Group sales are a critical component to the overall success of a Broadway production. There are so many variables that play into a successful group sales strategy that we went straight to some of the key players in the group sales market to get their answers to some questions we had.
First up, Charlie Flateman from Telecharge.com.
(theSITUATION): How would you say the Internet has affected the group sales business?
(CHARLIE FLATEMAN): As with every other product or service, the wide and nearly instant distribution of information through the internet has provided group leaders with much more information about the show they’ll select. Recommendations from a group sales agent are still important, but a show’s careful online branding with good content, age-appropriateness, music, video, and pricing information has made the group buyer much more savvy than ever before. Also, since there’s no gulf between the information distributed to individual ticket buyers versus group buyers, its important to remember that discounted pricing offers for individuals have an ever greater impact on group leaders’ awareness of the range of prices in the marketplace.
(tS): Is there a recipe for a type of show that will do well with group sales?
(CF): Almost every show can find its niche audience, but the heart of the group market is still schools and seniors, same as it ever was.
(tS): Is there an ideal time that producers should start pushing forward with their group sales outreach? Has this timeline changed over time (i.e., are people booking earlier, later, etc.)
(CF): There are certainly “buying seasons” to which attention must be paid. Schools, and the tour operators which sell to schools, will do the bulk of their buying in the fall for the following spring, but really, early outreach is important. We’ve suggested to several shows this spring that they should get their group sales message out very early since there’s nobody at schools all summer that can make buying decisions. It’s not uncommon for a sales effort in one year to drive group bookings in the following spring season. It’s also not uncommon, unfortunately, for a group sales effort to come so late that most of the groups have already made their plans.
(tS): How important is the pricing strategy in group sales? Do shows that go out with a steeper discount perform noticeably better? Can it hurt you long term if you go with a steeper discount too early?
(CF): Well, of course, a thoughtful group pricing strategy is key, but group pricing doesn’t exist in a vacuum. Early-bird group offers, extended payment options, and deciding on the right group minimum must all be considered in context with the rest of the marketing campaign including direct mail or email dates and rates, and an overall yield management strategy. For instance, 10 years ago if a show had “too many” groups the prevailing notion was that you might be reducing the grosses. Now, by carefully managing the yields, “too many” groups might actually be increasing the number of Premium Tickets sold, at the end of the day, and therefore improving the final grosses. Group pricing and individual pricing strategies are just different aspects of the same conversation (or should be).
(tS): What’s on the horizon for group sales business?
(CF): I think groups are looking for more immersive experiences – workshops, meet-the-artist programs, talkbacks – things that extend a group’s connection to a show. I expect we’ll also see lower group minimums, which if we’re smart, will make it easy for people to create a ‘mini-event’ around a show and dinner or drinks for groups of friends or family. And of course the demographics can’t be overlooked: those of us who are baby-boomers are inching closer to that other heart of the group market which is seniors. Not me of course, but I have heard that it’s happening to some people.
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