Does growth hacking apply to the events industry? Can the events industry actually implement growth methodology and active experimentation framework?
Growth hacking is a relatively new focus in the marketing field, which focuses on maximizing company growth. This extremely effective methodology achieves its objective by quickly testing ideas that can improve the customer experience before investing a lot of resources, copying and expanding ideas that can work, and modifying or abandoning those that don’t work.
First of all, we start setting up metrics to measure growth of our event corporation. The key metrics should always be the ones that best deliver growth to your event business, like the number of tickets sold, the average cost of the ticket, online pay per view revenue...
Once we realise which metrics are the most important ones, it is time to set SMART goals, specific, measurable, achievable, relevant and timely. Increasing by 20% the average cost of a ticket in four months could be an example of a SMART goal. Goals are pretty much a desired increment or decrement in key metrics.
After we set up our goals, we ideate new or existing growth drivers. Growth drivers are ways we think will make us achieve goals. In the events industry some ideas for growth drivers could be
- Will we attract more spectators if we hire more famous people?
- Will we sell more tickets if the events are held in bigger places?
- Will we be able to charge more for some tickets if we set up VIP seats?
In order to check if these drivers work we design experiments.
Experiments purpose is to test if a growth driver will help the company grow. Imagine your company announces a new show, in order to analyze if it gives you growth you should see how many tickets are sold, a key metric.
Before spending a large quantity of resources in an action you should experiment with it. Decide if you accomplish your goal and if so determine the most efficient way to do it.
- Do famous people attract more spectators to our events?
- Do events held in bigger places sell more tickets?
- VIP seats get sold?
After running the experiments we can validate or reject the growth drivers and then we must always write down everything we have learned and keep it well documented. This part is crucial in order to keep track of which strategies work and which do not.
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