Over the last few months we’ve been spoiled by a bumper season of sport. From the Olympics and Paralympics, to the Euros and the Ryder Cup, there has been something for everyone and the sense of pride and celebration that major sporting events instill in observers is second to none.
If truth be told, it’s no secret that sport is one of the most powerful tools for digital marketers to tap into people’s hearts and minds, and wallets. The 2016 John Lewis Retail Report reveals that the Olympics inspired the British public to live well, with sales of Fitbits increasing in popularity by 131% after Rio. And, earlier this year, celebrated team Real Madrid was named the richest football club in the world in 2016. While most businesses cannot afford a Cristiano Ronaldo to front their brands, they can still learn a lot about customer engagement from the long-term relationships that sports teams build with their fans.
Battling customer disloyalty
Technological advancements and the sheer amount of choice, together with growth in data and information, mean that consumers have even greater power than ever before. From bank accounts and insurance, to mobile phone and internet providers, to groceries and televisions, consumers, regardless of what they are looking to purchase, are after a good deal and aren’t afraid to shop around to get it.
According to Webloyalty’s latest report, The Unfaithful Consumer, less than 25% of UK consumers believe retailers are very good at understanding their needs, indicating that loyalty is at an all-time low. However, when it comes to sports fans, the opposite is true; they are among the most dedicated customers in the world, but what can businesses learn from the sports industry about the art of customer loyalty?
Going beyond the experience
The most successful sports teams have figured out that capturing the hearts, and wallets, of their fans involves much more than just showing up on match days. The brains behind the Yankees’ financial success understand that customer engagement goes beyond customer experience. It’s not sufficient to provide a great experience at games. The goal is to invest in a long-term relationship. Through initiatives, such as last year’s back-to-school event where thousands of Yankee backpacks were distributed to New York children, the Yankees place themselves at the heart of the community. But, crucially, this also makes the lives of their target customer base easier and the brand connects with its fan base on an emotional level.
According to Harvard Business School professor Gerald Zaltman, 95% of consumer purchasing decisions are made using emotional rather than rational thought. With that in mind, building long-lasting customer relationships is clearly not just about asking for their patronage and loyalty. It’s about giving something back which makes their lives better or easier.
Tapping into technology
Perhaps more than any other factor, technology has changed the way businesses interact with consumers. While it has given customers a consequence-free way to ‘cheat’ on their regular provider, it has also given marketers a golden opportunity to tailor their offerings to meet the needs of consumers.
Sports fans can watch their favourite team on a variety of channels, engage with top players on social media, download apps to follow the team’s progress and participate in exclusive events. It’s never been easier easy for fans to follow their passion, and the rise of digital tech has facilitated the integration of sports teams into fans’ daily activities, meaning that engagement happens at a time that is convenient for them.
Businesses can easily follow suit. Technology helps to improve an organisation’s ability to segment its customer base and analyse data. That means that digital marketers should be engaging with their customer base in a personalised, relevant way – and there isn’t really an excuse for doing anything else.
Already making the right moves
While sports teams offer great insight into customer loyalty, they are not the only ones who have found the secret to building mutually beneficial and lasting relationships with customers. Many businesses already understand that an engaging, personalised and contextualised set of products and services can create a stronger bond with consumers, one that leads to increased loyalty.
A great example is how the Royal Bank of Scotland (RBS) transformed its disjointed digital experience, that was described by Giles Richardson, head of analytics at RBS, as “terrible”, into one that is totally customer-focused. This was achieved by repositioning internal digital specialists as superstar DJs, or journey managers, giving them access to the data they needed to provide customers with an end-to-end seamless experience. An online hub where customers can access their banking services, as well as a travel and events concierge, mobile phone insurance and vehicle breakdown cover, using a single login was also created.
Businesses, and sports teams alike succeed by providing solutions to their customers that go beyond simply fulfilling a need. Today’s customer demands more of businesses. They expect them to understand their needs and provide them with information, products or services that are personal and at a time that is relevant. That’s what really adds value.
The brands of the future are the ones that are constantly looking at new opportunities to become more ingrained in a consumer’s daily life. The key lesson that businesses can learn from sports teams is that, in the end, it is all about the fan. Remembering that will help brands stand out and gain greater customer loyalty and, ultimately, increase the bottom line.
By Karen Wheeler, UK country manager at Affinion
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