Redefining Home Field Advantage: A Game Plan For Enhancing Fan Engagement
Redefining Home Field Advantage: A Game Plan For Enhancing Fan Engagement
field advantage
A game plan for
enhancing fan
engagement
Executive summary
Home field advantage is no longer simply packing a stadium or arena with your best fans. It’s about
engaging distinct groups of fans inside and outside the game venue, during winning and “rebuilding”
seasons, 365 days a year. No two sports fans are alike, and sports organizations should be agile in
adapting and evolving their offerings to address different fan segments. Based on learnings from
Deloitte’s survey on fan engagement in sports, we have identified moves teams and leagues can
make to connect and deepen their relationship with fans.
• Know your target: To design effective engagement strategies and programs, teams must be
clear–and specific–regarding the fans with whom they seek a relationship.
• Make it personal: Programs designed to speak to everyone run the risk of speaking to no one.
• Think holistically about experience: The live game experience is a focal point for fan
interaction. What lies beyond it?
• Engage year-round: Meaningful relationships don’t start and stop with the sports season.
• Recognize loyalty: Teams should find ways to recognize, reward, and record each fan
interaction.
As used in this document, “Deloitte” means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed
description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and
regulations of public accounting.
2
Introduction
Have you ever described yourself as a “fan” of a which may contribute to limited patience for
restaurant or an automobile brand? When two options that don’t deliver their desired experience.
celebrities are at odds, are you on one “team” or In this competitive environment, sports teams can
another? This language of “fans” and “teams” no longer rely on the field of play to define fan
permeates our culture in part because sports engagement. They must appeal to a broader group
loyalty is such a powerful and long-established of fans that stretches beyond the hardcore fan
sentiment. The popularity of particular sports may base and looks more like the general population
change over time, but today’s fans of baseball, than it ever has. To drive engagement that survives
football, basketball, hockey, and soccer have off-seasons and down seasons and extends from
antecedents in the people who pledged their generation to generation, teams should consider a
support to Roman gladiators, early Olympians, more strategic, data-driven, and nuanced approach
and jazz-era racehorses. to the way they understand—and develop
The natural loyalty that exists in the realm of experiences for—their evolving fan base.
sports is something that brands in other
industries look to with envy—but sports loyalty
is not unwavering. Winning streaks alternate
with losing streaks, and good seasons can be
followed by disappointing ones. Unlike most
consumer businesses, the business side of sports
organizations only have so much control over the
performance of their underlying products. And no
matter how rewarding a season may be, it always
ends—leaving sports organizations with an annual
break in the action that few other industries face.
Sports teams are competing for attention and
revenue in an increasingly crowded entertainment
space, which amplifies the challenges these
seasonal swings and other hurdles present.
Today’s fans have an almost infinite number of
entertainment opportunities at their fingertips,
In April 2015, Deloitte fielded a survey to approximately 4,000 sports fans over the age of 18 in the United States. Based on their self-reported affinity
level, survey respondents were asked to answer questions regarding their loyalty, engagement, and spend for up to three distinct sports leagues. The
analysis presented in this paper is based on 9,159 league-level responses across five multi-team leagues: the NFL, MLB, NBA, NHL, and MLS. The full
survey included additional responses on subjects not relevant to this analysis; these responses are excluded for the purposes of this analysis but may be
evaluated separately.
Redefining home field advantage A game plan for enhancing fan engagement 3
Stranded on base
11% 8% 7% 6% 4%
MLS NHL NFL NBA MLB
4
When looking at fan base archetypes, a few Simple segmentations rarely capture important
stereotypical images emerge: at one end of the nuances. Here, based on survey data, it is clear that
spectrum, the face paint-covered fanatic who can’t something other than team spirit is determining
get enough (Fanatics); in the middle, enthusiasts which of these fans spend a little and which of
who take in games whenever they can (“Love the them spend a lot—in terms of both money and
Game” Fans); beyond that, a mass of casual fans time. Different fans want different things, and
who see games as a nice way to pass an afternoon those differences don’t necessarily correspond to
but rarely go out of their way to actively engage a person’s level of “fandom.” These anomalies,
(Casual Fans). Based on our survey respondents, we such as low-engagement fanatics and highly-
plotted self-reported fan affinity (where fans self- engaged casual fans, exist irrespective of income
reported one of these three affinity levels) against levels and reveal a surprising degree of complexity
fan behavior (game attendance, remote viewership, in the world of fan affinity and engagement
and other forms of engagement) to help understand that one can’t fully explain by looking at these
where these archetypes might fall short. One variables or season ticket ownership alone. But
would expect fans to fall along the diagonal from the anomalies also highlight an opportunity that
low-engagement casual fans to highly engaged sports organizations and leagues can tap into with
fanatics—and, across affinity levels, 54 percent of focused, targeted analysis and initiatives that begin
fans surveyed do. But this also means that nearly and end with data.
half of fans don’t engage in the way their level of
“fandom” would lead one to expect.
6%
24% 45% Engagement Level
37%
High – 20% of sample
Moderate – 45% of sample
Fans’ engagement level does not necessarily conform with their self-reported affinity level.
Fanatics are about seven times more likely than casual fans to be high-engagement In turn, casual fans are about seven times more likely than fanatics to be low-
fans, as nearly half of them fall into the high-engagement category. engagement fans—more than half of casual fans fall into the low-engagement category.
On average, fanatics are more valuable than casual fans despite a similar
43% of casual fans engage at moderate or high levels.
distribution of income levels. For instance, the average self-described
“fanatic” spends six times more than the average self-described “casual fan”
on league-related purchases, and is more than twice as likely to have made a 54% of fanatics do not engage as actively with their team as one might
league-related purchase in the last year. expect given relatively high affinity level.
Redefining home field advantage A game plan for enhancing fan engagement 5
Fanatic vs. Casual Fan activities in the last year
66% 20%
38% 4%
50% 9%
23% 1%
50% 9%
17% 1%
90%
47%
82%
55%
6
Highlight reel
Before we dive deeper into strategies for targeting data-motivated engagement program; in the NHL, the
and engaging fans, we must acknowledge that Penguins partnered with the American Automobile
there are success stories in today’s loyalty landscape. Association (AAA) to make it easier and more
Many teams are transitioning toward membership- enjoyable for fans to attend games on the road. In
based season ticket holder programs that provide each of these programs and many others like them,
optionality for members to customize their own the effectiveness of the engagement effort stems in
experiences. Some teams are taking an even part from a balance that brings rewards to both sides:
more sophisticated approach at targeting priority driving value for an important and clearly defined
consumer segments: In the NFL, the Houston subset of fans (based on a data-driven understanding
Texans have made strides in engaging the Hispanic of what they value) while also building data and
segment of the fan base through a dedicated, purchase volume that teams value.
1
Houston Texans Fan Zone Website
2
Pittsburgh Penguins Website
Redefining home field advantage A game plan for enhancing fan engagement 7
While lack of awareness is a common reason cited for lack of participation in loyalty programs, fans surveyed also
commonly indicate that they are aware of but not interested in existing programs and their offerings.
33%
Loyaltaym
Progr 54%
14%
More generally, however, team-driven fan the time to learn about them, yet believe they
engagement programs are not consistently don’t deliver incentives to overcome the “hassle”
achieving levels of traction that justify investment. of joining.
Ninety-four percent of fans surveyed are not If existing loyalty programs in the sports world
loyalty participants, and one-third say the reason is aren’t captivating people who already describe
that they weren’t even aware of loyalty offerings. themselves as fans, what more can sports
Just over half say they simply aren’t interested. And organizations do? The question may contain the
14 percent know about the programs, have taken answer: more.
8
Will you, will you, rock us?
Deloitte’s fan survey found that while fewer Sports organizations have the potential to engage
than 10 percent of fans of each of the five fans in a more targeted and effective way all year
major leagues participate in any type of sports round. But getting there will likely take more than
loyalty program, two-thirds would be open to incremental changes to existing programs.
participating if the incentives were right. So there’s
headroom to make fans happier.
Less than 10% of fans surveyed in each of the five major leagues
There is clearly opportunity to win greater share of reported participation in any type of loyalty program.
fans’ wallets and attention: Only about half of the
active fans surveyed bought tickets, merchandise,
media subscriptions, or other league-related goods
in the last year. Two-thirds say attending games
in-person is their preferred way to watch, but of
that group, 38 percent went to exactly zero games
in the past year. Excluding activities as simple as 9% 8% 6% 6% 5%
checking sports news or playing a sports-related MLS NHL NFL NBA MLB
Redefining home field advantage A game plan for enhancing fan engagement 9
A new game plan
This isn’t necessarily about winning fans’ preference. percent of them would pay as much as 25 dollars
This is sports: most fans have already chosen a more to spend a night at one of that brand’s
team based on where they grew up, where they properties versus a competitor’s property. But the
live currently, family tradition, or team performance. real value to the marketer is data—knowing who
Instead, the objective is for teams to deepen their their consumers are, what they like, where they
engagement with their existing fan base and, in doing travel, and how to better engage them.
so, make the fan experience attractive to potential This is where sports franchises differ. Sports
fans who had not previously been engaged. franchises are not hotels. They are not airlines. They
are not supermarkets. This should be an encouraging
Primary reason for team loyalty observation, because most of the differences
break in the sports world’s favor: Thanks to digital
8% 6% Hometown
ticketing and social media, sports fans initiate the
10% Current location relationship by identifying themselves. Franchises
Family history also don’t have to win a new brand-choice battle
14% 40% every day, because while a household may switch
Team performance
paper towel brands without a moment’s thought,
Favorite player
is/was on team
today’s Red Sox household will not likely become
tomorrow’s Yankees household. But the insights
22% On TV most
gained from these industries can be leveraged by
sports organizations to develop programs which
The challenge is that many sports teams focus fan build a broader base of more deeply engaged fans.
engagement initiatives on surface-level offerings Teams must take a nuanced approach to loyalty
to generally enhance the fan experience. They if they seek to create value-added programs that
have not historically dug deeper to understand provide return on their investment.
nuances within the fan base that could enable more With many existing efforts, robust collection and
precise personalization with more efficient spend. analysis of data as an input to thoughtful program
Here, sports teams may be able to take a cue from design is too often an afterthought. If franchises
consumer loyalty outside of the world of sports— can move away from one-off offerings designed to
where brands build relationships with consumers to broadly appeal to the “average fan,” and instead
engender affinity and greater share of wallet, but the create more cohesive relationship programs targeted
most basic motivation behind the investment is to at priority subsets of consumers who contribute
identify and collect data on the consumer base. disproportionate value, they can drive more
Take loyalty in travel: Brands must create incentives consistent and meaningful interactions. This can,
that make it worthwhile for consumers to punch in turn, fuel future engagement by collecting much
in their loyalty numbers. Otherwise, airlines and richer consumer data that would help teams further
hotels would historically have had little ability to increase the appeal of the fan experience for new
track a consumer across trips and stays. If sufficiently and existing fans and, by extension, grow revenue.
compelling, the incentives that make the program Based on our analysis, we have identified
worthwhile for consumers create benefits for the five tenets that sports organizations should
travel brands as well: a recent Deloitte study3 of a consider as they examine and evolve their
major hotel brand’s loyalty members found that 40 approach to fan engagement.
3
"Winning the race for guest loyalty,” Deloitte Consulting (July 2014).
10
Tenet 1: Know your target
To design effective engagement strategies and programs,
teams must be clear—and specific—regarding the fans with
whom they seek a relationship.
In order to enhance traction with fans, franchises segments. This insight can help teams direct future
should consider identifying—and focusing their loyalty investment toward its most efficient use.
energies on—high value segments within the Fortunately, teams already have data building blocks—
fan population that have similar behaviors and ticket, concession, and merchandise purchasing
preferences. Most readers would likely agree that behavior, social media activity, and so on—they
this is easier said than done. can synthesize to build a more comprehensive and
Today, many franchises prioritize fans largely based meaningful understanding of fan behaviors and
on whether they are season ticket holders or not. As motivations. The question is whether or not they are
we have outlined, there is room for teams to create effectively using those building blocks today.
more value for a broader base of fans by taking a Franchises that still need to invest in developing
more analytical approach to understanding and segmentation capabilities may pursue a temporary
targeting fans who are not optimally engaged today. solution by identifying macro themes relevant to
However, shifting to a more nuanced approach groups within the fan base. As a starting point for
to segmentation may require capabilities that these franchises, our research identified themes
franchises have not refined internally. related to two groups that exist within every fan
The capabilities in question involve data. Strategic base—youth and Millennials. While these are not true
segmentation requires investment in aggregation of “segments” and may encompass fans with a broad
fan information, in-depth analysis, and translation range of behaviors and preferences, our research
into meaningful and actionable insights on the provides insights that can help inform how franchises
similarities within and differences across fan might create value for these next generations of fans.
Redefining home field advantage A game plan for enhancing fan engagement 11
Digging deeper: The next generation
Recent trends indicate that Millennials’ active like stickball, Wiffle Ball, and even kickball. There
participation in youth leagues has not carried over is also a noticeable effort to draw more girls and
to their younger counterparts, and youth enrollment women into the game.
in sports participation is declining.4 What are some other ways sports organizations can
This carries significant implications for the sports engage the next generation of sports fans?
franchises that would like to build lifetime • Make it easier for fan-parents to engage their
relationships with today’s young people. Surveyed kids with a league. Almost one-quarter of fans
fans who played in organized or non-organized surveyed include “family friendly attractions” as
youth leagues under the age of 18 (U18) are 50% a top-three improvement they would like to see
more likely to self-report as “fanatics,” and youth in the live game experience.
participation has a positive relationship with stronger
• Create new ways for kids to engage with a
engagement regardless of fan intensity level. People
sport. If play is declining despite the efforts of
who played 18-and-under sports are more likely to
the sports community, teams should consider
prefer live games (75 percent versus 65 percent of
investments in kids’ fan clubs, kids’ social clubs,
those who didn’t); they engage in more in-game
school sponsorships, school field trips, and
and outside-of-game activities; and youth athletes
player school visits.
who become season ticket holders engage more
• Support and reward promising youth leagues.
than non-athletes during the off-season (85 percent
Teams can focus on strengthening relationships
versus 72 percent).
with existing leagues by offering ‘priceless’
The sports world is likely watching with concern as experiences such as celebrity coaches for the
news stories chronicle declining youth participation day and training programs at the practice
in basketball, football, baseball, and soccer. And field/stadium.
there are moves afoot to reverse the tide.
If they attack this trend head-on, teams can
For decades, leagues have worked to attract kids capture short-term value by attracting kids and
onto teams through programs like “punt, pass, and their families to games and other experiences right
kick” in football or “pitch, hit, and run” in baseball. now. More importantly, they can seed long-term
But when MLB Commissioner Rob Manfred value by encouraging kids to build sports into their
announced the “Play Ball” initiative in June 2015, lives. The affinity they learn now will mature into
the program website split its emphasis. Alongside the engagement and consumer behavior they
the links that direct parents to local leagues and demonstrate later in life.
teams, there were tips to promote informal activities
4
”Youth Participation Weakens in Basketball, Football, Baseball, Soccer.” Wall Street Journal (January 2014).
12
Tenet 2: Make it personal
Programs designed to speak to everyone run
the risk of speaking to no one.
Redefining home field advantage A game plan for enhancing fan engagement 13
Tenet 3: Think holistically about experience
The live game experience is a focal point for fan
interaction. What lies beyond it?
Among Fanatic Fans, two-thirds of respondents Beyond the live game, what are the critical touch
attend live games. In the broader population of points that help define a fan’s holistic journey
fans, almost half do. That indicates that live and add up to a meaningful relationship? We’ve
attendance remains an important foundation of fan already seen how teams are now recognizing
relationships (and one teams can enhance, as the prominence of fantasy sports and integrating
demonstrated in Upping the game on the fantasy fan behaviors into the in-game experience.
following page). But to deliver truly personalized As the diagram below shows, there is a broad
experiences that reach diverse priority segments spectrum of interactions a franchise can try to
with varied levels of current engagement, teams stimulate—from dinner-table talk to merchandise
need to offer more. purchases, from checking scores online to joining
an amateur league.
Attend player Attend NBA Attend NBA Attend live View NBA Search Follow Watch
event draft fan event NBA game broadcast news/scores players highlights
Attend Engage
Purchase Download
tickets NBA/team app
Fan
journey
Purchase Participate
Purchase Participate in
merchandise fantasy game
Play Join a Practice at Buy Discuss with Write online Play video
game league court equipment friends/family posts games
14
Upping the game: How to improve the live experience
Holistic fan engagement extends beyond the Parking, admission, ticket prices: So far we’ve only
live game experience. But, even with the advent gotten them to their seats. How can the live game
of virtual reality, there probably will never be a experience evolve to keep pace with the comfort,
substitute for watching a favorite team compete in convenience, and cost of watching on a big HD
person. And for most sports organizations, there is screen in the living room? More than four out of five
room to improve that live game experience and the fans surveyed rate “watch on TV at home” as one
effect it has on fans. of their preferred methods for taking in a game, and
This news comes from the fans themselves: Only a advanced apps and specialized channels are making
little more than one-quarter of those surveyed said that experience richer every year.
there is nothing they would change about attending An answer is to offer fans in-stadium experiences
a game. If teams can learn their fans’ pain points and that justify the claim that “you just have to be
address them, they can do a better job of retaining there.” For purists, the energy and atmosphere of
their current fans and attracting new ones. live competition does the trick, just as it has for
It won’t be possible to do everything the fans generations. 39 percent of fans surveyed value
ask for. Among medium- and high-engagement that and rank it a priority. But improvements in
fans surveyed, 57 percent listed more convenient concessions, including in-seat ordering and delivery
parking, admission, and departure among the or express counter pickup, are ranked almost as high,
top three improvements they seek. These parts of and better quality and diversity in food and beverage
the experience—while they may be incrementally options is a popular priority as well.
improved through programs that, as an example, More than a quarter say they would value a chance
reward early arrival on game day—may also require to cement a personal connection to the team by
longer-term capital projects and infrastructure costs meeting players, and more than half say they would
that would likely be passed on to the consumer. And, like to see enhanced in-venue digital offerings—like
unsurprisingly, 55 percent said the price of tickets WiFi, geotracking, and the ability to control replay
and other purchases was a barrier to seeing more views via smartphone.
games in person. The technology needed to fuel these innovations—
It’s likely teams would like to charge less, too, if they including technology infrastructure like broadband
could. But there are reasons they don’t. Even if it and wiring—is hardly even innovative anymore. It
were financially plausible, large-scale ticket discounts just hasn’t made significant inroads into existing
might alienate season ticket holders who made a major sports venues. With the right approach, teams
big up front investment, and could dilute the team’s can avoid a scenario where fans drive to the stadium
perceived brand value. only to stare at mobile screens and instead create
There are other options, however. Many teams are an experience that enhances the sights, sounds, and
exploring and introducing dynamic pricing to capture smells that make live game action appealing.
value in line with the demand for games. That
preserves the marquee value (and revenue potential)
of top matchups while giving value-seeking fans a
way to target games with lower demand.
Redefining home field advantage A game plan for enhancing fan engagement 15
Not all of these activities bring the fan and There is a science to evaluating and profiting from
the team into direct contact. Not all of them potential engagement experiences. With only
lead directly to revenue. But all of them have surface-level engagement, an experience may be
the potential to boost affinity by embedding just an experience, and its value may disappear the
the team experience deeper into the fan’s moment it’s over. With a more holistic approach
consciousness, day in and day out, in-season and to fan engagement, a sports organization can
off-season. ensure each engagement activity is plugged into a
Where direct revenue is concerned, outside-the- strategy and aimed at a defined fan segment—and
box engagement may be rewarded. For example: it can reap and measure the benefits that ensue.
NFL fans are tailgating in parking lots, using food Without a holistic mindset, an organization may
they bought elsewhere and parking access they be throwing darts—which can be an enjoyable
already paid for. But what if someone were to exercise but is not always a profitable one.
enrich that experience with ice delivery, local
food trucks, ride-share partnerships, or parking lot
social networking? What if it were you?
Data capture
Receive and store fan data, both
implicit and explicit, on purchases,
preferences, and other behavior
16
Tenet 4: Engage year round
Meaningful relationships don’t start and stop
with the sports season.
We’ve highlighted the idea that touch points Among all fans of all major sports, respondents
outside the direct game experience can strengthen who engage with their teams outside of watching
fan relationships. Our research shows that there games spend more than four times as much as
is also untapped opportunity for engagement to fans who don’t. Among season ticket holders
drive fan value during the off-season. (who begin with a higher presumed engagement
Fans can’t engage if teams don’t serve up level), off-season engagers1 spend more than twice
opportunities. By that measure, teams may be as much as season ticket holders who limit their
leaving even their most valuable consumers out in engagement to the season. This demonstrates how,
the cold (or the heat, depending on the timing of in keeping the action limited to the season, teams
the off-season). In each of the five major leagues, are leaving money on the table.
there is a large cohort of season ticket holders—
as many as half in the case of MLB—who tune out
when play stops.
i
Off-season engagement is defined as participating in at least one of the following activities: Exclusive team events, attending team-sponsored
community events, participating in player/mascot/executive meet-and-greets, attending other pre-season activities (e.g., off-season workouts,
spring training, practice days, draft).
Redefining home field advantage A game plan for enhancing fan engagement 17
Tenet 5: Recognize loyalty
Recognize, reward, and record each fan interaction.
Every time someone demonstrates loyalty, a team This second point is critical and often overlooked.
should recognize it. In the context of effective It’s important to view fan engagement efforts
engagement, this can mean two things: First, the as a continuous process—not something that’s
organization should acknowledge and reward the executed once and fed on later. Ultimately, data
interaction to ensure the behavior sought—when and loyalty can fuel each other in a mutually
performed—is reinforced. Second, the behavior reinforcing upward spiral. Just as teams adjust
should be recognized within team systems, with rosters and tweak competitive strategies
data on the fan and the interaction recorded for throughout the year, leaders of loyalty initiatives
later use. must be flexible to take action to meet the needs
of the continuously evolving fan. If data is used to
drive a dynamic program instead of a static one,
teams may be better able to keep pace.
18
At the buzzer
In many ways, the sports industry invented fan loyalty long ago—before
sports was a multi-billion dollar industry. It enjoys a depth of consumer loyalty
that other industries would pay dearly to replicate if they could.
But the sports industry has not been in the vanguard when it comes to
measuring, nurturing, and driving value from those relationships beyond
the core season ticket holder population, and the industry’s seasons and
competitive ups and downs are part of the reason. Other industries have to
fight to win “fans,” while in sports, the affinity often comes naturally. In truth,
sports and non-sports organizations have gone down different paths when it
comes to loyalty programs. Leaders on the sports side have the opportunity to
think strategically about which lessons can be transferred across that divide.
But simply put, we believe teams should:
• Know your target: To design effective engagement strategies and
programs, teams must be clear—and specific—regarding the fans with
whom they seek a relationship.
• Make it personal: Programs designed to speak to everyone run the risk of
speaking to no one.
• Think holistically about experience: The live game experience is a focal
point for fan interaction. What lies beyond it?
• Engage year-round: Meaningful relationships don’t start and stop with
the sports season.
• Recognize loyalty: Teams should find ways to recognize, reward, and
record each fan interaction.
Over the last ten years, most sports teams have developed an even sharper
focus on the bottom line. This focus motivates leaders to sign a popular free
agent in the off-season or build state of the art, LEED-certified stadiums to
further the appeal and financial viability of the organization. If similar focus
and investment is diverted toward a thoughtful strategy for understanding,
targeting, and customizing experiences for priority segments within the
broader fan base, teams will witness improvements in the way those programs
perform—to the satisfaction and enrichment of both teams and fans.
Redefining home field advantage A game plan for enhancing fan engagement 19
Deloitte Sports:
Delivering world-champion professional services to leagues, teams, and associations to help optimize
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Contacts:
Pete Giorgio Ramya Murali Kathryn Freeman
US Sports Consulting Leader Senior Manager Manager
Deloitte Consulting LLP Deloitte Consulting LLP Deloitte Consulting LLP
[email protected] [email protected] [email protected]
+1 617 437 3459 +1 212 829 6033 +1 312 486 5292
Acknowledgements:
The authors would like to thank Paul St. John, senior manager (Deloitte Services LP), Russell Kreutter,
consultant (Deloitte Consulting LLP), Lisa Wetstone, consultant (Deloitte Consulting LLP), Graham Ballbach,
consultant (Deloitte Consulting LLP), Brian Finkel, audit senior assistant (Deloitte & Touche LLP), and Katie
Armour, senior manager (Deloitte Consulting LLP) for their contributions to the survey and paper.