Using 'bundling' to increase attendance and loyalty

This research was conducted by Emma Hall, Wayne Binney and Julian Vieceli at Deakin University and Swinburne University of Technology, Australia

Summary

This paper examines how performing arts companies can increase customer loyalty and attendance by utilising the marketing tool known as bundling. Loyalty and attendance can be increased by offering attractive package deals that give the customer various benefits with their seat ticket. This particular study is based on a set of focus groups at Opera Australia. Overall, it found that bundling may increase opera attendance, customer satisfaction, repurchase intentions, loyalty and assist in reversing the overall downturn in opera attendance.

Opera companies are reliant on wealthy older people

The solvency of non-profit opera companies is heavily dependent on loyal subscribers or members. Increasing competitiveness in the market has compelled such companies to have a better understanding of how to attract and retain their customers. In the case of Opera Australia, more than half of their subscribers (and more than a third of single ticket buyers) were aged over 65. These customers tended to be either unemployed or retired, but had enough disposable income to purchase package deals.

A range of options can be bundled together to increase people’s opera attendance

Participants in this study strongly supported value-added elements in a packaged deal. These elements included: hospitality, pre- and post-event entertainment, opportunities for backstage visits to meet the cast, informative introductions to operas, and facilitated parking options. The findings have useful implications for event organisers and policymakers looking for ways to increase opera attendance.

This summary is by Shelly-Ann Gajadhar, King’s Knowledge Exchange Associate