ticket sales planning

TICKET SALES PLANNING

William A. SuttonVice President

Team Marketing Services

We will focus predominantly on Ticket Sales

…because this is the source that helps to generate all of the

other revenues

HOW TO SELL THE LAST SEAT IN THE HOUSE by Jon Spoelstra

Sellouts are the key Three-year or four-year plan

– 8 sellouts– 20 sellouts– 30 sellouts– Totally sold-out

Season ticket sales are the foundation Full-menu marketing Sell group tickets to corporate sponsors

– 1/3 sold-out; – 2/3 sold-out; – Totally sold-out

FOUNDATIONAL THEORY

SUGGESTED FULL-MENU MARKETING

NBA WNBA

FULL 44 17

HALF 22 N/A

QUARTER 10-12 5-6

FLEX PLAN 10 COUPONS 10 COUPONS

Constant market research Ask fans/give it to them Ticket sales and attendance are “King” Attendance Frequency Escalator Contact info on every ticket purchaser/user Internal Marketing – “preach to the choir” Direct mail/telemarketing/video e-mail and voicemails Comprehensive business & marketing plan Total entertainment experience Water Tower Concept

FOUNDATIONAL THEORY

Sport Marketing by Mullin, Sutton and Hardy

FANS/SPONSORSHIP REVENUE/MEDIA/BROADCAST RIGHTS

FANS SPONSORS

Each element feeds from the other!

BROADCASTRIGHTSMEDIA

WHY A FULL HOUSE IS SO IMPORTANT!

COMMUNITY

IMPORTANCE OF PUTTING “CHEEKS IN SEATS”

FANS – “Nobody wants to drink in an empty bar!”

– A large and excited crowd is a big part of the experience

– A crowd attracts a crowd, plus it creates the perception of product demand and value

SPONSORS – Pay on a cost per exposure basis, plus the quality of demographics

– More fans – more sponsor dollars

The media only covers what fans want to See Hear Read

Broadcast rights are dependent on- Size of fan base- Ease of selling sponsorships

Community- Brand recognition and acceptance- Player/team involvement- Youth/adult participation in basketball

IMPORTANCE OF PUTTING “CHEEKS IN SEATS”

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”

THE ATTENDANCE FREQUENCY ESCALATOR

Full Plan

Half Plan

Mini Plan

Single Game

Flex Plan

NBA

44

WNBA

17 22

810-12

5-6

NUMBERS BEHIND ATTENDANCE INCREASES

Year 1985 1986 1987 1988 1989 1990Attendance .73 M 1.0 M 1.2 M 1.6M 2.0M 2.2M

Average Frequency 2.25 2.56 3.19 3.95 4.2 4.3# of Fans 324K 360K 376K 405K 475K 485K

% of I ncreased Attendance N/A 36% 20% 33% 25% 10%% of Change in Attendance

Frequency N/A 14% 25% 21% 6% 2.5%% of Change in Number of

New Fans N/A 10% 4.2% 7.2% 14.7% 2.0%

Pittsburgh Pirates

PRESSURE TO BUY SEASON TICKETS

WATER TOWER CONCEPT

A Full Lower Bowl is the Key to Selling Season Tickets

– Must average 15,000 announced for every game

– No single-game ticket sales available in lower bowl

– Baseline to baseline (sides) must be full season ticket sections only

WATER TOWER CONCEPT

FILLING THE LOWER BOWL

• Ticket sales “Sandwich”

• Building the season ticket base is the foundation of ticket sales success

• Sell corporate marketing partners on large group days

• Selling to professional groups

• Youth/Adult Basketball “Season Tickets”

• Upsell current groups and move them downstairs

• Give upper bowl “partials” a one game experience in the lower bowl

FILLING THE LOWER BOWL

(continued)

• Fundraisers Using Tickets• Student Achiever Program• School Assembly Program• Frequent Fan Loyalty/Reward Program

– Ticket benefits

• Player Promotion Areas– One for each player

• Retail Buy Outs

ONLY WHEN YOU CANNOT SELL-OUTTHE LOWER BOWL:

THE CLUB SANDWICH CONCEPT

Charity Ticket Programs(only when essential)

Promotion and Package Programs

Full Season Tickets

Advance Ticket Sales

Group SalesPartial Season Plans

Ticket Sales

Walk-Up/Day of Game SalesPhone, Outlet, Internet and Mail

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

Gross Net to Team

Concessions per capita $6.00 $4.03Merchandise/Game Program $1.00 $0.84per 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

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

AVERAGE LIFE EXPECTANCY OF A SEASON TICKET HOLDER

95% Retention - 20 Years


82% Retention - 5.56 Years*


70% Retention - 3.3 Years* 1999-2000 NBA League Average

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

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

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

STICK TO THE BASICS

1. Retain season ticket holders (85% or better)– Service existing fans/season ticket

holders make them feel “special” and appreciated

NBA’s TICKET SALES PHILOSOPHY

STICK TO THE BASICS2. Increase new season ticket sales

levels– Offer full menu of partial plans– Sell single-game ticket purchasers

on buying flex or partials– Move partial plan holders up the

escalator


STICK TO THE BASICS

3. Aggressively sell groups– Use the Attendee Satisfaction Card– Get a sale & get a lead– Theme group sales days


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


MAKE SEASON TICKET HOLDERS FEEL SPECIALDON’T LET SEASON TICKET HOLDERS QUIT!

VIP or discounted parking Club Rooms (press notes, free soft drinks, snacks) Day-of-game faxes, e-mails, etc. Longevity/reward program Value-added Events/Meet the players, coaches,

etc.

RETAIN 85% OR BETTER

• Close-in parking location or discounts/concession benefits/free game programs/concession & merchandise discounts or benefits

• Graded benefits which improve each year

• In-game acknowledgement on Jumbotron

• Fan Hall of Fame

• On-Court Recognition

• Birthday card and gift in seat


Constant Contact– Assign a Personal

Customer Service Rep (CSR)

– Personalized Letters

– Regular Phone Calls

(don’t be too intrusive)

– Day of game faxes/e-mails with special offers

– Use surveys to “get to know” fans

Provide more incentives, training and development to retain ticket sales staff

Hire a Season Ticket Holder Retention Program Director– Assign an experienced TSR or CSR to run

it in season and reward them based upon success

– Establish a comprehensive Retention Program


Connecting Season Ticket Holders with the Players– High Touch Programs (Bowling)– Signed “T-shirts”– Mini-balls– Post-game shows– Community outreach– Drawing at games for a paid road trip

with team for STH’S


On-court contest participants should be season ticket holders

Highly visible STH-only event in-arena, with videoboard and PA announcements

Unused tickets– Donation programs to community groups– Charity letter sent by team and cards

signed by kids


Develop blend of plans (Full Menu)Step-up benefitsDirect marketing

–Target partial plan holders–Group attendees–Single game ticket purchasers

INCREASE NEW SEASON TICKETS SALES LEVELS

• Establish an in-house telemarketing program

• Separate retention (customer service representatives) from new season ticket sales (ticket sales representatives)

• Get names of “share partners”• Re-target partials• Flex books• Install a frequent–fan program (EDCS) and

target non-season ticket holders

INCREASE NEW SEASON TICKETS SALES LEVELS

Dedicated year-round group ticket sales staff Early renewal of last year’s groups Use the group attendee satisfaction card• Put large groups in every sponsor package• Theme group days

AGGRESSIVELY SELL GROUPS

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

Better single-game themes & promotions/giveaway items

Make on-air “limited time” special offers

Offer family plans (including food, etc.)

– Niche media marketing

On-air contests to get contact information

Cross promotions with media/retailers & high volume consumer products

Focus on on-line sales/push the internet

DEVELOP SINGLE-GAME THEME DAYS AND PROMOTIONS

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

• Assign every account a personal customer service rep• Provide all accounts with team schedules (magnetic,

screen saver and/or pocket schedules) - containing the name, e-mail and phone number of their CSR

• Provide corporate accounts with materials that assist the individual with ticket disbursement responsibility

• Policies and programs for unused tickets• Season ticket holder/share partner -- Last Minute Ticket

program• Hotel Concierge Program

DEVELOP A NO-SHOW PROGRAM

DEVELOP GRASSROOTS PROGRAMS

Support Youth/Adult Leagues and Get Contact Information

– Coaches Clinics

– Junior basketball and cheerleading programs (games/clinics/pre game and food)

Junior Fan Clubs

Charity Ticket Programs

SAMPLING PROGRAMS

SAMPLING PROGRAMS

• Student Achiever

• School Assembly

• Group Attendees

• Corporate Ticket Program

• Youth Ticket Program

• Professionals Group Program

Use Sampling Programs When Necessary

ticket sales planning

Documents