A statistical technique famed for its advanced ability to predict customer behavior, conjoint analysis uses decision modeling to predict demand for variables within an offering. Conjoint analysis is suitable for performing arts organizations, museums, gardens, zoos and aquariums, and other attractions, and provides specific insight into the intentions of your audience or visitors.
By simulating the purchase path and distilling demand for performance variables, conjoint analysis predicts the demand at various price points and identifies the revenue maximization price. Using this data, we optimize price points according to the organization’s goals. The results: prices that draw audiences and revenue from the start of the sales cycle, without relying on price adjustments.
A conjoint analysis will predict demand for programs under a variety of different conditions—including (but not limited to) title or content, artist, time of day and week, and venue. With this knowledge, organizations can use demand predictions to program seasons that will reach their audience and revenue goals.
One of the outcomes of a conjoint analysis is audience segmentation based on current and prospective audience attitudes, willingness to pay, demographics, and interests. Organizations use these audience segments to determine what programs, offerings, and prices will engage each audience segment and how to message to them appropriately.
Conjoint analysis is the ideal research methodology for determining the membership benefits and prices that will allow you to reach your membership goals. By testing demand for various membership benefits, conjoint analysis provides the data to craft a membership model that will enable success, with revenue and demand projections attached.
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