Why FECs should focus on a core demographic?
In a world that is returning closer to normality, FECs are spending a lot on upgrading attractions post-Covid.
Promising growth rates in the entertainment sector offer new revenue streams as families return to entertainment venues and are ready to have some fun, despite the increasing pressure on prices. The return of consumers presents a valuable opportunity for FECs to make a second first impression through new or upgraded attractions/experiences.
However, for some FECs it has been a difficult couple of years, so investing a lot of money on upgrades or a new attraction must be taken with serious consideration. FECs will benefit from focusing on a core demographic, especially when choosing a new attraction, to see the greatest return on investment. As tech is being used to create more personalised experiences and competing FECs target a narrower and narrower market segment, it is more important than ever to focus on a core demographic.
VR is one of the fastest-growing segments in the entertainment market, with a projected growth rate of 30% between 2020-2025 (PWC’s Global and media outlook), with children’s entertainment games generating the most revenue and will continue to do so in the coming years.
The aged 9-12 segment of the FEC market is expected to grow at the highest rate in the coming years (Allied Market Research)
Define core demographic:
It is important, as an FEC, to define the existing client base and target group, in order to know where future business and investments should be steered towards.
It is essential as an FEC to segment the client base, because if an FEC is broadly trying to appeal to all consumers, it will attract no one. All FECs require a specific demographic breakdown of its consumers, for example socio-economic/age related market information. FECs cannot afford to make broad judgements about important segments of the target market. For example, not all teenagers are the same, a 13-year-old and 18-year-old have vastly different interests and demands. In order to succeed, venues must target their offerings to fit the desired audience, whilst providing enough variety to attract return visits.
FECs should try and gain as much data as possible about consumers and customers, via ticket sales, questionnaires, feedback and other sources. Once the data has been collected different individuals can be grouped together based on demographic backgrounds. Some individuals find it useful to personify a segment of the market by creating a stereotypical persona of that customer/consumer. Researching and analyzing the competition is also vital when weighing up which segment to target.
Important to remember – Children tend to be the driving force behind which family entertainment venue a family goes to, despite the fact they have no money. For FECs, the consumer and customer are often two different people, so the target audience may not be the one that pays for the venue. The audience may also change throughout the year, so FECs need to assess who the decision-makers are, who’s paying and target appropriately.
How SPREE can help you focus on a core demographic?
SPREE Interactive is a specialist in multiplayer free-roam VR attractions for the location-based entertainment market. SPREE has built its success by focusing on a core demographic of children and family-orientated games and this business model has been passed on to multiple operators within the market through the use of VR attractions.
SPREE offers new attractions that offer both new and classic games as a way to drive footfall, plus the potential to upgrade existing attractions with VR. Depending on the demographic, the use of educational technologies or edutainment for children can also be a successful way to build new alternative revenue streams in a post-covid world, targeting the interests of the customer (i.e. parents).
A SPREE Arena allows for multiple family-friendly and seasonal offerings at the same attraction, allowing for FECs to organise events and special seasonal events around them.