Should planners be taking a cue from live music events? Scott Schenker, who assumed the role of Microsoft’s general manager of worldwide events and production studios last spring, thinks the answer is yes. Schenker and his team are exploring the idea of designing capacity-controlled, value-added packages for Microsoft events similar to the way concerts sell early entry or a backstage pass.
“We started to question the core assumption that the greatest way to attract attendees is to lower the price,” Schenker says. "Some people would pay much more to come to an event and would happily pay extra for additional access or convenience or networking opportunities. What we are looking to do is increase the value. We have two end states: one is to increase revenue and the second is to make the attendee experience better.”
The company will test the concept at an event next spring. Details won’t be released until next month, but Schenker says Microsoft is developing a pass with benefits such as reserved seating, access to a more convenient hotel, and streamlined check-in. To increase interest, the number of passes for sale will be limited to around 300. Schenker says this will also help ensure that the company is still offering a high-quality experience for the large percentage of attendees who do not purchase the upgraded services.
“It can’t be that you sacrifice service for everybody in favor of good service for a small group. It has to be that these people are getting a unique experience while everybody gets great service," Schenker says. The company may also offer more limited experiences for auction, such as a private lunch with a guest speaker, although he says those opportunities would not include Microsoft executives since that could be viewed as selling access.
In addition to offering a limited number of special packages, Schenker is also exploring overall capacity controls for events. “If you said there’s only 5,000 seats at this event—first come, first served, when it’s sold out, it’s sold out—then the need to discount to entice people to register early is replaced with the omnipresence of ‘If I don’t sign up soon I may not be able to go at all.’ Concerts do this, which is why you see them selling out in minutes or a few hours, because it is capacity,” he says. Offering a fixed number of registrations also provides greater predictability for the planner, which simplifies budgeting.
