State of CRM in the Sports Industry

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State of CRM in the Sports Industry Powered By Docstoc
					 Paciolan Webinar

 Presented by Dan Migala
Publisher, The Migala Report

• Ticketing problems
   Projecting revenue potential
   Designing online-exclusive business plans
   Integrating offline initiatives online
   Human and capital resources
   Increased pressure from management to
    generate online revenue
   “You can’t control what happens on the field, but you
    can control the fan’s experience.”
     Bill Veeck

   “We’re an Internet company”
     Ted Leonsis, Washington Capitals
           Email marketing

• 2002: 500 million e-mail messages sent

• 2005: 5 billion e-mail messages will be
         Source: Institute for the Future Study

• USPS handles 293 million pieces daily
           Email marketing

• How do you transfer traditional marketing
   UCLA
     Football game times are often not scheduled until
      10 days before
     Have to notify fans of game times
           Email marketing

• Postcard mailing
   35,000 season ticket holders
     $0.22 first-class postcard
     $7,700 investment per game
     $38,000 over 5-game schedule
           Email marketing

• Not only less expensive, but better
  response rates
   Email response rates: 10% to 17%
   Direct mail response rates 0.5% to 5%
         Source: Message Media

   Dallas Stars
     Click-through rate of 40-45% for email campaigns
         Email marketing

• How do you create email marketing
   Collect
   Condense
   Maintain
   Service
            Email marketing

• Collect
   Discover new methods to collect
     Incoming phone calls
     Web sites
     Promotions
     Ticket sales
        New Opportunities

• Dallas Stars campaign
   Create new Stars fans
   Increase ticket sales
   Develop marketing database
   Do it on the cheap
         New Opportunities

• Dallas Stars campaign
   E-mail chain letter sent from employees to at
    least 10 friends/family members
   Letter gave fans free tickets at eight-games
    this fall on first-come, first-served basis
   Incentives for employees whose original e-
    mails triggered the most responses receive
         New Opportunities

• Dallas Stars campaign
   Results
     48,000 registrants
     Not everyone will get free tickets but everyone will
      get discounts
     Community goodwill
     Ticket cost is minimal compared to cost of creating
      marketing database
         New opportunities

• Dallas Stars campaign
   “I don’t know of any other team that’s done
    this viral e-mail campaign. It is obvious that
    we not only discovered something interesting
    here but a very effective sales tool.”
      • “Bryan Perez, EVP Marketing, Dallas Stars
             Email marketing

• Comcast-Spectacor
   5,000 different sources of customer data
     Properties
      •   Philadelphia 76ers
      •   Philadelphia Flyers
      •   AHL, minor league baseball, MISL teams
      •   Facilities
           Email marketing

• Comcast-Spectacor
   Challenge
     Create universal electronic data warehouse
      • Technical
      • Organizational
      • Strategic
             Email marketing

“We are in an evolving period right now as the trend shifts
  from mass marketing to marketing directly on a one-on-
    one basis, and our ownership realizes how important
               CRM is to our future success.”
                        - Lara Price, Sen. Vice President, Philadelphia 76ers
            Email marketing

• Goal
     Increase ticket sales
     Enhance fan affinity and involvement
• How
     Target customer preferences
     Cater to ticket purchasing history
• Tactics
     Electronic and direct mail
     Telemarketing
             Email marketing

• Maintain
   Average email address has a shelf life of 18
    to 24 months
         Source: E-mail knowledge

   Software available to clean dead addresses
   Customer service/maintenance
             Email marketing

• Maintain
   Give them value that even if they change their
    address they will re-sign up
   Sports Illustrated
     Send twice weekly emails that compliment
      editorials in magazines
               Email marketing

• “When we interview our fellow SI writers, what we’re
  looking for is the juicy stuff that we would tell our friends
  if we had written the story ourselves. Often it’s a great
  anecdote that doesn’t fit in the story but the writer is just
  dying to sell someone.”
    Pete McEntegart, SI reporter who contributes
     to SI Extra
             Email marketing

• Maintain
   SI Extra
     Launch: 11,000 subscribers
     12 months later: 150,000 subscribers
            Email marketing

• Service
   Include a response mechanism allowing fans
    to remove from mailing list.
   Include a feedback link for fan commentary.
 For a copy of this presentation

Contact: Dan Migala
          The Migala Report

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