Memphis Grizzlies Leverage Stimulus Payment...

A few weeks ago I mentioned the fact that teams could create exclusive ticket offers that leverage stimulus packages that 130MM taxpaying Americans will be receiving from the U.S. government. Case in Point: The Memphis Grizzlies.

The Memphis Grizzlies have created a a unique season ticket offer for fans:

• The Memphis Grizzlies Season Stimulus Plan - Offers fans the chance to trade in their $600 stimulus payments for two (2) season tickets and $25 in Grizz Bucks" (a savings of $1,045 off the regular single-game price) through July 4th. To redeem their checks for season tickets, all fans have to do is call 901.888.HOOP.

Here is a great quote from the Mike Redlick, Executive Vice President of Business Operations for the Grizzlies, that supports the promotion:

“The federal government’s economic stimulus plan could become your Grizzlies Season Stimulus Plan. If you’ve ever thought about buying season tickets, now is your chance. All you have to do is exchange the check the government is sending you and just like that you can own a pair of 2008-09 Grizzlies season tickets. Why use the money to buy a new television to watch the Grizzlies when you can see them in person all year long?”

Pushing Single Game Tickets and Flex Packs?

Are you trying to sell single game tickets and mult-game plans? Has the looming economy hurt your walk-up sales on game day?

Consider implementing a strategy that uses the economical struggles to your advantage: Target the economic stimulus dollars that American singles ($600) and familes ($1,200) are set to receive here in the Spring. For many adults, this "new disposable income" is just waiting to be spent. Many Americans will not see the economic stimulus as money provided to help spur their savings and investment; rather they will perceive it to be "free money" that are at their disposal to use...

Take advantage of this with your messaging!

The Fox Sports Channel recently implemented on-air promotions that reads, "Your country needs you! Help the economy and spend your government stimulus check on cool gear at FoxSoccerShop.com." A recent issue of B&C (4.7.08) reports that the idea for the campaign came to Fox Soccer Channel VP David Sternberg when he received an IRS notice about the government's forthcoming stimulus payments.

An interesting message to consider pushing your fan base!

Buy a Ticket, Get a Pregame Meal Free?

The Chicago Wolves of the AHL recently announced a ticket offer that is bound to entice the taste buds of their ticket holders. The team is offering all fans who purchase a non-discounted playoff ticket of $20 or more a complimentary pregame meal during the team's 2008 playoff run. The ticket-based promotion, co-sponsored by Pepsi and Vienne Beef, rewards fans with a complimentary meal in the Skyline Room of the Allstate Arena 90 minutes prior to each home game.

Pre-Game Meal Items Include:

• Salad
• Pasta
• Chicken
• Hot Dogs
• Hamburgers
• Garlic Bread
• Desserts and Sodas

With the emergence of teams looking to show their fans more value for their buck, I wouldn't be suprised to see more initiatives like this surface. It will be interesting to see if this idea will become a benchmark for others in the minor league ranks; a lot will be determined by consumer demand and how efficiently the team runs the on-site operations during their playoff run.

Sharing The Experience With "Time Share" Tickets

The Dallas Cowboys recently announced that they will become the first team in the NFL to allow groups to share tickets. The Cowboys are slated to implement a system that enables a group of people to purchase a single ticket, and once inside the stadium, the group can take turns going into the game.

It is rumored that the Cowboys could allow 20,000 fans to buy tickets to standing-room-only party plazas outside each end zone where the game will be featured on digital screens (this would be an interesting strategy to drive game and site attendance for the Super Bowl, etc.

Could this be a new wave in team ticketing strategies?

Countering Rising Ticket Prices

Julia Boorstin of CNBC recently reported that ticket prices for sporting events rose 4.3% from January '07 to January '08 (on par with inflation). As professional sports organizations continue to charge their fans higher tags for admission, they are looking for new ways to show their existing and prospective fanbase incremental value. But who are the leaders when it comes to retaining ticket holders? Which teams are being the most proactive, strategic thinkers?

Two (2) NBA franchises have recently stepped to the forefront, offering their fanbase prizes for early ticket renewals:

• Cleveland Cavaliers
  • The Cleveland Cavaliers are offering their season ticket holder fanbase a six-week online renewal capaign. To encourage early renewals for the 2008-09 season, the team is offering exclusive prizes to fans. The earlier ticket holders commit to purchase, the more chances they have to win in the campaign. All selected winners will receive a suprise appearance by the Cavaliers Prize Patrol (cheerleaders, mascot, arena MC).
    • Prizes include: Trip for two (2) on the the team plane to a Cavs away game (Week 1), VIP floor seat experience with seats/hospitality (Week 2), two (2) round trip tickets on Continental (Week 3), Full luxury suite for a Cavs game (Week 4), autographed Lebron James jersey (Week 5), dinner for two (2) with Cavalier Legends (Week 6). Visit the Cavs website for additional details.
• Minnesota Timberwolves
  • The Timberwolves organization is offering an MVP Renewal Rewards program that awards season ticket holders with prizes based on the number of seats they purchase and how long they have had held tickets with the team.  The program's focus is to spike renewals, rewarding fans with points to redeem a collection of exclusive prizes which include dinner with the team, courtside seats, authentic jerseys, and autographed basketballs (MSP Journal 2.29.2008) Note: ticket prices will remain stagnant for '08 but the team has suffered at the gates due to poor playing performance (averaging 14,500/game - down from 16,000/game in '07). For an informational breakdown on the Timberwolves renewal incentives program, check out the team website.

These unique renewal incentives programs come at a time when many teams are increasing their ticket prices by large margins:

• The Los Angeles Dodgers raised their cheapest ballpark seats 12.5% for the 2008 MLB season. However in doing so, they chose to keep the price of Dodger Dogs the same. (CNBC 3.4.08) 
• The Detroit Lions are increasing more than 90% of their season ticket prices an average of 18% in 2008 (which is astounding!) (Detroit Free Press, 3.2.2008)
• The San Antonio Spurs are jumping the price of 1,500 tickets between 20-50% in 2008. Seating directly behind the basket (up $25 to $92/game), behind the charter seats at the end of the court (up $48 to $145/game), and corner seats (up $19 to $105/game) will all see price increases (San Antonio Express News, 3.1.2008)
• The average NBA ticket price is $48.83 (Team Marketing Report)

Segment Your Seating and Sell It!

Across the nation, college gameday atmospheres are defined by their students, seated in designated student sections, dressed head to toe in school spirit and jumping vibrantly to Zombie Nation. Numerous sponsors are clamoring for unique access to these passionate individuals, a segment of the population who seem to repeatedly escape marketers. Why are property representatives not taking greater advantage of having these student sections at their disposal?

Have properties not considered selling exclusive rights to their student section to comapnies like Geico, Pontiac, and Bank of America? By providing sponsors unique access to students (enabling them to place information materials and special sweepstake offers in student sections), properties can drive incremental value for all parties involved. While many properties have already done this with club level/suite seating, we have yet to see this bleed into student sections, faculty/staff sections, and group seating.

*Note, according to a recent ING article (2.18.08), properties that reac hteen and young adult males continue to benefit from strong spending on sponsorship by the makers of energy drinks.

Creating Value out of Existing Ticket Inventory

With ticket prices rising annually, team ticketing representatives are continuously looking for "new ways" to generate incremental reveune. In 2007, teams reverted to enhancing their courtside/field seating and began experimenting with All-You-Can-Eat sections. As these two measures have become mainstream in the industry, what will team representatives look to next to drive the needle?

Have team reps considered focusing on driving season ticket holder affinity through sponsor-backed sections in-venue? What caught my attention to this idea was the fact that in every hockey rink, each piece of dasherboard signage is positioned where it appears to represent a section in the lower bowl of the arena. Why don't properties capitalize on this by tying sponsors to these lower bowl sections and offer an additional activation piece that benefits both the sponsors and fans?

Season ticket holders/donors of most organizations have a high level of affinity for the section they sit in at games. When University athletic departments are faced with restructuring stadium/arena seating, they often face issues with this fact and are continuously looking for ways to provide these disgruntled fans new value. To counter this issue, properties can incorporate sponsor partners to enhance fan experience and drive section affinity* (i.e. distribute free Coca-Cola product and/or a branded Section 112 t-shirt as a promotion during the season). This concept creates value out of existing inventory for properties and provides additional assets/reach for sponsors through an in-venue promotion that drives incremental awareness. This measure can also be implemented to create artificial demand for select sections and/or provide incentives for fans who were forced to relocate from their previous seating.  

*If AT&T sponsored a section, a promotion could involve all fans seated in that section receiving $5 off their monthly AT&T phone bill and a free branded "Section 112 AT&T/Wild Season Ticket Holder shirt".

Rewarding Your Ticket Holders - Showing Added Value

As ticket prices increase, properties are continuously looking for new ways to add value to their donors and season ticket holders. However, many properties are forced to find solutions that have low operating costs and minimal risk involved. In recent years, a number of properties have experimented with the idea of creating loyalty rewards programs for their ticket holders. Oklahoma State has taken the concept of a rewards program and run with it, creating the "O Rewards" program and setting a precedent for others to follow with a simple yet effective business model.

Here's how the program works:

For each game that Cowboy ticket holders attend games, they get their "O" Rewards card stamped. To execute the rewards program, OSU Athletics has rewards tables set up inside the gates for fans to pick up their stamp cards and collect stamps. Once fans earn ten (10) points (receiving one point for each game attended), they just have to sign the back of the stamp card and redeem it at the rewards table for their prize. Upon reaching this milestone, fans are then given a personalized scan card which they can use to earn prizes at future events. OSU has used the "O Rewards" program to drive traffic to their Olympic events. For more information, please refer to the Oklahoma State Athletics website.

The "O Rewards" Model:

10 events attended = free Orange Rewards Team T-shirt

20 events attended = free Orange Rewards Team Nike Cap

30 events attended = free Orange Rewards Team Nike Duffle Bag

40 events attended = VIP party with head coaches

70 events attended = Receive an additional exclusive reward