The Migala Report

Timing is everything: A look a different times to send out season ticket holder mailings

If timing is everything and season ticket holders are a team’s most important customer then shouldn’t timing come into play more with season ticket renewal orders?

A growing number of teams certainly agree with this statement after launching season ticket renewal campaigns earlier than in year’s past. The results back up their claims that early renewal campaigns can net strong renewals while freeing up more of the off-season for sales executives to pursue new business accounts.

The aim of this Report is to show how in-season renewal campaigns are enabling teams to maintain and grow their season ticket bases.

Early bird special
The Cleveland Cavaliers are experiencing a resurgence this year with a new look, a marquee player and a potential playoff team.

All of these factors have contributed to a growth in the team’s season ticket base as the fans' emotional attachment to the Cavaliers has increased significantly.

Recognizing this, the Cavaliers wanted to capitalize on the emotions and the team launched an extensive renewal campaign that began in March and required a response by the first of May.

“Enthusiasm is so high right now that it occurred to us that it makes sense for us to reach out earlier than usual when they are emotionally tied to the Cavaliers on a daily basis,” said Tracy Marek, Vice President of Marketing for the Cavaliers.

The team not only is distributing their renewal campaign earlier but they are being strategic in recognizing that an early campaign is all about the emotional ties to the team and the Cavaliers created a campaign that reminds them of the emotional excitement of being at a game.

Every season ticket holder received a gold-stamped book that visually captures the emotions of the season and a look ahead to next year. Included with the book is the renewal information and a DVD showcasing video highlights of the season.

As an enticement to renew by the early deadline, the team is sweetening the offer by including a pair of starting guard LeBron James’ new NIKE shoes that have a retail value of more than $100 and are not yet available to the general public if they pay in full before May 1.

“We really positioned the shoes as being less about a gift and more about a show of appreciation,” Marek said. “A benefit to renew cannot be just a line item on a balance sheet but something that lives and stands out in their minds.”

Following the mailing is a phone call and perhaps a personal visit during the game to the season ticket holder to discuss renewal options or because the season is still going on to just talk basketball.

“We stress touch-points to our ticket staff all the time,” Marek said. “It is so much easier and more effective for our ticket executives to have a face-to-face visit to talk about renewing during the season than it is to catch them in the off-season when their attention might be on something else.”

Playoff payoff
The New York Islanders acted even earlier than the Cavaliers and had 92% of their season ticket base renewed by the end of March and sold 1,500 new season tickets with their early bird offer.

The Islanders offered free playoff tickets to the first two rounds of the team’s Stanley Cup playoff tickets if they renewed or purchased new season tickets for the 2004-05 season before the deadline.

“It is so much more effective to do an offer like this during the season when you are on everyone’s mind,” said Paul Lancey, Senior Vice President of the Islanders. “And if you can make the offer this compelling, it will make a significant difference at the box office.”

Lancey recognizes that including free playoff tickets is unprecedented by traditional team marketing activities. However, he said that is what appealed to Charles Wang, the team’s owner, about the offer.

“The marketplace was telling us that discounts or a price freeze would not excite them as much as hearing the word free would,” Lancey said. “A free ticket is something that everyone can relate to and we proved that they would excite them enough to renew early as a result.”

Proven time and time again
For the CFL Winnipeg Blue Bombers, in-season renewal offers are nothing new as the team has distributed renewal offers before the season ends for the last five years.

Over that time, the club annually locks up 75% percent of the account holders of approximately 20,000 season seats two weeks after the end of the season.

“Season ticket holders are never more excited about the team than when they are at a game and experiencing it,” said Lyle Bauer, President and Chief Executive Officer of the Blue Bombers. “For us, in-season renewals have become the standard and it makes a huge difference in the way we can separate sales and renewals.”

The CFL season ends in November and Bauer said they plan on sending our renewal materials in time for the season ticket holder to attend at least two more home games.

Prior to developing an in-season renewal campaign, the club annually sent out its renewal packages after the season and required renewals to be in by March.
“We have not only been able to secure dollars earlier but we have added three months to pursuing new accounts,” Bauer said. “I couldn’t imagine doing it any other way and I think our fans would agree with me.”

Indicator of success
As the Blue Bombers proved, early renewal offers not only lengthen the sales process but it provides a more accurate barometer of sales for the upcoming season.

This is one of the many benefits the Dallas Starts recognized after the team launched an early renewal campaign. The offer encouraged fans to renew their seats early and in return the team locked their ticket price for the next two seasons. Additionally, with the potential of the league’s Collective Bargaining Agreement looming over next year, the Stars required only a 50 percent payment.

“Early campaigns work on two ends,” said Bryan Perez, Executive Vice President of the Stars. “For us, it serves as a clearer idea of our renewal percentages and puts some money in the bank earlier. For the customer, it is a great opportunity to realize some extra benefits for making an earlier commitment to us.”

Stars customers are responding as the club has secured 75 of its current season ticket holders as a result of the offer.

“The offer essentially cleared the table of fans who you know will be with you,” Perez said. “Now we know to get aggressive with securing the remaining season ticket holders while pursuing new prospects as well.”

Heat and Suns use internal program to improve relations with season ticket holders

This story was originally published on April 1, 2004.

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