Beware Of Shrinkage

I am not talking about retail stealing, I’m referring to giving the customer less.

Last night my family and I went to Panera Bread for a quick dinner.  I ordered the half soup & half sandwich.  When our order was ready I looked at my food and noticed my half sandwich looked really small.  In fact I measured it.  It was only two inches long by one inch wide.  The side of bread they gave me was longer.  I brought the plate back to the counter and inquired about it.  The person behind the counter said it was the correct size.  He informed me that they did cut back on portion size.  He further said their food costs were high and they were controlling it.  Gee thanks, I am so glad I was able to help Panera’s bottom line and food cost by accepting a smaller plate of food.  I will give him this, he was brutally honest!

All of us in event & entertainment marketing need to be aware of what our customers think of our product.  When we make changes that affects our customers, they will notice.  Charging the same price or raising your price and then giving less will be noticed.

I believe it is more important then ever to offer our customers at least the same or even a better experience.  Even though our business today is run by only a few large companies our customers still have a choice.  They have the choice to not spend their discretionary dollars with you. 

What do you think your customers think when you:

• Raise your parking price to $40 and then cram cars in so tight that everyone is getting door dings?
• Cut back on staffing and then customers wait in lines for everything?
• Raise your ticket price and the act gives less then a 90 minute performance?
• Charge $7.00 for popcorn that is stale because you made it two days before?

Anything that affects your customers experience should never be compromised unless you are okay with fewer customers.

Answer From A Reader

In the last post one my readers wrote an email asking how to deal with discounts and fire-sales.  Here is an answer from a live event promoter:

 Hello!

 I work as a promoter for shows – and I too read your blog every day.

 In regards to fire-sales and discounts, I think the issue is the fact that the venue is endorsing the last minute fire sales and discounts by displaying them on their twitter and Facebook accounts. I would be mad at them, as a patron, as well. As marketers, we need to get more creative in our discounting when a show is not selling well. We need to reach out to our media partners and venue sponsors to ask them to “take ownership” of a discount that they are bringing into the market. When the local radio station is offering their listeners 50% off tickets – the venue is not seen as the one to blame. When the local TV station, channel 10 for example, gives their viewers a $10 discount on tickets, this becomes their discount. Using the media allows for a separation between the venue and the media partners who are the ones putting out a ‘fire sale’. This eliminates (hopefully) upsetting those patrons who already paid full price for their tickets. At least it eliminates patrons getting mad at the venue directly.

Another thing I never do is discount the top ticket price. Those are your big players – the ones that get upset when their full price ticket they purchased later gets discounted. This way, those people receiving discounts are purchasing those tickets that are “less desirable.” 

To reply to the Facebook message that the venue received they could say:

We appreciate your purchase of tickets early. You will be rewarded for your early purchase by having the best seat in that price level. 

Name Withheld

From A Reader

Just as I was sitting down at my computer to write today’s blog post and thinking “what am I going to write about” I received this email from an arena marketer in the Midwest.

“Hi Joe, I subscribe to your blog, read it immediately whenever it hits my inbox and often share it with co-workers.

 I have dilemma that I thought you might be able to enlist your subscribers for their thoughts on. Here lately, it seems as though our building has had a string of events that don’t sell very well (priced too high) and we have been forced to roll out last minute, fire-sale deals to move seats. One of the ways we get the word out about the deals is our social networking…Facebook and Twitter. Facebook is great for us, but we often get complaints as comments from folks who paid full price earlier. What is the industry (good PR) thought on how to respond to the Facebook comment complaints? 

I am in a position as an arena marketer to take directions from the show’s promoter (who rents our building), but this practice of pricing things too high and then putting out last minute discounts and making our early buyers mad…just irritates me. 

Any help you can provide on the Facebook question would be appreciated. Should I respond? Should I delete the comments?” 

Name Withheld By Request 

What the author of this email stated is a topic that is an ongoing issue.  This problem is not new.  It has been happening for years.  The only difference now is that our customers have more avenues to express their comments and complaints.  

To answer his last question first; I believe you should always answer every question or comment you receive from a customer.  Part of social networking is creating the dialogue. With social networking you need to take the good with the bad. 

As for taking direction from promoters, I understand both sides because I have been on both sides.  Promoters do need to listen to the venue marketers who live in the market.  They are the first line in what is happening in that city.  They know if the economy is healthy or unhealthy. No one likes a fire-sale.  Besides upsetting customers, it also cheapens the show which makes the producers and artists mad. 

The writer of the email and I want to hear from other event & entertainment marketers.  This goes for both promoters and venue peeps.  Send me your comments!

If It’s Not One Thing, It’s Another

There are two articles of interest to the event & entertainment marketing community in today’s Wall Street Journal.  

Anybody want a slightly used ticketing system?

The WSJ article states that Live Nation Entertainment is being sued by European ticketing company CTS Eventim for breach of contract.  After I read the article I was still confused but here is what I think is the issue.  Before the merger with Ticketmaster, Live Nation wanted its own ticketing system and cut a deal with CTS to compete with TM.  This was the Live Nation ticketing system.   Now that Live Nation and Ticketmaster are one and the same LN does not need a ticketing system and CTS is suing.  I don’t know enough about this to really comment.  However, you got to believe that Live Nation and Ticketmaster had a plan on how to deal with the disbandment of LN’s ticketing system?

Michael always liked the circus

The other article of interest in today’s WSJ is the deal being cut between Michael Jackson’s estate and Cirque du Soleil.  The always thinking live entertainment company is going to produce a themed show on Michael’s music.  Kind of like the Beatles themed show in Las Vegas.  The plan is to produce two shows.  One will be an arena show that will travel and the other will have a home at the MGM Mirage in Las Vegas.  I think this is a really smart move for both parties.  The shows will keep the MJ brand moving and Cirque will sell lots of tickets.  I hope to hear more about this from Cirque at the Event & Arena Marketing Conference in June.

A Marathon Of Logistics

I am always blown away by the logistics that goes into running the Boston Marathon. 

Today is Marathon Monday here in Boston.  Around 27,000 runners will make the 26.2 mile trek from Hopkinton MA to Boston.  The planning and prep actually begins the day after the race when they do the post race meetings.

Think about what you have to plan for with the 27,000 runners and the thousands of spectators lined along the race course.  They showed an aerial shot of the runners queue on television. It looked like a concert or festival view.  Then that whole group moves.  Think about how many port-a-johns you need for 26 miles?  How many bottles of water will be given out?  Think about amount of security and medical personnel you need for 26 miles?  They actually feed all the runners and their guests a pasta dinner the night before.  They also provide shuttle transportation to the start.  Think how many busses it takes to move 27,000 people?

I know of at least one member of the event & entertainment marketing world running in today’s marathon.  Our friend Gary Kane is running his first Boston race.  This is a big month for Gary.  He also just started a new job as Vice President of East Coast Marketing & Business Development at Allied Live.

I live right up the road from the marathon route and plan to watch and tweet from there.  If you want to follow on Twitter, you can find me at http://twitter.com/eventpromoter.

How Much Is Too Much?

In the business of event & entertainment marketing the question of “how much is too much” comes up all the time.  It comes up in the planning and implementing of marketing.  It comes up with sales.  It comes up with sponsor/partner pitching.  Do you know when it’s too much?

Long before an event or show goes on sale you are planning the marketing for your event.  You have to come up with a budget and then make it work.  What you don’t know in advance is the result.  Today, I don’t think you can ever have too much marketing.  First off, you most likely cannot afford “too much”.  Your marketing plan should have a goal of reaching as many of your potential customers as possible.  In our business this usually means about one month of marketing.  If you have the opportunity to saturate the market you should do it. 

Sales is a different animal in the world of selling an event.  This is more personal.  You are contacting someone directly to ask for their business.  In group sales you are asking the group leader for the sale.  You might start with a direct mail piece followed up by a phone call.  Even better, you are meeting them in person to pitch them on the show.  What if they don’t give you a yes or no answer?  How much sales pressure do you put on them?  Too much and you run the risk of losing the sale.  No one I know likes an over pushy sales person.

Sponsor/partnership sales is even more dangerous.  In most cases, you are asking someone to give you lots of money for the partnership.  Good potential partners receive proposals every day.  You have to walk a fine line between standing out from the others and being annoying.  You also have to be careful not to involve too many cooks in the kitchen.  How many people from one event do they want to hear from?  The potential partner either likes your event or doesn’t.  If they like it and want to put a deal together, they will.  Most importantly remember, they are giving you something you want and they don’t have to.

A Customer Always Has A Choice

The customer always has a choice.  They have the choice to spend their money with you, somewhere else, or not at all. 

When you first plan your event you should be thinking this.  The date, show time, and price will go into your customer’s decision.  What is your competition for this event?  This will also give your customer a choice.  What can you do to swing the customer your way?

When you are buying media for your event, remember you are the customer.  You always have a choice too.  In fact you have even more choices today then even before.  If you don’t like the deal the potential media partner is offering, you have the choice to walk.  One of the first things I learned when I went into this business was you can buy around anyone and anything.  Don’t ever think you have to buy certain media!

We all want repeat business from our customers.  The overall experience you give them at the event will ultimately decide if they choose to come back. We are in the discretionary dollar business.  The customer gets to choose where to spend these dollars.  If you are going to ask them to spend big dollars for a ticket, then make it worth it.  There is nothing worse then a customer leaving your event feeling like they didn’t get their money’s worth. 

The choices you make will help decide your customer’s choice to buy the ticket.

Are You Tweeting?

You know that I believe in Twitter as a marketing and business tool.  In case you don’t believe me, check out the article in today’s Boston Globe how companies are using Twitter to market and talk back to their customers.

How Big Is Your Ego?

If you work in the event & entertainment business then you know that the ones with the biggest egos rule the roost (or they think they do).  Some believe it’s more important at acting like you are the best and letting everybody know this.  While this long time practice seems to be the law of the land, is it still practical and is it hurting business?

We all have an ego.  There is nothing wrong with a little ego.  It gives us confidence in what we do.  But what happens when you inflate the ego to the point of not getting stuff done.  I believe that big egos are a firewall.  We have all seen it in the course of doing business.   

How many times have you tried to get a deal done only to have someone slow you down just so the can show you how big their balls are?  Not returning an email or phone call because they can? That is not power, that is just being rude! Is this really a productive way to conduct business? I believe this is a waste of money, time, and effort.  The aftermath of this recession is that there is no place for waste. 

Today business moves at supersonic speed. You want to get a deal done ASAP so you can move to the next set of business on your ever expanding “to do” list.  Having to play games with someone’s ego slows down the process.  What if everyone kept their ego in check and just got down to business?  The deal is either good or bad.  If it’s good then get it done.  If it’s not a good deal then just say “no thank you” and move on or fix it. 

I understand that the ego is never going to go away.  It is part of being human.  But if we all just thought about it before we played the game?  Maybe business just might move a little smoother.

OK, Time To Start Moving Tickets

The weather is not the only thing that is finally changing for the better.  The economy seems to be on the rebound too.  Now is the time for our industry to bounce back.

I am by no means an economist nor do I play one on TV. But my gut tells me we are on the other side of this recession.  Entertainment may be the first to feel a recession, but entertainment is also the first to get out.  That means we need to be marketing at full steam now. 

If you are currently planning marketing for the upcoming year, you need to jump in with both feet.  Don’t hold back!  Take advantage of every opportunity to promote your show or event. It is ok to spend marketing dollars again.  But spend it in the right places.  As a marketer, you know what works and doesn’t work.  Every market and every event is different.  Make it a marketing match.  Everybody picks on newspapers.  But if it works for you, then use them!  If TV is really expensive in your market and you don’t see the return at the box office, don’t buy it. Do what works, not what someone else thinks might work.  This is an opportunity to get back to thinking and planning instead of just reacting.

If you are currently out of work, call all your contacts again now.  As our business comes back, so will the jobs.  I know that jobs opportunities are opening up.  Get your name back out there!

For our customers, lets give them a good experience from start to finish.  From buying the tickets, to parking, to the experience inside the venue.  A good experience will sell more tickets.  Make ticket prices affordable.  This might include more package options. 

We need to re-build our fans and ticket buyers.  We need to offer them a good value.  We now have a new chance to build new and exciting opportunities for our customers and ourselves.

Same Product Different Market

Over the weekend my son tells me he wants to create one product that can be marketed to all kinds of different people.  One example he gave me was lotion.  This is the same product but with different names.  If you have dry hands; it’s hand lotion.  Rough feet; its foot lotion, etc…  I thought about this and determined we should use this theory in event & entertainment marketing too.

You have a show or event that you need to market.  Who are all your potential ticket buyers?  There are the obvious ones.  These are the people that the show was designed for.  But who else might be interested in your show?  What elements would appeal to a different audience?

There is an article in today’s Wall Street Journal about Vitaminwater.  Coca-Cola is doing an advertising campaign around Vitaminwater aiding in hangover relief.  It has long been known that sports drinks seem to help when you are sick or hung over.  So, they are marketing the drink to anyone looking for some relief.  Not the normal demo you would think of marketing.

Take your show or event and dissect it.  Break down all the different elements to it.  If you do this you can apply a different group of people to each.  It does not matter what kind of event it is.  If you are marketing a festival, you have lots of different elements.  If you have a concert who else can you market to besides the normal fans?  Does the band have its music on Guitar Hero?  Why not market to the video game demo?  Younger kids today know classic rock music thanks to video games.  Does the show or event have fantastic special effects?  You should market this.  Look what 3-D is doing for the movie industry.  If you are marketing a consumer show, what are all the elements?  For example a home show that has a celebrity chef and food demo could appeal to all the foodies out there.

Duncan Hines markets a Classic Yellow Cupcake mix.  Do you realize that what is inside the box is their regular classic yellow cake mix?  Same product marketed to a different group.