Sport Sales – Flashcards
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Ground rule #1
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The one goal is to increase the number of sold-out games
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Combinations of fans
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-fans with tickets -fans without tickets -fans scalping tickets
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If the fan has more fun at a sellout...
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that fan is more likely to buy tickets to attend more games
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Easy ways to sell out every home game:
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-sign a big superstar -the NFL way -build a new stadium or arena -threaten to move the team
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Your strongest marketing tool is...
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to increase the number of sold-out games
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Spend......... selling your lesser attractions
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no time
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Increase # of sold out games and....
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your season ticket base naturally increases
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Communication methods to sell:
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paid: ads, personal selling, email unpaid: publicity, word of mouth
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Most fans would prefer to attend...
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a sold-out game than a game that has an ocean of empty seats
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You should NOT....
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try to lure fans into buying tickets to a crummy game just to dress the building a bit
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You want to reach a ........ sellout before the season even starts
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75%
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Ground Rule #2
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Use full menu marketing and you will be more successful selling season tickets than ever before
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A goal to just try to sell a lot more full season tickets in a market where there isn't the consumer desire will just add up to...
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frustration and failure
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To reach the level of selling out every game, you're in the ......... as well as the ticket selling business
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ticket renewal business
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You absolutely need a very high percentage of ......to reach sold-out levels
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renewals
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3 reasons why full season tickets are not the right choice for many people
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Money: economics should never be a reason a fan doesn't buy tickets; simply too expensive ($12K+) Time: most people do not have the time to attend every game Interest level: not every fan is a fanatic; big commitment, interest might drop off
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Economics should never be a reason...
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fans don't buy ticket packages
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How fans are already sharing full season tickets:
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Corporate sharing: a corporation that purchases season tickets naturally shares those tickets; keeps the interest level in attending games high Friends sharing: friends getting together to share season tickets
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Best of all possible worlds:
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Where every seat in the arena was shared by at least four fans
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Benefits of sharing small ticket packages:
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Less financial commitment Limited calendar conflicts Anticipated experience
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Where small ticket packages benefit teams:
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-less dependent on one buyer: if four people share season tickets and one doesn't renew, the team still retains 75% of that order. The team rebels that ticket package to someone new while retaining the other three accounts -limit fan burnout -livelier, more fun crowd: more crowd electricity -serving the fan better: giving the fan what the fan wants and needs -higher potential revenue: prices can be raised per game for smaller ticket packages -less demand for great seats
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A team could waste...... of its sales calls selling products that the customer can't or won't buy
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90%
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What is full menu marketing?
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-Offering every ticket package up front -It could include half season tickets, 15-game plans, 10-game plans, 5-game plans. IE a FULL MENU
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Selling full season tickets to someone who can't afford them will make them:
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more likely to not renew the next season
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The best long-term season ticket scenario for a team is to have:
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every season ticket shared by four people
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Use Full Menu Marketing from....
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the beginning of the selling season
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Ground Rule #3
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Define the seating areas where you have a reasonable chance of selling out on a full season ticket basis
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Fans buy season tickets mainly because....
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they want to see the top games in choice seating locations
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By using full menu marketing you have...
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sold tickets to fans in the amount and number that they can afford and which meets their interest levels
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Rules of Thumb for Full Menu Marketing
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-Season ticket zones: establish seating areas where you feel you have a reasonable chance of selling out as full season tickets -create game plans: create several game plans where each plans seems to be the best plan -expand full season ticket zones next season: best seats in the house go to full season ticket holders -slightly increase a 5-game package to a 7-game package: if you increase the # of games, you already are increasing their total investment
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Personal Value Equation:
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Benefits received - sales price + time and effort
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Ground Rule #4
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stop all discounts. cold turkey. I did. I was told that the world was going to end. It didn't. Even with a lousy team, we sold a lot more tickets
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the "D" Word is...
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discount, as in ticket discounting
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Selling tickets to sporting events should be...
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a no-discount business
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Two areas where discounts are used as meaningless expensive marketing tools:
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-Season ticket discounts: offering a quantity discount Two choice: discount their season tickets even more, fully implement the fundamentals of ticket sales outline in this playbook -lesser drawing opponent
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Ground Rule #5
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Price your undesirable seats as if every game was a better attraction
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With tickets you have to consider just two things:
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1.) What price helps you sell out the building more often? 2.) What price maximizes gate receipts?
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Degrees of aggressiveness
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-Highly aggressive: Major league team (MLB, NFL, NBA), have to count on raising ticket prices every season -Non aggressive: minor league team w/modest or no player salaries -Passie: college, pricing of tickets becomes complicated because of donations
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Seating zones for a basketball arena:
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-More than most desirable (MTMD) -Almost more-than-most-desirable (AMTMD) -Most desirable (MD) -Semi-most desirable (SMD) -Somewhat desirable (SD) -Somewhat less-than-desirable (SLTD) -Undesirable (U) -Most undesirable (MU)
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More-than-most-desirable (MTMD)
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"Jack Nicholson" floor seats
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Almost more-than-most-desirable (AMTMD)
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Floor seats that surround the floor
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Most desirable (MD)
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-largest inventory of most desirable seats -between the baskets and up about 30 rows
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Semi-most desirable (SMD)
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-first eight rows of the end-zone seats -Spoelstra Eight Row Rule: first eight rows have high renewal rates
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Somewhat desirable (SD)
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-center sections above the walkway for about eight rows
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Somewhat less-than-desirable (SLTD)
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corner sections on the first seating level
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Undesirable (U)
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up high in the building
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Most undesirable (MU)
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up high in the end-zones, last seats to be sold
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Four target buyers:
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1.) Season ticket buyers 2.) Other advance ticket package buyers 3.) Group buyers 4.) Walk-up buyers
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With these four target buyers you need to ask yourself two questions:
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1.) At what price will buyers balk? 2.) What is the degree of difficulty in replacing them?
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Price your undesirable seats as if....
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every game was a better attraction
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What is variable pricing?
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-pricing based on the game -ex: heat game vs. timberwolves
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What is dynamic pricing?
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teams can change prices on a day-to-day or even hourly basis
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What teams are doing with their variable pricing:
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-gouging the non-season ticket holder -hurting their chances of getting sellouts for other games -discounting for lesser attractions
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How to set a price:
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-Start out being outrageous -stay below the line -margin of error -three-year target
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Ground Rule #6:
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If you're going to sell out your venue all season long, you need an organized, dedicated, and thoroughly trained sales staff calling on the right prospects
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The first step is to make a commitment to...
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Full Menu Marketing
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Mistakes to NOT sell out every game:
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-Telemarketing only -Everybody calls everybody -Treating the full time sales staff as lepers and/or servants -seasonal hires -sell tickets and sponsorships -experienced salespeople -volunteer business leaders -big-time fans
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Sales staff you need to fully implement full menu marketing?
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-Outside sales staff -Group Sales staff -Inside sales
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Outside sales staff
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-meeting business executives eyeball-to-eyeball at the prospect's office -most experienced, most professional, best trained sales staff you have Rule of thumb: one outside salesperson for every 1,000 of these targeted businesses
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Group Sales Staff
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-targets are community-oriented groups -ex: youth sports leagues, schools, churches, etc Rule of thumb: 1,500
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Inside Sales
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-telemarketers and focus on "joe fan" -call on single game buyers, past season ticket holders, sweepstakes entrants -handle all in-bound calls
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For every dollar a salesperson generates....
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you give back a dime (referring to the salesperson's commission)
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First two steps in selling out a building all season long:
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-commit to full menu marketing -build a trained ticket sales staff that has three disciplines:outside sales, group sales, inside sales
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Ground Rule #7:
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Next season's renewal starts when the ticket holder receives their tickets for this season
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Next season's renewal starts...
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when the ticket holder receives this season's tickets
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Every action done during the year by the ticket marketing team should...
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reflect on renewal of ticket packages
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Ways to send out tickets to ticket holders:
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-wood cigar box: logo of team emblazoned on top -tin storage box: filled with cool team graphics and pictures -pop-up book: elaborate paper pop-up stadium
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three things to achieve when delivering tickets to ticket holders:
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Fun: remind ticket holder about the fun at ballpark Confirmation of a good decision: want ticket holders to be able to confirm to themselves that they made the right decision in renewing their tickets Talk: make the ticket delivery boxes so unique and interesting that the recipient would want to show it to somebody else
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Steps to make sure your first-year account renewals improve
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Sell them the right ticket package in the first place: sometimes a person buys more tickets than they need Teach the rookie ticket holder how to use tickets: important to walk the first-year account through the different ways they can use their tickets Benefits explanation: make sure the first year ticket holder fully understands all of their benefits, especially if you have a ticket exchange program. Ex: 60-90 minute tour/meet and greet Regular contact: talking to them monthly via email, phone, in-seat visits special events, office drive-bye, or lunch/cocktail hour meetings
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Ways to structure your sales and service staff to handle communication with season ticketholders
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-Account executives: the salesperson who signed up the account handles the customer service issues. eventually the account gets handed over to the customer service department -Customer service department only: could make the company feel they were just another account -Combination of Customer Service Department and Account Executives: best scenario is a combo of both Inside Sales/customer service: deals with individual service, 300-400 accounts for each AE Outside/corporate sales: business accounts, should regularly be visiting their corporate accounts in their seats at game, offices, via phone
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In the old days, season ticket holders got a mailing from the team only a couple times a year:
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when they received their invoice for their tickets when they received their tickets
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Keys to regular communication and touches with season ticket accounts:
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make it relevant: don't spend your season ticket holders keep it short: don't try to send out a long renewal letter via email. If you need to communicate a longer message send it the old fashioned way by mail
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.......is one criteria I place on any customer service event or activity
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Exclusiveness
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Events that would appeal to corporate accounts:
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-guest speaker event -behind the scenes tour -batting practice
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Events that would appeal to individual fans:
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-autograph session with the team -opportunity to go behind the scenes to the locker room, practice facility, and on the field -take BP or shoot hoops on the field with family or friends
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Events that would appeal to families:
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-sleepover on the field or court after a game -birthday party at a game -family fan fest with bounce houses, face painters, player wife ball game, etc -watch warm ups before there best of the fans come into the facility
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Zappos' strategy
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use your best judgement to do what's best for the customer
