How the Biggest and Best Drive Revenue
14 December 2023
We work with the best, here’s how they do it.
Everyone already knows the biggest teams are not just those who dominate on the field, they’ve mastered the art of running an effective business off it.
From multimillion-dollar sponsorships to merchandise sales and ticket revenue, teams have endless avenues to bring in those all-important dollars (or Pounds, or Euros, you get the gist).
Lucky for us – and in this case you – we work with some of these global powerhouses every day, and we’ve caught on to a few things.
So, here’s 4 ways we’ve seen the biggest and best ways to drive revenue:
#1: They Leverage Data Wisely
Data is a goldmine, and the biggest teams have harnessed its power to make informed decisions and create personalized experiences for their fans.
They do this by investing in business intelligence tools and analytics – like a CRM platform 😉 – to collect data, but they also invest in training their staff to process and analyze that data goldmine efficiently.
By doing so, they gain insights into their fans’ high-level preferences, including which players are the most popular, and what merchandise sells best, but also the more niche preferences including when they like to arrive on game day, which match ups they always attend and more.
It’s this knowledge that enables those teams to maximize revenue through making data led decisions.
For example, if Lebron’s jersey is in high demand, the team will see and increase marketing efforts for that item to boost sales. It could also be flipped the other way, with the team promoting other players to get their jersey sales on par.
#2 Fan Experiences are Almost Always Personalized
Simple math here: personalized experiences drive revenue.
By making fans feel valued and connected to the team, ticket sales, merchandise and concession revenue all grow.
Mobile apps or fan engagement platforms that provide fans with personalized experiences are everywhere. These apps allow fans to customize their preferences, receive notifications about their favorite players or teams, and participate in loyalty programs.
Couple this with advancements in AI and machine learning, apps now specifically tailor content to individual preferences and patterns, sucking them in, and keeping them there (case in point: the NBA app powered by Microsoft).
Top teams also offer exclusive access and premium experiences. Think VIP seating, pre-game events with players, or behind-the-scenes tours of the stadium.
Exclusive opportunities like these not only generate additional revenue in the moment, but also strengthen their emotional connection to the team when they’re not at the game, increasing the chance they’ll come back through the gates and drive revenue once more.
It’s a powerful cycle.
Interested in more content like this? Subscribe to our newsletter 👇
#3 Their fanbases are segmented
Not all fans are the same, why megaphone market to them as one big audience?
These teams are global brands, they’re not going to use the exact same campaign for fans based in Europe and the US, let alone the same postcode, they split up their audience based on a range of key metrics.
Segments are key to effective marketing, tailoring offerings and catering to various preferences or demographics is common practice among the best.
You can go as broad as country of residence to as niche as fans who have attended 5 or more games per year. Age groups, genders, membership status are all ways to break down your audience even further so you can speak directly to them and drive that connection.
#4 Fan Engagement is a 365 day, 24/7 campaign
A highly engaged fanbase is more likely to spend on tickets, merchandise, and other team-related products and services.
We’re in a digital world, an active and engaging presence on social media platforms is non-negotiable. Content that keeps fans informed and excited, whilst also posting a few memes, is a surefire way to success.
Whether it’s sharing highlights, behind-the-scenes moments, or player interviews, maintaining a strong online presence helps cultivate fan engagement and loyalty.
It doesn’t end with social, you need to host fan events and build a community around the team too. Fan festivals, meet-and-greets, and community outreach programs not only create memorable experiences for fans but also strengthen the connection between the team and community, with any additional revenue a by-product.
By staying at the forefront of these strategies, the biggest and best not only succeed in driving revenue but also foster a loyal and passionate fanbase that supports them year in, year out.
Looking to these successful teams for inspiration is a way to thrive in their competitive world, but also be innovative – originality will always see results.
The teams that win off the floor are already looking forward and capitalizing on emerging technologies, including AI. They’re streamlining operations, bringing time back into their day, and using it to innovate into new areas.
Get early access to our upcoming whitepaper 🎟️
Our expert team has made enormous strides over the past few months to seamlessly integrate with leading ticketing platforms, empowering sports organizations to harness the potential of having ticket scan data at their fingertips within minutes.
This will have huge implications for our partners and the data they can collect at speed, so we’re pretty pumped.
More details to come, but if you want to be at the top of the list, we’ll be sharing the latest with our current customers and any other interested parties that want to know more.
