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How do you prove a brand home experience's effect on revenue? Here's how we broke it down:
- Short-Term Impact
- Add-ons, Ticket Sales, & Tours
- Gift Shop Sales
- Long-Term Impact
- Lifetime Value
- Marketing Communication Opt-Ins
Dig Deeper
A brand home is more than just marketing spend. It provides a huge revenue opportunity and is an invaluable marketing and media asset your business can continuously tap into.
We’ve seen brand homes morph into massive profit centers and loyalty drivers for brands, with many offering entirely new experiential retail opportunities.
Research has shown that visitors are more inclined to embrace a brand home’s commercial side if it meets their experiential expectations.
So, how do you prove its effect on revenue?
We’ll walk you through both the short- and long-term ways you can show exactly what impact your brand home experience is making.
What is a brand home experience?
A brand home experience is an event, tour, tasting, or any other immersive moment built for your consumers and held inside your brand home. You can sell tickets to these experiences or offer free entry.
Short-Term Impact
To grow your budget and buy-in for your brand home experiences, it’s important to start by showing your strategy's immediate benefits on revenue. By having points of proof, you can begin to scale your efforts based on what you already see working.
Add-ons, Ticket Sales, & Tours
The most obvious impact on revenue is brand home tour ticket sales, plus any add-ons you have available during the check-out process.
Ticket prices can range from low to high depending on the level of experience you’re offering. For example, a short, general tour through your brand home focused on history might have lower-priced tickets to attract the general public.
But if you offer private experiences or tours that include high-tier tastings of your product, you can charge more for the experiences for increased ticket revenue.
Selling add-ons during the booking process can also help boost revenue. Offering swag, products, or dining reservations online as part of checkout is simple if you’re using the right booking and ticketing platform.
42% of brand home marketers surveyed said their main success metric is ticket sales.
Since sales are directly tied to revenue, this is an easy metric to track and present straightforwardly to prove your impact.
Gift Shop Sales
Another short-term metric for proving revenue impact is how much your gift shop makes. Again, this is fairly straightforward.
A solid brand home experience has retail built-in for each moment of choice a consumer is presented with. Add-ons at the beginning of the booking experience and a tour that leads out through a gift shop are commonplace in the brand home world.
The great thing about a gift shop is you can directly attribute gift shop sales to your experience, like bottles and swag sold onsite. It’s even more persuasive if a discount or other retail promotion is attached to a consumer’s attendance.
You can pull POS data into your brand home ticketing platform to see which experiences drive the most sales post-tour. These sales insights, paired with experience performance metrics such as most popular experiences, can help your team decide which experiences to offer and when to impact sales the most.
Long-Term Impact
When you start thinking about the long-term impact of your brand home experience on revenue, how you measure and prove it becomes trickier. After all, a one-time gift shop purchase doesn’t equate to increased brand sales and loyalty. So consider these possible ways to put a dollar sign on your experience results.
Lifetime Value
The key to driving long-term impact is building loyalty with your consumers, which will result in them repeatedly buying your products. To understand this, you can analyze your consumers’ purchase intent and buying behavior over time and how it changes after they attend a brand home experience.
By comparing purchases or purchase intent before and after the experience, the day after, around six months, etc., you can see your impact on their behavior. Based on these purchasing trends, you can measure the increase in customer lifetime value. AnyRoad customers typically see a 14% increase in lifetime value attributed to their experiences.
According to our Brand Home Trends: 2023 Report, brand home experiences increase Net Promoter Scores by 50 points on average after a visit.
Marketing Communication Opt-Ins
Trying to drive consumers to purchase your products when you don’t have your brick-and-mortar retail location and rely on other retailers and eCommerce can be tricky when you're a CPG brand. However, the right marketing communication can influence potential customers to purchase your products wherever they shop.
But first, you need a way to get those potential consumers’ contact information and, more importantly, their consent to receive your marketing communications.
Enter your brand home.
When done right, brand home experiences offer the perfect way to collect valuable consumer insights and those precious marketing opt-ins that allow you to continue consumer engagement via digital channels post-experience. It’s as simple as capturing the needed data and including standard marketing opt-in options as part of the experience booking and ticketing process.
Once you have that opt-in, you can work with your digital marketing counterparts on campaigns to influence your consumers’ future buying behavior. As you get more data on how your brand home experiences contribute to marketing opt-ins and how those opt-ins translate to purchase conversions, you’ll be able to more confidently show how your experiences influence revenue in the long term.
Proving Your Value Isn’t Easy…
However, when you can show the short-term revenue impact of your experiences, you can grow your budget and invest more in a longer-term strategic plan. Measuring revenue impact is just one piece of showcasing your return on investment (ROI), but it is powerful for your team and those whose goals are specifically profit-driven.
So grow your results from easy sales to longer wins and finally control how you mature your brand home experiences from quick profit boosts to a full-scale revenue center.
