Every year, one of your key variables for season ticket sales is churn: how many fans repurchase a package and how many defect? Once you know that, you’re faced with another decision: how much do you spend to regain those lost fans? Will it be easier and more cost-efficient to try to win them back, or should you invest more in replacing them with new purchasers?
Business studies have shown that in general it’s more cost effective to retain customers (and employees, for that matter) than to recruit new ones. Yet most businesses tend to write off lost customers pretty quickly. Is that a mistake? In a word: yes. According to a recent Harvard Business Review article companies with high churn rates might be better off trying to win lost customers back than trying to replace them. But that doesn’t mean every lost customer is worth pursuing: “Simply identifying those who are most likely to sign up again, rather than appealing to every defector, can increase win-back rates eightfold.”
Sure, the article was written based on analysis of a telecom company’s customers defection and win-back rather than about sports marketing, but the principles are the same:
· - People who have purchased something from you before have demonstrated a specific interest in what you offer.
· - People who are familiar with you are more likely to be responsive than those who have no history with you or no brand awareness.
· - Not every lost customer is worth winning back, and data analysis can help you understand which lost customers hold the most potential.
· - Tailoring your win-back offers based on the reason for defection is more likely to help you regain the customers you lost than simply offering everyone the same thing.
· - Learning from the customers you’ve lost can help you improve retention of current customers.
To apply these principles to your marketing efforts, follow these 3 steps:
1. Survey. If somebody chooses not to repurchase a season ticket package from you, find out why. Online surveys are a great way to do this efficiently and to aggregate your results, while follow-up phone calls may help you get deeper information. No matter who you approach, understanding why people left is essential to improving both current sales and future retention. You’ll want to make sure your survey tool includes questions related to different aspects of the game and season ticket experience so you can pinpoint what drive their decision to leave and what might win them back.
2. Segment. Divide your lost fans into segments based on their reason for leaving and likelihood to reconsider. Doing this allows you to decide who’s worth pursuing and what your potential recapture volume looks like. Realistically, you’ll have a least 3 segments: one that’s unlikely to return, one that you may be able to convert to periodic ticket sales, and one that you may be able to win back as season ticket holders. Ideally, you’ll want to segment on fairly specific reasons for leaving (i.e. affordability, in-venue experience, number of games attended, etc.). If you have one or more segments that are very unlikely to return, don’t waste time and money trying to sell them another season ticket package. Instead, look at whether you can fix any of their reasons for leaving to improve retention of your current season ticket holders.
3. Strategize. Once you’ve segmented your lost customer base, develop a marketing strategy for each segment you choose to re-engage. Tailor your offers or incentives as much as possible to each segment. If you have a segment that left because they felt season tickets weren’t affordable, consider offering a discount. If you have a segment that left because they were only able to attend half of the games, consider creating a special ticket bundle that serves the needs to those who want to attend multiple games but don’t plan to attend the full season. Similarly, consider how you can convert people into periodic ticket purchasers even if you can’t win them back as season ticket holders. For fans who were dissatisfied with some aspect of the game experience, look for ways to address those needs (VIP packing bundles, meet-the-team experiences, etc.).
If you’re looking for ways to improve season ticket holder retention and regain lost ticket sales, we can help! Ask us about the options we offer for market research, strategy development, and fan engagement.
Yesterday, I took some time to read this article, which gave great insight on how Nike lost Stephen Curry to Under Armour. It's a bit lengthy, but well worth the read. In a nutshell, before Stephen Curry was Stephen Curry, NBA MVP, he wore NIke. And Nike has a chance to keep him under their umbrella, by re-upping his contract. But a meeting in the 2013 off-season, in which Nike didn't recognize the signs of Steph Curry's potential, has led to great things for Under Armour. Their bet on Curry is paying off tremendously: not only did they get a steal considering how Curry has turned out, but his potential value to Under Armour now is $14 billion. AND Under Armour's U.S. basketball shoe sales THIS YEAR are already up more than 350% as compared to last year.
In this fateful meeting, Stephen Curry likely felt unprioritized (Nike's biggest players were not in attendance), disrespected (they couldn't pronounce his name correctly, a presentation slide with Kevin Durant's name wasn't updated) and undervalued (they offered him less than $2.5 million). To be fair to Nike, at that time, Stephen Curry was dealing with injury issues and NIke already had a lot of big stars in their arsenal (including LeBron James, who is locked into a $500 million lifetime contract with them). At that time, it wasn't necessarily a BAD business decision, but I'm guessing they are kicking themselves now.
So, what? Why should you care? What can you take from this article which can apply to you and your team?
Don't be afraid to try something new. Look for potential and opportunities everywhere and be willing to take a risk. It may pay off tremendously. Both Under Armour AND Steph Curry took a risk. And it's paying off. Forge your own path, do what the others are NOT doing and see if it pays off.
Recognize the value of the "everyman". And how they could speak to your fans. You may need to look past the "stars" in your program to find those that may not shine as noticeably bright. Do you have an undersized walk-on point guard from an in-state school who may not get accolades and minutes but is someone who works hard, is well-liked and inspires fans of all-ages? Don't you think most fans may relate to that person? Rethink your promotions and try putting that kid front and center.
You never know who will be your champion. Kent Bazemore was undrafted rookie who Under Armour signed to a shoe deal....but he turned into Under Armour's greatest pitchman when he pushed Steph Curry their way. Look for your champions and see if they can help you reach your goals.
Being overlooked can inspire a leap to greatness. Curry had been overlooked most of his life. Denied by larger schools (including the Alma Mater of his NBA player father), only drafted 7th in 2009 (still..pretty respectable), and riddled with injuries early in his NBA career, I'd say all of that has motivated him to be what he is now - already considered by many as the best shooter in NBA history. Think twice before you overlook someone who doesn't seem like a perfect fit on paper. Maybe consider taking a chance on that intern or GA who doesn't have a lot of experience but is straight willing to outwork anyone who comes their way.
Treat everyone like gold. You never know, a $100 donor could turn into a million-dollar donor, a fan in the nose-bleed section may purchase a stadium suite or a fan of one sport only could someday hold season tickets to all of your sporting events.
And make sure to proofread your PowerPoint presentations.
Are you wearing green today? I bet if you're living in Denton, TX your chances of wearing green today are much higher than the general population. Not just today, but any day.
Why? Because that's the home of one of our fantastic clients - The University of North Texas (aka the Mean Green).
It's pretty likely you've heard about North Texas, or some reference to the Mean Green. Or maybe the only thing you know about them is that "Mean" Joe Greene (yes, the last "e" is silent) gets credited for giving them their Mean Green moniker, which actually isn't quite how it happened.
There's a lot going on at North Texas Athletics right now, and it's an exciting time to be working with the marketing team on their upcoming football season. They recently hired Coach Seth Littrell (I'm already a fan because he played fullback for OU during their 2000 National Championship season) and some other Texas natives like Graham Harrell. It should be a fun season to watch some Mean Green football.
Old Hat will be working with North Texas once again to develop the campaign for football. This year we're bringing to the table a process that's new for us, but has been used and perfected for many years by our newly merged partner.
The process is what we call the Sports180. It's an in-depth discovery we use to unveil the thoughts and attitudes of those inside and outside the department tied to the sports programs, and even some that may have no association with the programs. We take that information to determine where there are gaps and overlaps in the way a program is perceived, and bridge those gaps/reinforce the overlaps through our recommended marketing tactics. It's not rocket science, but it's effective, and I'd venture to say it's something very few athletics programs are doing on their own. It requires time, cooperation and organization throughout the department.
Here's a brief look at the process:
• Step One: Scouting
Any good coach or recruiter has to do some research to determine the true potential of an athlete because there's much more to an athlete than meets the eye. It's the same in any athletics department or sports program. Things can look one way on the outside, but does that line up with what's on the inside? If not, this could eventually hurt the program, usually from the inside out.
• Step Two: The Playbook
After gathering all the notes, research and findings, what happens next? That's where we recommend the playbook- think of it as a prescription from your doctor. The best way to a winning season is to have a playbook in hand well before your first game.
• Step Three: The Game Plan
Based on the playbook, the game plan includes the specific X's and O's for each game. It's great to have a playbook, but some decisions have to be made at gametime. This step involves the shaping of your brand to match the recommended prescription.
• Step Four: Execution
It all comes down to execution, and by this step in the process we're ready to put some legs behind all the strategy. This is where all the hard work pays off and fans get to meet the new you.
I'm looking forward to seeing this process through on a smaller scale with the North Texas football campaign, and many other clients in the future.
Coach Harbaugh has been in the news a lot lately. Whether you agree with his techniques or not, one thing is undeniable: he’s making the off season something worth watching. And from a marketing perspective, that’s powerful stuff.
Sports marketers are challenged to find ways to draw a crowd and keep them coming back. That’s getting harder and harder to do, because there are more alternatives than ever to game day attendance. At a time when collegiate sports programs are struggling with declining attendance, you can’t afford to let your marketing initiatives simmer on the back of the stove in between seasons. You have to find ways to keep fans engaged and maintain your momentum year round.
Even if your program doesn’t have Michigan’s resources, here are a few lessons you can apply in your own way.
Shake things up. Spring break practice in Florida? Friday night games? What?? Breaking away from the status quo draws attention and gives people something to talk about. Whether you go big or go small, do something different. Better yet, do it in a way that offers some sort of advantage for your team or your fans. Don’t just do it as a copycat, because your fans will call you out on it.
Get people excited about your new line-up. Signing day is a big deal, so make it a big deal. You don’t have to make it a circus to make it count. Look for ways to hype up your new recruits and the strength of your upcoming season. Social media (especially YouTube) is an incredible tool for this, and it doesn’t take a massive budget to make a memorable impact.
Decide what you want to be. Then be it. A football program is a football program is a football program…except that it’s not. It’s a lot more. It’s a collective identity and a shared consciousness. Own it. Does your team have a reputation you’re proud of? Find ways to amp it up. Want to have a different reputation than you currently do? Come up with a plan for how to reposition yourselves, then go after it full force.
Controversy = conversation. Being controversial isn’t for everybody, and you certainly don’t want to be on the hot seat in terms of violating rules. But it’s a proven way to generate media attention, and it can be a mobilizing force for your fan base. Just choose your controversies wisely, if you’re going to go there. And make sure you have the right people on board.
Sure, it helps to have a big budget and powerful connections when you want to stand out. But you don’t need those things to do more in the off season. All you really need is a thorough understanding of your target audience, strong collaboration within your program, a few creative ideas, and the will to win.
It always surprises me to see a development office pigeonholed to the back pages of an athletics website. It happens all the time. Development is an after thought on the website. It sends such a confusing message. Our development raises money for facilities and to serve our student athletes. It is incredibly important to what we do as an athletic department, yet we do not care enough to make them a focal point on our largest touch point with our fan base.
I work in web and have for most of my career. It will not come as a surprise for anyone to hear me talk about how important a good website is or your website will be the most frequent interaction you have with your fan base or donor group. More people interested in your group, that are looking for information, and would be willing to donate, will interact with your brand online than anywhere else. You may have 100,000 people at your football game, but they are not looking to learn about your brand or see what they can do to help on Saturdays, they are looking for a good time and a win. When they are online, they are evaluating what you do, learning about what they can do, and are inching their way to helping your brand. This is where you need to be interacting with them, or at a minimum, have a presence.
There is an argument to be made that separate development websites will not get the traffic of the main athletic site and that is true. The games and athletes are still the most important things to fans, this is not going to change. BUT, having worked on campus and handled websites for many major athletic brands, I know the developer or webmaster or intern (or whatever you want to call the person who holds the keys to the site) feels the same way and will focus on making sure those areas of the site rise to the top. This is what I mean about being pigeonholed. Development offices are shunted to two or three sub nav pages that are never updated and have little interaction with the visitors on the site. More importantly, there is no engagement of those evaluators surfing the web. You need a website you can update, edit, and change to keep your office in the forefront of their minds.
We recently launched ACU Wildcat Club’s new website. It is a site dedicated to helping the development team push their message. They control the content through an easy to use content management system. They make the decisions on what the website will focus on and what promotions they want to push. The development office is in control. On top of all of that, they are still part of the main athletics site. They are in the navigation; it links off to their standalone site. They are a part of the promotions; several ads on the home page link to specific sections of the development website. They can control their presence online while still being able to piggyback on the traffic the main athletics site gets.
Development offices are integral to the modern colliegiate athletics department. They raise funds for scholarships, student athletes, and new facilities. With a stand alone website and a good CMS your development office can control the message it is sending and engage your fanbase, without being at the whims of a website responsible for promoting 17 sports, teams, and coaches.
For the first time in our 12 years of existence, Old Hat entered a few things in the 2016 Oklahoma Addy Awards. I was under a tight deadline to get things entered and ended up failing our print division by not entering anything that required a hard copy (i.e. anything print related). I only entered 5 videos and our SMU environmental graphics project and they all won awards.
So on Saturday night, we got all dolled up and went downtown to the awards banquet. Here's a pic of me and my wife looking all perty before the show:
And now, without further ado... The projects for which we won Addy Awards:
On Jan 26th, the Norman print crew got to spend a day out of the office judging a competition at a local school. The graphic design program at Moore Norman Technology Center teaches high school and adult students the principals of design, along with how to use the Adobe Creative Suite.
Each year, the school holds a Red Carpet Film Festival where the students in the video program create short films, and then the graphic design students produce the movie posters, DVD cases, and other marketing materials for the film festival. I recently was put in contact with the director of the Graphic Design Program and she mentioned that they needed judges to help critique and pick the movie posters for each movie. I volunteered our staff because it’s always good to have a day out of the office helping the young kids in the world, right? Right.
We started off the day by watching the rough cuts of the films so we were familiar with what the movies were about. Then, the students presented their posters and DVD cases. The four of us got to sit at the front of the room, at the judges table. We felt like we were the judges for The Voice or American Idol or something (at least I did).
After each student explained their concept and design, we were able to ask questions, critique and provide feedback. The designers were mostly juniors and seniors in high school, with very limited experience. Some of them have only used photoshop for one week!There were four designs for each movie, and we picked the top two. From there, the director of the film will pick the winner.
It was really cool to see the creativity and skills the students had. They took elements of the movie and incorporated into the posters. Even with the limited experience, the posters looked well put together and professional. The students were very receptive to our feedback and encouraged by our comments. The four of us were very impressed at the whole process and enjoyed being able to help the students make their designs even better.
It was a really fun day helping show the students a little bit of what goes on in the design industry and answering questions about what we do day-to-day. We look forward to seeing how the students took our feedback and tweaked their posters before presenting them to the directors.
Well, it's official. Today marks the date that the merger we've been talking about for the past few months finally takes effect. Truth be told, Old Hat Creative and Third Degree Advertising have been working together for many months now in preparation for combining into a single company. But today is the day that we no longer exist as separate entities. Old Hat and Third Degree are one.
What does that mean, exactly? Well, on one hand, not much. And on the other hand, it means a lot.
What is NOT changing?
Primarily, Old Hat will continue to be the company you know and love...
2. You'll continue to be the life of the party by being able to quote random facts that you found by viewing our email signatures.
• When hippos are upset, their sweat turns red.
• Banging your head against the wall burns 150 calories per hour.
• Billy goats urinate on their own heads to smell more attractive to females (female goats, I assume).
3. You'll continue getting the most amazing creative to help you engage your fans, improve the gameday experience, sell tickets and increase fundraising.
4. Our dedication to ridiculously good customer service will never fade. We'll continue to always be available, always be responsive and never miss deadlines.
What IS changing?
Well, we're getting bigger...
1. Old Hat is currently headquartered in Norman, Oklahoma with remote employees in North Carolina and Utah. Starting today, we will have talented employees working from offices in Oklahoma City; Durham, NC; Greensboro, NC; Salt Lake City, UT; Charlottesville, VA and Frederick, MD.
This is me outside the OKC office with the downtown skyline in the background:
And, we're getting better...
2. Old Hat has a long history of producing amazingly awesome creative. This merger puts us in the position to make that creative even more awesome by adding research, media planning/buying, digital strategy and implementation, content creation, repositioning, media audits, copywriting, marketing automation and much more. We're taking our creative and making it smarter.
The UNC Ticket Sales site is a perfect example of taking our current offerings (web design and development, video production, on-site video shoots) and combining that with the expertise of our new partners (research, strategy and marketing automation).
So to summarize, nothing that you like is going away. We're just going from ridiculously-awesome to far-more-ridiculously-awesome. And just for fun, here's a photo tour of our OKC office.
This is a map with doorknobs showing all of the locations of Third Degree's clients from all over the United States. It's rad.
This is a cool yellow couch. The wall behind me says, "Elevate."
This is a really big pencil we use write all of our really big ideas down with. It's bolted to the wall so no one will steal it.
This is the room where we keep a guy named Richard.
Just kidding. The men's room says, "Dick" and the ladies' room says, "Jane." How clever is that?
This is a cool red refrigerator where I get to keep my Diet Dr Pepper.
Old Hat Creative recently launched the website RaiseUpCarolina.com.It was and is a unique project that had some interesting results.
First, while this is not always an option for websites, we were able to meet with the clients face to face and discussed the website. UNC has long been a friend of Old Hat’s, but this was the first website we would be doing with them. Zac and I went to Chapel Hill once together and then Zac returned with Dustin to shoot some of the footage used on the site. We were able to go through what they wanted out of the site and get a feel for what they envisioned for their athletic department over the next year. We do not always get to do this with clients, but when we do, it helps the process go considerably smoother. Plus, I always enjoy a trip to see our clients.
Once we have met with the client and received the content we start building out the site. Dustin is great at what he does and his ability to lay out content in an efficient manner is one of the things that take our sites to another level. Our process is another one of the reasons we are able to create amazing websites and working closely with a client on a website allows us to refine this process to match the goals of their website. UNC wanted to push season tickets for football and that is the main goal of the website. To accommodate this push, Dustin worked hand in hand with the marketing and ticket staff at UNC to make sure the content was laid out in an effective and aesthetically pleasing manner.
Combining marketing automation with a well laid out website can bring a whole new level of efficiency to your staff and this was one of the primary goals of the Raise Up Carolina website. We were able to target specific demographics of the fan base with newsletters and content, see how they reacted, and then adjust our focus to fit that specific demographic. This is something we work closely with UNC on and that is still going on at this time. When we know and understand the goals of our clients, we will adjust what we do to make sure we help them accomplish those goals. Ashley and Joel (from our OKC office) have studied the goals of UNC so much that they are starting to see things in shades of Tar Heel Blue, but this is what we mean we say we are here to help.
Deadlines and seasons change easily in our industry. Teams that we might think will be sitting at 2-8 end up sitting at 8-2 and looking to get into the playoffs. Our experience working on campus and in this industry has prepared us for that. We have our processes in place to handle these changes and are able to deliver for our clients when few other firms could. Every project will have these challenges, but that’s part of the process and another reason why we make sure we know everything we need to about your goals.
In the end, major projects like this are about the relationship. We got in on the ground floor with UNC for this site and it helped throughout the process. We are still working with them to target their marketing efforts, using analytics to study their fan base, and using marketing automation to make them as efficient as possible.
We are on the same team on projects like this. We will help you accomplish your goals.
Our 2016 New Year’s resolution: share more of what we know.
In the past 12 years, we’ve learned a lot about sports marketing and fundraising. In fact, we’re not going to be shy about saying this: we’re experts. And we’ve realized that our clients, friends, and fans would benefit from our expertise – so we’re going to start sharing more of it.
Over the upcoming year, you can expect to see more articles on our blog about sports marketing best practices, achieving fundraising goals, advice for common sports marketing challenges, marketing trends, and more. If you’ve got a sports marketing question or challenge that’s keeping you up at night, send it to us! We’d be happy to tackle it in our blog and give you some free advice. After all, our staff has a combined 482 years of experience in sports marketing and development. I know what you're thinking. 482 years? Seriously? No, not seriously. But it's a lot.
But don’t worry, if you like hearing about our antics and personal escapades you’ll still be able to read about them on all our various social media outlets. Robert will still run shirtless through the snow. Zac will still do uncomfortable interviews with the OH staff. And Geoff might write a haiku again sometime.
So buckle in. Twenty-sixteen is poised to be the greatest year in the history of years. And your best resource for making it the best for you is right here at the Old Hat blog.