On revenue growth, the Harvard Business Review mentions that a lot of companies treat cost cutting as a skill - something that senior managers are competent on doing. However, if executives are asked to boost growth, they are left stunned.
Total revenue tells a story about the business growth, but not the how. In this fast-paced and technology-driven age, family entertainment centers and other companies should unlearn cost cutting as the answer to revenue growth.
There are now key strategies that you can adopt to boost revenue. For a tech-driven age, tech-enabled measures also follow.
To expand your revenue landscape, here are some strategies that you can implement to cast a wider net and create new revenue streams.
1. Amplifying Revenue
One way to boost revenue is to amplify it, meaning designing ways to create increasing revenue in traditionally low revenue periods in your venue with the help of emerging technology.
Let's say that your current revenue period starts at 12 NN, catering to the lunch crowd, and stretches up until 9 PM where friends and families usually end the day with dinner together after a long day at school or work. What becomes of your morning until before noon then?
With an online booking or events platform, you can convert your space into a corporate or school event center for board meetings, team-buildings, and school activities during low revenue periods. You can also maximize intelligent business process management software (iBPMS) to send targeted marketing campaigns for these events, especially on company anniversary dates and regular meeting times.
2. Widening the Demographics
As family entertainment center operators, the usual targets are micro-demographics (B2C) which comprise children, teenagers, young adults, parents, singles, and baby boomers.
Like in the case presented under amplifying revenue, targeting commercial segments (B2B) such as corporate warriors, HR professionals, professional recruiters, or professional matchmakers can pave way for unique in-venue events for your FEC - mini job fairs, batch interviews, speed dating, to name a few.
3. Partnership Tech
Aside from tapping into the B2B and B2C segments, you can also widen your target demographics by partnering with entities beyond the FEC.
The strategy can be summarized into something like this:
non-competing provider partner + location-based services (LBS) = FEC credits
You can partner with different non-competing providers like film and music industry players for their events and membership merchants like Cosco, Walmart, Target, and Starbucks.
For every transaction with these partners, guests earn credits to your FEC. Here's how the tech comes in: using location-based service technology, you can target F&B promos to corporates within 12 km. radius, for instance. Doing these redefine your business revenue model beyond arcade games and attractions.
4. Data-Driven Decision-Making
Designing a data-driven strategy will enable you to make smart, agile, and flexible business decisions. You can create specific promotions in real-time, experiment, and redesign these offers until you get it right.
Adopting a mobile-first technology like a Mobile Wallet virtual game card can give you insightful empirical customer data. This strategy can also involve AI-driven decision-making, targeted promotions, compatible APIs, and scalable infrastructure.
Future-proofing your business entails expanding your revenue landscape through consumer insight-driven business decisions, reducing risks of customer disloyalty, real-time visibility of spending trends and habits, and securing long-term customer relationships. All these can be done through the strategic use of rising technology. Are you ready to widen your revenue and reach?