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DEFINING INSIGHTS

Fan Nation: A Study of Natural Social Networks in Sports

Thursday, June 24, 2010 by Joni Lockridge
Part One: Professional Soccer

I admit. I’m riding shotgun on the World Cup bandwagon. And after several hours in a crowded sports bar here in Atlanta, it is clear I’m not the only one. I was welcomed into a community of individuals who actively sought information about the team, the sport, the players, even the South African culture. We shared stories, we spilled beer on our jerseys… and we Facebooked each other so we could meet up for the next weekend’s games.  I’ve officially expanded into new social network.

What is it about sports that make “social networking” so natural, so effortless? 
More importantly, what can brands in other industries learn from sports as they spend marketing dollars to acquire digital fans?  A recent attempt by Syncapse to estimate the value of a fan on Facebook has resulted in an average worth of $138 per fan.  The study further states that:
  • On average, fans spend an additional $71.84 on products for which they are fans compared to those who are not fans
  • Fans are 28% more likely than non-fans to continue using the brand
  • Fans are 41% more likely than non-fans to recommend a fanned product to their friends
Given the demonstrated value, I sought out Casey Romany, an Account Executive for Soccer United Marketing (SUM) to uncover their ingredients for success.  SUM holds all commercial rights to both Major League Soccer and the United States Soccer Federation, including the men’s and women’s national teams that are playing in the 2010 World Cup.  In addition, they hold rights to Mexican National Team games played in the United States, the CONCACAF Gold Cup™, and InterLiga.™  

SUM just launched the new MLSnet.com, which has been years in the making.  Obviously, they are not ahead of the technology curve, but as Casey describes, perhaps it is because they have never needed to be. 

Soccer fans are extremely loyal and craved a centralized location to read about the sport.  They flocked to the new website where they can read about international matches, local MLS games, and their favorite players from all over the world. 

“We needed to take control of the space.  A fan would have to go to so many different leagues, teams, and national sport sites to access information about soccer,” said Casey.  SUM then supported their investment by hiring some of the biggest soccer journalists, affectionately called “soccer heads,” to tell the sport’s stories.  Genius.

By building one platform for all of soccer and capitalizing on its protagonists, its epic battles, and its gossip, SUM has pulled together a social network so powerful that other brands invest marketing dollars to gain access to the soccer fans that SUM has unified.  When a multi-million dollar business model also includes a way to monetize your marketing and PR tactics, it’s clear your fans are worth more than $138 each.  

The key takeaway:  Soccer, and the rest of the sports industry, is in the business of telling stories.  Strong, passionate, exciting, tales of victory, tragedy, and legends in the making.   Shakespeare only wishes he had it this easy.

And by comparison, fan pages on Facebook are flat.  Most connections are superficial—purely discount driven, and without true loyalty.  Where are the stories?  The passion?  Brands forget that they are selling more than products, and they lose depth in the relationships when they set the expectation that being a fan means getting a price reduction.  I’m not arguing that this method isn’t a great way to build numbers, but I am arguing that it is a fragile way to build loyalty.    

In my opinion, here are a few brands that have succeeded:  
  • Starbucks: Starbucks offers promotions, but more importantly, the page also connects to those fans that are socially and environmentally aware— a strong attribute of Facebook users within that 18-24 demographic segment.  Maybe this is why a Syncapse report revealed that Starbucks fans are likely to spend $238.22, more than triple the $71.84 average.  In addition, their photo albums tell vivid, engaging stories about the company, the products, and the leadership (Check out Howard Schultz’ trip to Rwanda).
  • Southwest Airlines: As over-the-top as the flight attendants can be, it is refreshing to witness personality in the airline industry.  The persona is also displayed full force on the Southwest Airlines Facebook page, and fans eat this up (a relatively safe assumption given the number of times fans ask, “How do I work for Southwest?”).   Another thing I like about the page is how they speak to checked bags like they are passengers, personifying a service they offer.  I value my personal belongings on a trip, and everything on this page reminds me that Southwest Airlines does also.
  • Nike Football (Soccer): Admittedly chosen due to its soccer content, this site still exemplifies the art of storytelling.  The videos instigate a real emotional connection, and the calls to action are extremely powerful.  The Nike Red campaign is building the same momentum as the LiveStrong campaign did $47 million dollars ago.  This page screams “Join the team, unite as a fan of the sport, rally behind the cause, and be loyal to the Nike brand.”
Soccer United Marketing has united fans in a way brands can emulate.  If you are looking to build loyalty, why focus solely on the collection of fickle bargain hunters?  Present your product information by telling the details about the hard work and research during development, or build stories around employees and spokespersons similar to fiery sports features on players and teams.  Most importantly, let your fans know that you have a heart; you are human; and you are the hero, not the villain.  Like.
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