How purchase frequency analysis and predictive messaging increases F&B spend at events.
The LiveStyled CORE Data modules analyse multiple data points in order to drive incremental spend from individual fans / attendees.
This blog post focuses on purchase frequency data and how predictive analysis, in combination with Push Messaging and in-app content variation, can drive increases in user purchasing. By looking at how the purchase frequency varies across different events it is possible to make small changes, that in turn, stimulate increases in demand and revenue.
First, let’s review how the spending frequency differs across different event types. By spending frequency, we are referring to the timing of individual purchases within the same event. From analysis of purchase frequency at sporting events through apps on the LiveStyled platform, we can visualise purchasing behaviour as it relates to frequency (ie time) as illustrated in figure 1.
Figure 1 illustrates two clear purchasing peaks, one just prior to time point zero and a second at between 34-38 minutes. Frequency of purchase then drops off exponentially as the event ends. This is indicative of fan behaviour within these type of events where the majority of fans arrive within 10 minutes of the start of the game and make one single purchase upon arrival. The second frequency spike comes in-line with natural breaks in the event itself (eg half-time, quarter-ends etc). Within sporting events therefore, purchasing behaviour when analysed against time, illustrates an event-led trend.
Figure 1 - Purchase frequency analysis of sports fans within the LiveStyled platform.
Comparing this to the purchasing behaviour of attendees at comedy events, shown in figure 2. We can see that the pre-event, and interval drink spikes take place at more or less identical times. However, the volumes of purchases differ to sports. This is because the attendee behaviour at a comedy event is different, and a third uplift is seen around the 100-minute mark as a number of people remain in the venue after the event.
Figure 2 - Purchase frequency analysis of fans at Comedy events within the LiveStyled platform.
Concerts see very different customer behaviour, the purchase frequency curve (figure 3) takes the shape of a more traditional bell curve rather than the separate spikes witnessed at the other event types. Within concerts, there is a gradual increase in purchase frequency which peaks approximately 60 minutes into the event before gradually tailing off until the end of the event. Within these type of events, entry time is staggered in a relatively steady flow between the times doors open and the start of the main act. Whilst early arrivers are purchasing drink 2, new arrivals are purchasing drink 1 and this pattern repeats thereby. flattening out the frequency curve in relation to other event types analysed.
In order to maximise sales and profitability within these type of events, event planners and venues should seek to understand purchase frequency differences and target messaging and promotion accordingly. This is particularly prevalent for multi-purpose venues hosting multiple event-types.
Figure 3 - Purchase frequency at music concerts
For concerts as an example, the aim is to widen the peak of the bell curve. This can be done through targeting early arrivals and using timed messaging and promotional incentives on purchases after the first drink. The LiveStyled platform has calculated that, on average, there is a 34 minute interval between drink 1 and 2 and a 31 minute interval between drinks 2 & 3. The use of timed messaging and seat delivery through the LiveStyled platform for purchases after the first for early arrivers has shown to increase purchase frequency by as much as 15%.
The tactics for Comedy and Sports events should focus on creating new peaks in frequency or by ‘flattening the curve’ as is evident in concert purchasing. Targeting and incentivising earlier arrivals and later-stays can help to achieve this however many venues are limited by licensing restrictions. They key is to incentivise the right kind of customer at the right time.
The LiveStyled platform can identify a number of ways to increase sales through analysing and understanding your data.
If you would like to find out more, contact us for a demonstration or to talk through your requirements.
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