In the current live event landscape, it has never become more essential for organizers to increase event revenue streams outside of ticket sales. Finding ways to increase event revenue year-on-year is pivotal to a successful event strategy.
According to Billboard’s article titled “Ka Ching! Cashless Wristbands at Music Fests Mean Big Bucks”, “considering that promoters only make 15% or less of their money from ticket sales, ancillary revenues from sources like parking, merchandise and concessions are critical. As in the rest of the live business, technology is changing the way fans spend money at concerts and, right now, tech is leading live entertainment towards cashless events”.
The pressure is on. Demand from fans to out-do previous event experiences is a reality that can’t be ignored. The cost of production, staffing and entertainment is ever-increasing. Events that continue to grow and thrive in a competitive marketplace learn to adapt to industry challenges, while embracing changes and new technology solutions. Learn how to stay on top and be in control of your event.
Deploy a Cashless Payment System
In contrast to traditional forms of payment such as cash, debit or credit card, a Cashless Payment system removes the bottleneck of payment processing; no more fumbling for change or waiting for credit card transactions to process, digital event currency is instantly drawn from the guest’s cashless balance with a simple double-tap of their pre-loaded RFID event wristband.
Consumers get significantly faster transaction times and an extremely convenient way to spend, ensuring they get what they want, when they want it, significantly reducing queues and drop-off rates. The faster transaction times also means your vendors can process more orders per minute with the same staffing levels. While our closed-loop Cashless Payment system has proven to increase on-site guest spending by 15-30% at fully cashless events, compared to traditional forms of payment.
Implementing an RFID for Cashless Payment system is an immediate way boost fan spending on site, and gather extremely lucrative customer data which can be used to lure in bigger brand partners.
Tip: To maximize the impact of a Cashless Payment deployment, a proven strategy to increase event revenue is to encourage guests to add funds or “top-up” their cashless accounts in advance of the event. Organizers also benefit from having pre-top-up funds in their merchant accounts before event gates open, providing greater flexibility and cash flow to help cover event costs
Brand Partnerships to Increase Event Revenue
These days brands are an integral part of the festival ecosystem. While their presence may still seem a little egregious to a number of die-hard, old skool festival goers, the organizers have opened their arms to the added revenue from branded stages and activations.
Goldenvoice has proven to be among the most adept at leveraging their coveted audience for branded opportunities. They have major partnerships established with HP, American Express, and perhaps most famously H&M, who have their own signature Coachella line, and can do so because they have perhaps the most lucrative target market in the event space.
You need to know who your audience is if you’re going to chase after the really lucrative brands that can seriously increase event revenue. Companies like Budweiser or Dodge aren’t doing guesswork when it comes to sponsoring events. They want to know exactly who is coming to your festival or event, so start gathering as much valuable information as possible about your fanbase.
Last year, we spoke to festival brand partnership Michael Ilves about how to get the maximum amount of mileage out of the brand/festival relationship. You can read the full interview here.
Increase Sponsorship Revenue with RFID Brand Activation Opportunities
RFID technology provides new opportunities for brands to closely engage and relate to event-goers through cutting edge brand activations and audience profiling. Gone are the days when you drop a clipboard and a handful pens down at a booth and hope people sign up.
RFID technology can be seamlessly integrated into all types of brand activations including social media check-ins, games and leaderboards, contests and giveaways, voting and questionnaires, scavenger hunts, tasting lists and much more.
Sponsors these days are interested in ROI measurement data and post-event customer engagement opportunities, and by having RFID integrated into branded activations you can significantly increase your fees as you are delivering considerably more value to your partners.
Establish Partnerships with Hotels
There were almost 20,000 meetings and conventions held in Las Vegas in 2017, drawing in an estimated 6.6 million visitors, each of whom likely stayed in one of the city’s many hotels. Events offering discounted hotel packages for guests is a huge part of Las Vegas’ convention tourism, and it can be equally applied to all live events and festivals.
Knowing that a significant percentage of your attendees will be staying overnight represents a huge window of opportunity to partner with local hotels and sell mutually beneficial package deals. If your event’s presence in a region represents a opportunity for hoteliers, then you should be actively seeking to form partnerships and sell package deals with tickets.
You can weave additional perks into the offering, like breakfast, spa facilities or shuttle passes where applicable, and give added value to your audience in the form of convenience.
Volunteer Staff Help You Save
Most festivals use a mix of professional staff and volunteers to run their event. Finding the right balance between professional and volunteer staff depends on the size and culture of your event and can be a process of trial and error, but this can be a very important way to stretch your budget a little further.
Lots of fans are happy to make the trade off of putting in a six-hour shift per day in exchange for access to the festival, accommodation and some meals. With the margins being so small in the majority of festivals, you have to rely on free labor to power certain positions.
“We bring volunteers in from application processes and provide free entry for a certain amount of work,” explains Matt Marabella of Desert Hearts festival in San Diego. Some of those volunteers stand out and go above-and-beyond what they’re required to do. Some of them have a sparkle in their eye when they get to work and help create the space with us. Those people then get brought back the next year and usually get an opportunity to grow with Desert Hearts.
Read our article from 2017 on how you can make volunteers the lifeblood of your festival.