‘Nudging’ Your Way to Venue Management Success: The Art and Science of Audience Behaviour Management

By Joel Edmondson, VMA CEO

The art and science of managing attendee behaviour is central to the practice of venue management. Richard Thaler’s Nudge: The Final Edition offers insights into behavioral economics and choice architecture that can serve as valuable tools for venue managers to improve operations and customer satisfaction by subtly guiding attendee behavior in positive directions. Nudging is also a way of iterating continuous improvement in a low cost way that doesn’t require major overhauls or large consultancy fees.

Who is Richard Thaler?

Richard Thaler is a renowned American economist and professor at the University of Chicago, known for his pioneering work in the field of behavioral economics. He was awarded the Nobel Prize in Economic Sciences in 2017 for his contributions to understanding how human psychology impacts economic decision-making. Thaler’s work challenges the assumption that people always make rational choices, introducing the idea that small, seemingly insignificant changes in how choices are presented can significantly influence decisions. His insights are particularly relevant to any sector focused on managing customer interactions—including venue management—because nudging achieves behavioral change through minimal intervention and cost.

In Nudge: The Final Edition—an update to the original 2008 book co-authored with Cass Sunstein—Thaler refines the concept of nudging: the idea that small, subtle prompts can encourage people to make better decisions without restricting their freedom of choice. Nudging often involves low-cost adjustments, such as changing the way information is presented or designing environments to influence behavior. This makes it particularly appealing to industries like venue management, where budgets are often tight, and efficiency is paramount.

Nudges and Defaults

A key principle behind nudging is that defaults—the standard options or behaviors people tend to follow—can be shaped by design. Thaler’s research shows that people are more likely to stick with default choices unless given a strong reason to opt out. In the context of venue management, defaults might include how attendees move through a space, where they choose to sit, or what food and drink options they select. By thoughtfully designing these defaults, venue managers can subtly guide behavior in a desired direction, reducing the need for more direct interventions that are often costly or intrusive.

For example, crowd flow can be influenced by default pathways or seating arrangements, while concession sales can be enhanced by making higher-margin products the default options on menus. Instead of relying on explicit instructions, nudges create environments where attendees naturally make better choices, aligning their behavior with the venue’s goals.

Here’s how these principles of nudging can be applied to some common venue management challenges in a more budget-friendly manner:

1. Crowd Flow and Security Management

Managing the flow of large crowds and ensuring the safety of attendees are two of the most critical aspects of venue management. Both tasks traditionally require costly resources, such as extra security personnel or expensive crowd-control barriers. However, nudging provides a cost-effective alternative by using subtle environmental cues to influence attendee behavior.

For example, Thaler’s principles suggest that simple, low-cost changes like lighting, floor patterns, or color coding can help guide crowds through the venue more efficiently. Well-lit, wide walkways nudge attendees to move through high-traffic areas smoothly, while narrower or dimly lit areas naturally encourage slower movement or avoidance. Similarly, safety concerns can be addressed by creating visually distinct “safe zones” using colored paths or floor decals to direct attendees toward exits or secure areas without needing additional signage or personnel.

These small interventions, which rely on psychology and perception rather than physical barriers, are not only more economical but also less intrusive. Nudging allows for better crowd management and heightened security without the need for expensive infrastructure or manpower, making it a practical solution for venues with budget constraints.

2. Boosting Concession and Merchandise Sales

Nudging can also be applied to increase concession and merchandise sales in a cost-effective way. By rearranging menus or presenting higher-margin options more prominently, venue managers can subtly influence purchase behavior. Thaler’s research shows that people are more likely to choose options that are easy to access or presented as the default, which can be achieved with simple, low-cost interventions like changing menu boards or placing premium products at eye level. These nudges require minimal financial investment compared to expensive advertising campaigns or loyalty programs, making them a highly economical strategy for boosting sales.

3. Encouraging Sustainable Behavior

Sustainability is becoming an increasingly important focus for venue management, and nudging can help promote eco-friendly behaviors in a cost-effective manner. While encouraging proper waste disposal through well-placed recycling bins is one example, another significant area where nudging can make a difference is sustainable transportation.

Many venues are located in urban areas where traffic congestion and parking shortages are common. Encouraging attendees to choose sustainable transportation options, such as public transport, cycling, or carpooling, not only reduces the venue’s environmental impact but also alleviates logistical challenges like overcrowded parking lots.

Venue managers can nudge attendees toward these sustainable choices by offering incentives or creating “default” transportation options. For example, when attendees purchase event tickets online, the venue could make public transportation the default travel option, perhaps offering discounts or exclusive perks for those who choose it. Clear and appealing signage, partnered with digital nudges like pre-event emails, can further reinforce this behavior. Simple rewards for cycling or carpooling, such as priority parking or small perks like a free drink, can also encourage eco-friendly choices without requiring significant investment. These nudges shift behavior toward sustainability while keeping costs low, benefiting both the environment and the venue’s bottom line.

Why Nudging Keeps Costs Low

One of the key advantages of the nudging method is its ability to shape behavior through small, targeted interventions that are inexpensive to implement. Rather than relying on large-scale infrastructure changes or expensive programs, nudging leverages subtle shifts in design, defaults, and communication to guide people toward desired outcomes. This minimalistic approach translates into lower costs for venue managers in several ways:

1. Low-cost Design Adjustments: Many nudges require simple changes to the physical environment, such as repositioning signage, adjusting lighting, or rethinking seating arrangements. These small, cost-efficient modifications can significantly impact how people navigate a space or make decisions, without the need for expensive construction projects or high-tech solutions.
2. Behavioral Cues over Manpower: Instead of hiring additional staff to guide or instruct attendees, nudges can influence behavior using psychological triggers. For example, color-coded walkways can direct crowd flow just as effectively as extra staff or physical barriers, while subtle messaging near exits can improve safety compliance without more security personnel. These non-invasive, low-cost solutions help reduce labor expenses while still achieving the desired effect.
3. Simplicity in Implementation: Nudges are designed to be easy to implement and tweak. Instead of requiring complex systems or expensive technologies, nudging often involves low-tech, simple measures that can be quickly tested, adjusted, and scaled. This allows venue managers to experiment with different nudges in a cost-effective way, refining approaches over time without large upfront investments.
4. Maximizing Existing Infrastructure: Nudging often involves optimizing what already exists within a venue rather than adding new, costly infrastructure. By rearranging elements or introducing minor adjustments to the current layout, venue managers can influence behavior without needing to invest in significant upgrades. For example, altering the positioning of concession stands or making certain routes more visually appealing can encourage attendees to take desired actions using the existing space.
5. Incremental Changes with Long-term Payoff: Nudging encourages incremental improvements rather than sweeping changes. Small, cost-effective nudges can lead to long-term improvements in attendee behavior, which compounds over time. For instance, encouraging better crowd movement or more sustainable transportation can have a long-lasting impact on the efficiency of future events. These nudges reduce the need for expensive, reactionary solutions in the future, ultimately providing more value for less cost.

Nudging and the Iterative Process in Venue Management

Venue management is an iterative process, where each event provides valuable lessons for improving future ones. Thaler’s approach to nudging encourages small, incremental changes rather than drastic overhauls, which is both cost-effective and easy to implement. Instead of investing in large-scale renovations or new technologies, venue managers can test small, budget-friendly nudges and refine them over time. This method allows for continuous improvement while keeping costs under control.

Nudge: The Final Edition by Richard Thaler provides invaluable insights into how small, intentional design changes can have a big impact on human behavior. For venue managers, the art and science of nudging offers a powerful and cost-effective framework for shaping attendee behavior in ways that improve safety, cleanliness, profitability, and overall customer satisfaction. By incorporating these principles into venue management strategies, managers can stay ahead of potential problems while reducing costs. Through low-cost nudging, venue managers can enhance the attendee experience and drive better outcomes—without the need for expensive, reactive solutions.