exchanges and refunds – Butts In the Seats

Adam Natale writes about Fractured Atlas’ development process for the ticketing module of their ATHENA software. They are talking to different sized performing arts organizations at Community Design Sessions (CDS) to get feedback about the design and assemble a wish-list of features. His discussion of the software’s use for ticket exchanges caught my attention.

“So, in each CDS, I brought up the fact that the software should allow for patrons to easily exchange their tickets. Most people in the room freaked out — enabling patrons to do this would result in complete pandemonium! And then my dear friend at Theatre Bay Area, Jamye Divila, a box office administrator and guru, sided with me. She said something along the lines of, “We do over-the-phone exchanges for subscribers constantly and it takes a lot of staff time to do this. What if we could automate the process and simply build permissions and restrictions into the software so that it doesn’t allow the patrons to do things they shouldn’t be allowed to do?” Suddenly, the air cleared. There was a collective “Oh, software can do that?” sigh that filled the room. Yes, software can do that.”

This made me wonder what sort of criteria people were using to grant refunds that they felt they could provide good customer service via a set of programmed rules. Often the criteria I use is based on judgments that are very human. The death in the family/grave illness, you don’t really question much and given that people know this, it can easily used as an excuse. How can a computer program know that a rock slide was just reported and traffic can’t get through from one direction? Granted, if the program is designed well, the ticket office could reprogram the conditions to make it easy for anyone to request refunds in this case. There are many occasions when nuanced decisions need to be made and I suppose it will always have to be a human that makes them.

Refunding does take a lot of staff time so I can definitely see the benefit of having the computer handle refunds in the cases when snow storms or sick performers force a cancellation. In cases when you have multiple performances and can have the computer offer an exchange to another performance or show of equal value to avoid processing a refund, there also a benefit. It would certainly also be a boon in extending subscriber/donor exchange benefits to people on a 24 hour basis. Those organizations like my own that have single engagement events, might opt to create criteria where anyone who has purchased an average of X single tickets a year since 2005 will be allowed to exchange because they are clearly loyal.

That raises the question about the whys of exchange and refund policies. Why do we not allow refunds? I imagine commitment is probably one issue. We want people to follow through on their decision to attend, especially in these days when there are so many competing choices. For the record, I don’t think people are waiting until the last minute to buy tickets because of the no refund policy. They are generally uncertain about what to do in the face of so many choices.

It is certainly logical to resist granting refunds given that it is a time consuming process. Selling the tickets can be too, but paying employees to give money back has a certain sting to it. If a computer could process the refund for you, would you be more willing to grant a refund?

I also don’t utilize as monolithic a response to refund requests as I once did. I sense this is a better stance in the face of all the options people have. But is it diminishing the perceived value of what we offer to do so?

Is it time to reassess the practice of refusing refunds given that people seem to be waiting until they are absolutely sure they want to attend? Is there an opportunity to appear more customer friendly by having a more liberal policy given that 90% of your audience isn’t buying until the last three days? My suspicion is that most people won’t have any awareness of your policy until they want to use it so a change won’t generate general good will. If you really go out of your way to loudly publicize a very liberal policy, you may really undermine the perception of your product unless you do it very cleverly.

Limitations on refunds and exchanges are a part of everyday life so I am not suggesting that it should be scrapped for performances in order to meet changing expectations. I am just using the occasion of this post to suggest looking at policies to assess if they are still valid in the context of changing purchasing and attendance behaviors and how they play into your goals for community relations.

So I made a big mistake this week with a reception invite. There was actually a letter missing from the title of the show on the cover of the invite. Now in my defense, about five other people missed it to. I had originally assumed that I messed it up by accidentally brushing the space bar when I was reviewing the work on my computer yesterday. Then I went back and looked at the versions I emailed out to the various parties involved, including the show creator, over the course of two weeks. It was missing all that time and no one caught it. I suspect part of the reason is that the cover of the invite was inverted so that it would fold into the correct orientation on the finished product. (Also, I think the show might be cursed. The show creator made a mistake on his first run of invitations a year ago when he was inviting his donors to a preview of part of the work.)

In any case, I sent the corrected version back to the printer and told them if they were having a sense of deja vu, it was because I had made a mistake on the first run. I got a call from the print shop and they said if I brought all the flawed pieces back, they would only charge me 50% of the original cost on the reprint. This was happy news to me since I resigned myself to putting the reprint on my credit card as it was my fault. I think it is a great policy on the part of the shop because they earn good will from the customer and they can be sure the paper is recycled rather than tossed in a dumpster.

As I usually do when I encounter an example of good customer service, I wondered how this policy might be applied to the arts. My first thought was in regard to exchange fees for tickets. Many organizations either do not exchange, have a $2-$5 fee for exchanges or only allow subscribers to exchange. I don’t have any data on how well any of these policies are received by audience members who want to change the performances. I suspect it is largely a function of the communities and the dynamics of the relationship each organization has with its audience base. While I think no exchanges or a fee provides an incentive to make a firm decision, it can be difficult to discern if the ticket office made a mistake or to demand people pay it when an accident/emergency is going to prevent their attendance. Deciding to do an exchange or refund is so often a subjective judgment call that having a fee can exacerbate the frustration of those who feel they were unjustly denied.

Part of the problem is an empty seat is not a ream of paper. Yes, an empty seat is lost revenue once the show has started but that is a more abstract concept for people than the ream of paper now spoiled by a mistake the consumer has made. The whole concept of a performance as a perishable commodity which you are exchanging money for can be tough to grasp if there are many opportunities. My dentist can fine me for breaking my appointment because he knows I will have to come back sooner or later when my teeth start to hurt. (Just for the record, I am faithful to my 6 month appointments.) Occupying his chair is something I feel I need to do. Not always the case with some performances.

In these days when people are making and changing their plans at the last minute, do no refund/exchange policies or fees make sense? Do they provide a disincentive to attendance in the first place? There are a number of organizations who experiment with flex passes, some of which allow you a set number of tickets to any performance you want to see. You can come once with 6 friends, come 6 times to the same show yourself or go to 6 different shows yourself. Seattle Rep has a package like this called Player Pass. They even have a Today’s Pass where you call the day of the show to get the best seats. Of course, if the show is sold out, you can’t get in.

If you only have one night performances and many of these shows don’t have similar ticket prices, then it can be difficult to institute a program like this. What I like about these flexible programs is that it puts a little more of the responsibility back on the ticket buyer. I am good at my job because I excel at advance planning. In the face of indecision and vacillation over weekend plans, I want to grumble, “geez, make a decision already!” With these flexible passes, if a person waits too long and the show they want to see is sold out and they don’t value the remaining shows in the season as much, then their subscriptions have lost a little of that intangible value I spoke of earlier.

Of course, the annoyance factor for me would be about the same whether they were wheedling and begging to get into a sold out show or vacillating about going to a show in advance. I may feel a little smug about having a sold out show, but I always hate having to turn people away from great shows for reasons that have nothing to do with ticket revenue. Flex passes don’t alleviate your worry on Wednesday about whether people will come to see the show on Friday because few have committed to any weekend plans yet. Well sure, with the flex passes you have already collected some money, and that is comforting. But performances were meant to be seen, the more the better.

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On Refunds and Exchanges

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