Sport Sales Chapter 14

Introduction Sales function accounts for the vast majority of revenues for any sport organization. Regardless of your position in the sport industry, it will entail some level of sales. There has been a shift in emphasis from product-oriented to consumer-oriented sales.

Sales: Key Questions How do sport organizations use the sales process to attract and retain consumers? What do sport organizations have to sell? Which methodologies do they use to sell it? What does it take to be a successful salesperson in sport?

History Sales has developed into a dynamic discipline. Certain myopias initially slowed the growth of the sports marketing profession. One-size-fits-all packages, lack of foresight in marketing Evolution of marketing occurred through increased competition for the entertainment dollar and through professionally trained sport marketers.

“Truisms” of the Sales Function A sales staff needs to be trained and prepared to sell either a winning or a losing team. The major emphasis should be on identifying and satisfying consumers’ wants and needs instead of focusing simply on selling. A priority needs to be placed on the collection and effective use of customer data. Simply handing out free tickets to a sporting event sends a distinct message to fans about the perceived quality of the product: If it’s free, it can’t be worth all that much.

Sales in Sport Setting Sales: Revenue-producing element of marketing Four ingredients to selling: Identifying the customer Getting through to the customer Increasing awareness/interest Persuading customers to act on their interest Four factors that cause consumers to purchase: Quality, Quantity, Time, Cost Selling point: The emotional presence and element of excitement that exists within sport

Sales Strategies and Methods Organizations have recognized the need to expand and enrich their relationships with current and potential customers. Critical determinants of success of a sales department: The ability to accurately identify and understand the needs of potential and current customers. The ability to maximize the generation of sales leads.

Sales Strategies and Methods: CRM Customer relationship management (CRM) A system that enables sport organizations to build and utilize a database of demographic and psychographic information, as well as past purchase behaviors, for existing and potential customers. Demographics (e.g., age, gender, education level, occupation, ethnicity). Psychographics (e.g., motivations, interests, and opinions). Sales analytics are readily retrievable through CRM systems and software, dramatically changing the sales landscape. Archtix, Flash Seats, and Prospector.

Sales Strategies and Methods: CRM (cont.) CRM: Three primary methods Direct mail: Mail campaigns that reach only those people the organization wants to reach. Telemarketing: Utilizes telecommunications technology as a part of the well-planned, organized, and managed sales effort that features the use of non−face-to-face contact. Personal sales: Face-to-face, in-person selling.

Sales Strategies and Methods: Benefit Selling Promotion and creation of new benefits to offset existing perceptions of the sport product or service. Understand which objections customers have to your product or service, and why. Once benefits have been identified, they must be publicized and must be judged by the consumer to have worth or value. Flex books and open houses

Sales Strategies and Methods: Up-Selling “Escalator concept” Sport organizations strive to move customers up the escalator from purchasing single-game tickets to miniticket plans to season ticket packages. Sponsorship sales Increase company’s involvement with your sport organization. Never be satisfied with simply renewing a customer at his or her current level of involvement.

Sales Strategies and Methods: Eduselling Evolutionary form of selling that combines needs assessment, relationship building, customer education, and aftermarketing Monitoring consumer utilization and satisfaction through regular communication Proactively assisting customers in developing ways to better utilize and leverage their investment with the organization

Sales Strategies and Methods: Aftermarketing Process of retaining customers Providing continued satisfaction and reinforcement to individuals or organizations who are past or current customers Encourages organizations to view season ticket holder not as a one-time $3,000 customer but, based on a potential span of 10 years, a $30,000 client

Sales Strategies and Methods: Elements of Successful Customer Service Program Personal calls, emails, and personal notes Direct-dial phone numbers and email addresses given to each season ticket holder for contacting his or her personal service representative In-seat visits by sales account reps in the arena Maintenance of a customer sales and service booth in arena Invitations to attend “Fan Forums” with the team’s general manager and team president A handbook or manual sent to season ticket holders describing the goals and values of the team’s on-ice product

Ticket Sales and Social Media Sport organizations use social media to connect and engage with fans by sharing news, posting videos, and hosting contests. They also are using social media platforms such as Facebook, Twitter, YouTube, and Pinterest to drive ticket sales. Increasing reliance on social media in the sales process has also created many new entry-level sales positions.

What Makes a Good Salesperson Laugh: A salesperson needs a sense of humor. Make sure sale makes sense for prospective customer. Don’t take rejection personally. Know as much as you can about the sales prospect. Sales is about volume—make a lot of calls and see a lot of people. Knock on old doors. Consult, don’t sell. Develop the art of listening. Believe in what you’re selling and believe in yourself. Close the sale: Ask customers what they want.

Sales Inventory: Ticket Inventory Season ticket equivalencies 50% Advance ticket sales 25% Group sales 20% Day-of-game/Walk-up sales 5% Club seats, luxury seats complete with catered food service, private seat licenses (PSLs), and VIP parking, among others

Sales Inventory: Advertising Inventory Includes both electronic and print inventory Electronic advertising inventory includes television, radio, and team Web sites. Some teams have brought their television and/or radio rights in-house. Team bears the production costs of its broadcasts but has the opportunity to retain all of the advertising sales. Print inventory: In-game programs, media guides and newsletters, ticket backs, ticket envelopes, scorecards/roster sheets, and team faxes

Sales Inventory: Signage Inventory Traditional revenue streams include dasherboards, scoreboards, outfield signs, and concourses. New revenue streams include the playing surface itself, the turnstiles, and the marquees outside the venue, among other locations.

Sales Inventory: Naming Rights Opportunity to sell entitlement of arena or stadium, practice facility, or the team itself New phenomenon resulting in a significant new revenue stream for sport organizations Includes clauses designed to ensure that sport organizations get back for free their ability to sell their facility’s name if the purchasing company becomes insolvent

Sales Inventory: Online Inventory Team and league Web sites provide attractive platforms for sponsors. Banner ads, blogs, instant messaging applications, pop-up ads. Often online inventory (e.g., banner ads, company links) is included as an important value add in a larger sponsorship deal.

Sales Inventory: Additional Options Promotions: Giveaway items, on/off field or floor experiences, scoreboard promotions, etc. Community: School assemblies, camps, clinics, etc. Miscellaneous: Fantasy camps, off-season cruises with players, venue tours, fanfests, and road trips Creative development of new inventory, thus generating new revenue streams by selling companies the opportunity to associate with their sanctioned events

Sales Inventory: Sponsorships Why do you believe the targeted company would be a good fit for your organization? The sponsorship sales process requires a great deal of up-front research, creativity, sales acumen, and patience. Sponsorships often entail a much larger emotional and financial commitment on the part of the potential customer. Process of selling sponsorship packages must allow the company sufficient lead time.

Selling Sponsorship Packages Schedule a meeting with the sponsorship decision maker. At the first meeting, listen 80% of the time and sell only when you have to. You are there to observe and learn. Arrange a follow-up meeting for the presentation of your proposal before leaving this initial meeting. Create a marketing partnership proposal. Present the proposal as a “draft” that you will gladly modify to meet the company’s needs. Negotiate the final deal and get a signed agreement.

Summary Sales are the lifeblood of any sport organization. A steady increase in competition for customers, both individuals and corporations, has sparked an evolution in sales methodologies within the sport industry. Students with strong analytical skills are needed to manage and mine the organization’s customer relationship management system (CRM) in order to satisfy consumers’ wants and needs.