In a world where rich clubs keep getting richer and the income gap between top clubs and bottom clubs keeps getting larger – it can seem like there is no hope for smaller clubs to make money.
I don’t know where your organisation lies on this spectrum, of course, but I know that it does lie somewhere. I also know that the size of your organisation doesn’t matter because the goal remains the same – to get more revenue. That is what I want to focus on, revealing to you the ultimate secret to higher revenue. A sports customer data platform.
In a way, you could call a sports customer data platform the great equaliser because it promises to put smaller clubs in an even better position to create revenue on a parallel with the financially larger and stronger clubs. For the big clubs that might already be doing great financially, the potential with increased efficiency is monumental. Will we be witnessing a rush to implement the sports customer data platform as more organisations tap into their hunger for higher revenue? All I can say in that regard is that the early bird catches the worm.
The disillusionment of sports organisations
For a very long time, the business model in sports of focusing on matchday and merchandise revenue was sufficient, plus, of course, we shouldn’t forget TV rights either. The generation that consumed sports this traditional way, millennials going backward, were quite content and satisfied with the state of affairs, but the tide has turned and change is now necessary. Working in a data-driven way has become mandatory if economic health is a huge priority for your organisation and that is exactly what a sports customer data platform excels in – especially for the 99 per cent of all clubs that are not Manchester City, Barcelona, or Real Madrid.
How can you start generating higher revenue with a sports customer data platform today?
To make this a successful strategy rights holders must accept a few well-worn truths.
The saying ‘knowledge is power’ exists for a reason. What you don’t know can hugely impact your ability to generate revenue. As Evangelos Chrysochoos said at the recent SportsPro Live event in London, it is crucial to know your supporter base.
By gaining a proper understanding of your fans you are then able to:
- Give them what they want, thus increasing supporter satisfaction and engagement, loyalty, and advocacy.
- Tailor your messaging to each supporter or the segment they belong to through personalisation. So, instead of annoying your supporters with irrelevant messaging, you will keep them highly engaged with the right one and thus increase your fan engagement.
- Understand your supporters’ values and affinities – a crucial part of boosting your sponsorship value.
How does this lead to higher revenue?
Understanding your supporters can lead to higher revenue by increasing merchandise sales. Once again, this is something that Greek soccer giant PAOK have first-hand experience with. Another club, IFK Göteborg, through their sports customer data platform, not only enjoyed a 13-fold increase in merchandise sales, but they were also able to see which fans had not bought merchandise during one of their campaigns so they could retarget them.
As mentioned above, understanding your supporters means understanding their affinities. Thus making it easier for you to find the right sponsorship partners and, additionally, bring them more value. Consequently, you will be able to charge more for your sponsorship packages. Two birds, one stone. So with only one solution, a sports customer data platform, you not only take care of your merchandise strategy but your sponsorship strategy simultaneously.
Diversify your revenue generation strategy
So far, we have spoken about understanding your supporters, increasing fan engagement, boosting your sponsorship value, and increasing merchandise sales. But the benefits of a sports customer data platform don’t end there.
Remember the TV rights we mentioned earlier? Well, as the main reason for soccer’s economic rise, TV broadcasting rights are also one of the most powerful drivers for the deepening inequalities between clubs. Reflect on this question honestly, how much revenue are you currently making from TV rights? Women’s clubs are especially disadvantaged in this area since the general lack of visibility in the media affects TV rights value.
So what’s the solution? You have to create more revenue streams. The sports customer data platform is second to none when it comes to powering this process as it can identify and leverage new opportunities to increase revenue.
For example, you can do this by:
- Going direct-to-consumer (DTC) instead of relying on TV rights revenue by using in-app advertising from brands that your fans have an affinity for
- Track fan engagement to see trends and patterns within your follower base that might produce higher revenue. For example, using athletes/players as ambassadors for your club. This is a proven strategy that works. The biggest difference this time around will be that, you have the data to back this up. So you are no longer making guesses but rather following the numbers
- Reduce costs through higher efficiency and effectiveness
A huge part of making significant profit is ensuring that your costs stay low. A sports customer data platform ensures that you do just that by enabling organisations to save time, effort, and money by helping you take the guesswork out of your decision-making. Instead, it allows the user to focus on following the data, as well as using it to inform all decisions and processes, thus maximising your marketing budget spend. You essentially save money while making money – the magic combo.
This is why you should use a sports customer data platform to make higher revenue
I do not know what the current state of your sports organisation is. Some of you might be facing relegation or have already been relegated. Others of you might be experiencing the best year ever, both on and off the field. Whatever your situation, I do know that the pressure of performing and bringing money to the club is on.
Being the chief executive of my own company I know this first hand. That is why I am passionate about helping sports organisations, big and small, make money in the most stress-free way possible, that is also long-term and scalable. I founded Data Talks with the vision of ‘a world where it’s simple to make a difference and an impact’. Now, based on research, experience, and proven results, a sports customer data platform is contributing to that world.
Although it might not seem like it, there is plenty of pie to go around. It’s just that sometimes we are clueless about how to get our hands on the pie. So instead of feeling around in the dark in the hope of making more revenue, choose data. Choose a unified supporter view that gives you plenty of actionable insights. After all, the future of your organisation depends on it.
Data Talks helps you to create a world-class supporter experience, based on your data. With its leading-edge sports customer data platform (CDP) you can build personalised supporter engagement by collecting, analysing, and acting on your data. Click here to learn more about Data Talks or follow us on social media LinkedIn, Twitter, Facebook, Instagram, Medium. Listen to our Podcast.