The pros and cons of using sites like Groupon, Gold Star, and others
We based this article on Episode 25 of our Marketing Your Attraction podcast.
Discounting is a necessary evil for most attractions. Even Disneyland discounts with two-for-one offers during the off-season. Universal Orlando used Groupon for early 2018 season dates of Halloween Horror Nights. Discounting is used throughout the industry and not limited to haunted houses / VR attractions.
Consider Adding Value Rather than Discounting
Discounting is a race to the bottom. Once you’ve put a ticket price out there, it sticks in your customer’s mind, even if they didn’t take advantage. They think, ‘I can’t go on a Thursday, but this is what the ticket is worth on Thursday. I’m paying a premium because I have to come on the weekend, plus I’m dealing with all these people.’ I hate it.
What’s the solution? Figure out a way to add value. If a guest goes during the week, try: ‘if you come during the week, we have different surprises in store.’ Discounting comes from a negative standpoint. Discounting appears the easy thing to do- It’s a few button clicks, and then you don’t have to think it. Adding Value requires you to understand the pain points of your guests.
The Network Effect
For a moment, let’s discuss why you want more people at your attraction. Ticket and merchandising/dining sales aside, more people = more network effect. For example, Facebook becomes more effective the more people are on it. Uber gets better the more Ubers are out there. The more people are at a thing, the more of a thing it is. As more of your friends go, the more it makes it a thing you want to do.
Build the Discount into Your Price
If you’re determined to discount, there are a few best practices. Build the discounting margin into your price so you’re not losing money. Build discount relationships early. If attendance isn’t good, you have those discount relationships to activate if needed. Set your ticket price to be profitable even if you discount by 25%, 30%, or etc when you’re on a discounting website. If your price isn’t set to include a discount margin, you’ll have no margin if you need to activate a Gold Star or a Groupon. Both sites require you to have some kind of discount on the retail price. If you haven’t built that discount margin in ahead of time, you can be in a whole lot of trouble.
Why Groupon & Gold Star? Groupon and Gold Star in our industry—is so widespread that people come to expect it. In a perfect world, no attractions would take part, and you wouldn’t have to worry about it. But, if you’re in a competitive market, not being on Groupon or Gold Star is a marketing disadvantage. Guests go on those sites to look for haunted houses or to find out what to do. So, you must consider that, too. If you’re on those, you’re getting their marketing levers.
Discounting deals should be a last resort, but it’s something that almost every seasonal attraction in a competitive market has to think about. You can negotiate with these sites, so don’t take the first offer they give you. Push them.
Try to Discount Through Your Own Channels First
Before you look at doing Groupon or Gold Star, try to discount through your own channels. Some examples include: A deal where you’re giving added value on your social, email newsletters, website. Offer an off-day ticket that includes a collectible, a VIP experience, or front-of-the-line privileges. Offer a ticket that includes a free hot dog (or etc.) Make a Facebook ad that offers a special hidden discount. Email people who’ve already visited your attraction and give them a discount to come back.
Look for something to give that added value without dropping the price.
When you put a discount out into the wild, it will show up in search, and anyone searching for a coupon will find it. It’s tough to hide those deals once they’re activated. Try to think of discreet ways to offer coupons to your existing audience or run targeted ads to offer that deal. You don’t want the guest to Google your attraction’s name and ‘deal’ or ‘coupon’ to find out that instead of spending $30 on a ticket they only need to spend $20. That compounds your discounting problem. A guest who would have paid full price is now paying less because you have a discount out there.
Think About Using Discounting Sites Before You Need Them
Make a discount plan before you open your seasonal attraction—or even before you execute your marketing plan. Avoid being reactive and using the discount lever because you’re not getting enough guests. Consider the discount plan from the beginning. Early September weekdays (for Halloween events) are difficult days for your target audience—most likely young adults and teenagers—to come to your attraction. On those nights, activate a discount.
Discounting isn’t a perfect science. There’s not a lot of data out there. When I hear people talking about the good and bad parts of discounting, there are all kinds of anecdotes. It’s utility and value depend on what your attraction is, but always think about it before you need it. That’s the primary advice. Don’t haphazardly activate discounts, because that will throw off your whole strategy.
Consumers expect coupons and discounting, and that makes things difficult. It’s driven all industries to the lowest, bargain-basement price. The long term strategy is developing a unique value proposition and added value tactics.
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