Grendel
Well-Known Member
I cannot believe the forum is imploding again – and now it is over ticket pricing.
Well I am getting the usual statements of derision from, to quote one in particular, the usual suspects so what from a marketing perspective would you do?
Pricing
Pricing isn’t an isolated department in marketing and if it was it would maximise price and not lower it. To set a reasonable price you would benchmark other competitors in your industry to establish a “list price”
- Look at the average pricing structure in the League
- Look at the concession and children’s offers
- Analyse special offers that clubs may do
- Look at what they charge for on-line bookings and also postage and walk up charges
If you look at the pricing structure of most clubs, like it or not, they have done this as the pricing is almost identical. You would expect newly promoted clubs to have cheaper (they have) and Inner London to be higher (they are)
Customer Loyalty
What the debate is missing is that customer loyalty is essential and repeat purchase vital for Long Term success. This will in an industry like this have a huge influence on pricing policy and strategy.
Loyalty in football is the season ticket buyer. He pays up front so guarantees revenue and long term commitment so needs to be secured.
In my view the Season Ticket offer is competitive. It meets the criteria set out above. The securing of a large base of loyal customers allows the club to set a competitive individual pricing strategy in that season to attract other customers in the hope that they will then become loyal customers in the future. This is undoubtedly the case with Sheffield United who have a very high percentage of Season Ticket holders. This is why they have offered a lower price for one stand. It is not to do with an acknowledgement of a lower demographic or an urgency to generate short term revenue. It’s the opposite; it’s to secure a long term commitment next season and at a higher rate than CCFC.
Coventry has a problem in that it has a very competitive offering for the season but a lower take up of the offer so it relies now on attracting the floating fan on a more permanent basis.
Personally I would focus on this aspect as a priority and offer a reduced offer of a season ticket purchase until the end of September with reductions match by match. I would also look to offer a 3 year ticket with a 20% reduction off annual prices and an offer of free cup tickets as part of the deal up to a specified round. I would also look at working with ACL to offer season tickets with reduced parking prices to be used in conjunction. All promotes loyalty.
Price Subvention
Lowering prices is panacea to the sales department as it makes life so much easier. Sales people will always site “the markets on its arse” so lower prices. Good or bad? Well the marketing slogan is Fixed is good and Variable is bad. Why?
- It suggests an inferior product (you would expect smaller clubs to use the strategy)
- It reduces revenue unless the numbers exceed prior revenue (very unlikely unless the original strategy was hopelessly miscalculated)
- It does not always work and does not increase revenue (disaster)
- Importantly it’s very hard to extract yourself from and sets an expectancy for a long time to come even if the product offering improves
- It doesn’t secure loyalty (purchase of a season ticket) actually it endangers loyalty as it rewards short termism over loyalty
Possible Alternatives
The pricing structure once announced should not be reduced – lower prices equals’ distress and as stated does not encourage loyalty. So on an match by match basis look at alternatives;
- Loyalty on a medium term – package “unpopular matches” together and give a very good offer on five match deals with an inducement to purchase a further package on completion
- Family tickets – Important to have loyal family groups. So if two adults attend certain games allow up to two of their children under 12 to go with them for free
- Special promotions (Food and Drink vouchers and reduced car parking rates) at specified games
- Membership scheme. We have one apparently as do over 50% of clubs in the league. Is it well advertised and is it a competitive offer? Decide a rate and offer significant discounts on match tickers and a free JPT or F A Cup round 1 ticket.
Summary
- Focus most attention on the season ticket percentage – this is unacceptably low and the main issue
- Do not randomly slash prices – distressful and ultimately damaging to consumer loyalty, the brand and profitability.
- Promote targeted packaged offers with genuine appeal
- Make sure the awareness is there via fixed marketing. Awareness is vital.
Let the ridicule begin………………….
Well I am getting the usual statements of derision from, to quote one in particular, the usual suspects so what from a marketing perspective would you do?
Pricing
Pricing isn’t an isolated department in marketing and if it was it would maximise price and not lower it. To set a reasonable price you would benchmark other competitors in your industry to establish a “list price”
- Look at the average pricing structure in the League
- Look at the concession and children’s offers
- Analyse special offers that clubs may do
- Look at what they charge for on-line bookings and also postage and walk up charges
If you look at the pricing structure of most clubs, like it or not, they have done this as the pricing is almost identical. You would expect newly promoted clubs to have cheaper (they have) and Inner London to be higher (they are)
Customer Loyalty
What the debate is missing is that customer loyalty is essential and repeat purchase vital for Long Term success. This will in an industry like this have a huge influence on pricing policy and strategy.
Loyalty in football is the season ticket buyer. He pays up front so guarantees revenue and long term commitment so needs to be secured.
In my view the Season Ticket offer is competitive. It meets the criteria set out above. The securing of a large base of loyal customers allows the club to set a competitive individual pricing strategy in that season to attract other customers in the hope that they will then become loyal customers in the future. This is undoubtedly the case with Sheffield United who have a very high percentage of Season Ticket holders. This is why they have offered a lower price for one stand. It is not to do with an acknowledgement of a lower demographic or an urgency to generate short term revenue. It’s the opposite; it’s to secure a long term commitment next season and at a higher rate than CCFC.
Coventry has a problem in that it has a very competitive offering for the season but a lower take up of the offer so it relies now on attracting the floating fan on a more permanent basis.
Personally I would focus on this aspect as a priority and offer a reduced offer of a season ticket purchase until the end of September with reductions match by match. I would also look to offer a 3 year ticket with a 20% reduction off annual prices and an offer of free cup tickets as part of the deal up to a specified round. I would also look at working with ACL to offer season tickets with reduced parking prices to be used in conjunction. All promotes loyalty.
Price Subvention
Lowering prices is panacea to the sales department as it makes life so much easier. Sales people will always site “the markets on its arse” so lower prices. Good or bad? Well the marketing slogan is Fixed is good and Variable is bad. Why?
- It suggests an inferior product (you would expect smaller clubs to use the strategy)
- It reduces revenue unless the numbers exceed prior revenue (very unlikely unless the original strategy was hopelessly miscalculated)
- It does not always work and does not increase revenue (disaster)
- Importantly it’s very hard to extract yourself from and sets an expectancy for a long time to come even if the product offering improves
- It doesn’t secure loyalty (purchase of a season ticket) actually it endangers loyalty as it rewards short termism over loyalty
Possible Alternatives
The pricing structure once announced should not be reduced – lower prices equals’ distress and as stated does not encourage loyalty. So on an match by match basis look at alternatives;
- Loyalty on a medium term – package “unpopular matches” together and give a very good offer on five match deals with an inducement to purchase a further package on completion
- Family tickets – Important to have loyal family groups. So if two adults attend certain games allow up to two of their children under 12 to go with them for free
- Special promotions (Food and Drink vouchers and reduced car parking rates) at specified games
- Membership scheme. We have one apparently as do over 50% of clubs in the league. Is it well advertised and is it a competitive offer? Decide a rate and offer significant discounts on match tickers and a free JPT or F A Cup round 1 ticket.
Summary
- Focus most attention on the season ticket percentage – this is unacceptably low and the main issue
- Do not randomly slash prices – distressful and ultimately damaging to consumer loyalty, the brand and profitability.
- Promote targeted packaged offers with genuine appeal
- Make sure the awareness is there via fixed marketing. Awareness is vital.
Let the ridicule begin………………….
