Have you ever asked yourself the question: who are our fans? We’re constantly challenged with helping N3XT Sports partners engage diverse audiences. In order to understand the motivations behind each connection, fan-data capture offers the sports industry a window into the ever-evolving, global consumer landscape.
However, while the digital era is heightening competition among rights holders for audience attention – and retention – many stakeholders admit to not fully understanding what connects fans with the sports they watch and why they keep coming back. Without this fundamental piece of information, there is no way of defining, or segmenting, your fan base.
The digitalization of sport is making it easier for the sector to understand and market to the fan. At the core of this movement, fan-data segmentation provides your organization with a variety of opportunities to solidify and maximize the fan relationship, including:
- The capacity to personalize your physical and digital assets – including products, services, and content – to the fan’s interests and demographic;
- An ability to broaden and optimize your sponsorship portfolio by offering existing and potential partners a granular approach to their fan engagement;
- The opportunity to increase revenue via fan monetization, by creating a deeper and more meaningful connection with the fan.
For example, Orlando City SC has nurtured a substantial social media presence since it became a Major League Soccer (MLS) franchise in 2015. However, the club recognized that, despite its significant digital reach, it was missing out on the aforementioned opportunities because it didn’t receive direct data about its fans or their behavior.
The solution: Orlando City SC, in collaboration with the National Women’s Soccer League’s (NWSL) Orlando City Pride, launched a loyalty program via the club’s official LionNation mobile app, offering fans who attend matches or interact with its social channels the opportunity to receive points to be redeemed on club merchandise or in-venue experiences.
Defining the divide between fanatic and casual fans
The answer to the question ‘who are our fans’ is multi-faceted. On the one hand, the fan is in principle anyone who engages or associates themselves with your brand. On the other, the fan is their own unique person – meaning that fan behavior is fluid and isn’t based on a fixed or determinable consumer experience.
According to research carried out by Deloitte, there is a distinct correlation between the level of fan engagement and the amount they are willing to spend on subscriptions and loyalty programs associated with the sports they follow. Data shows that fanatical fans are more likely to purchase live game tickets team or league merchandise (50 percent) versus casual fans, of whom 23 percent and 17 percent buy tickets and merchandise, respectively.
Unsurprisingly, fanatical fans also engage with remote content at much higher levels, too. Deloitte’s research shows that 20 percent of fanatical fans purchase league-related TV subscriptions, versus four percent of casual fans. Meanwhile, nine percent of high-engagement fans invested in exclusive TV offers and enrolled in loyalty programs, versus one percent of casual fans.
Although the divide between the levels of fanatic- and casual-fan engagement is evident via traditional media, the ratio via mobile apps is less distinct. While four in five (82 percent) of fanatical fans indicated that they engage with sports-related mobile apps, there are more than half (55 percent) of casual fans who are doing the same, according to Deloitte’s research.
This demonstrates the role mobile is playing in connecting sports entities and their partners with both highly engaged and less-committed fans, and the opportunity to engage audiences beyond their traditional fan base; therefore advocating the need for robust fan databases that help executives better understand and nurture the bespoke fan experience and to make better decisions when engaging them with content and product offerings via mobile.
How to implement and optimize fan engagement
There are four basic steps your organization can take in order to better understand the fan’s behavior. These aim to establish data-driven insights that help promote greater fan engagement, more meaningful fan relationships, and notable revenue returns via fan monetization and sponsorship opportunities.
Step 1: Begin by accumulating data on your fans and followers, implementing a robust customer data platform (CDP) and a proficient customer relationships management (CRM) capability. If you own multiple databases, ensure that they are all connected and carry consistent fan and membership data.
Top tip: A lack of management support can sometimes lead to low adoption of fan-data tools. When pitching to your organization, explain what a CRM is and its importance, as well as the avenues where fan data can be sourced; i.e. ticketing, matchday engagement, concessions and merchandising, WiFi access, mobile app sign-up, and social media.
Step 2: Develop the fan funnel and a fan-funnel strategy. In order to turn non- and casual fans into core fans, the fan funnel represents the process and steps that your organization must take to attract and retain new and existing followers. This includes:
- Social media and paid-marketing engagement via non-traditional media platforms to attract or gain the attention of non-fans;
- Developing a communications strategy that aims to acquire casual fans by inviting them to sign-up to the organization’s daily/weekly email alerts and newsletters, owned mobile and digital assets, and social media channels;
- Deploying email campaigns designed to convert low-engaged audiences into core fans and encourage individuals to purchase services, products, and event tickets;
- Amplify the support of teams, players, and partner activities through bespoke content that engages super fans based on their demographic and maximizes fan revenue.
Step 3: Continue to segment your following based on demonstratable fan data, including but not limited to the fans’ demographic, behavior and interaction (in-stadia and remotely), and purchase choices. This will allow your organization and its partners to personalize communications based on their unique data-profile.
- Remember: the more you know about your fans, the more agile your organization will become. This includes the option to tailor your interactions with fans and the ability to convert non- and casual fans into highly engaged and higher spending fans;
- Personalization shouldn’t be sweeping. Some communications, including team and club updates, including ticket releases and product offers, should be widely accessible and help to unify your fan base;
- Sport is a community that’s made up of unique individuals – therefore, how you engage your audience will vary from fan to fan. These approaches are often segmented by markets, giving you the opportunity to leverage regional sponsorship and localized player engagement.
Step 4: Develop an email marketing strategy that aligns with your commercial goals. It’s important to segment your fan base before taking on this step. This helps you to decide on the messaging for each email marketing campaign you send, including visual content, product offers, and matchday viewing options based on the fan’s engagement history.
This approach will help maximize email interactions and capture more data for the individual fan, allowing you to better understand their interests and behavior, and to tailor your communications strategy accordingly.
What’s N3XT?
Fan engagement is evolving – therefore, the tools your organization needs to stay connected with audiences will vary depending on the stage of the digital transformation journey you find yourself.
According to McKinsey, companies that excel at personalization generate 40 percent more revenue compared to slower adopters. Meanwhile, research shows that seven in ten (71 percent) of consumers expect companies to deliver personalized interactions.
Note: three-quarters (76 percent) say they are frustrated when this doesn’t happen. This is important to understand because it demonstrates consumer advocacy for marketing communications – as long as it’s tailored to their interests.
Within the sports industry, this tells us that – while fans connect with sports at varied levels of engagement – it doesn’t matter what stage of the fan funnel you find them; they are proud of their individuality and are more likely to engage if their personality is reflected in your content.
At N3XT Sports, we help sports organizations adopt and implement these four basic steps into their operation. By developing and delivering on a strategy that personalizes the fan experience, fan data enables sports organizations to expand and improve their overall fan engagement and opens new revenue streams as part of its roadmap.
To find out more about what N3XT Sports can offer your organization, please fill out the form below and we’ll be in touch. We look forward to hearing from you.