1. Define your goals
The first consideration before you even start creating your ticketing structure is to define what you want to achieve with your pricing strategy. Do you want to increase your profit margin, sell out faster, generate more activity, or reward local residents and loyal fans? Once you have defined your goals they will determine how many tiers you need to create, how to price them, and what incentives to include.
2. Segment your audience
Secondly you really need to identify your target audience and what it is that they value. Check the data from previous events of a similar type and assess just what the key segments were. Carry out surveys or check on your social media to obtain comments and observations which can be used to segment your audience based on factors such as demographics, behaviour, preferences, and a willingness to pay. This is particularly relevant if you’re using such schemes as ‘pay what you wish’ or even a local resident discount. This information will then help you tailor your ticket tiers to different groups and create more relevant and appealing offers.
3. Set your prices
Having determined your audience segments and goals, you can start setting your prices for each tier. There are many ways you can do this, such as cost-based, value-based, or market-based pricing. You can also use dynamic pricing, which adjusts the prices based on demand and supply. The key is to find the optimal balance between affordability and profitability, and to create clear differences between the tiers. Be careful here though that you don’t under value your offering as it’s not just about price, it’s also about ‘value’, so don’t be afraid to charge what it’s worth. Another consideration here is the number of pricing options you have, too many becomes confusing, whereas too few doesn’t give you the flexibility you require.
4. Add value and urgency
Once you have created your ticketing tiers and pricing structure you need to make them attractive and effective. In order to do this it is a good strategy to add value and urgency to each offer. Value can be added by including perks, benefits, or bonuses that enhance the event experience, such as VIP seating, meet the cast/staff, merchandise, or special discounts. Urgency can be created by using scarcity, deadlines, or early-bird discounts that encourage people to buy sooner rather than later. Be careful here though that if you use dynamic pricing based upon supply and demand, and in the last few days/hours the price reduces significantly to sell the remaining places, that your audience doesn’t feel cheated by having been an ‘early bird’ and supported you from the outset.
5. Communicate and promote
Finally, with all the structures in place and the prices published you need to communicate and promote your tickets to your potential audience as effectively as possible. To market anything you need to use all the channels at your disposal including your website, email, social media, or even paid advertisements. Having created your tiered pricing structure you need to make sure that you showcase your ticket options and their benefits. It’s also worth considering testimonials, reviews, or even recruiting influencers to build trust and credibility. Obviously, the key here is to highlight the value proposition and the urgency of each tier, and to create a clear call to action.
Good Luck!
