In this post, I am going to explain you a basic framework, which I have in mind in order to produce structured content on how small professional sports clubs are able to differentiate commercial from sporting success.
I might publish this post one week too late, because last week I already wrote about how behavioural fan segmentation could help to disconnect commercial from sporting success. But after finalising my content plan, I believe going one step back and providing you with a clear framework really is necessary.
I did some research on useful CRM concepts and how these processes could be transferred to small professional sports clubs. This is what I found:
A Possible CRM Framework
From a company perspective there are three different types, in which CRM activities could be categorised. Therefore one could differentiate between analytical, strategic and operational CRM. In the following, I am going to explain these different types of CRM and I will provide examples on how the sports clubs could make use of that.
Analytical CRM
Analytical CRM is a process, where it is all about generating fan insights. This means that sports clubs should be capable of transforming fan-related data in actionable insights for either strategic or tactical purposes. In his article The Fan Experience Matters: Fan Insight Through Data, Kaan Turnali, Global Senior Director at SAP states that: “Fan insight is the Holy Grail of fan experience”. In addition, he outlines four different ways of gaining fan insight through data. As an example, sports clubs could ask their fans, analyse transactional data, enhance their own data with external data or observe their fans.
As said before, in the “understand your fans” part from last week, I already introduced two possible examples of generating behavioural fan insights. Nevertheless, I believe that for small professional sports clubs it is increasingly important to also analyse transactional data in order to guarantee for a holistic analytical CRM process.
Strategic CRM
After successfully generating fan insights, it is time to think about different strategies and objectives for each fan segment. In order to start the strategic CRM process, sports clubs have to check on the following criteria (adapted from Dibb and Simkin):
1. Measurability
- Do we have fan insights – for all fans?
- How easily can we assign a fan to a segment?
2. Accessibility
- Are the segments homogeneous and distinctive?
- Can suitable marketing campaigns be developed?
3. Substantial
- Is the segment size sufficient so that resource allocation is justified?
4. Actionability
- Does the sports club have resources, capabilities and desire (strategic fit) to actually serve the segments?
In a next step sports clubs have to define fan-oriented target figures such as fan engagement, fan loyalty, fan satisfaction and fan profitability. According to these target figures, definite strategies for each fan segment need to be developed. In the following weeks, I will introduce practical strategies for each target figure.
Operational CRM
Operational CRM in the sports industry can be defined as services that allow a sports club taking care of their fans. It focuses on the design of processes at the interface between sports clubs and fans, for example the ticketing process, general marketing and fan service processes. These processes should be streamlined in a way that they support fan experiences and the development and nurturing of individual fan relationships.
Due to bigger commercial competition among sports clubs and advances in information and communication technology, the use of CRM softwares, which should be fan-centric and integrate key operational CRM processes, is becoming increasingly important.
What’s next?
I think the above framework helps bringing some light into the darkness on how I will structure my blogs, videos and podcasts in the coming weeks. Going forward, my aim is to create bits of content on topics, which are related to analytical, strategic or operational CRM processes at small professional sports clubs respectively.
Please feel free to reach out at any time if you have any comments or questions. Stay tuned!
Sources:
-Header image: www.flaticon.com
