Seth Godin recently blogged about “Embracing lifetime value“. Seth talks about costs businesses are willing to bear to secure a new customer and the perspective lifetime value can give on deciding on those costs.
Determining lifetime value of a sports fan can give a sporting organisation greater understanding on where to apply their marketing efforts.
For example here might be a profile of a average sports fan:
- Season tickets (potentially for a family) $600
- Merchandise purchases $250
- Concessions (food & drink) $400
- Fan events $250
That’s around $1500 per year, now if that fan stays on board for 10 years that is $15,000.
The next question sports marketers face is which fans to focus on? Reduce churn and keep existing fans or recruit new fans to your team.
A fine balance between the two is needed, but understanding what the lifetime value of your fans is helps you target the “right” fans.
Want to learn more about your fan base?
Contact Sports Geek to get more info on Sports Fan Analysis like the Mountain West Conference did.
Photo Credit Todd Huffman