Chelsea FC Membership

Introduction Our relationship with our customers are a team effort – membership is about the fans, it’s about ticketing, it’s about CRM and it’s about the future prosperity of Chelsea FC. A scheme that ticks all the boxes - membership should make (more) money but also serve as a tool to grow the fan base Give the fans a choice. Offering something for everyone. A membership scheme and a communications plan developed using market & fan research as well as analysis 2

Objectives Build better relationship with our fans Listen to what fans want Grow paid for membership from 60,000 to 97,000 125,000 e-members (both adults and Juniors) Reduce costs & maximise revenue opportunity Create a membership scheme that will be compatible with a future loyalty programme *Based on figures supplied by CDM

UK Membership Comparison Year on Year 2006/2007 – 65,621 2005/2006 – 62,939 # Members 2007/2008 – 56,821 2004/2005 - 45,000 2003/2004 - 27,000 Lack of engagement with fans In decline 30% churn each year Research Says… Month

Membership Satisfaction Member Research Membership Satisfaction 50,000 people researched 29% reflects churn 2005/2006 18% 38% 45%

78% members would recommend friends/family with right incentive Member Research 78% members would recommend friends/family with right incentive 97% members happy to renew if offering remains consistently high 69% Ticket access is still the key motivator (25% quoted loyalty to the club) 17% of lapsed members forgot to renew 6

Last Season Customer Hierarchy Season Tickets (25,000) Members (56,821) Database (200,000 marketable of a total of 670,000) Monthly unique visitors to chelseafc.com (1.4million global) (659,400 UK users)

Customer Segmentation Customer profiling has established unique customer segments or ‘clusters’ of very different groups of people who interact with CFC in different ways and have varying needs and motivations These segments have helped shape our membership proposition Customer profiling has established unique customer segments or ‘clusters’ of very different groups of people who interact with CFC is different ways and have varying needs and motivations – this analysis really backed up the findings of the research. For example, some people engage heavily with the brand but never buy tickets, others buy tickets to every match but don’t engage with us otherwise. Data analysis has quantified some. What people say they do and what they actually do is very different. Not only did it help us define our actual product i.e. True Blue Xtra, but it can also help us ‘package’ up and sell various membership tiers, i.e. one key segment is gift purchasers, so we can tailor our comms to reflect a purchase for a friend or family and ‘ package’ the full True Blue box set as a gift. An obvious example is the tone of voice we would use for a child member might be different to that of a ‘gentleman fan’. We’ll continue to track response throughout the year.

Date of last interaction Segmentation 1 2 3 Customer Spend £1,000 4 5 £250 6 7 Needed to get to know our customers better and speak to them as individuals based on more than just one product they’ve bought 8 9 £0 2006/2007 Season 2007/2008 Season Date of last interaction

Communication strategy Segment Characteristics 1. Man of the Match Highest consumer spend and match attendance 2. Vice Captains High consumer spend, high match attendance 3. Out with Injury High consumer spend and match attendance – last season only 4. Flag Flyers Medium spend, high match attendance, heavy brand engagement 5. Gentleman Fan Medium spend, high match attendance, low brand engagement 6. Out of Favour Medium consumer spend and match attendance – last season only

Communication strategy Segment Characteristics 7. New Signings Low consumer spend and match attendance 8. Fan Family Non match attendance but engage with the brand 9. Gifters Merchandise purchasers 10. Fans for Life Children 11. Members with Children Non member children 12. International Match Players International consumers that attend matches 13. International Brand Players International consumers that don’t attend matches

Customer Insight Driven Product Development Le 12

Free e-membership – Why? We have 261,000 International Brand Interactors (don’t buy tickets but do engage in another way e.g website, kitbag) Being ‘part’ of something second most sited reason for being a member We have 113,000 UK Brand Interactors Most of the competition currently have free online offering (with registration) Challenging data targets 53% members & 84% supporters would like free online membership* 63.8% population has internet access** From 2003 43% increase in broadband (UK population)*** We have 1.4 unique visitors to the web-site a month and we don’t know who they are. Source: *Chelsea Research Conducted **Neilsen/NR ***National Statistics

Target 100k new/additional contacts Free e-membership Objectives: - Data Generation (with future revenue generation) More contactable info - Build the foundation for future loyalty scheme - Upsell paid for membership and cross-sell other CFC products Target 100k new/additional contacts

Free e-membership Promotion Consistently promoted throughout season. Across CFC media & ChelseaFC.com homepage Registration Give people reason to register by clearly explain benefits of joining Easy to join & simple data capture Further data capture opportunities Website sticky content Quality e-offering Relevant (updated) content = customers returning E-comms Communicate relevant & timely communications Cross sell & up sell paid for membership (This activity will commence 1 month from the new website launch)

Free Junior e- membership - why? 18,000 5 to 15 year old brand interactors 62% of our under-18 members would consider an e-members scheme 63% of Children have access to the internet* Boys (U16) spend 1.9 hours a day on the internet, girls 2.1 hours a day 72% of all children U16 have visited a social networking site, and over half of them have set up their own profile. Children as young as eight are now signing up. *Ofcom research

Free Junior e-membership – ‘Building fans for the future’ Objectives: To grow the number of Chelsea junior supporters on the database To upsell Chelsea junior ‘paid for’ membership scheme Grow long term support and life time value Attract sponsor Capture fans at a critical age Target 25,000

£10 Junior Membership – Why Supports the CFC Junior strategy – maintain and obtain Obtains good PR for the club An increase in price for 07/08 has seen a drop off in membership Competition – some clubs attract Juniors by either having a free scheme (Man City) or a low-cost Junior option (Newcastle)

£10 True Blue Junior membership Objectives Grow long term support and life time value Capture fans at a critical age Grow Database Target 25,000

£10 Junior True Blue Membership Pack Welcome booklet Wall chart Certificate DVD Poster Voucher booklet – kids offers Above collated in a container & mailed in box (October) TBA Plus TeamCard Birthday and Christmas cards ‘Bridge Kids’ bi-annual magazine ‘Bridge Kids’ weekly email Free kids membership online access 21

Adult True Blue – more flexibility Type Cost Rational Ticket Only (50k) £25 In a recent survey 69% of members said tickets were key motivator for joining membership 6655 ‘gentleman’ fans – buy tickets but never buy product Ticket & magazine (10k) £32 86% of members prefer the hardcopy of the Chelsea magazine Ticket & pack & magazine (5k) £42 93% are satisfied with the current membership 108,000 ‘gifters’ Flag Flyers Ticket & pack & online magazine (overseas only) (5k) Our overseas members complained about the current price of True Blue membership (£90) 261,000 International fans engaging but priced out

New Season Customer Hieracrchy Premium Season Tickets True Blue (Tiered) 70k Adults (TBC) Up sell E-Membership 100k (TBC) FREE Database 200k Marketable of total of 670,000 1.4 million unique visits to website (659,400 UK users)

Targeted Marketing and Communications 24

Targeting Our customer segments have helped shape our retention, acquisition and member communications. Communications strategy has been developed to ensure content of message, tone of voice, time a frequency of communication will be tailored to each segment. Ongoing analysis & evaluation will continue to feedback into the planning process and revise the contact strategy. Customer profiling has established unique customer segments or ‘clusters’ of very different groups of people who interact with CFC is different ways and have varying needs and motivations – this analysis really backed up the findings of the research. For example, some people engage heavily with the brand but never buy tickets, others buy tickets to every match but don’t engage with us otherwise. Data analysis has quantified some. What people say they do and what they actually do is very different. Not only did it help us define our actual product i.e. True Blue Xtra, but it can also help us ‘package’ up and sell various membership tiers, i.e. one key segment is gift purchasers, so we can tailor our comms to reflect a purchase for a friend or family and ‘ package’ the full True Blue box set as a gift. An obvious example is the tone of voice we would use for a child member might be different to that of a ‘gentleman fan’. We’ll continue to track response throughout the year.

Communication strategy Segment Characteristics How What 1. Man of the Match Highest consumer spend and match attendance Retention - personalised invitation letter Premium – art, special signatures, speaking events / dinners. Box appearances by players 2. Vice Captains High consumer spend, high match attendance Retention – second target for Xtra – direct mail Premium – art, shirts and books. Booking dinners and having boxes. 3. Out with Injury High consumer spend and match attendance – last season only Telemarketing as will not normally respond to letters True Blue – choice Special prices on tickets 4. Flag Flyers Medium spend, high match attendance, heavy brand engagement Retention - high value Direct mail and magazine, True Blue – ticket, pack and magazine 5. Gentleman Fan Medium spend, high match attendance, low brand engagement Retention - high value Direct mail True Blue - ticket only Championship and FA Cup tickets 6. Out of Favour Medium consumer spend and match attendance – last season only Research and retain - ‘reason to believe’ email True Blue – choice Special prices on tickets – food concessions

Communication strategy Segment Characteristics How What? 7. New Signings Low consumer spend and match attendance Email, member of website, newsletters Staged - True Blue and eMemership, 8. Fan Family Non match attendance but engage with the brand Email –newsletter and offers Family concessions, merchandise, magazine 9. Gifters Merchandise purchasers Acquisition of friend or family – email to gifter True Blue – ticket, pack and magazine 10. Fans for Life Children Through childrens area on main website with games and videos. £10 Childrens tickets, website games, merchanise 11. Members with Children Non member children email to parents about signing up to childrens website £10 Childrens tickets Merchandise 12. International Match Players International consumers that attend matches Email, newsletters , online chats with players at certain times True Blue – ticket, pack and online magazine Merchandise, signed art 13. International Brand Players International consumers that don’t attend matches Email, newsletters, website forums. eMembership

Results So Far 28

Results

Results

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