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

Objectives 1.Build better relationship with our fans 2.Listen to what fans want 3.Grow paid for membership from 60,000 to 97, ,000 e-members (both adults and Juniors) 5.Reduce costs & maximise revenue opportunity 6.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 Research Says… 2003/ , / , /2006 – 62, /2008 – 56, /2007 – 65,621 Month

Membership Satisfaction Member Research 18%38%45% 2005/2006

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

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

Segmentation Date of last interaction 2006/2007 Season2007/2008 Season Customer Spend £0 £250 £1,

Communication strategy SegmentCharacteristics 1. Man of the MatchHighest consumer spend and match attendance 2. Vice CaptainsHigh consumer spend, high match attendance 3. Out with InjuryHigh consumer spend and match attendance – last season only 4. Flag FlyersMedium spend, high match attendance, heavy brand engagement 5. Gentleman FanMedium spend, high match attendance, low brand engagement 6. Out of FavourMedium consumer spend and match attendance – last season only

Communication strategy SegmentCharacteristics 7. New SigningsLow consumer spend and match attendance 8. Fan FamilyNon match attendance but engage with the brand 9. GiftersMerchandise purchasers 10. Fans for LifeChildren 11. Members with ChildrenNon 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

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 % 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

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 Free kids membership online access

Adult True Blue – more flexibility TypeCostRational 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) £42 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 Season Tickets Up sell FREE Premium True Blue (Tiered) 70k Adults (TBC) E-Membership 100k (TBC) Database 200k Marketable of total of 670, million unique visits to website (659,400 UK users)

Targeted Marketing and Communications

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.

Communication strategy SegmentCharacteristicsCommunicationProduct 1. Man of the Match Highest consumer spend and match attendance Retention - personalised invitation letter Premium 2. Vice Captains High consumer spend, high match attendance Retention – second target for Xtra Premium 3. Out with Injury High consumer spend and match attendance – last season only TelemarketingTrue Blue - choice 4. Flag FlyersMedium spend, high match attendance, heavy brand engagement Retention - high value DM True Blue – ticket, pack and magazine 5. Gentleman Fan Medium spend, high match attendance, low brand engagement Retention - high value DM True Blue - ticket only 6. Out of Favour Medium consumer spend and match attendance – last season only Research and retain - ‘reason to believe’ True Blue - choice

Communication strategy SegmentCharacteristicsType of campaign Product 7. New Signings Low consumer spend and match attendance Acquisition and retention – Staged - True Blue and eMemership 8. Fan FamilyNon match attendance but engage with the brand Acquisition – True Blue 9. GiftersMerchandise purchasersAcquisition of friend or family – to gifter True Blue – ticket, pack and magazine 10. Fans for Life ChildrenAcquisition and retention – £10 Childrens 11. Members with Children Non member childrenAcquisition of child – to parents £10 Childrens 12. International Match Players International consumers that attend matches Acquisition and retention – True Blue – ticket, pack and online magazine 13. International Brand Players International consumers that don’t attend matches Acquisition and retention – eMembership

Results So Far

Results

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