Data in Marketing: Revenue Tips from Loyalty Study

You may have seen our most recent study about subscription trends across the country. The top-line finding is that fixed subscriptions are stabilizing (albeit at lower post-pandemic numbers) and new, more flexible packages are growing.

What can we learn from the data in this study that will help us with our revenue strategies moving forward? Here are three quick takeaways to consider at your organization. 

Choose-your-own (CYO) packages are a revenue driver

Our research shows that CYO subscribers pay more per ticket—largely because CYO subscribers get less of a discount than fixed subscribers. Given that we’ve also seen a growth of 63% in CYO sales since the pandemic (while fixed subscription sales have dropped by 31%), this means that CYO packages are priced higher and people are willing to pay the premium to tailor their experience and see the specific performances that interest them. Are your CYO packages priced appropriately? Do you have an opportunity to drive revenue further by increasing prices?

Average yield = Revenue/Tickets Sold

Fixed subscriptions at opera and theatre companies may be underpriced

Opera subscriptions dipped in average yield during the 2023-24 season and theatre subscriptions have not yet matched their pre–pandemic average yield. Consider optimizing your subscription prices to make sure you aren’t leaving money on the table—especially with the quickened pace of inflation post-pandemic. Keep in mind that research has shown that subscriber discounts are often not the motivating factor for subscribers. 

Create KPIs around increasing frequency of single-ticket buyers

The chart below shows that the representation of standard tickets among audiences has increased post-pandemic. Considering this metric and the overall decline of subscription revenue, placing an enhanced emphasis on multi-single ticket sales is an excellent strategy to forge loyalty and replace some of the subscription revenue loss. Programs such as first-timer offers, multi-ticket packages, and value-add experiences targeted at individuals who only buy single tickets will be fruitful. Consider that your new single-ticket buyers may be very different than your traditional subscribers— perhaps there is a new membership program that will work for them? Do your research to find out. 

These tips from our recent study are just three levers that you can pull to increase your subscription and single ticket revenue for the coming 2024-25 season. For more advice, contact us! We’re experts in pricing and revenue management strategy.

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