8 pros & cons of offering event promo codes
TRANSCRIPT
8 Pros & Cons of Offering Event Promo Codes
#1: Pro. When you just need butts in seats.
If you’re at the point where you just need to fill seats, then offering discounted tickets with a promo code could be the right move for you. After all, sometimes a discounted sale is better than no sale at all, and everyone knows that a full house looks better than a half empty one.
#2: Pro. You can reach new customers. Offering discounted tickets for an event — especially if you rarely do so — is an easy way to attract new customers to your venue or event. Advertising your promotion in a new avenue or social media channel may even boost your followers! Promotions can help you reach new customers who are looking for inexpensive deals and want to save money, and you’ll have the chance to turn these first-time buyers into loyal customers.
#3: Pro. Discounts build strong client relationships. It’s hard to reach every type of patron, and promo codes can help you reach those bargain shoppers who are looking for a good value for their money. Giving discounts creates return business, and can generate positive word of mouth and build your reputation as a community-minded business owner.
At the end of the day, a few discounts probably won’t hurt your business, and can be a useful tool for bringing in new patrons — ultimately bringing in return business and filling more seats — provided you use the proper channels and have a good strategy in place.
#4: Pro. A few discounts won’t hurt in the long run.
#5: Pro. You can fill those hard-to-sell dates. Some dates just don’t sell as quickly as others. Maybe you have trouble filling your Thursday night show, or your Saturday matinee. Boost sales of these dates by offering a promo code for patrons who are willing to attend on a different day for a discount. That way patrons are incentivized to purchase tickets but don’t feel cheated that they’re missing out on the prime performance.
#6: Con. Those pesky profit margins. If you’re offering a promo code that’s a severe slashing of your regular price, your profit margin is bound to suffer. If you know an event is going to sell well anyway, there’s little use for an additional promotion. Use promo codes strategically so you don’t hurt your overall profits.
#7: Con. You’re in danger of setting a harmful precedent. Offering discounts on tickets can sometimes be dangerous, as patrons might become wary of paying full price. This is where timing can be everything: offer promo codes only as you need a boost in ticket sales, and use separate channels (besides your own website) to do so. This will decrease the risk of customers thinking that they’re getting a bad deal if they’re not getting a discount.
#8: Con. You leave out early buyers. You might be tempted to only release promo codes closer to the performance date to increase sales, but don’t forget about your avid fans — the ones who buy tickets as soon as they go on sale. Consider a pre-sale promo code so these patrons aren’t left feeling like they missed out.
Discount codes can be a great way to attract first-time buyers, build customer loyalty, and ultimately increase event attendance. But there’s also a downside to cutting costs for those bargain shoppers, as you set a potentially harmful business precedent and cut your profit margins. The trick is knowing how and when to implement a promo code for your event, and to build it into your overall marketing scheme for each performance. Make promo codes work for you, and you’ll be getting those butts in seats in no time.
