluate your audience’s preferences and the nature of your events to choose the most effective program type.
Promote the program
- Effective promotion is key to gaining traction for your loyalty program. Utilize various marketing channels such as social media, email newsletters, and in-venue advertising to spread awareness. Here are the three focal points to consider when promoting the program.
- Clearly communicate the benefits of joining the loyalty program. Use enticing language to highlight exclusive perks. Ensure that potential members understand the value they’ll receive by joining.
- Simplify the sign-up process to remove barriers to entry. Provide multiple ways to join, such as online, via a mobile app, or in-person at events. Minimize the amount of information required upfront to make it quick and painless.
- Offer an attractive welcome bonus for new members. This could include extra points, a discount on their next purchase, or a freebie. A strong initial incentive can encourage sign-ups.
Monitor and adjust accordingly
Track key performance indicators (KPIs) based on your established objectives. Gather feedback from participants to identify areas for improvement and evaluate their satisfaction levels. Furthermore, be prepared to make necessary adjustments based on the data collected. Utilizing a loyalty program software with a user-friendly backend can greatly improve this step of the process.
Challenges and Considerations for Loyalty Programs for Entertainment Brands
When implementing a loyalty program, entertainment venue operators must address expected challenges and considerations to ensure the program’s sustainability. Here are some key factors and opportunities to consider
Scalability
As your venue brand expands, your loyalty program must be able to handle an increasing number of participants while continuing to provide a valuable experience for existing customers. Managing a small program differs significantly from handling one with thousands of participants. Achieving scalability requires planning and a sound infrastructure. Consider software that can integrate easily with your existing ticketing, concessions, and marketing platforms. In addition, be flexible with your reward offerings as consumer behavior shifts
Gamification Modules
Gamification involves integrating game-like elements into non-game environments to enhance engagement and motivation. In the context of loyalty programs, this can mean offering badges, leaderboards, or challenges to complete. The strategy is highly effective in fostering a strong brand community due to its element of competition. However, the challenge lies in designing gamification modules relevant to the venue audience. Overly complex systems can confuse users, while overly simplistic ones may fail to motivate. It’s crucial to align the interests and behaviors of your target audience with gamification modules. Be aware that this tactic can be costly since the gamification module design likely requires a high level of customization.
User-friendly Backend Software Application
A straightforward backend system is essential for managing loyalty programs efficiently. Venue operators need a robust platform that can handle a lot of registrations, manage rewards, and provide analytics. The software should be intuitive for staff to use and integrate smoothly with existing event and venue management tools. A complicated or unreliable backend can lead to administrative headaches, ineffective campaigns, and wasted resources.
Reward offerings mix
The rewards offered in a loyalty program must be catered to your target audience. Offering a range of rewards, from discounts and exclusive access to merchandise and unique experiences, ensures that there is something for everyone. However, determining the right mix of rewards is the key to minimizing wasted resources. This requires careful consideration of your audience’s behavior and the cost implications. The loyalty offerings listed in this article and the Live Nation’s study is a place to begin. Regularly updating and refreshing the reward options can keep customers excited, especially if the brand community is long-established.
A/B testing capabilities for Loyalty Programs.
A/B testing involves comparing two versions of a feature to determine which performs better. For loyalty programs, this can mean testing different reward offerings, communication strategies, or engagement tactics. Implementing A/B testing capabilities allows event organizers to optimize their resources based on their audience data. Consider a systematic approach to designing tests, collecting data, and analyzing results. You might miss opportunities to refine and improve the program based on user feedback and behavior without taking advantage of this testing feature.
Conclusion
Implementing a loyalty program is a strategic move that can significantly enhance the success of events taking place in entertainment venues. Loyalty programs create a win-win situation for both venue operators and attendees by rewarding customers for supporting the venue. These programs not only boost ticket sales and alternative revenue streams but also foster a loyal and engaged community, ensuring long-term success in the competitive entertainment industry.
Entertainment venue marketing plans should include the implementation of a venue loyalty program. Because entertainment venues have a proven solution with live music, they can foster emotional attachments and feel-good components with tangible rewards to supercharge their loyalty programs.
Related Post:
Event Marketing: Unlocking the Power of Geofencing
Sources:
https://moneyzine.com/careers/customer-retention-statistics/
https://www.xoxoday.com/glossary/events-rewards
https://loyaltylion.com/blog/customer-loyalty-program-examples
