Monetisation in Sports – The Problem for Sports Teams & Retailers
Tue 22nd Nov 2016 | Money & Finance
In previous posts we’ve been discussing the topic of sports sponsorship; and how sponsors and sports teams alike can implement our technology to assist in leveraging their sponsorship partnership.
However there is another angle at which the technology developed by DiscountIF can assist football clubs and retailers in engaging their audience further to increase merchandise and ticketing sales.
Many sports teams are faced with the challenge of increasing sales for both merchandise and ticketing. However their current strategy is to discount prices and offer sales promotions to combat the lack of demand at certain points of the season.
Although this may work in the short-term, the effect in the long-term is damaging to both sales and the value of the brand. In this day and age consumers are a lot more informed and tend to make smarter decisions when purchasing online. The days of paying full price are almost over, as most customers tend to wait for seasonal discounts.
Furthermore, by issuing seasonal discounts customers no longer feel the need to pay full price. As a result customers are a lot more likely to wait till the price is discounted and then make the purchase.
The long-term effects this has for the retailer and sports team can be detrimental with both parties losing out on higher levels of revenue due to their efforts to discount prices. Besides the revenue factor, brands which tend to offer discounts are seen as less valuable in the eyes of consumers.
Perhaps a few one-off discount campaigns wouldn’t be too harmful; however what’s the point of having a price if you’re going to need to discount it to make a sale?
Some sports teams also find difficulty in selling out their stadium tickets and are forced to either slash prices or discount them heavily. This may be due to the team’s performance throughout the season or just lack of interest.
However by using DiscountIF, clubs and retailers are able to offer customers the chance to gain a reward on their purchase if they correctly predict the outcome of a real-life event. Thus with reference to ticketing, clubs can give their fans the chance to get a discount (or any other reward) on their purchase if their team win’s the match, for example.
As a result this will spur the fans to get behind the team even more as well as creating a sense of passion around the offering presented through DiscountIF. This proposition engages customers/fans a lot more than normal sales promotion campaigns and maintains value for the sports team.
Here's a presentation highlighting the ways in which DiscountIF can assist in merchandising and ticketing - https://docsend.com/view/3e769bi
In the next article I’ll be discussing how DiscountIF can further assist in the process of sports monetisation, as well as the results we achieved through our clients thus far.
Posted by: Aaron Gourley
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