Effective Promotions and Price Optimization in Sports through Sports Analytics
Sports Analytics Solutions have been disrupting the traditional intuitive and biased approach of various stakeholders within the sports industry, and it has increased several opportunities for stadium owners and sports organizations, with benefits such as improved players and team performances, increased sales and ROI through effective promotions and price optimization, improved fan experience and increase fan base to name a few.
Leveraging the insights generated from sports analytics solutions, digital promotional activities through social media and other mobile based applications, have increased significantly over the past 2-3 years. Additionally, it helps to tackle the concerns over fluctuating value for sponsorship providers during an ongoing season, with effective engagement value added propositions, with systematic marketing planning, to target the right customers with the right kind of promotions. Moreover, it also helps in identifying the appropriate structures for sponsorships and media rights. Thus, sports analytics help the leading brands to score with sports and strategically position their brand image. For example: Sports Mechanics a strategic consulting, analytics, and technology partner for global sports ecosystem, offers brand management solutions to assist leading brands in developing their roadmaps. It also provides ROI analysis for various marketing components such as sponsor management, media management, and digital & social media management.
Pricing optimization includes optimizing prices for tickets, merchandise, foods and beverages. Sports analytics by providing historical and real-time data helps in optimizing revenue through flexible ticket pricing. Analytics is almost used by 26 teams out of 30 teams of Major League Baseball for more flexible pricing. The most common approach for ticket pricing is variable pricing and dynamic pricing. Under variable pricing few tickets costs higher than others but the variable prices are constant throughout the season. Under dynamic pricing variable prices fluctuates during the whole season depending on the factors such as how team is performing, how competitor is performing and even weather conditions. San Francisco Giants an American baseball team was first team to use variable pricing in the MLB, which employed around 2000 seats per game. This was a success for the team which leaded to additional revenues of about $500,000 for the team.
– Sonam Chawla,