Ticket Sales Planning


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Ticket Sales Planning

  1. 1. TICKET SALES PLANNING William A. Sutton Vice President Team Marketing Services
  2. 2. We will focus predominantly on Ticket Sales … because this is the source that helps to generate all of the other revenues
  3. 3. HOW TO SELL THE LAST SEAT IN THE HOUSE by Jon Spoelstra <ul><li>Sellouts are the key </li></ul><ul><li>Three-year or four-year plan </li></ul><ul><li>Season ticket sales are the foundation </li></ul><ul><li>Full-menu marketing </li></ul><ul><li>Sell group tickets to corporate sponsors </li></ul>FOUNDATIONAL THEORY <ul><li>8 sellouts </li></ul><ul><li>20 sellouts </li></ul><ul><li>30 sellouts </li></ul><ul><li>Totally sold-out </li></ul><ul><ul><li>1/3 sold-out; </li></ul></ul><ul><ul><li>2/3 sold-out; </li></ul></ul><ul><ul><li>Totally sold-out </li></ul></ul>
  4. 4. SUGGESTED FULL-MENU MARKETING <ul><ul><ul><ul><ul><li>NBA WNBA </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>FULL 44 17 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>HALF 22 N/A </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>QUARTER 10-12 5-6 </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>FLEX PLAN 10 COUPONS 10 COUPONS </li></ul></ul></ul></ul></ul>
  5. 5. <ul><li>Constant market research </li></ul><ul><li>Ask fans/give it to them </li></ul><ul><li>Ticket sales and attendance are “King” </li></ul><ul><li>Attendance Frequency Escalator </li></ul><ul><li>Contact info on every ticket purchaser/user </li></ul><ul><li>Internal Marketing – “preach to the choir” </li></ul><ul><li>Direct mail/telemarketing/video e-mail and voicemails </li></ul><ul><li>Comprehensive business & marketing plan </li></ul><ul><li>Total entertainment experience </li></ul><ul><li>Water Tower Concept </li></ul>FOUNDATIONAL THEORY Sport Marketing by Mullin, Sutton and Hardy
  7. 7. IMPORTANCE OF PUTTING “CHEEKS IN SEATS” <ul><li>FANS </li></ul><ul><li>“ Nobody wants to drink in an empty bar!” </li></ul><ul><li>A large and excited crowd is a big part of the experience </li></ul><ul><li>A crowd attracts a crowd, plus it creates the perception of product demand and value </li></ul><ul><li>SPONSORS </li></ul><ul><li>Pay on a cost per exposure basis, plus the quality of demographics </li></ul><ul><li>More fans – more sponsor dollars </li></ul>
  8. 8. <ul><li>The media only covers what fans want to </li></ul><ul><ul><li>See </li></ul></ul><ul><ul><li>Hear </li></ul></ul><ul><ul><li>Read </li></ul></ul><ul><li>Broadcast rights are dependent on </li></ul><ul><ul><li>- Size of fan base </li></ul></ul><ul><ul><li>- Ease of selling sponsorships </li></ul></ul><ul><li>Community </li></ul><ul><ul><li>- Brand recognition and acceptance </li></ul></ul><ul><ul><li>- Player/team involvement </li></ul></ul><ul><ul><li>- Youth/adult participation in basketball </li></ul></ul>IMPORTANCE OF PUTTING “CHEEKS IN SEATS”
  9. 9. THE ATTENDANCE FREQUENCY ESCALATOR Most swings in attendance from season to season are caused by large changes in attendance frequency NOT large changes in first-time fans coming or current fans “quitting”
  10. 10. THE ATTENDANCE FREQUENCY ESCALATOR Full Plan Half Plan Mini Plan Single Game Flex Plan NBA 44 WNBA 17 22 8 10-12 5-6
  13. 13. <ul><li>A Full Lower Bowl is the Key to Selling Season Tickets </li></ul><ul><ul><li>Must average 15,000 announced for every game </li></ul></ul><ul><ul><li>No single-game ticket sales available in lower bowl </li></ul></ul><ul><ul><li>Baseline to baseline (sides) must be full season ticket sections only </li></ul></ul>WATER TOWER CONCEPT
  14. 14. FILLING THE LOWER BOWL <ul><li>Ticket sales “Sandwich” </li></ul><ul><li>Building the season ticket base is the foundation of ticket sales success </li></ul><ul><li>Sell corporate marketing partners on large group days </li></ul><ul><li>Selling to professional groups </li></ul><ul><li>Youth/Adult Basketball “Season Tickets” </li></ul><ul><li>Upsell current groups and move them downstairs </li></ul><ul><li>Give upper bowl “partials” a one game experience in the lower bowl </li></ul>
  15. 15. FILLING THE LOWER BOWL (continued) <ul><li>Fundraisers Using Tickets </li></ul><ul><li>Student Achiever Program </li></ul><ul><li>School Assembly Program </li></ul><ul><li>Frequent Fan Loyalty/Reward Program </li></ul><ul><ul><li>Ticket benefits </li></ul></ul><ul><li>Player Promotion Areas </li></ul><ul><ul><li>One for each player </li></ul></ul><ul><li>Retail Buy Outs </li></ul>ONLY WHEN YOU CANNOT SELL-OUT THE LOWER BOWL:
  16. 16. THE CLUB SANDWICH CONCEPT Charity Ticket Programs (only when essential) Promotion and Package Programs Full Season Tickets Advance Ticket Sales Group Sales Partial Season Plans Ticket Sales Walk-Up/Day of Game Sales Phone, Outlet, Internet and Mail
  17. 17. LIFETIME ASSET VALUE OF A SEASON TICKET ACCOUNT (NBA AVERAGE) Average Season Ticket Price $60.75 Average # of games in a Season Plan 43.5 Average # of Plans purchased per account 2.84 Average Season Ticket Account Revenue Per Year $7,505.05
  18. 18. Gross Net to Team Concessions per capita $6.00 $4.03 Merchandise/Game Program $1.00 $0.84 per capita Parking $3.00 $1.26 Total $10.00 $6.13 Average 2.84 Seats per account $17.41 x 43.5 games per season on average AVERAGE ANCILLARY REVENUES PER SEASON PER ACCOUNT $757.33 ARENA-RELATED REVENUES PER SEASON TICKET ACCOUNT (NBA AVERAGE) LIFETIME ASSET VALUATION
  19. 19. Total Net Revenue per season ticket account, per year: Tickets $7505.05 Concessions, etc. $ 757.33 Grand Total per account $8262.38 LIFETIME ASSET VALUATION
  20. 20. AVERAGE LIFE EXPECTANCY OF A SEASON TICKET HOLDER 95% Retention - 20 Years 90% Retention - 10 Years 82% Retention - 5.56 Years* 80% Retention - 5 Years 70% Retention - 3.3 Years * 1999-2000 NBA League Average
  21. 21. NBA AVERAGE SEASON TICKET ACCOUNT ASSET VALUE Average net revenue per account per season $8,262.38 NBA Average Total Projected Lifetime Season Ticket Account Asset Value $45,939 SEASON TICKET ACCOUNT PORTFOLIO
  22. 22. What is the lifetime value of a season ticket account holder? 70% Retention = $27,266 80% Retention = $41,312 82% Retention = $45,939 90% Retention = $82,623 95% Retention = $165,248 PORTFOLIO ASSET VALUE
  23. 23. SEASON ACCOUNT PORTFOLIO ASSET VALUE Value of the NBA Average Season Ticket Account (at 82% Retention) $45,939 NBA Average # of Season Ticket Account Holders 3,250 Total Projected Portfolio Asset Value $149,301,750
  24. 24. STICK TO THE BASICS <ul><li>1. Retain season ticket holders </li></ul><ul><li>(85% or better) </li></ul><ul><ul><li>Service existing fans/season ticket holders make them feel “special” and appreciated </li></ul></ul>NBA’s TICKET SALES PHILOSOPHY
  25. 25. STICK TO THE BASICS <ul><li>2. Increase new season ticket sales levels </li></ul><ul><ul><li>Offer full menu of partial plans </li></ul></ul><ul><ul><li>Sell single-game ticket purchasers on buying flex or partials </li></ul></ul><ul><ul><li>Move partial plan holders up the escalator </li></ul></ul>NBA’s TICKET SALES PHILOSOPHY
  26. 26. STICK TO THE BASICS <ul><li>3. Aggressively sell groups </li></ul><ul><ul><li>Use the Attendee Satisfaction Card </li></ul></ul><ul><ul><li>Get a sale & get a lead </li></ul></ul><ul><ul><li>Theme group sales days </li></ul></ul>NBA’s TICKET SALES PHILOSOPHY
  27. 27. STICK TO THE BASICS 4. Develop single-game theme days and promotions 5. Develop a comprehensive no-show program 6. Use sampling programs when necessary NBA’s TICKET SALES PHILOSOPHY
  28. 28. MAKE SEASON TICKET HOLDERS FEEL SPECIAL DON’T LET SEASON TICKET HOLDERS QUIT! <ul><li>VIP or discounted parking </li></ul><ul><li>Club Rooms (press notes, free soft drinks, snacks) </li></ul><ul><li>Day-of-game faxes, e-mails, etc. </li></ul><ul><li>Longevity/reward program </li></ul><ul><li>Value-added Events/Meet the players, coaches, etc. </li></ul>RETAIN 85% OR BETTER
  29. 29. <ul><ul><li>Close-in parking location or discounts/concession benefits/free game programs/concession & merchandise discounts or benefits </li></ul></ul><ul><ul><li>Graded benefits which improve each year </li></ul></ul><ul><ul><li>In-game acknowledgement on Jumbotron </li></ul></ul><ul><ul><li>Fan Hall of Fame </li></ul></ul><ul><ul><li>On-Court Recognition </li></ul></ul><ul><ul><li>Birthday card and gift in seat </li></ul></ul>RETAIN 85% OR BETTER <ul><li>Constant Contact </li></ul><ul><ul><li>Assign a Personal Customer Service Rep (CSR) </li></ul></ul><ul><ul><li>Personalized Letters </li></ul></ul><ul><ul><li>Regular Phone Calls </li></ul></ul><ul><ul><li>(don’t be too intrusive) </li></ul></ul><ul><ul><li>Day of game faxes/e-mails with special offers </li></ul></ul><ul><ul><li>Use surveys to “get to know” fans </li></ul></ul>
  30. 30. <ul><li>Provide more incentives, training and development to retain ticket sales staff </li></ul><ul><li>Hire a Season Ticket Holder Retention Program Director </li></ul><ul><ul><li>Assign an experienced TSR or CSR to run it in season and reward them based upon success </li></ul></ul><ul><ul><li>Establish a comprehensive Retention Program </li></ul></ul>RETAIN 85% OR BETTER
  31. 31. <ul><li>Connecting Season Ticket Holders with the Players </li></ul><ul><ul><li>High Touch Programs (Bowling) </li></ul></ul><ul><ul><li>Signed “T-shirts” </li></ul></ul><ul><ul><li>Mini-balls </li></ul></ul><ul><ul><li>Post-game shows </li></ul></ul><ul><ul><li>Community outreach </li></ul></ul><ul><ul><li>Drawing at games for a paid road trip with team for STH’S </li></ul></ul>RETAIN 85% OR BETTER
  32. 32. <ul><li>On-court contest participants should be season ticket holders </li></ul><ul><li>Highly visible STH-only event in-arena, with videoboard and PA announcements </li></ul><ul><li>Unused tickets </li></ul><ul><ul><li>Donation programs to community groups </li></ul></ul><ul><ul><li>Charity letter sent by team and cards signed by kids </li></ul></ul>RETAIN 85% OR BETTER
  33. 33. <ul><li>Develop blend of plans (Full Menu) </li></ul><ul><li>Step-up benefits </li></ul><ul><li>Direct marketing </li></ul><ul><ul><li>Target partial plan holders </li></ul></ul><ul><ul><li>Group attendees </li></ul></ul><ul><ul><li>Single game ticket purchasers </li></ul></ul>INCREASE NEW SEASON TICKETS SALES LEVELS
  34. 34. <ul><ul><li>Establish an in-house telemarketing program </li></ul></ul><ul><ul><li>Separate retention (customer service representatives) from new season ticket sales (ticket sales representatives) </li></ul></ul><ul><ul><li>Get names of “share partners” </li></ul></ul><ul><ul><li>Re-target partials </li></ul></ul><ul><ul><li>Flex books </li></ul></ul><ul><ul><li>Install a frequent–fan program (EDCS) and target non-season ticket holders </li></ul></ul>INCREASE NEW SEASON TICKETS SALES LEVELS
  35. 35. <ul><li>Dedicated year-round group ticket sales staff </li></ul><ul><li>Early renewal of last year’s groups </li></ul><ul><li>Use the group attendee satisfaction card </li></ul><ul><li>Put large groups in every sponsor package </li></ul><ul><li>Theme group days </li></ul>AGGRESSIVELY SELL GROUPS
  36. 36. 1. Corporate Sponsor Group 2. Theme Night (Health Workers, Government Employees, etc. or computers, cameras, golf, trading cards, etc.) 3. Charity Groups 4. Regular Groups (bars, churches, service organizations, etc.) THE FOUR TIER GROUP SALES APPROACH AGGRESSIVELY SELL GROUPS
  37. 37. <ul><li>Better single-game themes & promotions/giveaway items </li></ul><ul><li>Make on-air “limited time” special offers </li></ul><ul><li>Offer family plans (including food, etc.) </li></ul><ul><ul><li>Niche media marketing </li></ul></ul><ul><li>On-air contests to get contact information </li></ul><ul><li>Cross promotions with media/retailers & high volume consumer products </li></ul><ul><li>Focus on on-line sales/push the internet </li></ul>DEVELOP SINGLE-GAME THEME DAYS AND PROMOTIONS
  38. 38. CROSS PARTNERING PROMOTION/PROGRAM MODEL Over the Air TV Cable TV Cable System Provider AM Radio Magazine FM Radio Internet (ISP) Gas & Convenience Store Grocery or Other Retailer Consumer Product B Consumer Product A Newspaper Program Concept
  39. 39. <ul><li>Assign every account a personal customer service rep </li></ul><ul><li>Provide all accounts with team schedules (magnetic, screen saver and/or pocket schedules) - containing the name, e-mail and phone number of their CSR </li></ul><ul><li>Provide corporate accounts with materials that assist the individual with ticket disbursement responsibility </li></ul><ul><li>Policies and programs for unused tickets </li></ul><ul><li>Season ticket holder/share partner -- Last Minute Ticket program </li></ul><ul><li>Hotel Concierge Program </li></ul>DEVELOP A NO-SHOW PROGRAM
  40. 40. <ul><li>DEVELOP GRASSROOTS PROGRAMS </li></ul><ul><li>Support Youth/Adult Leagues and Get Contact Information </li></ul><ul><ul><li>Coaches Clinics </li></ul></ul><ul><ul><li>Junior basketball and cheerleading programs (games/clinics/pre game and food) </li></ul></ul><ul><li>Junior Fan Clubs </li></ul><ul><li>Charity Ticket Programs </li></ul>SAMPLING PROGRAMS
  41. 41. SAMPLING PROGRAMS <ul><li>Student Achiever </li></ul><ul><li>School Assembly </li></ul><ul><li>Group Attendees </li></ul><ul><li>Corporate Ticket Program </li></ul><ul><li>Youth Ticket Program </li></ul><ul><li>Professionals Group Program </li></ul>Use Sampling Programs When Necessary