Maximising secondary spend after lost revenue

With the latest announcement regarding Covid restrictions remaining in place for another 4 weeks, it is understandable that many cinemas, theatres and other performing arts venues are feeling a little disheartened. It is the longest closure of performance venues ever (even in World War II cinemas were forced to close down for only a matter of weeks).

We are supporting and encouraging venues to make the most of ‘secondary spend’ to help offset some of the lost ticket revenue. It is a profitable revenue stream often overlooked and that deserves to be maximised.

In this blog, we recommend ways to increase ‘secondary spend’, whilst ensuring a positive customer experience and growing repeat custom.

3 Ways to increase secondary spend per head at performing arts venues

With the news of the reduced capacities continuing, many hospitality and entertainment businesses thoughts are on limited ticket sales. But now is the ideal time to pivot and consider ways to increase secondary spend. According to Spektrix 40% of the UK’s number 2 cinema chain’s revenue comes from food and drink sales. What difference would this make to your income if every customer was spending considerably more on food, drink or merchandise at every visit? With the profit margins, this could be a support to your business in these challenging times.

1 Market all you have to offer before your customers set foot on the premises

Most people prefer to know what to expect, especially if they are visiting somewhere new. Once they have ordered their ticket, immediately get your customers excited about what you have to offer to add to their experience during their visit.

With Visit Software, you can easily market all that you have to offer customers at your venue, which will actively encourage secondary spend, either before they even arrive (see below) or upon their arrival.

You can also include a request for small donations or voluntary contributions, if relevant to your business, making it easy for your customers at a time when they are most engaged with your business. This immediate request has a good response rate and, importantly, gives you an instant insight into customers who are sympathetic to your cause and may be willing to consider becoming a regular donor and supporter.

2 Pre-order offers and personalised reminders

Encourage pre-orders of food and drink, as well as programmes or merchandise, with personalised messaging. Emails should be sent to remind your customers of this service and you can personalise the messaging for particular timings or seasonal events. Don’t forget to remind customers of the advantage of pre-ordering, including reducing wait times and removing the need to queue or to pay on the day.

Furthermore, pre-orders can save you time and money on stock, preparation and staffing. For example, where you have ‘no shows’, you don’t need to prepare their orders. Also, a bulk of orders in advance can help you streamline preparation.

All of your systems can be fully integrated with Visit to ensure every order is prepared in advance and ‘ready and waiting’ for when the customer arrives, leading to a great customer experience.

Learn more about food waste reduction and improved hot food quality thanks to the use of Visit, in our latest partner interview with the Picture House Uckfield

3 In-house ordering services

The modern customer is becoming more familiar with in-house and ‘at table’ ordering, via websites and apps. On arrival at a venue or during the interval, there is nothing worse than seeing a long queue at the concession stand or bar – so give your patrons an alternative solution. Allow customers to order directly whilst stood comfortably in the foyer, outside, or wherever they choose by using Visit. The customer will be notified when their order is ready for collection.

You may also consider an ‘in-seat’ option with deliveries made directly to customers at their seat before the performance or showing, as well as during an interval, allowing them to go directly to their seats and avoid any waiting time. This kind of premium service is a proven strategy for enhancing secondary spend.

Helping you to make up for lost revenue

There is nothing more we would love to see than packed houses and fully booked performances. But for now, we are consistently looking for ways to help you increase the revenue per head in secondary spend, with easy to implement systems.