Innovations In Sports Analytics: Marketing & In-Game Experiences
I attended the Sports Analytics Innovation Summit in San Francisco last week. On Tuesday, I wrote about the presentations that focused on player training, development and performance. You can read that article here. Today’s post will discuss how teams and leagues use analytics to boost ticket sales and enhance the in-game experience. As with the performance presentations, NFL and NBA teams were most strongly represented.
- Using Analytics To Define The Ticketing Experience: Russ Stanley, Vice President of Ticket Sales and Service, San Francisco Giants. This was the one marketing presentation from an MLB team. The Giants have 30,000 full season ticket holders. They do not offer partial season ticket plans. Season ticket holders are capped at 30,000 because the Giants are required to have 12,000 or so tickets available for MLB for the postseason and season ticket holders are guaranteed postseason tickets. On any given game day, 15,000 of the 30,000 season tickets exchange hands through StubHub. Stanley said that the secondary marketing place is critical for season ticket holders because they are required to by all 81 home games.
This season, the Giants started experimenting with a repurposing system where season ticket holders let the Giants re-sell tickets they can’t use, and the proceeds from this second sale are split 50-50. The Giants pioneered the use of dynamic pricing for single-game tickets with ticket analytics company Qcue. (I explained the ins and outs of dynamic and variable pricing in this post.) The 12,000 non-season ticket holder seats are subject to dynamic pricing from the time they go on sale until the game starts. On the day of the game, the prices could change 400 times. The season ticket holder price for each seat is the dynamic pricing floor (so as not to undercut the secondary market for season ticket holders.
The Giants have aggressively used dynamic pricing to keep alive their sell-out streak — which dates to September 2010. Stanley admitted that the Giants have “left money on the table” to keep the sell-out streak alive because the ownership group likes the sell-out streak and because it builds a narrative of scarcity, and that helps with season ticket holder renewals. My thoughts: I was pleased to finally get a Giants executive to admit that the sell-out streak is itself a marketing ploy and has been somewhat contrived.