For the 10/8 edition of Access Weekly, INTIX interviewed Aubrey Stork of Mirvish Productions about his experience with dynamic pricing and Digonex:
INTIX: Mirvish has been working with dynamic pricing through Digonex for about a year now. How has that gone?
AS: We’ve enlisted the services of Digonex to make more intelligent decisions about the pricing for many of our shows. We’ve found that with the assistance of the solution, and the economists on their staff behind the scenes, pricing recommendations are being made based on inputs we never would have considered before. As a result, we have seen some incredible success, which in this case can be defined by revenue maximization, attendance optimization or some combination thereof. Ultimately, we’re now able to anticipate scarcity, or lack of demand for that matter, and adjust, rather than react to it when the real opportunity has already passed. We’re able to do so within minutes on literally thousands of zones in hundreds of performances each day.
.INTIX: Can you share any details on the collaboration and process?
AS: It’s been quite smooth. The Digonex team did most of the heavy lifting on the integration with our ticketing software, AudienceView. From there, it was largely about establishing the business rules for our implementation. For instance, we have standard rules like having all our entry level-priced tickets remain static to ensure accessibility. Similarly, we set both upper and lower limits for all zones to ensure prices remain reasonable. We also established things like timing on changes. We don’t want someone who is purchasing a ticket to have the price change on them mid-stream, so we’ve determined a time and a once-a-day frequency for changes where we can mitigate this possibility. We’ve established the minimum price increment change of $1 in either direction and have established that the hierarchy of prices should always remain intact so “Price 2” will never be higher than “Price 1.”
All in all, the implementation process went very well. The fact that their offering extends beyond technology has meant that they’ve been able to offer fantastic insight into the recommendations being made.
Read the whole interview at intix.org.