CRM - October 2008 - (Page 20)

MARKET FOCUS: SPORTS & ENTERTAINMENT Build a Good Event and They Will Come A loyal fan base is the best defense against a declining economy f we’re in an economic slump, the StubHub. “People are so entrenched effects are certainly being buffered and emotionally connected that, downby a grand slam of entertainment turn or slowdown notwithstanding, fit for all audiences. It’s been a you’ll still see people find their last dolyear of what ticket reseller StubHub lar to get to that playoff game.” Pollstar, a California-based publication refers to as marquee events. The New York Giants and New England Patriots, covering the music industry, announced both teams with national fan bases, a midyear gross for that industry of kicked off the year battling it out in $1.05 billion, similar to 2007’s figure. Super Bowl XLII. The Boston Celtics Merely maintaining total revenue may and Los Angeles Lakers revisited their be a sign that the industry isn’t totally inhistoric rivalry for the first time since sulated from the effects of the econ1987. In its 85th and final year, Yankee omy—critics point out that a 5.6 percent decrease in tickets sold was Stadium hosted this summer’s countered by a 5.9 percent inAll-Star Game, a squeaker Sports and that lasted 15 innings. Teen entertainment are crease in prices. While average ticket values on StubHub depop star Miley Cyrus broke creased from $112 in 2007 to box-office records with her cushioned by the $97 so far in 2008, Pate says Best of Both Worlds 3-D fan factor. that, as of July 1, nearly two concert movie, grossing the highest amount ever earned during a million more tickets have been transSuper Bowl weekend. Music legends ferred on the site than during the same from Bon Jovi to Bruce Springsteen, period last year. “People might not spend Bob Dylan to Brian Wilson, are rocking as much, but they’re still going,” he says. their way across the nation, to record Still, vendors such as StubHub typically rely on the marquee events—where peogrosses at the box office. “This year has been close to a perfect ple are more willing to dig deep—to storm for us,” says Rob Singer, Stub- really drive the core of the business. Recent consumer surveys further sugHub’s director of customer intelligence and relationship marketing. Singer ar- gest that the market may soon see a degues that, while consumers may be cut- cline—if it hasn’t already. A study ting their spending, the belt-tightening conducted in June by market-research is more likely to affect the daily $4 cup firm Nielsen indicated that 63 percent of of coffee than tickets to an event. Simi- roughly 50,000 customers surveyed had larly, instead of spending on a getaway, cut spending due to rising gas prices, an customers may instead choose to repur- 18-point increase since June 2007. Morepose those dollars toward local activi- over, the impact of higher gas prices has reties. No matter what happens to the sulted in 51 percent of consumers staying economy, sports and entertainment are home more often. In a separate Nielsen cushioned by one unique factor: the survey of 3,500 consumers, 55 percent refans themselves. “The sports culture ported attending outdoor or indoor events in this country is unlike any other en- less often than they did a year ago. As an event-based business, ticket tertainment dollar,” adds Sean Pate, head of corporate communications for sellers have the challenge of maintaining 20 CUSTOMER RELATIONSHIP MANAGEMENT | OCTOBER 2008 I consumer interest, especially in seasons devoid of marquee events. This year, StubHub has increased its marketing department from five to 25 people, part of which is a dedicated relationship-marketing team that focuses on customer retention and conversion. A 2007 report, Internet market-research firm eMarketer projected that advertising spend in the United States on sportsrelated Web sites would reach $1.1 billion in 2011, up from $407 million in 2006. Not surprisingly, marketers in sports and entertainment are increasingly shifting their dollars online, where the results are much more quantitative and measurable. By 2010, says Jayne Hancock, chief executive officer of interactive marketing agency JHG, the millennial generation— which she pegs as those born between the years 1980 and 2000—will outnumber baby boomers and Generation Xers in the 18-to-49 buy-in demographic. This generation grew up on technology, so marketers are targeting them where they’re looking—cell phones. JPMorgan Chase’s retail bank, for example, ran a promotion inviting consumers to text “WIN” to C-H-A-S-E (24273) for a chance at receiving free tickets to the U.S. Open in New York. Consumers were immediately notified of their status via text message. Those who did not win were encouraged to access the bank’s Web site for more ways to enter the contest, such as opening up a free checking account or depositing $15,000 into an existing savings account. “As things change with new technology, things also don’t change with regard to passion,” Hancock says. “For sports teams, athletes, and other entertainment entities,” she adds, “it becomes an even stronger play to embrace new technology so that they can have an even more direct communication with their passionate consumers.” —Jessica Tsai Eloqua Consona (formerly Onyx) VENDORS Salesforce.com TOP IN SPORTS/ENTERTAINMENT 3 Source: Kimberly Collins, managing vice president of CRM at Gartner www.destinationCRM.com http://www.Salesforce.com http://www.destinationCRM.com

Table of Contents Feed for the Digital Edition of CRM - October 2008

CRM - October 2008 Contents Front Office Feedback Reality�Check Customer Centricity The Tipping Point Sprinting Toward Disaster? SAP�Retains Market-Share Lead in�CRM A�Week of Strong Customer�Service CRM�on Twitter Build a Good Event and They Will Come Required Reading There's No Place Like Home The New Breed of CRM�Consultant The Price is Right...You Hope How Much Marketing is Too�Much? The�Sweet Smell of High-Quality�Service The Next Act! For An Acquisition Some Stories Never Get Old CRM�Eases the Pressure For WIKA�Instruments Secret of My Success Re:Tooling Scouting Report Pint of View

CRM - October 2008

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