In the sports business world, data and analytics have become
essential to the success of an organization. Finding out every detail about
consumers have proven crucial for successful organizations. Tracking data on
everything, no matter how insignificant the fan may think it is i.e. Golden
State Warriors decibel readings through the game (Spangenberg,2019, para. 25.)
Therefore, CRM (customer relationship management) systems are essential to the
sustainment and growth of business operations of sports organizations.
CRM data helps find out what people want, to entice them to go
to games and interact with the team. Key business decisions for companies are
made using this data according to Jessica Gelman (CEO of Kraft Analytics Group)
giving information on “who shows up and what their experience entails”
(Spangenberg,2019, para 16). Knowing what people's experiences are with an
organization allows them to know fans preferences and provide services to the
right people to develop “precision marketing” tactics. An organization then “offers
customized benefits targeted to specific individuals based upon personal
characteristics collected through the organization’s customer database”
(Wakefield, 2019, chapter three para.7). Given all this information an
organization can take a person’s identified characteristics through the system
and develop a marketing plan tailored to them to offer incentives to
develop/keep them as a fan and figure out what they will want next.
Once plans are made to target customers through the
information of the CRM, they must use this information to produce predictive
data which in sport is “to know which prospects are more likely to buy tickets”
(Wakefield, 2019, chapter three, Types of customer information section para.
2). This information has become easier to access with multiple trackers in
phones and software that teams have taken advantage of. “Teams have more
detailed information from mobile apps because of their encouragement to use them
for most or all of their transactions” (Spangenberg, 2019, para.33). The
adoption of mobile apps allows companies to understand when people are going to
games, what merchandise they are buying and what information they look for to
keep up with the team. This allows them to not only know the characteristics of
a person, but what actions they are taking to support or not support the team.
These actions allow teams to predict what action fans will take next and
facilitate easy access to take those actions. For example, if customers at
Dodgers stadium tend to have a “Dodger Dog” with every game they go to, then it
is safe to assume that this is a popular food that entices people to go to the
game. If that is the case, then if promotions for cheaper “Dodger Dogs” were to
come up, it is safe to assume that there would be an increase in attendance for
that game. This is important for organizations to know because this can
increase profits for less desirable games.
With all this information, the team's goal is to convert
single ticket buyers to multiple ticket buyers which are segmented into four
dimensions “Demographics, Media-related behaviors, Barriers to Attend, and
Incentives to Attend” (Wakefield Chapter five para.11). Knowing this information
allows teams to develop plans for fans to make sure that they get the right
packages for their needs making them happier and more loyal fans. Overall, data
is the driving force behind the success of a team and CRM systems are essential
to the growth and success by converting first-time customers into long term
customers.
References
Spangenberg, E. (2019,
May 19). Data tells the story. Sports
Business Journal Retrieved from https://www.sportsbusinessdaily.com
Wakefield, K.L. (2019). Team Sport Marketing. Retrieved from
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