Integrated Insight Monthly Newsletter – November 2015
Optimization in the Not-For-Profit World
If you haven’t been, check out the LA Zoo next time you’re in Los Angeles. Integrated Insight has been helping the zoo with both market research and revenue optimization, to better market and promote this gem of an attraction within easy driving distance of millions of residents and tourists. Whether for profit or not-for-profit, the more optimally an organization is run, the more opportunity for improving products and services offered. Hats off to the Greater Los Angeles Zoo Association and the LA Zoo for recognizing the potential.
Leading With the Customer
When developing sustainable revenue strategies, it’s important to fully understand where consumers place value, how they use the products and services you offer, and what else could help them engage with you more. Equally important is recognizing what is unique about your products and services, and how to best leverage those assets to the fullest. Too often, companies first turn to what their competitors are doing, or purchase an “off-the-shelf” system since it seems to be popular with others in the industry. Neither of those is necessarily wrong, just not a great first step. Who’s to say your competition has it right? And will that system ultimately support your strategy, or will you be compromising your approach to fit the system?
New York Racing Association – Where Thoroughbred Racing History is Made
NYRA operates Aqueduct, Belmont Park, and Saratoga raceways, contributing more than $2 billion annually to the economy. NYRA hired Integrated Insight to develop a pricing strategy that would optimize its current revenue base and create opportunities for incremental revenue growth. Each track is unique in its opportunities and challenges, including disparate seating capacities, different racing days and seasons, varying popularity in premier horse races, and dissimilar demand patterns for products and purchase behavior.
Through a detailed analysis of historical, transactional level detail; a review of marketing and sales efforts; and examination of non-admission generating revenue such as food and beverage, Integrated Insight was able to identify significant revenue upside. Recommendations included combining clubhouse and grandstand general admission, and seat stratification to match capacity and revenue to demand. Both efforts provided more customer value while allowing for inherent price increases. In addition, the Belmont Stakes, the biggest NYRA race and last of the Triple Crown series, benefits financially during years of a potential Triple Crown winner, while sometimes feeling the sting of waning excitement in other years. To help optimize revenue in both possible situations, an advance purchase pricing structure was recommended for reserved seating. The structure created a strong incentive and only a small price increase for guests to purchase in advance, while allowing larger pricing increases to be realized in the case of a potential Triple Crown winner. The recommended pricing strategy is estimated to collectively drive a 12% to 15% increase in non-wagering revenue.
Who we are: Integrated Insight, Inc. is an Orlando, FL based analytics firm, helping organizations out-behave the competition. The company was founded by two former Disney executives with a passion for helping organizations and the people in them reach their full potential. The company specializes in the use of data-driven insights and robust analytics to pinpoint untapped opportunities and ensure long-term, sustainable growth in three primary capacities: New Business Strategy, Business Optimization, and Research and Consumer Insights.