How Venues Can Increase Customer Spend Without Raising Prices
For many pubs, bars and hospitality venues, increasing revenue often seems to come down to one thing: putting prices up.
But there is only so far you can push the price of a pint, cocktail or meal before customers start to notice.
So, what if increasing revenue wasn't just about charging customers more?
What if the opportunity was to encourage them to stay longer, spend more during their visit and make better use of the space and facilities you already have?
Longer visits create more opportunities to spend
It sounds obvious, but the longer a customer remains in your venue, the more opportunities there are for them to spend money.
An extra hour could mean:
Another round of drinks
An additional food order
A dessert or late-night snack
More people joining the group
Another activity or experience
Of course, customers won't stay longer simply because you want them to. They need a reason to remain comfortable, entertained and connected.
That's where the overall customer experience becomes important.
Look beyond your core offer
Most venues are brilliant at focusing on their main source of income: food, drink, tickets or entertainment.
But additional revenue doesn't always need to come from selling more of the same thing.
Many venues are now looking at ways to diversify their income through:
Premium experiences
Private hire
Events
Advertising
Partnerships
Customer services and amenities
Technology that improves the visitor experience
The best opportunities are often the ones that don't require additional staff, significant floor space or a major investment.
The modern customer relies on their phone
Think about how much your customers use their phones while they're in your venue.
Their phone may be used to:
Pay for drinks and food
Take photos and videos
Share their experience on social media
Communicate with friends
Access digital tickets
Order a taxi or transport home
Use maps and navigation
When that battery starts running low, it can quickly become a problem. A customer with 5% battery isn't necessarily thinking about another cocktail. They might be thinking about how they're going to get home.
Remove a problem rather than create another sale
Sometimes the best way to increase spending isn't to sell something new.
It's to remove the reasons a customer might leave.
A convenient phone charging solution allows customers to continue using their device while they remain in your venue. Rather than sitting next to a wall socket or worrying about preserving the last few percent of battery, they can continue enjoying their visit.
Venue Charge Solutions provides portable power bank rental stations that allow customers to take a charged power bank with them and return it when they're finished.
For venues, the concept is simple: provide a genuinely useful customer service without having to buy, operate or manage the technology yourself.
A better customer experience can also create additional revenue
The strongest additional revenue streams are often the ones that provide value to everyone involved.
Customers receive a useful service. The venue enhances its customer experience. And the rental activity creates an additional revenue opportunity.
There is no need to increase your prices or ask your team to sell another product.
Instead, you're adding a service that fits naturally into the modern hospitality experience.
Increasing revenue doesn't always mean charging more
With customers becoming increasingly conscious of what they spend, simply raising prices isn't always the best answer. Sometimes the opportunity lies in making the existing customer experience better.
Encourage people to stay.
Give them more reasons to remain comfortable.
Remove the small frustrations that can bring a visit to an early end.
And look for new revenue opportunities that complement your existing business rather than changing it.
A phone may only be a small part of your customer's visit. But when the battery dies, it can suddenly become the most important thing in the room.
Could your venue offer a better solution?
Venue Charge Solutions provides fully managed portable power bank rental stations for pubs, bars, venues, attractions and other customer-facing locations.
If you'd like to explore whether a Venue Charge station could work in your venue, get in touch with our team to discuss the opportunity.
