Question

Free the ‘trapped’ fan, capture more venue sales
Published June 6, 2005: Page 22 SBJ by Bill Sutton

In an age when consumers have multiple choices, why does a sporting venue espouse the philosophy that those
consumers are “trapped” in the venue for three to four hours and, therefore, at the mercy of the organization, which
tends to restrict their options and choices within the venue? Why not view each consumer as an asset to be
developed and cultivated for its potential lifetime value to the organization? Samplings, free trials, exchange policies
and self-service are all common elements in other businesses but rarely, if ever, found in sports organizations.
Upselling ticket plans Sports organizations realize the benefits of partial-season-ticket holders. Those consumers
are purchasing the inventory before the teams’ fortunes are determined. They might buy anywhere from 10 percent
to 50 percent of the available home games, and they could grow into full-season-ticket purchasers. Price is a factor
for some fans, but research and experience show the No. 1 consideration for buying a partial plan is time: a smaller
commitment and fewer games. Seat locations for partial plans are less centrally located (as far as proximity and sight
lines to the playing surface) than those available for full-season-ticket holders. Some partial-plan packages might
offer amenities such as waiter/waitress service or club access. But in many cases, because the buyers have had no
experience with these services, the availability may not have been a consideration in the original purchase. Because
most partial plans are bought via the telephone or the Internet, the purchasers may have only limited first-hand
knowledge or experience about the venue, requiring the choice to be a simple one. Attempts to upgrade these fans to
a more expensive seat often are futile because, as the saying goes, they literally don’t know what they’re missing.
Why not show consumers exactly what they are missing? When constructing a 10-game plan, why not give these
consumers, say, eight games in the section they purchased and provide seats to the other two games in a better
location? This sampling of a different vantage point, and possibly some amenities, can best illustrate what is
possible in other locations and what the consumer is missing.
Adding value Several years ago, I was conducting focus groups in Toronto regarding partial plans. Unlike most
teams, this franchise did not discount the price of the tickets or the ticket package, preferring instead to add food
vouchers to the ticket package. The organization was considering replacing the food coupons with a discount on the
ticket purchase. The result: 100 percent of the participants in four different focus groups preferred food vouchers to
a discount. When asked what it was about the food vouchers that they preferred, the responses included, “I like
getting something for free” and “It gives me something fixed that I don’t have to pay for that evening.” I am an
advocate of this approach. Not only do I believe that consumers enjoy the value, but I see it as a way to encourage
fans to try a variety of concession items. And if they enjoy them, perhaps they will begin purchasing them. I suggest
providing a voucher for every game in this ticket plan. Free peanuts or popcorn will probably result in the purchase
of a soft drink or beer. A free item also can result in planning to purchase a meal at the venue. If you have four free
vouchers for french fries, why not purchase four burgers, soft drinks and ice cream? Make it a complete experience.
Value-added vouchers can be added for parking, merchandise, seat upgrades and special events.
Sampling concessions I’ve always been puzzled by the lack of marketing and promotion by venues when it comes
to concessions. Go to a grocery store any Saturday morning, or visit the food court in the mall, and you will observe
the decades-old practice of taste-testing via product sampling. If this practice has been effective in these locations,
why hasn’t it been employed in sporting venues? How costly could it be to provide bite-size samples? Some creative
concessionaires like Levy feature a variety of food items and exhibition cooking (where you can see the food being
prepared rather than emerging from a mysterious bin). Since many of these items are ethnic foods, wouldn’t it be
more effective to offer a taste of what is being prepared? Often these sampling opportunities are accompanied by
coupons, which offer an immediate financial incentive to try the product.

If you were the VP of Sales for the Washington Wizards, describe 4 reasons why you would prefer to give
fans value-added vouchers instead of discounts on tickets?

Product sampling is very effective but could it be ineffective. Explain 2 reasons how product sampling at a
sports venue could backfire and the organization lose money?

Answer 1

answer-

IF i were the VP of sales for the Washington Wizard the i would prefer fans value added vouchers because of the following reasons-

Value added vouchers will help me to stimulate more demand like when customers or fans get vouchers for free meal or drink if they like it then they would want to purchase next time with money.

the second reason is that this strategy helps to create a good relationship with customers because customers like things which are free and have some value for them and if we provide them then it helps to make good relationship with them.

the third reason is that we can hit two birds with two stones like we can save profit on tickets by not giving discounts and we can get commission from food stalls or other services in the stadium because we are increasing their sales of products.

the fourth reason is that One free voucher can lead to purchase of another product like you have free voucher of burger then you may want to purchase drink with burger with money.

2- production sampling is the strategy in which customers get free sample of products so that they purchase that product next time but in this case like sport venue where such strategy can backfire based on following reasons-

If customers get free sample of food and did not like then they would not purchase that again and organization would lose the money because if customer purchase the food with money and did not like atleast, organization get the money on that.

the second reason is that people in stadium are in thousands and giving free samples to each and every one means loss of money because fans who are present in current does not mean that they would be there for next game.

*hope above answer would help you.